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Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 217.60 543.10 Td (\(Exact name of r) Tj ET Q q 0 0 0 rg BT 274.55 543.10 Td (egistrant as specified in its charter\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.50 531.10 Td (_______________________________) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 163.85 512.73 Td (Delaware) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.85 512.73 Td (23-2691170) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 136.35 503.36 Td (\(State or) Tj ET Q q 0 0 0 rg BT 162.07 503.36 Td ( other) Tj ET Q q 0 0 0 rg BT 179.64 503.36 Td ( jurisdiction of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 134.35 496.36 Td (incorporation or) Tj ET Q q 0 0 0 rg BT 183.80 496.36 Td ( organization\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 410.75 503.36 Td (\(I.R.S. Employer) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 408.55 496.36 Td (Identification No.\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 116.55 485.73 Td (1601 Market Street, Philadelphia, PA) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.00 485.73 Td (19103) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 122.10 476.41 Td (\(Address of principal executive offices\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 419.75 476.41 Td (\(Zip Code\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 274.75 460.10 Td (\(215\) 231-1000) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 215.70 450.50 Td (\(Registrant) Tj ET Q q 0 0 0 rg BT 256.72 450.50 Td (s telephone number) Tj ET Q q 0 0 0 rg BT 323.10 450.50 Td (, including ar) Tj ET Q q 0 0 0 rg BT 368.52 450.50 Td (ea code\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 183.95 435.50 Td (Securities r) Tj ET Q q 0 0 0 rg BT 232.36 435.50 Td (egister) Tj ET Q q 0 0 0 rg BT 260.50 435.50 Td (ed pursuant to Section12\(b\) of the ) Tj ET Q q 0 0 0 rg BT 409.67 435.50 Td (Act:) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.67 w 0 i [] 0 d 1 J 1 j 3 M 122.7 416.663818359375 m 175.25810546875 416.663818359375 l s q 0 0 0 rg BT 122.70 417.76 Td (Title of each class) Tj ET Q BT /F2 7.00 Tf ET 0 0 0 RG /GS0 gs 0.67 w 0 i [] 0 d 1 J 1 j 3 M 340 416.663818359375 m 469.9990234375 416.663818359375 l s q 0 0 0 rg BT 340.00 417.76 Td (Name of each exchange on which registered) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 77.65 407.13 Td (Common Stock, $.001 par value per share) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.90 407.13 Td (New York Stock Exchange) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 93.10 397.13 Td (Preferred Stock Purchase Rights) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.90 397.13 Td (New York Stock Exchange) Tj ET Q BT /F1 10.00 Tf ET BT /F2 8.00 Tf ET q 0 0 0 rg BT 198.70 382.90 Td (Securities r) Tj ET Q q 0 0 0 rg BT 237.43 382.90 Td (egister) Tj ET Q q 0 0 0 rg BT 259.94 382.90 Td (ed pursuant to Section12\(g\) of the ) Tj ET Q q 0 0 0 rg BT 378.83 382.90 Td (Act: None) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 244.00 373.30 Td (_______________________________) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 360.70 Td (Indicate by check mark if the registrant is a well-known seasoned issuer) Tj ET Q q 0 0 0 rg BT 266.05 360.70 Td (, as defined in Rule 405 of the Securities ) Tj ET Q q 0 0 0 rg BT 397.57 360.70 Td (Act.) Tj ET Q q 0 0 0 rg BT 424.83 360.70 Td (YES) Tj ET Q /GS0 gs q 8.48 0 0 8.27 443.94 358.97 cm /I5 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.42 360.70 Td (NO) Tj ET Q /GS0 gs q 7.13 0 0 8.27 475.98 358.97 cm /I6 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 348.10 Td (Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section15\(d\)of the ) Tj ET Q q 0 0 0 rg BT 404.79 348.10 Td (Act.) Tj ET Q q 0 0 0 rg BT 426.04 348.10 Td (YES) Tj ET Q /GS0 gs q 7.13 0 0 8.27 445.15 346.37 cm /I7 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 452.28 348.10 Td (NO) Tj ET Q /GS0 gs q 8.48 0 0 8.27 475.84 346.37 cm /I8 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 335.50 Td (Indicate by check mark whether the registrant \(1\)has filed all reports required to be filed by Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 483.62 335.50 Td (Act of 1934 during the preceding ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 325.90 Td (12 months \(or for such shorter period that the registrant was required to file such reports\), and \(2\)has been subject to such filing requirements for the past 90 ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 316.30 Td (days.) Tj ET Q q 0 0 0 rg BT 42.37 316.30 Td (YES) Tj ET Q /GS0 gs q 8.48 0 0 8.27 63.48 314.57 cm /I9 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 71.96 316.30 Td (NO) Tj ET Q /GS0 gs q 7.13 0 0 8.27 95.52 314.57 cm /I10 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 306.70 Td (Indicate by check mark whether the registrant has submitted electronically and posted on its corporate ) Tj ET Q q 0 0 0 rg BT 364.41 306.70 Td (W) Tj ET Q q 0 0 0 rg BT 371.32 306.70 Td (eb site, if any) Tj ET Q q 0 0 0 rg BT 413.89 306.70 Td (, every Interactive Data File required to be submitted ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 297.10 Td (and posted pursuant to Rule 405 of Regulation S-T) Tj ET Q q 0 0 0 rg BT 180.95 297.10 Td ( \( 232.405 of this chapter\) during the preceding 12 months \(or for such shorter period that the registrant was required to submit ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 287.50 Td (and post such files\).) Tj ET Q q 0 0 0 rg BT 89.69 287.50 Td (YES) Tj ET Q /GS0 gs q 8.48 0 0 8.27 108.80 285.77 cm /I11 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 117.29 287.50 Td (NO) Tj ET Q /GS0 gs q 7.13 0 0 8.27 140.84 285.77 cm /I12 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 277.90 Td (Indicate by check mark if disclosure of delinquent filers pursuant to Item405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant) Tj ET Q q 0 0 0 rg BT 583.63 277.90 Td (s ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 268.30 Td (knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form10-K or any amendment to this Form 10-K.) Tj ET Q /GS0 gs q 7.13 0 0 8.27 505.21 266.57 cm /I13 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 255.70 Td (Indicate by check mark whether the registrant is a lar) Tj ET Q q 0 0 0 rg BT 205.78 255.70 Td (ge accelerated filer) Tj ET Q q 0 0 0 rg BT 266.30 255.70 Td (, an accelerated filer) Tj ET Q q 0 0 0 rg BT 330.82 255.70 Td (, a non-accelerated filer) Tj ET Q q 0 0 0 rg BT 406.00 255.70 Td (, or a smaller reporting company) Tj ET Q q 0 0 0 rg BT 509.89 255.70 Td (. See definitions of lar) Tj ET Q q 0 0 0 rg BT 584.17 255.70 Td (ge ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 246.10 Td (accelerated filer) Tj ET Q q 0 0 0 rg BT 68.97 246.10 Td (, accelerated filer) Tj ET Q q 0 0 0 rg BT 131.04 246.10 Td (, and smaller reporting company in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 346.97 246.10 Td (Act. \(Check One\):) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 21.00 227.55 Td (Lar) Tj ET Q q 0 0 0 rg BT 31.96 227.55 Td (geacceleratedfiler) Tj ET Q /GS0 gs q 8.48 0 0 8.27 96.80 225.83 cm /I14 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.00 227.55 Td (Acceleratedfiler) Tj ET Q /GS0 gs q 7.13 0 0 7.81 504.40 225.29 cm /I15 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 21.00 216.55 Td (Non-acceleratedfiler) Tj ET Q /GS0 gs q 7.13 0 0 8.27 96.73 214.83 cm /I16 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 133.00 216.55 Td (\(Donotcheckifasmaller reporting company\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 384.00 216.55 Td (Smallerreportingcompany) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 501.00 216.55 Td () Tj ET Q /GS0 gs q 7.13 0 0 8.27 505.00 214.83 cm /I17 Do Q BT /F1 10.00 Tf ET BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 201.50 Td (Indicate by check mark whether the registrant is a shell company \(as defined in Rule 12b-2 of the Exchange ) Tj ET Q q 0 0 0 rg BT 382.77 201.50 Td (Act\).) Tj ET Q q 0 0 0 rg BT 406.69 201.50 Td (Y) Tj ET Q q 0 0 0 rg BT 411.66 201.50 Td (es) Tj ET Q /GS0 gs q 7.13 0 0 8.27 422.33 199.77 cm /I18 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.46 201.50 Td (No) Tj ET Q /GS0 gs q 8.48 0 0 8.27 451.23 199.77 cm /I19 Do Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 188.90 Td (As of ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 55.55 188.90 Td (June30, 2014) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 100.22 188.90 Td (, the aggregate market value of the registrant) Tj ET Q q 0 0 0 rg BT 245.49 188.90 Td (s common stock held by non-af) Tj ET Q q 0 0 0 rg BT 345.99 188.90 Td (filiates of the registrant was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.85 188.90 Td ($2,809,401,966) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 486.85 188.90 Td ( based on the closing sale price ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 179.30 Td (as reported on the New ) Tj ET Q q 0 0 0 rg BT 93.90 179.30 Td (Y) Tj ET Q q 0 0 0 rg BT 98.88 179.30 Td (ork Stock Exchange. Excluded from this amount is the value of all shares beneficially owned by executive of) Tj ET Q q 0 0 0 rg BT 447.96 179.30 Td (ficers and directors of the registrant. ) Tj ET Q q 0 0 0 rg BT 565.77 179.30 Td (These ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 169.70 Td (exclusions should not be deemed to constitute a representation or acknowledgment that any such individual is, in fact, an af) Tj ET Q q 0 0 0 rg BT 413.08 169.70 Td (filiate of the registrant or that there are not other persons ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 18.00 160.10 Td (or entities who may be deemed to be af) Tj ET Q q 0 0 0 rg BT 143.59 160.10 Td (filiates of the registrant.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 36.00 147.50 Td (The number of shares of common stock, $.001 par value per share, of the registrant outstanding on ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 353.69 147.50 Td (February24, 2015) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 412.57 147.50 Td ( was ) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.01 147.50 Td (191,135,153) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 469.01 147.50 Td ( shares.) 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.85 252.32 Td (1) Tj ET Q q 0 0 0 rg BT 547.48 252.32 Td (18) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 239.32 Td (Changes in and Disagreements with ) Tj ET Q q 0 0 0 rg BT 301.31 239.32 Td (Accountants on ) Tj ET Q q 0 0 0 rg BT 365.74 239.32 Td (Accounting and Financial Disclosure) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 239.32 Td (192) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 226.32 Td (Controls and Procedures) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.00 226.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 226.32 Td (192) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 213.32 Td (Other Information) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.00 213.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 213.32 Td (193) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 189.32 Td (Directors, Executive Of) Tj ET Q q 0 0 0 rg BT 250.56 189.32 Td (ficers and Corporate Governance) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.00 189.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 189.32 Td (194) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 176.32 Td (Executive Compensation) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.00 176.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 176.32 Td (194) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 163.32 Td (Security Ownership of Certain Beneficial Owners and Management and Related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 153.32 Td (Stockholder Matters) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 153.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 153.42 Td (194) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 139.32 Td (Certain Relationships and Related ) Tj ET Q q 0 0 0 rg BT 294.18 139.32 Td (T) Tj ET Q q 0 0 0 rg BT 299.93 139.32 Td (ransactions, and Director Independence) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.00 139.32 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 139.32 Td (195) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 126.32 Td (Principal ) Tj ET Q q 0 0 0 rg BT 193.55 126.32 Td (Accountant Fees and Services) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.00 126.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 126.32 Td (195) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.50 102.32 Td (Exhibits and Financial Statement Schedules) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.00 102.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 102.32 Td (196) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 89.48 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 83.43 89.48 Td (TURES) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.00 89.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 89.37 Td (197) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 77.48 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 87.05 77.48 Td (T) Tj ET Q q 0 0 0 rg BT 93.54 77.48 Td (O FINANCIAL) Tj ET Q q 0 0 0 rg BT 159.93 77.48 Td ( ST) Tj ET Q q 0 0 0 rg BT 173.92 77.48 Td (A) Tj ET Q q 0 0 0 rg BT 180.40 77.48 Td (TEMENT) Tj ET Q q 0 0 0 rg BT 223.56 77.48 Td ( SCHEDULES) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.00 77.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 77.37 Td (199) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 65.48 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 87.05 65.48 Td (T) Tj ET Q q 0 0 0 rg BT 93.54 65.48 Td (O EXHIBITS) Tj ET Q BT /F2 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.00 65.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.50 65.37 Td (208) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 7 0 obj <> endobj 8 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 39.60 Td (3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 186.05 731.25 Td (GLOSSAR) Tj ET Q q 0 0 0 rg BT 233.49 731.25 Td (Y) Tj ET Q q 0 0 0 rg BT 240.34 731.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 256.36 731.25 Td ( ) Tj ET Q q 0 0 0 rg BT 258.31 731.25 Td (ABBREVIA) Tj ET Q q 0 0 0 rg BT 310.35 731.25 Td (TIONS ) Tj ET Q q 0 0 0 rg BT 343.42 731.25 Td (AND ) Tj ET Q q 0 0 0 rg BT 367.04 731.25 Td (ACRONYMS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (The list which follows includes the definitions of various abbreviations and acronyms used throughout this report, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (including the Business Section, Management) Tj ET Q q 0 0 0 rg BT 232.53 698.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 301.70 698.25 Td (Analysis of Financial Condition and Results of Operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (Consolidated Financial Statements and the Notes to Consolidated Financial Statements.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 675.75 m 50 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 675.75 m 158 675.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 675.75 m 158 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 675.75 m 539 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 675.75 m 539 675.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 661.75 m 50 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 661.75 m 158 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 661.75 m 158 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 661.75 m 539 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 661.75 m 539 661.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 646.75 m 50 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 646.75 m 158 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 646.75 m 158 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 646.75 m 539 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 646.75 m 539 646.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 631.75 m 50 616.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 631.75 m 158 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 631.75 m 158 616.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 631.75 m 539 616.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 631.75 m 539 631.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 616.75 m 50 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 616.75 m 158 616.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 616.75 m 158 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 616.75 m 539 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 616.75 m 539 616.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 601.75 m 50 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 601.75 m 158 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 601.75 m 158 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 601.75 m 539 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 601.75 m 539 601.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 586.75 m 50 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 586.75 m 158 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 586.75 m 158 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 586.75 m 539 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 586.75 m 539 586.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 571.75 m 50 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 571.75 m 158 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 571.75 m 158 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 571.75 m 539 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 571.75 m 539 571.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 546.75 m 50 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 546.75 m 158 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 546.75 m 158 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 546.75 m 539 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 546.75 m 539 546.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 531.75 m 50 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 531.75 m 158 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 531.75 m 158 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 531.75 m 539 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 531.75 m 539 531.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 516.75 m 50 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 516.75 m 158 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 516.75 m 158 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 516.75 m 539 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 516.75 m 539 516.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 501.75 m 50 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 501.75 m 158 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 501.75 m 158 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 501.75 m 539 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 501.75 m 539 501.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 486.75 m 50 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 486.75 m 158 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 486.75 m 158 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 486.75 m 539 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 486.75 m 539 486.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 470.75 m 50 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 470.75 m 158 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 470.75 m 158 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 470.75 m 539 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 470.75 m 539 470.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 422.75 m 50 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 422.75 m 158 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 422.75 m 158 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 422.75 m 539 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 422.75 m 539 422.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 387.75 m 50 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 387.75 m 158 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 387.75 m 158 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 387.75 m 539 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 387.75 m 539 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 372.75 m 50 357.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 372.75 m 158 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 372.75 m 158 357.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 372.75 m 539 357.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 372.75 m 539 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 357.75 m 50 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 357.75 m 158 357.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 357.75 m 158 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 357.75 m 539 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 357.75 m 539 357.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 342.75 m 50 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 342.75 m 158 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 342.75 m 158 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 342.75 m 539 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 342.75 m 539 342.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 327.75 m 50 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 327.75 m 158 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 327.75 m 158 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 327.75 m 539 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 327.75 m 539 327.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 272.75 m 50 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 272.75 m 158 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 272.75 m 158 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 272.75 m 539 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 272.75 m 539 272.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 257.75 m 50 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 257.75 m 158 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 257.75 m 158 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 257.75 m 539 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 257.75 m 539 257.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 242.75 m 50 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 242.75 m 158 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 242.75 m 158 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 242.75 m 539 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 242.75 m 539 242.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 227.75 m 50 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 227.75 m 158 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 227.75 m 158 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 227.75 m 539 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 227.75 m 539 227.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 202.75 m 50 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 202.75 m 158 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 202.75 m 158 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 202.75 m 539 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 202.75 m 539 202.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 187.75 m 50 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 187.75 m 158 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 187.75 m 158 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 187.75 m 539 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 187.75 m 539 187.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 172.75 m 50 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 172.75 m 158 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 172.75 m 158 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 172.75 m 539 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 172.75 m 539 172.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 147.75 m 50 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 147.75 m 158 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 147.75 m 158 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 147.75 m 539 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 147.75 m 539 147.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 132.75 m 50 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 132.75 m 158 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 132.75 m 158 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 132.75 m 539 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 132.75 m 539 132.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 107.75 m 50 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 107.75 m 158 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 107.75 m 158 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 107.75 m 539 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 107.75 m 539 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 82.75 m 50 67.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 82.75 m 158 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 82.75 m 158 67.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 82.75 m 539 67.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 82.75 m 539 82.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 67.75 m 50 67.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 67.75 m 158 67.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 67.75 m 158 67.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 67.75 m 539 67.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 67.75 m 539 67.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 67.25 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 67.25 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 67.25 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 67.25 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 67.25 m BT /F2 10.00 Tf ET q 0 0 0 rg BT 92.00 666.48 Td (Term) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.60 666.48 Td (Definition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 652.32 Td (1995 Equity Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 652.32 Td (The Radian Group Inc. 1995 Equity Compensation Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 637.32 Td (2008 Equity Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 637.32 Td (The Radian Group Inc. 2008 Equity Compensation Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 622.32 Td (2008 ESPP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 622.32 Td (The Radian Group Inc. 2008 Employee Stock Purchase Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 607.32 Td (2014 Equity Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 607.32 Td (The Radian Group Inc. 2014 Equity Compensation Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 592.32 Td (2014 Master Policy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 592.32 Td (Radian Guarantys Master Policy that became effective October 1, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 577.32 Td (ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 577.32 Td (Asset-backed securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 562.32 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 562.32 Td (Alternative-A loan where the documentation is generally limited as compared to fully) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 552.32 Td (documented loans \(considered a non-prime loan grade\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 537.32 Td (AOCI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 537.32 Td (Accumulated other comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 522.32 Td (Appeals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 522.32 Td (Internal Revenue Service Office of Appeals) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 507.32 Td (APR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 507.32 Td (Annual percentage rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 492.32 Td (ARM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 492.32 Td (Adjustable rate mortgage) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 477.32 Td (Assured) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 477.32 Td (Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 461.32 Td (Available Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 461.32 Td (As defined in the proposed PMIERs, these assets primarily include the liquid assets of an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 451.32 Td (insurer and exclude: \(i\) an amount equal to Unearned Premium Reserves; and \(ii\) certain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 441.32 Td (subsidiary capital, including Radian Guarantys capital that is attributable to its ownership of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 431.32 Td (Radian Asset Assurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.32 Td (Basel I) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 413.32 Td (The Basel Capital Accord, developed by the Basel Committee on Banking Supervision in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 403.32 Td (1988, which established international benchmarks for assessing banks capital adequacy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 393.32 Td (requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 378.32 Td (Basel II) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 378.32 Td (The June 2005 update to the Basel Capital Accord) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 363.32 Td (Basel III) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 363.32 Td (The September 2010 update to the Basel Capital Accord) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 348.32 Td (BCBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 348.32 Td (Basel Committee on Banking Supervision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 333.32 Td (Board) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 333.32 Td (Radian Groups Board of Directors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 318.32 Td (BofA Settlement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 308.32 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 318.32 Td (The Confidential Settlement Agreement and Release dated September 16, 2014, by and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 308.32 Td (among Radian Guaranty and Countrywide Home Loans, Inc. and Bank of America, N.A., as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 298.32 Td (a successor to BofA Home Loan Servicing f/k/a Countrywide Home Loan Servicing LP, in) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 288.32 Td (order to resolve various actual and potential claims or disputes as to mortgage insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 278.32 Td (coverage on certain Subject Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 263.32 Td (Carryforwards) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 263.32 Td (Net operating loss carryforward and tax credit carryforward, collectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 248.32 Td (CD) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 248.32 Td (Certificate of deposit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 233.32 Td (CFPB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 233.32 Td (Consumer Financial Protection Bureau) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 218.32 Td (Claim Curtailment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 218.32 Td (Our legal right, under certain conditions, to reduce the amount of a claim, including due to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 208.32 Td (servicer negligence) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 193.32 Td (Claim Denial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 193.32 Td (Our legal right, under certain conditions, to deny a claim) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 178.32 Td (Claim Severity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 178.32 Td (The total claim amount paid divided by the original coverage amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 163.32 Td (Clayton) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 163.32 Td (Clayton Holdings LLC, a Delaware domiciled indirect non-insurance subsidiary of Radian) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 153.32 Td (Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 138.32 Td (CMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 138.32 Td (Commercial mortgage-backed security) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 123.32 Td (Convertible Senior Notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 113.32 Td (due 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 123.32 Td (Our 3.000% convertible unsecured senior notes due November 2017 \($450 million principal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 113.32 Td (amount\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 98.32 Td (Convertible Senior Notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 88.32 Td (due 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 98.32 Td (Our 2.250% convertible unsecured senior notes due March 2019 \($400 million principal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 88.32 Td (amount\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 73.32 Td (COSO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 73.32 Td (Committee of Sponsoring Organizations of the Treadway Commission) Tj ET Q endstream endobj 9 0 obj <> endobj 10 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 39.60 Td (4) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 737.5 m 50 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 737.5 m 158 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 737.5 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 737.5 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 737.5 m 539 737.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 92.00 728.23 Td (Term) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.60 728.23 Td (Definition) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 724 m 50 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 724 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 724 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 724 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 724 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723.5 m 50 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723.5 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723.5 m 158 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 723.5 m 539 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723.5 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.5 m 50 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.5 m 158 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 698.5 m 158 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 698.5 m 539 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 698.5 m 539 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 683.5 m 50 658.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 683.5 m 158 683.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 683.5 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3 M 50 628.5 m 158 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 628.5 m 158 613.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 628.5 m 539 613.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 628.5 m 539 628.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 613.5 m 50 598.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 613.5 m 158 613.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 613.5 m 158 598.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 613.5 m 539 598.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 613.5 m 539 613.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 598.5 m 50 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 598.5 m 158 598.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 598.5 m 158 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 598.5 m 539 573.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 598.5 m 539 598.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i 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gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 543.5 m 539 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 508.5 m 50 493.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 508.5 m 158 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 508.5 m 158 493.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 508.5 m 539 493.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 508.5 m 539 508.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 493.5 m 50 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 493.5 m 158 493.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 493.5 m 158 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 493.5 m 539 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 493.5 m 539 493.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 478.5 m 50 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 478.5 m 158 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 478.5 m 158 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 478.5 m 539 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 478.5 m 539 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 463.5 m 50 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 463.5 m 158 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 463.5 m 158 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 463.5 m 539 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 463.5 m 539 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 448.5 m 50 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 448.5 m 158 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 448.5 m 158 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 448.5 m 539 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 448.5 m 539 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.5 m 50 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.5 m 158 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 433.5 m 158 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 433.5 m 539 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 433.5 m 539 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 418.5 m 50 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 418.5 m 158 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 418.5 m 158 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 418.5 m 539 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 418.5 m 539 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 403.5 m 50 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 403.5 m 158 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 403.5 m 158 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 403.5 m 539 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 403.5 m 539 403.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 388.5 m 50 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 388.5 m 158 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 388.5 m 158 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 388.5 m 539 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 388.5 m 539 388.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 343.5 m 50 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 343.5 m 158 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 343.5 m 158 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 343.5 m 539 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 343.5 m 539 343.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 318.5 m 50 303.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 318.5 m 158 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 318.5 m 158 303.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 318.5 m 539 303.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 318.5 m 539 318.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 303.5 m 50 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 303.5 m 158 303.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 303.5 m 158 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 303.5 m 539 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 303.5 m 539 303.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 278.5 m 50 253.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 278.5 m 158 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 278.5 m 158 253.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 278.5 m 539 253.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 278.5 m 539 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 253.5 m 50 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 253.5 m 158 253.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 253.5 m 158 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 253.5 m 539 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 253.5 m 539 253.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 238.5 m 50 223.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 238.5 m 158 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 238.5 m 158 223.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 238.5 m 539 223.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 238.5 m 539 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 223.5 m 50 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 223.5 m 158 223.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 223.5 m 158 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 223.5 m 539 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 223.5 m 539 223.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 208.5 m 50 193.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 208.5 m 158 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 208.5 m 158 193.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 208.5 m 539 193.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 208.5 m 539 208.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 193.5 m 50 178.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 193.5 m 158 193.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 193.5 m 158 178.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 193.5 m 539 178.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 193.5 m 539 193.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 178.5 m 50 163.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 178.5 m 158 178.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 178.5 m 158 163.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 178.5 m 539 163.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 178.5 m 539 178.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 163.5 m 50 148.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 163.5 m 158 163.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 163.5 m 158 148.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 163.5 m 539 148.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 163.5 m 539 163.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 148.5 m 50 133.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 148.5 m 158 148.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 148.5 m 158 133.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 148.5 m 539 133.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 148.5 m 539 148.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 133.5 m 50 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 133.5 m 158 133.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 133.5 m 158 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 133.5 m 539 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 133.5 m 539 133.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 118.5 m 50 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 118.5 m 158 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 118.5 m 158 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 118.5 m 539 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 118.5 m 539 118.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 103.5 m 50 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 103.5 m 158 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 103.5 m 158 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 103.5 m 539 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 103.5 m 539 103.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 88.5 m 50 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 88.5 m 158 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 88.5 m 158 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 88.5 m 539 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 88.5 m 539 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 73.5 m 50 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 73.5 m 158 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 73.5 m 158 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 73.5 m 539 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 73.5 m 539 73.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 714.07 Td (Cures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 714.07 Td (Loans that were in default as of the beginning of a period and are no longer in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 704.07 Td (because payments were received and the loan is no longer past due) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 689.07 Td (Default to Claim Rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 689.07 Td (Rate at which defaulted loans result in a claim) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 674.07 Td (Deficiency Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 674.07 Td (The assessed tax liabilities, penalties and interest associated with a formal Notice of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 664.07 Td (Deficiency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 649.07 Td (Dodd-Frank Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 649.07 Td (Dodd-Frank Wall Street Reform and Consumer Protection Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 634.07 Td (DTA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 634.07 Td (Deferred tax asset) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 619.07 Td (DTL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 619.07 Td (Deferred tax liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 604.07 Td (Early Stage Default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 604.07 Td (A default for which the foreclosure sale has not been scheduled or held) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 589.07 Td (Equity Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 589.07 Td (The 1995 Equity Compensation Plan, the 2008 Equity Compensation Plan and the 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 579.07 Td (Equity Compensation Plan, together) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 564.07 Td (ESPP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 564.07 Td (Employee Stock Purchase Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 549.07 Td (Exchange Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 549.07 Td (Securities and Exchange Act of 1934, as amended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 534.07 Td (Extraordinary Dividend) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 534.07 Td (A dividend distribution required to be approved by an insurance companys primary regulator) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 524.07 Td (that is greater than would be permitted as an ordinary dividend, which does not require) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 514.07 Td (regulatory approval) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 499.07 Td (Fannie Mae) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 499.07 Td (Federal National Mortgage Association) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 484.07 Td (FASB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 484.07 Td (Financial Accounting Standards Board) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 469.07 Td (FCRA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 469.07 Td (Fair Credit Reporting Act of 1970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 454.07 Td (FDCPA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 454.07 Td (Fair Debt Collection Practices Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 439.07 Td (FHA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 439.07 Td (Federal Housing Administration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 424.07 Td (FHFA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 424.07 Td (Federal Housing Finance Agency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 409.07 Td (FICO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 409.07 Td (Fair Isaac Corporation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 394.07 Td (First-liens) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 394.07 Td (First-lien mortgage loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 379.07 Td (Flow Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 379.07 Td (With respect to mortgage insurance, transactions in which mortgage insurance is provided on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 369.07 Td (mortgages on an individual loan basis as they are originated. Flow Business contrasts with) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 359.07 Td (Structured Transactions, in which mortgage insurance is provided on a group of mortgages) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 349.07 Td (after they have been originated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 334.07 Td (Foreclosure Stage) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 324.07 Td (Default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 334.07 Td (The Stage of Default indicating that the foreclosure sale has been scheduled or held) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 309.07 Td (Freddie Mac) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 309.07 Td (Federal Home Loan Mortgage Corporation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 294.07 Td (Freddie Mac Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 294.07 Td (The Master Transaction Agreement between Radian Guaranty and Freddie Mac entered into) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 284.07 Td (in August 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 269.07 Td (Future Legacy Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 269.07 Td (With respect to the BofA Settlement Agreement, Legacy Loans where a claim decision has) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 259.07 Td (been or will be communicated by Radian Guaranty after February 13, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 244.07 Td (GAAP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 244.07 Td (Accounting principles generally accepted in the United States of America) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 229.07 Td (Ginnie Mae) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 229.07 Td (Government National Mortgage Association) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 214.07 Td (Green River Capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 214.07 Td (Green River Capital LLC, a wholly-owned subsidiary of Clayton Holdings LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 199.07 Td (GSEs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 199.07 Td (Government-Sponsored Enterprises \(Fannie Mae and Freddie Mac\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 184.07 Td (HAFA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 184.07 Td (Home Affordable Foreclosure Alternatives Program) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 169.07 Td (HAMP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 169.07 Td (Homeowner Affordable Modification Program) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 154.07 Td (HARP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 154.07 Td (Home Affordable Refinance Program) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 139.07 Td (HARP 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 139.07 Td (The FHFAs extension of and enhancements to the HARP program) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 124.07 Td (HPA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 124.07 Td (Homeowners Protection Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 109.07 Td (HUD) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 109.07 Td (U.S. Department of Housing and Urban Development) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 94.07 Td (IBNR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 94.07 Td (Losses incurred but not reported) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 79.07 Td (IIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 79.07 Td (Insurance in force) Tj ET Q endstream endobj 11 0 obj <> endobj 12 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 39.60 Td (5) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 737.5 m 50 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 737.5 m 158 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 737.5 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 737.5 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 737.5 m 539 737.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 92.00 728.23 Td (Term) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.60 728.23 Td (Definition) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 724 m 50 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 724 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 724 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 724 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 724 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723.5 m 50 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723.5 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723.5 m 158 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 723.5 m 539 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723.5 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.5 m 50 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.5 m 158 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 698.5 m 158 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 698.5 m 539 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 698.5 m 539 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 673.5 m 50 638.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 673.5 m 158 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 673.5 m 158 638.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 673.5 m 539 638.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 673.5 m 539 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 638.5 m 50 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 638.5 m 158 638.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 638.5 m 158 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 638.5 m 539 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 638.5 m 539 638.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 623.5 m 50 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 623.5 m 158 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 623.5 m 158 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 623.5 m 539 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 623.5 m 539 623.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 608.5 m 50 583.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 608.5 m 158 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 608.5 m 158 583.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 608.5 m 539 583.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 608.5 m 539 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 583.5 m 50 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 583.5 m 158 583.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 583.5 m 158 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 583.5 m 539 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 583.5 m 539 583.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 548.5 m 50 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 548.5 m 158 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 548.5 m 158 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 548.5 m 539 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 548.5 m 539 548.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 523.5 m 50 498.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 523.5 m 158 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 523.5 m 158 498.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 523.5 m 539 498.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 523.5 m 539 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 498.5 m 50 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 498.5 m 158 498.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 498.5 m 158 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 498.5 m 539 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 498.5 m 539 498.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 473.5 m 50 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 473.5 m 158 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 473.5 m 158 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 473.5 m 539 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 473.5 m 539 473.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 448.5 m 50 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 448.5 m 158 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 448.5 m 158 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 448.5 m 539 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 448.5 m 539 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.5 m 50 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.5 m 158 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 433.5 m 158 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 433.5 m 539 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 433.5 m 539 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 418.5 m 50 393.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 418.5 m 158 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 418.5 m 158 393.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 418.5 m 539 393.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 418.5 m 539 418.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 393.5 m 50 378.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 393.5 m 158 393.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 393.5 m 158 378.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 393.5 m 539 378.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 393.5 m 539 393.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 378.5 m 50 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 378.5 m 158 378.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 378.5 m 158 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 378.5 m 539 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 378.5 m 539 378.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 363.5 m 50 348.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 363.5 m 158 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 363.5 m 158 348.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 363.5 m 539 348.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 363.5 m 539 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 348.5 m 50 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 348.5 m 158 348.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 348.5 m 158 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 348.5 m 539 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 348.5 m 539 348.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 313.5 m 50 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 313.5 m 158 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 313.5 m 158 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 313.5 m 539 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 313.5 m 539 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 288.5 m 50 273.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 288.5 m 158 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 288.5 m 158 273.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 288.5 m 539 273.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 288.5 m 539 288.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 273.5 m 50 258.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 273.5 m 158 273.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 273.5 m 158 258.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 273.5 m 539 258.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 273.5 m 539 273.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 258.5 m 50 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 258.5 m 158 258.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 258.5 m 158 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 258.5 m 539 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 258.5 m 539 258.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 243.5 m 50 228.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 243.5 m 158 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 243.5 m 158 228.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 243.5 m 539 228.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 243.5 m 539 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 228.5 m 50 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 228.5 m 158 228.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 228.5 m 158 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 228.5 m 539 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 228.5 m 539 228.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 213.5 m 50 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 213.5 m 158 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 213.5 m 158 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 213.5 m 539 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 213.5 m 539 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 198.5 m 50 173.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 198.5 m 158 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 198.5 m 158 173.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 198.5 m 539 173.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 198.5 m 539 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 173.5 m 50 158.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 173.5 m 158 173.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 173.5 m 158 158.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 173.5 m 539 158.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 173.5 m 539 173.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 158.5 m 50 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 158.5 m 158 158.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 158.5 m 158 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 158.5 m 539 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 158.5 m 539 158.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 143.5 m 50 108.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 143.5 m 158 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 143.5 m 158 108.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 143.5 m 539 108.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 143.5 m 539 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 108.5 m 50 93.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 108.5 m 158 108.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 108.5 m 158 93.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 108.5 m 539 93.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 108.5 m 539 108.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 93.5 m 50 78.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 93.5 m 158 93.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 93.5 m 158 78.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 93.5 m 539 78.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 93.5 m 539 93.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 78.5 m 50 78 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 78.5 m 158 78.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 78.5 m 158 78 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 78.5 m 539 78 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 78.5 m 539 78.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 714.07 Td (Implementation Date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 714.07 Td (The February 1, 2015 commencement date for activities pursuant to the BofA Settlement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 704.07 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 689.07 Td (Initial QSR Transaction) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 689.07 Td (Initial quota share reinsurance agreement entered into with a third-party reinsurance provider) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 679.07 Td (in the second quarter of 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 664.07 Td (Insureds) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 664.07 Td (Insured parties, with respect to the BofA Settlement Agreement, Countrywide Home Loans,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 654.07 Td (Inc. and Bank of America, N.A., as a successor to BofA Home Loan Servicing f/k/a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 644.07 Td (Countrywide Home Loans Servicing LP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 629.07 Td (IRS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 629.07 Td (Internal Revenue Service) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 614.07 Td (JPMorgan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 614.07 Td (JPMorgan Chase Bank, N.A. and its affiliates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 599.07 Td (LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 599.07 Td (Loss adjustment expenses, which include the cost of investigating and adjusting losses and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 589.07 Td (paying claims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 574.07 Td (Legacy Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 574.07 Td (With respect to the BofA Settlement Agreement, loans that were originated or acquired by an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 564.07 Td (Insured and were insured by Radian Guaranty prior to January 1, 2009, excluding such loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 554.07 Td (that were refinanced under HARP 2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 539.07 Td (Legacy Portfolio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 539.07 Td (Mortgage insurance written during the poor underwriting years of 2005 through 2008,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 529.07 Td (together with business written prior to 2005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 514.07 Td (LLPA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 514.07 Td (Loan level price adjustments, based on various risk characteristics, that are charged by the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 504.07 Td (GSEs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 489.07 Td (Loss Mitigation Activity/) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 479.07 Td (Activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 489.07 Td (Activities such as rescissions, denials, claim curtailments and cancellations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 464.07 Td (LTV) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 464.07 Td (Loan-to-value ratio which is calculated as the percentage of the original loan amount to the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 454.07 Td (original value of the property) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 439.07 Td (Master Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 439.07 Td (The Prior Master Policy and the 2014 Master Policy, collectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 424.07 Td (MBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 424.07 Td (Mortgage-backed security) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 409.07 Td (Minimum Required) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 399.07 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 409.07 Td (A risk-based minimum required asset amount as defined in the proposed PMIERs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 384.07 Td (Model Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 384.07 Td (Mortgage Guaranty Insurers Model Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 369.07 Td (Monthly Premium) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 369.07 Td (Premiums on mortgage insurance products paid on a monthly installment basis) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 354.07 Td (Moodys) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 354.07 Td (Moodys Investors Service) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 339.07 Td (MPP Requirement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 339.07 Td (Certain states statutory or regulatory risk-based capital requirement that the mortgage insurer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 329.07 Td (must maintain a minimum policyholder position, which is calculated based on both risk and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 319.07 Td (surplus levels) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 304.07 Td (MRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 304.07 Td (Radians Mortgage and Real Estate Services business segment, which provides mortgage-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 294.07 Td (and real estate-related products and services to the mortgage finance market) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 279.07 Td (NAIC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 279.07 Td (National Association of Insurance Commissioners) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 264.07 Td (NIW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 264.07 Td (New insurance written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 249.07 Td (NOL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 249.07 Td (Net operating loss, calculated on a tax basis) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 234.07 Td (NRSRO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 234.07 Td (Nationally recognized statistical ratings organization) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 219.07 Td (NYSDFS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 219.07 Td (New York State Department of Financial Services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 204.07 Td (NYSE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 204.07 Td (New York Stock Exchange) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 189.07 Td (Notice of Deficiency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 189.07 Td (A formal letter from the IRS informing the taxpayer of an IRS determination of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 179.07 Td (deficiency and appeal rights with the U.S. Tax Court) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 164.07 Td (OCI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 164.07 Td (Other comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 149.07 Td (Option ARM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 149.07 Td (Adjustable rate mortgage that provides the borrower with different payment options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 134.07 Td (ORSA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 134.07 Td (Own Risk and Solvency Assessment, an internal process to assess the adequacy of an) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 124.07 Td (insurers risk management framework and current and prospective solvency positions under) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 114.07 Td (both normal and severe stress scenarios) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 99.07 Td (PDR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 99.07 Td (Premium deficiency reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 84.07 Td (Persistency Rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 84.07 Td (The percentage of insurance in force that remains on our books after any 12-month period) Tj ET Q endstream endobj 13 0 obj <> endobj 14 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 39.60 Td (6) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 737.5 m 50 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 737.5 m 158 737.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 737.5 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 737.5 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 737.5 m 539 737.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 92.00 728.23 Td (Term) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.60 728.23 Td (Definition) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 724 m 50 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 724 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 724 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 724 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 724 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723.5 m 50 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723.5 m 158 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723.5 m 158 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 723.5 m 539 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723.5 m 539 723.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.5 m 50 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 698.5 m 158 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 698.5 m 158 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 698.5 m 539 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 698.5 m 539 698.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 673.5 m 50 648.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 673.5 m 158 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 673.5 m 158 648.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 673.5 m 539 648.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 673.5 m 539 673.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 648.5 m 50 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 648.5 m 158 648.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 648.5 m 158 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 648.5 m 539 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 648.5 m 539 648.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 633.5 m 50 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 633.5 m 158 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 633.5 m 158 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 633.5 m 539 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 633.5 m 539 633.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 608.5 m 50 593.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 608.5 m 158 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 608.5 m 158 593.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 608.5 m 539 593.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 608.5 m 539 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 593.5 m 50 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 593.5 m 158 593.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 593.5 m 158 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 593.5 m 539 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 593.5 m 539 593.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 578.5 m 50 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 578.5 m 158 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 578.5 m 158 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 578.5 m 539 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 578.5 m 539 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 553.5 m 50 538.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 553.5 m 158 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 553.5 m 158 538.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 553.5 m 539 538.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 553.5 m 539 553.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 538.5 m 50 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 538.5 m 158 538.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 538.5 m 158 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 538.5 m 539 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 538.5 m 539 538.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 523.5 m 50 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 523.5 m 158 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 523.5 m 158 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 523.5 m 539 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 523.5 m 539 523.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 478.5 m 50 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 478.5 m 158 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 478.5 m 158 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 478.5 m 539 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 478.5 m 539 478.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 463.5 m 50 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 463.5 m 158 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 463.5 m 158 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 463.5 m 539 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 463.5 m 539 463.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 448.5 m 50 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 448.5 m 158 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 448.5 m 158 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 448.5 m 539 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 448.5 m 539 448.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.5 m 50 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 433.5 m 158 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 433.5 m 158 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 433.5 m 539 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 433.5 m 539 433.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 408.5 m 50 383.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 408.5 m 158 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 408.5 m 158 383.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 408.5 m 539 383.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 408.5 m 539 408.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 383.5 m 50 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 383.5 m 158 383.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 383.5 m 158 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 383.5 m 539 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 383.5 m 539 383.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 368.5 m 50 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 368.5 m 158 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 368.5 m 158 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 368.5 m 539 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 368.5 m 539 368.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 353.5 m 50 328.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 353.5 m 158 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 353.5 m 158 328.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 353.5 m 539 328.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 353.5 m 539 353.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 328.5 m 50 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 328.5 m 158 328.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 328.5 m 158 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 328.5 m 539 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 328.5 m 539 328.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 313.5 m 50 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 313.5 m 158 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 313.5 m 158 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 313.5 m 539 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 313.5 m 539 313.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 278.5 m 50 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 278.5 m 158 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 278.5 m 158 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 278.5 m 539 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 278.5 m 539 278.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 263.5 m 50 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 263.5 m 158 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 263.5 m 158 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 263.5 m 539 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 263.5 m 539 263.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 238.5 m 50 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 238.5 m 158 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 238.5 m 158 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 238.5 m 539 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 238.5 m 539 238.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 213.5 m 50 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 213.5 m 158 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 213.5 m 158 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 213.5 m 539 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 213.5 m 539 213.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 198.5 m 50 183.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 198.5 m 158 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 198.5 m 158 183.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 198.5 m 539 183.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 198.5 m 539 198.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 183.5 m 50 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 183.5 m 158 183.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 183.5 m 158 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 183.5 m 539 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 183.5 m 539 183.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 168.5 m 50 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 168.5 m 158 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 168.5 m 158 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 168.5 m 539 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 168.5 m 539 168.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 143.5 m 50 128.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 143.5 m 158 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 143.5 m 158 128.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 143.5 m 539 128.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 143.5 m 539 143.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 128.5 m 50 113.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 128.5 m 158 128.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 128.5 m 158 113.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 128.5 m 539 113.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 128.5 m 539 128.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 113.5 m 50 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 113.5 m 158 113.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 113.5 m 158 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 113.5 m 539 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 113.5 m 539 113.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 88.5 m 50 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 88.5 m 158 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 88.5 m 158 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 88.5 m 539 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 88.5 m 539 88.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 73.5 m 50 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 73.5 m 158 73.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 73.5 m 158 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 73.5 m 539 73 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 73.5 m 539 73.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 714.07 Td (PMIERs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 714.07 Td (Private Mortgage Insurer Eligibility Requirements issued by the FHFA for public comment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 704.07 Td (on July 10, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 689.07 Td (PMIERs Financial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 679.07 Td (Requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 689.07 Td (Financial requirements of the PMIERs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 664.07 Td (Prior Master Policy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 664.07 Td (Radian Guarantys master insurance policy in effect prior to the effective date of its 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 654.07 Td (Master Policy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 639.07 Td (QM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 639.07 Td (Qualified mortgage) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 624.07 Td (QM Rule) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 624.07 Td (Rule issued by the CFPB on January 10, 2013, defining qualified mortgage and ability to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 614.07 Td (repay requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 599.07 Td (QRM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 599.07 Td (Qualified residential mortgage) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 584.07 Td (QSR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 584.07 Td (Quota share reinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 569.07 Td (QSR Reinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 559.07 Td (Transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 569.07 Td (The Initial QSR Transaction and Second QSR Transaction, collectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 544.07 Td (Radian) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 544.07 Td (Radian Group Inc. together with its consolidated subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 529.07 Td (Radian Asset Assurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 529.07 Td (Radian Asset Assurance Inc., a New York domiciled insurance subsidiary of Radian Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 514.07 Td (Radian Asset Assurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 504.07 Td (Stock Purchase) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 494.07 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 514.07 Td (The Stock Purchase Agreement dated December 22, 2014, between Radian Guaranty and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 504.07 Td (Assured Guaranty Corp., a subsidiary of Assured Guaranty Ltd. \(Assured\), to sell 100% of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 494.07 Td (the issued and outstanding shares of Radian Asset Assurance, Radians financial guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 484.07 Td (insurance subsidiary, to Assured) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 469.07 Td (Radian Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 469.07 Td (Radian Group Inc., the registrant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 454.07 Td (Radian Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 454.07 Td (Radian Guaranty Inc., a Pennsylvania domiciled insurance subsidiary of Radian Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 439.07 Td (Radian Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 439.07 Td (Radian Insurance Inc., a Pennsylvania domiciled insurance subsidiary of Radian Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 424.07 Td (Radian Mortgage) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 414.07 Td (Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 424.07 Td (Radian Mortgage Insurance Inc., a Pennsylvania domiciled subsidiary of Radian Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 399.07 Td (RBC States) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 399.07 Td (Risk-based capital states, which are those states that currently impose a statutory or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 389.07 Td (regulatory risk-based capital requirement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 374.07 Td (REMIC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 374.07 Td (Real Estate Mortgage Investment Conduit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 359.07 Td (REO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 359.07 Td (Real Estate Owned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 344.07 Td (Rescission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 344.07 Td (Our legal right, under certain conditions, to unilaterally rescind coverage on our mortgage) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 334.07 Td (insurance policies if we determine that a loan did not qualify for insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 319.07 Td (RESPA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 319.07 Td (Real Estate Settlement Procedures Act of 1974) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 304.07 Td (RGRI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 304.07 Td (Radian Guaranty Reinsurance Inc., a Pennsylvania domiciled insurance subsidiary of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 294.07 Td (Enhance Financial Services Group Inc., a New York domiciled non-insurance subsidiary of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 284.07 Td (Radian Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 269.07 Td (RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 269.07 Td (Risk in force, which approximates the maximum loss exposure at any point in time) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 254.07 Td (Risk-to-capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 254.07 Td (Under certain state regulations, a minimum ratio of statutory capital calculated relative to the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 244.07 Td (level of net risk in force) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 229.07 Td (RMAI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 229.07 Td (Radian Mortgage Assurance Inc., a Pennsylvania domiciled insurance subsidiary of Radian) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 219.07 Td (Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 204.07 Td (RMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 204.07 Td (Residential mortgage-backed securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 189.07 Td (RSU) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 189.07 Td (Restricted stock unit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 174.07 Td (S&P) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 174.07 Td (Standard & Poors Financial Services LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 159.07 Td (SAP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 159.07 Td (Statutory accounting practices include those required or permitted, if applicable, by the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 149.07 Td (insurance departments of the respective states of domicile of our insurance subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 134.07 Td (SARs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 134.07 Td (Stock appreciation rights) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 119.07 Td (SEC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 119.07 Td (United States Securities and Exchange Commission) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 104.07 Td (Second QSR Transaction) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 104.07 Td (Second Quota share reinsurance transaction entered into with a third-party reinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 94.07 Td (provider in the fourth quarter of 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 79.07 Td (Second-liens) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 79.07 Td (Second-lien mortgage loans) Tj ET Q endstream endobj 15 0 obj <> endobj 16 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 39.60 Td (7) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 736.5 m 50 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 736.5 m 158 736.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 736.5 m 158 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 736.5 m 539 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 736.5 m 539 736.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 92.00 727.23 Td (Term) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 326.60 727.23 Td (Definition) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723 m 50 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 723 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723 m 158 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 723 m 539 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 723 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 722.5 m 50 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 722.5 m 158 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 722.5 m 158 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 722.5 m 539 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 722.5 m 539 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 707.5 m 50 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 707.5 m 158 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 707.5 m 158 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 707.5 m 539 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 707.5 m 539 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 692.5 m 50 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 692.5 m 158 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 692.5 m 158 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 692.5 m 539 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 692.5 m 539 692.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 677.5 m 50 662.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 677.5 m 158 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 677.5 m 158 662.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 677.5 m 539 662.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 677.5 m 539 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 662.5 m 50 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 662.5 m 158 662.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 662.5 m 158 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 662.5 m 539 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 662.5 m 539 662.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 617.5 m 50 602.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 617.5 m 158 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 617.5 m 158 602.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 617.5 m 539 602.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 617.5 m 539 617.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 602.5 m 50 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 602.5 m 158 602.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 602.5 m 158 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 602.5 m 539 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 602.5 m 539 602.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 577.5 m 50 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 577.5 m 158 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 577.5 m 158 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 577.5 m 539 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 577.5 m 539 577.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 552.5 m 50 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 552.5 m 158 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 552.5 m 158 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 552.5 m 539 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 552.5 m 539 552.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 517.5 m 50 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 517.5 m 158 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 517.5 m 158 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 517.5 m 539 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 517.5 m 539 517.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 492.5 m 50 447.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 492.5 m 158 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 492.5 m 158 447.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 492.5 m 539 447.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 492.5 m 539 492.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 447.5 m 50 422.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 447.5 m 158 447.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 447.5 m 158 422.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 447.5 m 539 422.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 447.5 m 539 447.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 422.5 m 50 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 422.5 m 158 422.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 422.5 m 158 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 422.5 m 539 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 422.5 m 539 422.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 407.5 m 50 382.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 407.5 m 158 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 407.5 m 158 382.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 407.5 m 539 382.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 407.5 m 539 407.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 382.5 m 50 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 382.5 m 158 382.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 382.5 m 158 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 382.5 m 539 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 382.5 m 539 382.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 367.5 m 50 352.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 367.5 m 158 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 367.5 m 158 352.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 367.5 m 539 352.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 367.5 m 539 367.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 352.5 m 50 337.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 352.5 m 158 352.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 352.5 m 158 337.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 352.5 m 539 337.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 352.5 m 539 352.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 337.5 m 50 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 337.5 m 158 337.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 337.5 m 158 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 337.5 m 539 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 337.5 m 539 337.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 312.5 m 50 297.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 312.5 m 158 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 312.5 m 158 297.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 312.5 m 539 297.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 312.5 m 539 312.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 297.5 m 50 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 297.5 m 158 297.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 242.5 m 158 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 297.5 m 158 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 539 297.5 m 539 242.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 297.5 m 539 297.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 158 242.5 m 539 242.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 713.07 Td (Senior Notes due 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 713.07 Td (Our 5.625% unsecured senior notes due February 2013 \($250 million principal amount\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 698.07 Td (Senior Notes due 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 698.07 Td (Our 5.375% unsecured senior notes due June 2015 \($250 million principal amount\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 683.07 Td (Senior Notes due 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 683.07 Td (Our 9.000% unsecured senior notes due June 2017 \($195.5 million principal amount\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 668.07 Td (Senior Notes due 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 668.07 Td (Our 5.500% unsecured senior notes due June 2019 \($300 million principal amount\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 653.07 Td (Servicing Only Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 653.07 Td (With respect to the BofA Settlement Agreement, loans other than Legacy Loans that were or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 643.07 Td (are serviced by the Insureds and were 90 days or more past due as of July 31, 2014, or if) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 633.07 Td (servicing has been transferred to a servicer other than the Insureds, 90 days or more past due) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 623.07 Td (as of the transfer date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 608.07 Td (Single Premium) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 608.07 Td (Premiums on mortgage insurance products paid in a single payment at origination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 593.07 Td (Smart Home) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 593.07 Td (A Radian-developed program for reinsuring risk associated with non-prime mortgages) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 583.07 Td (through the use of VIE structures, which transferred risk to investors in the capital markets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 568.07 Td (Sovereign) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 568.07 Td (Sovereign or independent governmental units, including various levels of government \(sub-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 558.07 Td (sovereign\), collectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 543.07 Td (Stage of Default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 543.07 Td (The stage a loan is in relative to the foreclosure process, based on whether or not a) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 533.07 Td (foreclosure sale has been scheduled or held \(i.e., Early Stage Defaults and Foreclosure Stage) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 523.07 Td (Defaults\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 508.07 Td (Statutory RBC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 498.07 Td (Requirement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 508.07 Td (Risk-based capital requirement imposed by the RBC States, requiring a minimum surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 498.07 Td (level and, in certain states, a minimum ratio of statutory capital relative to the level of risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 483.07 Td (Structured Transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 483.07 Td (With respect to mortgage insurance, transactions in which mortgage insurance is provided on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 473.07 Td (a group of mortgages after they have been originated. Structured Transactions contrast with) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 463.07 Td (Flow Business, in which mortgage insurance is provided on mortgages on an individual loan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 453.07 Td (basis as they are originated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 438.07 Td (Subject Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 438.07 Td (Loans covered under the BofA Settlement Agreement, comprising Legacy Loans and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 428.07 Td (Servicing Only Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.07 Td (TILA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 413.07 Td (Truth in Lending Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 398.07 Td (Time in Default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 398.07 Td (The time period from the point a loan reaches default status \(based on the month the default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 388.07 Td (occurred\) to the current reporting date) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 373.07 Td (TSR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 373.07 Td (Total stockholder return) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 358.07 Td (U.S.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 358.07 Td (The United States of America) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 343.07 Td (U.S. Treasury) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 343.07 Td (United States Department of the Treasury) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 328.07 Td (Unearned Premium) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 318.07 Td (Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 328.07 Td (Premiums received but not yet earned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 303.07 Td (VA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 303.07 Td (U.S. Department of Veterans Affairs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 288.07 Td (VIE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 288.07 Td (Variable interest entity is a legal entity subject to the variable interest entity subsections of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 278.07 Td (the accounting standard regarding consolidation, and generally includes a corporation, trust) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 268.07 Td (or partnership in which, by design, equity investors do not have a controlling financial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 258.07 Td (interest or do not have sufficient equity at risk to finance activities without additional) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 248.07 Td (subordinated financial support) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 17 0 obj <> endobj 18 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 39.60 Td (8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 127.70 731.25 Td (Cautionary Note Regarding Forward Looking StatementsSafe Harbor) Tj ET Q q 0 0 0 rg BT 437.50 731.25 Td ( Pr) Tj ET Q q 0 0 0 rg BT 450.37 731.25 Td (ovisions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (All statements in this report that address events, developments or results that we expect or anticipate may occur in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (future are forward-looking statements within the meaning of Section 27A) Tj ET Q q 0 0 0 rg BT 351.91 698.25 Td ( of the Securities ) Tj ET Q q 0 0 0 rg BT 421.34 698.25 Td (Act of 1933, Section 21E of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (Exchange ) Tj ET Q q 0 0 0 rg BT 90.87 686.25 Td (Act and the U.S. Private Securities Litigation Reform ) Tj ET Q q 0 0 0 rg BT 306.94 686.25 Td (Act of 1995. In most cases, forward-looking statements may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (identified by words such as anticipate, may) Tj ET Q q 0 0 0 rg BT 235.17 674.25 Td (, will, could, should, would, expect, intend, plan, goal, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (contemplate, believe, estimate, predict, project, potential, continue, seek, strategy) Tj ET Q q 0 0 0 rg BT 449.74 662.25 Td (, future, likely or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (negative or other variations on these words and other similar expressions. ) Tj ET Q q 0 0 0 rg BT 345.91 650.25 Td (These statements, which may include, without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (limitation, projections regarding our future performance and financial condition, are made on the basis of management) Tj ET Q q 0 0 0 rg BT 526.83 638.25 Td (s current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.25 Td (views and assumptions with respect to future events. ) Tj ET Q q 0 0 0 rg BT 261.96 626.25 Td (Any forward-looking statement is not a guarantee of future performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.25 Td (and actual results could dif) Tj ET Q q 0 0 0 rg BT 157.06 614.25 Td (fer materially from those contained in the forward-looking statement. ) Tj ET Q q 0 0 0 rg BT 436.79 614.25 Td (These statements speak only as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.25 Td (of the date they were made, and we undertake no obligation to update or revise any forward-looking statements, whether as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.25 Td (result of new information, future events or otherwise. ) Tj ET Q q 0 0 0 rg BT 265.37 590.25 Td (W) Tj ET Q q 0 0 0 rg BT 274.01 590.25 Td (e operate in a changing environment. New risks emer) Tj ET Q q 0 0 0 rg BT 487.36 590.25 Td (ge from time to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.25 Td (time and it is not possible for us to predict all risks that may af) Tj ET Q q 0 0 0 rg BT 299.28 578.25 Td (fect us. ) Tj ET Q q 0 0 0 rg BT 330.47 578.25 Td (The forward-looking statements, as well as our prospects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.25 Td (as a whole, are subject to risks and uncertainties that could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 387.54 566.25 Td (fer materially from those set forth in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (forward-looking statements including: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 537.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 537.25 Td (changes in general economic and political conditions, including unemployment rates, changes in the U.S. housing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 525.25 Td (mortgage credit markets \(including declines in home prices and property values\), the performance of the U.S. or global ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 513.25 Td (economies, the amount of liquidity in the capital or credit markets, changes or volatility in interest rates or consumer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 501.25 Td (confidence and changes in credit spreads, all of which may be impacted by) Tj ET Q q 0 0 0 rg BT 384.46 501.25 Td (, among other things, legislative activity or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 489.25 Td (inactivity) Tj ET Q q 0 0 0 rg BT 122.62 489.25 Td (, actual or threatened downgrades of U.S. government credit ratings, or actual or threatened defaults on U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 477.25 Td (government obligations; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 460.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 460.25 Td (changes in the way customers, investors, regulators or legislators perceive the strength of private mortgage insurers, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 448.25 Td (particular in light of the fact that certain of our former competitors have ceased writing new insurance business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 436.25 Td (have been placed under supervision or receivership by insurance regulators; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 419.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 419.25 Td (catastrophic events, increased unemployment, home price depreciation or other negative economic changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 407.25 Td (geographic regions where our mortgage insurance exposure is more concentrated; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 390.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 390.25 Td (our ability to maintain suf) Tj ET Q q 0 0 0 rg BT 189.19 390.25 Td (ficient holding company liquidity to meet our short- and long-term liquidity needs; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 373.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 373.25 Td (our ability to maintain an adequate Risk-to-capital position, minimum policyholder position and other surplus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 361.25 Td (requirements for Radian Guaranty) Tj ET Q q 0 0 0 rg BT 221.75 361.25 Td (, our principal mortgage insurance subsidiary) Tj ET Q q 0 0 0 rg BT 402.16 361.25 Td (, and an adequate minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 349.25 Td (policyholder position and surplus for our insurance subsidiaries that provide reinsurance or capital support to Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 337.25 Td (Guaranty;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 320.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 320.25 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 156.31 320.25 Td (s ability to comply with the financial requirements of the PMIERs \(once adopted\) within the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 308.25 Td (applicable transition period which, based on the proposed PMIERs, may require us to contribute a substantial portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 296.25 Td (of our holding company cash and investments to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 349.51 296.25 Td (, and could depend on our ability to, among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 284.25 Td (things: \(1\) successfully consummate the transactions contemplated by the Radian ) Tj ET Q q 0 0 0 rg BT 412.64 284.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 436.81 284.25 Td (Assurance Stock Purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 272.25 Td (Agreement; and \(2\) successfully leverage other options such as commutations or external reinsurance for a portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 260.25 Td (our mortgage insurance risk in force in a manner that provides capital relief that is compliant with the PMIERs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 248.25 Td (Contributing a substantial portion of our holding company cash and investments to Radian Guaranty would leave ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 236.25 Td (Radian Group with less liquidity to carry out its overall business strategy and satisfy its obligations, and we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 224.25 Td (required or we may decide to seek additional capital by incurring additional debt, by issuing additional equity) Tj ET Q q 0 0 0 rg BT 523.34 224.25 Td (, or by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 212.25 Td (selling assets, which we may not be able to do on favorable terms, if at all. ) Tj ET Q q 0 0 0 rg BT 386.07 212.25 Td (The ultimate form of the PMIERs and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 200.25 Td (timeframe for their implementation remain uncertain;) Tj ET Q endstream endobj 19 0 obj <> endobj 20 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.50 39.60 Td (9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 731.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 731.10 Td (changes in the charters or business practices of, or rules or regulations applicable to the GSEs, including the adoption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 719.10 Td (of the PMIERs, which in their current proposed form: \(1\) would require Radian Guaranty to hold significantly more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 707.10 Td (capital than is currently required and could negatively impact our returns on equity; \(2\) could limit the type of business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 695.10 Td (that Radian Guaranty and other private mortgage insurers are willing to write, which could reduce our NIW) Tj ET Q q 0 0 0 rg BT 515.82 695.10 Td (; \(3\) could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 683.10 Td (increase the cost of private mortgage insurance, including as compared to the FHA) Tj ET Q q 0 0 0 rg BT 415.67 683.10 Td () Tj ET Q q 0 0 0 rg BT 418.45 683.10 Td (s pricing, or result in the emer) Tj ET Q q 0 0 0 rg BT 538.51 683.10 Td (gence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 671.10 Td (of other forms of credit enhancement; and \(4\) could require changes to our business practices that may result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 659.10 Td (substantial additional costs in order to achieve and maintain compliance with the PMIERs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 642.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 642.10 Td (our ability to continue to ef) Tj ET Q q 0 0 0 rg BT 194.46 642.10 Td (fectively mitigate our mortgage insurance losses, including a decrease in net rescissions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 630.10 Td (denials resulting from an increase in the number of successful challenges to previously rescinded policies or claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 618.10 Td (denials \(including as part of one or more settlements of disputed rescissions or denials\), or as a result of the GSEs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 606.10 Td (intervening in or otherwise limiting our loss mitigation practices, including settlements of disputes regarding Loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 594.10 Td (Mitigation ) Tj ET Q q 0 0 0 rg BT 129.67 594.10 Td (Activities; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 577.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 577.10 Td (the negative impact that our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 265.19 577.10 Td (Activities may have on our relationships with our customers and potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 565.10 Td (customers, including the potential loss of current or future business and the heightened risk of disputes and litigation; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 548.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 548.10 Td (any disruption in the servicing of mortgages covered by our insurance policies, as well as poor servicer performance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 531.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 531.10 Td (adverse changes in the severity or frequency of losses associated with certain products that we formerly of) Tj ET Q q 0 0 0 rg BT 510.72 531.10 Td (fered \(and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 519.10 Td (which constitute a small part of our insured portfolio\) that are riskier than traditional mortgage insurance policies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 502.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 502.10 Td (a substantial decrease in the Persistency Rates of our mortgage insurance policies, which has the ef) Tj ET Q q 0 0 0 rg BT 481.30 502.10 Td (fect of reducing our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 490.10 Td (premium income on our Monthly Premium policies and could decrease the profitability of our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 478.10 Td (business; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 461.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 461.10 Td (heightened competition for our mortgage insurance business from others such as the FHA, the ) Tj ET Q q 0 0 0 rg BT 464.40 461.10 Td (V) Tj ET Q q 0 0 0 rg BT 470.33 461.10 Td (A) Tj ET Q q 0 0 0 rg BT 477.00 461.10 Td ( and other private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 449.10 Td (mortgage insurers \(including with respect to other private mortgage insurers, those that have been assigned higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 437.10 Td (ratings than we have, that may be perceived as having a greater ability to comply with the PMIERs Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 425.10 Td (Requirements than we do, that may have access to greater amounts of capital than we do, that are less dependent on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 413.10 Td (capital support from their subsidiaries than we are or that are new entrants to the industry) Tj ET Q q 0 0 0 rg BT 441.69 413.10 Td (, and therefore, are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 401.10 Td (burdened by legacy obligations\) and the impact such heightened competition may have on our returns and our NIW) Tj ET Q q 0 0 0 rg BT 547.49 401.10 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 384.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 384.10 Td (changes to the current system of housing finance, including the possibility of a new system in which private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 372.10 Td (insurers are not required or their products are significantly limited in ef) Tj ET Q q 0 0 0 rg BT 369.95 372.10 Td (fect or scope; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 355.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 355.10 Td (the ef) Tj ET Q q 0 0 0 rg BT 107.80 355.10 Td (fect of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 201.67 355.10 Td (Act on the financial services industry in general, and on our businesses in particular; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 338.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 338.10 Td (the adoption of new or application of existing federal or state laws and regulations, or changes in these laws and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 326.10 Td (regulations or the way they are interpreted, including, without limitation: \(1\) the resolution of existing, or the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 314.10 Td (possibility of additional, lawsuits or investigations; \(2\) changes to the Model ) Tj ET Q q 0 0 0 rg BT 394.35 314.10 Td (Act being considered by the NAIC that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 302.10 Td (could include more stringent capital and other requirements for Radian Guaranty in states that adopt the new Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 290.10 Td (Guaranty Insurers Model ) Tj ET Q q 0 0 0 rg BT 187.98 290.10 Td (Act in the future; and \(3\) legislative and regulatory changes \(a\) impacting the demand for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 278.10 Td (products, \(b\) limiting or restricting the products we may of) Tj ET Q q 0 0 0 rg BT 320.82 278.10 Td (fer or increasing the amount of capital we are required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 266.10 Td (hold, \(c\) af) Tj ET Q q 0 0 0 rg BT 129.46 266.10 Td (fecting the form in which we execute credit protection, or \(d\) otherwise impacting our existing businesses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 254.10 Td (or future prospects; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 237.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 237.10 Td (the amount and timing of potential payments or adjustments associated with federal or other tax examinations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 225.10 Td (including deficiencies assessed by the IRS resulting from the examination of our 2000 through 2007 tax years, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 213.10 Td (we are currently contesting; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 196.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 196.10 Td (the possibility that we may fail to estimate accurately the likelihood, magnitude and timing of losses in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 184.10 Td (with establishing loss reserves for our mortgage insurance businesses; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 167.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 167.10 Td (volatility in our earnings caused by changes in the fair value of our assets and liabilities carried at fair value, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 155.10 Td (a significant portion of our investment portfolio and certain of our long-term incentive compensation awards; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 138.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 138.10 Td (changes in GAAP) Tj ET Q q 0 0 0 rg BT 157.34 138.10 Td ( or SAP) Tj ET Q q 0 0 0 rg BT 187.91 138.10 Td (, rules and guidance, or their interpretation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 121.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 121.10 Td (legal and other limitations on amounts we may receive from our subsidiaries as dividends or through our tax- and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 109.10 Td (expense-sharing arrangements with our subsidiaries;) Tj ET Q endstream endobj 21 0 obj <> endobj 22 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 731.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 731.10 Td (the possibility that we may need to impair the estimated fair value of goodwill established in connection with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 719.10 Td (acquisition of Clayton, the valuation of which requires the use of significant estimates and assumptions with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 707.10 Td (the estimated future economic benefits arising from certain assets acquired in the transaction such as the value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 695.10 Td (expected future cash flows of Clayton, Clayton) Tj ET Q q 0 0 0 rg BT 276.84 695.10 Td (s workforce, expected syner) Tj ET Q q 0 0 0 rg BT 388.83 695.10 Td (gies with our other af) Tj ET Q q 0 0 0 rg BT 474.18 695.10 Td (filiates and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 683.10 Td (unidentifiable intangible assets; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 666.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 666.10 Td (our ability to consummate the transactions contemplated by the Radian ) Tj ET Q q 0 0 0 rg BT 371.54 666.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 395.71 666.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 503.19 666.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 654.10 Td (which depends on, among other things, obtaining certain regulatory approvals.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 637.10 Td (For more information regarding these risks and uncertainties as well as certain additional risks that we face, you should ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.10 Td (refer to the Risk Factors detailed in Item 1A) Tj ET Q q 0 0 0 rg BT 225.56 625.10 Td ( of this ) Tj ET Q q 0 0 0 rg BT 255.29 625.10 Td (Annual Report on Form 10-K. ) Tj ET Q q 0 0 0 rg BT 378.99 625.10 Td (W) Tj ET Q q 0 0 0 rg BT 387.63 625.10 Td (e caution you not to place undue reliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.10 Td (on these forward-looking statements, which are current only as of the date on which we issued this report. ) Tj ET Q q 0 0 0 rg BT 475.31 613.10 Td (W) Tj ET Q q 0 0 0 rg BT 483.95 613.10 Td (e do not intend to, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.10 Td (and we disclaim any duty or obligation to, update or revise any forward-looking statements to reflect new information or future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.10 Td (events or for any other reason.) Tj ET Q endstream endobj 23 0 obj <> endobj 24 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 305.78 39.60 Td (1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 731.25 Td (P) Tj ET Q q 0 0 0 rg BT 295.17 731.25 Td (AR) Tj ET Q q 0 0 0 rg BT 309.26 731.25 Td (T) Tj ET Q q 0 0 0 rg BT 315.75 731.25 Td ( I) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (Item1. ) Tj ET Q q 0 0 0 rg BT 103.50 719.25 Td (Business.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (I. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 695.25 Td (General) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 678.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 678.25 Td (e provide mortgage insurance on domestic residential First-liens and other products and services to the mortgage and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (real estate industries. ) Tj ET Q q 0 0 0 rg BT 135.96 666.25 Td (W) Tj ET Q q 0 0 0 rg BT 144.59 666.25 Td (e currently have two business segmentsmortgage insurance and MRES. Our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (segment provides credit-related insurance coverage, principally through private mortgage insurance, to mortgage lending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (institutions. ) Tj ET Q q 0 0 0 rg BT 98.77 642.25 Td (W) Tj ET Q q 0 0 0 rg BT 107.41 642.25 Td (e conduct our mortgage insurance business primarily through Radian Guaranty) Tj ET Q q 0 0 0 rg BT 422.51 642.25 Td (, our principal mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (subsidiary) Tj ET Q q 0 0 0 rg BT 89.96 630.25 Td (. Our MRES segment provides services and solutions to the mortgage and real estate industries primarily through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (Clayton, which we acquired on June 30, 2014. ) Tj ET Q q 0 0 0 rg BT 236.97 618.25 Td (A) Tj ET Q q 0 0 0 rg BT 243.64 618.25 Td ( summary of financial information for our business segments, for each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (last three fiscal years for our mortgage insurance segment, and since June 30, 2014 \(the date of our acquisition of Clayton\) for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (our MRES segment, is included in Note 4 of Notes to Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 577.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 577.25 Td (e have also provided direct insurance and reinsurance on credit-based risks through Radian ) Tj ET Q q 0 0 0 rg BT 446.35 577.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 470.52 577.25 Td (Assurance, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.25 Td (principal financial guaranty subsidiary that is a wholly-owned subsidiary of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 421.81 565.25 Td (. On December 22, 2014, Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.25 Td (Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 184.18 553.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 208.35 553.25 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 315.82 553.25 Td (Agreement to sell 100% of the issued and outstanding shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.25 Td (of Radian ) Tj ET Q q 0 0 0 rg BT 90.60 541.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 114.77 541.25 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 168.65 541.25 Td (Assured. ) Tj ET Q q 0 0 0 rg BT 205.87 541.25 Td (As a result, we have reclassified the operating results related to the pending disposition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.25 Td (as discontinued operations for all periods presented in our consolidated statements of operations, and we no longer present a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.25 Td (financial guaranty segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 500.25 Td (Radian Group serves as the holding company for our insurance and other subsidiaries and does not have any significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (operations of its own.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 471.25 Td (Business Strategy) Tj ET Q q 0 0 0 rg BT 143.77 471.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.77 471.25 Td (Currently) Tj ET Q q 0 0 0 rg BT 186.45 471.25 Td (, our business strategy is focused on: \(1\) growing our mortgage insurance business by writing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.25 Td (insurance on high-quality mortgages in the U.S.; \(2\) diversifying our revenue sources by pursuing other potential opportunities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (for providing credit-related and other services to the mortgage finance market; \(3\) growing our fee-based revenues as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.25 Td (percentage of Radian) Tj ET Q q 0 0 0 rg BT 137.23 435.25 Td (s total revenues, primarily by expanding Clayton) Tj ET Q q 0 0 0 rg BT 335.25 435.25 Td (s presence in the real estate and mortgage finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.25 Td (industries; \(4\) continuing to manage losses and reduce our legacy exposure; \(5\) continuing to ef) Tj ET Q q 0 0 0 rg BT 432.55 423.25 Td (fectively manage our capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (and liquidity positions, including ef) Tj ET Q q 0 0 0 rg BT 191.81 411.25 Td (forts to ensure compliance with the PMIERs Financial Requirements and with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.25 Td (regulatory requirements, as well as strengthening our balance sheet with the objective of regaining investment grade credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.25 Td (ratings in the future. See Note 1 of Notes to Consolidated Financial Statements for information regarding the new) Tj ET Q q 0 0 0 rg BT 503.19 387.25 Td (, proposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (GSE eligibility requirements that were issued in the form of proposed PMIERs for public comment on July 10, 2014.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.25 Td (Below are highlights of several accomplishments during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 358.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.50 358.25 Td ( that furthered our strategic objectives:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 341.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 341.25 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.33 341.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.33 341.25 Td (, we wrote ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.76 341.25 Td ($37.3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.87 341.25 Td ( of primary mortgage insurance. Substantially all of our portfolio of insurance written ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 329.25 Td (after 2008, including our 2014 insured portfolio, is of high credit quality and is expected to generate strong returns on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 317.25 Td (allocated capital. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 300.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 300.25 Td (W) Tj ET Q q 0 0 0 rg BT 94.14 300.25 Td (e grew our IIF from $161.2 billion as of December 31, 2013 to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.69 300.25 Td ($171.8 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.81 300.25 Td ( as of December 31, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 283.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 283.25 Td (W) Tj ET Q q 0 0 0 rg BT 94.14 283.25 Td (e continued to diversify and expand our customer base, adding almost 200 new customers during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.60 283.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.60 283.25 Td ( to a current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 271.25 Td (total of close to 1,300 customers. Customers added since 2009 accounted for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.13 271.25 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.46 271.25 Td ( of our NIW) Tj ET Q q 0 0 0 rg BT 522.43 271.25 Td ( during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 259.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.50 259.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 242.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 242.25 Td (Consistent with our objective to diversify revenue sources, on June 30, 2014, we acquired all of the outstanding equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 230.25 Td (interests of Clayton for a purchase price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.03 230.25 Td ($312 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.42 230.25 Td (. Radian Group funded the entire purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 218.25 Td (price and related expenses through a portion of the net proceeds from our May 2014 issuance of debt and equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 206.25 Td (securities discussed below) Tj ET Q q 0 0 0 rg BT 190.38 206.25 Td (. See Notes 1 and 7 of Notes to Consolidated Financial Statements for further information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 189.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 189.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.33 189.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.33 189.25 Td (, Radian Group executed the following transactions in order to manage our liquidity position:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 172.25 Td (- ) Tj ET Q q 0 0 0 rg BT 103.50 172.25 Td (Issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.55 172.25 Td ($300 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.94 172.25 Td ( of 5.500% Senior Notes due 2019, resulting in net proceeds of approximately $293.8 million. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 160.25 Td (See Note 1) Tj ET Q q 0 0 0 rg BT 147.01 160.25 Td (1 of Notes to Consolidated Financial Statements for further information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 143.25 Td (- ) Tj ET Q q 0 0 0 rg BT 103.50 143.25 Td (Redeemed all of the remaining Senior Notes due 2015. See Note 1) Tj ET Q q 0 0 0 rg BT 369.17 143.25 Td (1 of Notes to Consolidated Financial Statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 131.25 Td (for further information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 114.25 Td (- ) Tj ET Q q 0 0 0 rg BT 103.50 114.25 Td (Sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.34 114.25 Td (17.825 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.23 114.25 Td ( shares of common stock in a public of) Tj ET Q q 0 0 0 rg BT 338.02 114.25 Td (fering for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.55 114.25 Td ($14.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.05 114.25 Td ( per share, resulting in net proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 102.25 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.76 102.25 Td ($247.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.65 102.25 Td (.) Tj ET Q endstream endobj 25 0 obj <> endobj 26 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 731.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 94.14 731.10 Td (e continued to actively manage and reduce our Legacy Portfolio of mortgage insurance risk and exposure by) Tj ET Q q 0 0 0 rg BT 527.22 731.10 Td (, among ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 719.10 Td (other things, entering into the BofA) Tj ET Q q 0 0 0 rg BT 227.70 719.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 274.92 719.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 324.16 719.10 Td (The agreement resolves various actual and potential claims ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 707.10 Td (and disputes related to mortgage insurance covering a lar) Tj ET Q q 0 0 0 rg BT 313.57 707.10 Td (ge population of Legacy Loans. Implementation of the BofA) Tj ET Q q 0 0 0 rg BT 556.00 707.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 695.10 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 130.22 695.10 Td (Agreement commenced on February 1, 2015. See Notes 1 and 10 of Notes to Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 683.10 Td (Statements for more information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 666.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 666.10 Td (As proposed, the PMIERs Financial Requirements do not provide Radian Guaranty with any credit for its investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 654.10 Td (in Radian ) Tj ET Q q 0 0 0 rg BT 126.05 654.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 150.22 654.10 Td (Assurance. ) Tj ET Q q 0 0 0 rg BT 196.32 654.10 Td (As a result, we entered into the Radian ) Tj ET Q q 0 0 0 rg BT 353.22 654.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 377.39 654.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 484.87 654.10 Td (Agreement, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 642.10 Td (discussed above. ) Tj ET Q q 0 0 0 rg BT 155.03 642.10 Td (The transaction, which is expected to close in the first half of 2015, is subject to receipt of insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 630.10 Td (regulatory approvals and satisfaction of other customary closing conditions. See Note 3 of Notes to Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 618.10 Td (Financial Statements for more information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 601.10 Td (Operating Envir) Tj ET Q q 0 0 0 rg BT 138.95 601.10 Td (onment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.39 601.10 Td (As a seller of mortgage credit protection and mortgage and real estate products and services, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.10 Td (results are subject to macroeconomic conditions and specific events that impact the mortgage origination environment and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.10 Td (credit performance of our underlying insured assets. ) Tj ET Q q 0 0 0 rg BT 260.36 577.10 Td (The financial crisis and the downturn in the housing and related credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (markets that began in 2007 had a significant negative impact on the operating environment and results of operations for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (businesses. More recently) Tj ET Q q 0 0 0 rg BT 152.43 553.10 Td (, the operating environment has improved as the U.S. economy and housing market have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (recovering, evidenced by a reduction in unemployment, a reduction in foreclosures, and appreciation in home prices. ) Tj ET Q q 0 0 0 rg BT 519.15 541.10 Td (W) Tj ET Q q 0 0 0 rg BT 527.79 541.10 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (written a significant amount of NIW) Tj ET Q q 0 0 0 rg BT 195.11 529.10 Td ( in this improving environment, which has resulted in our Legacy Portfolio becoming a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (smaller proportion of our total mortgage insurance portfolio. Further) Tj ET Q q 0 0 0 rg BT 323.20 517.10 Td (, the improving environment has contributed to a reduction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (in our incurred losses and claims submitted and paid in our mortgage insurance business, with new primary mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (defaults declining by 18% in 2014 compared to the number of new defaults in 2013.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 476.10 Td (The credit performance of post-crisis loan originations also has improved significantly) Tj ET Q q 0 0 0 rg BT 418.87 476.10 Td (. In response to the financial crisis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (including the adoption of new lending laws and regulations, credit for home financing has remained restrictive. ) Tj ET Q q 0 0 0 rg BT 496.04 464.10 Td (As a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (this restrictive credit environment, together with our stricter underwriting requirements, our post-2008 loan originations have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (consisted primarily of high credit quality loans.) Tj ET Q q 0 0 0 rg BT 241.13 440.10 Td (At the same time, this restrictive credit environment has limited the growth of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (the mortgage industry and made it more challenging for many first-time homebuyers to finance a home. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 411.10 Td (The improvement in macroeconomic and credit trends has encouraged new entrants into the private mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (industry) Tj ET Q q 0 0 0 rg BT 81.63 399.10 Td (, while further improving the financial strength of existing private mortgage insurers.) Tj ET Q q 0 0 0 rg BT 424.13 399.10 Td (This has resulted in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (increasingly competitive environment for private mortgage insurers. See Competition. During the past several years, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (have been focused on managing our businesses through the negative ef) Tj ET Q q 0 0 0 rg BT 333.12 375.10 Td (fects of the financial crisis while at the same time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (pursuing a number of strategic initiatives designed to strengthen and grow our mortgage insurance franchise to capitalize on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (improving trends. In particular) Tj ET Q q 0 0 0 rg BT 171.84 351.10 Td (, following the crisis, we expanded and diversified our customer base, wrote a significant amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (of high-quality NIW) Tj ET Q q 0 0 0 rg BT 131.52 339.10 Td ( and pursued a reduction of our Legacy Portfolio through loss mitigation and settlements. ) Tj ET Q q 0 0 0 rg BT 490.62 339.10 Td (As of December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (31, 2014, our Legacy Portfolio had been reduced to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.31 327.10 Td (31%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.64 327.10 Td ( of our total primary RIF) Tj ET Q q 0 0 0 rg BT 434.99 327.10 Td (, while insurance on loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (written after 2008 constituted approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.28 315.10 Td (69%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.61 315.10 Td ( of our total primary RIF) Tj ET Q q 0 0 0 rg BT 346.96 315.10 Td (. During this period of time, as the negative impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (from losses in our Legacy Portfolio has been reduced and we have continued to write a high volume of insurance on high credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (quality loans, our results of operations have improved. ) Tj ET Q q 0 0 0 rg BT 269.83 291.10 Td (This improvement continued in 2014 and we returned to full year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (profitability for the first time since the financial crisis.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 262.10 Td (Regulatory Envir) Tj ET Q q 0 0 0 rg BT 142.28 262.10 Td (onment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.22 262.10 Td ( Our insurance subsidiaries are subject to comprehensive regulations and other requirements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (State insurance regulators impose various capital requirements on our insurance subsidiaries. For our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (subsidiaries, these include Risk-to-capital, other risk-based capital measures and surplus) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 1 0 0 rg BT 402.46 238.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 404.96 238.10 Td (requirements. ) Tj ET Q q 0 0 0 rg BT 461.98 238.10 Td (The NAIC is in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (process of reviewing the minimum capital and surplus requirements for mortgage insurers and changes in these requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (could increase the capital requirements for our mortgage insurance subsidiaries in states that adopt the Model ) Tj ET Q q 0 0 0 rg BT 488.81 214.10 Td (Act. Freddie Mac ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (and Fannie Mae are the primary beneficiaries of the majority of our mortgage insurance policies and the FHA) Tj ET Q q 0 0 0 rg BT 487.96 202.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.46 202.10 Td (is currently our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (primary competitor outside of the private mortgage insurance industry) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.88 190.10 Td (. ) Tj ET Q q 0 0 0 rg BT 334.33 190.10 Td (As a result, changes in the charters or business practices ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (of the GSEs, including the implementation of the PMIERs, can have a significant impact on our business. Since 201) Tj ET Q q 0 0 0 rg BT 513.77 178.10 Td (1, there ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (have been numerous legislative proposals and recommendations focused on reforming the U.S. housing finance industry) Tj ET Q q 0 0 0 rg BT 530.96 166.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (including proposals that are intended to wind down the GSEs or to otherwise limit or restrict the activities and businesses of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (GSEs. Our businesses have been and may continue to be significantly impacted by these and other legislative or regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (developments and proposals. See Regulation.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 113.10 Td (Corporate Backgr) Tj ET Q q 0 0 0 rg BT 146.18 113.10 Td (ound.) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 168.68 113.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.68 113.10 Td (Radian Group has been incorporated as a business corporation under the laws of the State of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (Delaware since 1991. Our principal executive of) Tj ET Q q 0 0 0 rg BT 243.41 101.10 Td (fices are located at 1601Market Street, Philadelphia, Pennsylvania 19103, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.10 Td (our telephone number is \(215\)231-1000.) Tj ET Q endstream endobj 27 0 obj <> endobj 28 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (13) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Additional Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.00 731.10 Td (. Our website address is www) Tj ET Q q 0 0 0 rg BT 287.27 731.10 Td (.radian.biz. Copies of our ) Tj ET Q q 0 0 0 rg BT 390.86 731.10 Td (Annual Reports on Form10-K, Quarterly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (Reports on Form 10-Q, Current Reports on Form 8-K, as well as any amendments to those reports, are available free of char) Tj ET Q q 0 0 0 rg BT 546.41 719.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (through our website as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (addition, our guidelines of corporate governance, code of business conduct and ethics \(which includes the code of ethics ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (applicable to our chief executive of) Tj ET Q q 0 0 0 rg BT 190.64 683.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 208.56 683.10 Td (, principal financial of) Tj ET Q q 0 0 0 rg BT 297.23 683.10 Td (ficer and principal accounting of) Tj ET Q q 0 0 0 rg BT 427.55 683.10 Td (ficer\) and the governing charters ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (for each committee of our Board are available free of char) Tj ET Q q 0 0 0 rg BT 281.97 671.10 Td (ge on our website, as well as in print, to any stockholder upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (request. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 642.10 Td (The public may read and copy any materials we file with the SEC at the SEC) Tj ET Q q 0 0 0 rg BT 383.30 642.10 Td (s Public Reference Room at 100 F Street, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (NE, ) Tj ET Q q 0 0 0 rg BT 67.65 630.10 Td (W) Tj ET Q q 0 0 0 rg BT 76.29 630.10 Td (ashington, DC 20549. ) Tj ET Q q 0 0 0 rg BT 166.38 630.10 Td (The public may obtain information on the operation of the Public Reference Room by calling the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (SEC at 1-800-SEC-0330. ) Tj ET Q q 0 0 0 rg BT 153.21 618.10 Td (The SEC also maintains an Internet site that contains reports, proxy and information statements, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (other information regarding issuers that file electronically with the SEC and the address of that site is ) Tj ET Q BT /F3 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL 0 0 1 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 456.892578125 604.7669921875 m 508.3671875 604.7669921875 l s q 0 0 1 rg BT 456.89 606.10 Td (www) Tj ET Q q 0 0 1 rg BT 476.16 606.10 Td (.sec.gov) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 508.37 606.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 589.10 Td (The above references to our website and the SEC) Tj ET Q q 0 0 0 rg BT 273.43 589.10 Td (s website do not constitute incorporation by reference of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.10 Td (information contained on the websites and such information should not be considered part of this document.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (II. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 544.10 Td (Mortgage Insurance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (A. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 520.10 Td (Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 503.10 Td (Our mortgage insurance segment provides credit-related insurance coverage, principally through private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (insurance, to mortgage lending institutions. ) Tj ET Q q 0 0 0 rg BT 225.13 491.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.76 491.10 Td (e provide our mortgage insurance products and services mainly through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (wholly-owned subsidiary) Tj ET Q q 0 0 0 rg BT 150.23 479.10 Td (, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 222.61 479.10 Td (. Private mortgage insurance protects mortgage lenders from all or a portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (default-related losses on residential mortgage loans made to home buyers who generally make down payments of less than 20% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (of the home) Tj ET Q q 0 0 0 rg BT 100.04 455.10 Td (s purchase price. Private mortgage insurance also facilitates the sale of these mortgage loans in the secondary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (mortgage market, most of which are sold to the GSEs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 422.10 Td (T) Tj ET Q q 0 0 0 rg BT 73.24 422.10 Td (raditional Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 405.10 Td (T) Tj ET Q q 0 0 0 rg BT 79.26 405.10 Td (raditional types of private mortgage insurance include primary mortgage insurance and pool insurance. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 388.10 Td (Primary Mortgage Insurance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.76 388.10 Td (Primary mortgage insurance provides protection against mortgage defaults at a specified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (coverage percentage. ) Tj ET Q q 0 0 0 rg BT 136.20 376.10 Td (When there is a valid claim under primary mortgage insurance, the maximum liability is determined by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (multiplying the claim amount, which consists of the unpaid loan principal, plus past due interest and certain expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (associated with the default, by the coverage percentage. Claims may be settled for the maximum liability or for other amounts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (See Claims Management below) Tj ET Q q 0 0 0 rg BT 194.64 340.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 323.10 Td (The terms of our primary mortgage insurance coverage are set forth in a master insurance policy that we enter into with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (each of our customers. Our Master Policies are filed in each of the jurisdictions in which we conduct business. ) Tj ET Q q 0 0 0 rg BT 493.00 311.10 Td (Among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (things, our Master Policies set forth: loan eligibility requirements; premium payment requirements; coverage term; provisions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (for policy administration; exclusions or reductions in coverage; claims payment and settlement procedures; and dispute ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (resolution procedures. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 258.10 Td (Following the financial crisis, the FHF) Tj ET Q q 0 0 0 rg BT 227.74 258.10 Td (A) Tj ET Q q 0 0 0 rg BT 234.41 258.10 Td ( and the GSEs identified specific principles for inclusion by all private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (insurers in their Master Policies, including among others, specific requirements related to loss mitigation and claims processing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (activities. Radian Guaranty and other private mortgage insurers engaged in dialogue with the FHF) Tj ET Q q 0 0 0 rg BT 441.43 234.10 Td (A) Tj ET Q q 0 0 0 rg BT 448.10 234.10 Td ( and GSEs regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (incorporation of these principles into the new 2014 Master Policy) Tj ET Q q 0 0 0 rg BT 311.29 222.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 205.10 Td (The 2014 Master Policy became ef) Tj ET Q q 0 0 0 rg BT 212.99 205.10 Td (fective for all new mortgage insurance applications received on or after October 1, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (2014. Loans that were already insured prior to the October 1, 2014 ef) Tj ET Q q 0 0 0 rg BT 326.45 193.10 Td (fective date of the 2014 Master Policy will continue to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (subject to and administered in accordance with the terms and conditions of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 421.89 181.10 Td (s Prior Master Policy) Tj ET Q q 0 0 0 rg BT 505.96 181.10 Td (. ) Tj ET Q q 0 0 0 rg BT 510.40 181.10 Td (Any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (material changes to the 2014 Master Policy are subject to approval by the GSEs and state regulatory approval. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 152.10 Td ( ) Tj ET Q endstream endobj 29 0 obj <> endobj 30 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (One of the significant changes under the 2014 Master Policy is the inclusion of new rescission relief programs. Subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (certain limited exceptions, including fraud and misrepresentation, the 2014 Master Policy provides that we will not rescind ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (coverage on a loan after 36 months if it meets the following criteria: no loan payment has been 60-days or more delinquent and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (not more than two loan payments were 30-days delinquent or more in the first 36 months; the 36) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 435.81 699.63 Td (th) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.86 695.10 Td ( loan payment is not 30-days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (or more delinquent; all loan payments are made from a borrower) Tj ET Q q 0 0 0 rg BT 308.67 683.10 Td () Tj ET Q q 0 0 0 rg BT 311.44 683.10 Td (s own funds; and the loan is not subject to a workout. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (addition, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 158.08 671.10 Td (s Confident Coverage) Tj ET Q BT /F1 10.00 Tf ET BT /F1 6.50 Tf ET q 0 0 0 rg BT 245.29 675.63 Td (SM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.68 671.10 Td ( program allows lenders to opt in for earlier rescission relief at 12 months if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (certain additional conditions are satisfied, including that the lender submits specific origination and closing loan file documents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (for Radian Guaranty) Tj ET Q q 0 0 0 rg BT 134.47 647.10 Td (s review and the first 12 months of payments were timely and from the borrower) Tj ET Q q 0 0 0 rg BT 457.53 647.10 Td () Tj ET Q q 0 0 0 rg BT 460.31 647.10 Td (s own funds. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 630.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 630.10 Td (e provide primary mortgage insurance on a flow basis and we also provide primary mortgage insurance on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (structured basis, which includes business that we have written to insure a group of individual loans. In flow transactions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (mortgages typically are insured as they are originated, while in our Structured ) Tj ET Q q 0 0 0 rg BT 363.39 606.10 Td (T) Tj ET Q q 0 0 0 rg BT 369.14 606.10 Td (ransactions, we typically provide insurance on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (group of mortgages after they have been originated. ) Tj ET Q q 0 0 0 rg BT 258.59 594.10 Td (A) Tj ET Q q 0 0 0 rg BT 265.26 594.10 Td ( portion of our structured business was written in a second loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (position, meaning that we are not required to make a payment until a certain aggregate amount of losses have already been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (recognized on a given set of loans. Prior to 2008, most of the mortgage insurance we wrote on Structured ) Tj ET Q q 0 0 0 rg BT 472.82 570.10 Td (T) Tj ET Q q 0 0 0 rg BT 478.58 570.10 Td (ransactions involved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (non-prime mortgages \(i.e., non-prime mortgages include ) Tj ET Q q 0 0 0 rg BT 278.05 558.10 Td (Alt-A, ) Tj ET Q q 0 0 0 rg BT 305.83 558.10 Td (A) Tj ET Q q 0 0 0 rg BT 312.50 558.10 Td ( minus and B/C mortgages\) and mortgages with higher than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (average loan balances. See Direct Risk in Force) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.97 546.10 Td (Mortgage Loan Characteristics.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.14 546.10 Td ( ) Tj ET Q q 0 0 0 rg BT 400.53 546.10 Td (A) Tj ET Q q 0 0 0 rg BT 407.20 546.10 Td ( single structured mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (transaction may be provided on a primary basis or) Tj ET Q q 0 0 0 rg BT 249.60 534.10 Td (, as discussed below) Tj ET Q q 0 0 0 rg BT 330.05 534.10 Td (, on a pool basis; and some Structured ) Tj ET Q q 0 0 0 rg BT 484.56 534.10 Td (T) Tj ET Q q 0 0 0 rg BT 490.32 534.10 Td (ransactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (include both primary and pool insured mortgages.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 505.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 505.10 Td (e wrote ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.34 505.10 Td ($37.3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.46 505.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.90 505.10 Td ($47.3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.01 505.10 Td ( of First-lien primary mortgage insurance in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.02 505.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.02 505.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.46 505.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.46 505.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 526.12 505.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (Substantially all of our primary mortgage insurance written during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.04 493.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.04 493.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.48 493.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.48 493.10 Td ( was written on a flow basis. Primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (insurance on First-liens made up ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.53 481.10 Td ($43.2 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.64 481.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.97 481.10 Td (96.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.80 481.10 Td ( of our total direct First-lien insurance RIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.54 481.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.84 481.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.70 469.10 Td ($40.0 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.82 469.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.15 469.10 Td (96.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.98 469.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.48 469.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.78 469.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 452.10 Td (Pool Insurance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.38 452.10 Td (Prior to 2008, we wrote pool insurance on a limited basis. Pool insurance dif) Tj ET Q q 0 0 0 rg BT 448.53 452.10 Td (fers from primary insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (in that our maximum liability is not limited to a specific coverage percentage on an individual mortgage loan. Instead, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (aggregate exposure limit, or stop loss \(generally between 1% and 10%\), is applied to the initial aggregate loan balance on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (group or pool of mortgages. In addition to a stop loss, many of our pool policies were written in a second loss position. ) Tj ET Q q 0 0 0 rg BT 536.46 416.10 Td (W) Tj ET Q q 0 0 0 rg BT 545.10 416.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (believe the stop loss and second loss features have been important in limiting our ultimate liability on individual pool ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 375.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 375.10 Td (e wrote much of our pool insurance in the form of Structured ) Tj ET Q q 0 0 0 rg BT 328.55 375.10 Td (T) Tj ET Q q 0 0 0 rg BT 334.31 375.10 Td (ransactions, such as credit enhancement on loans in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (pools purchased by the GSEs as well as loans included in RMBS transactions. ) Tj ET Q q 0 0 0 rg BT 363.91 363.10 Td (An insured pool of mortgages may contain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (mortgages that are already covered by primary mortgage insurance. In these transactions, pool insurance is secondary to any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (primary mortgage insurance that exists on mortgages within the pool.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 322.10 Td (Pool insurance made up approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.07 322.10 Td ($1.4 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.18 322.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.51 322.10 Td (3.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.34 322.10 Td ( of our total direct First-lien insurance RIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.08 322.10 Td (at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 310.10 Td (, as compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 310.10 Td ($1.6 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.65 310.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.98 310.10 Td (3.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.81 310.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.31 310.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.61 310.10 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (2. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 289.10 Td (Non-T) Tj ET Q q 0 0 0 rg BT 94.35 289.10 Td (raditional Risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 272.10 Td (In addition to traditional mortgage insurance, in the past, we also provided other forms of credit enhancement on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (residential mortgage assets. Our non-traditional products, which included mortgage insurance on Second-liens, generally have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (higher risk characteristics. ) Tj ET Q q 0 0 0 rg BT 157.05 248.10 Td (W) Tj ET Q q 0 0 0 rg BT 165.69 248.10 Td (e stopped writing these forms of non-traditional business before 2008. Since 2007, we have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (pursuing opportunities to reduce our non-traditional mortgage insurance RIF through commutations and transaction settlements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.10 Td (and terminations. Our total amount of non-traditional RIF) Tj ET Q q 0 0 0 rg BT 279.77 224.10 Td (, including our international RIF discussed below) Tj ET Q q 0 0 0 rg BT 476.59 224.10 Td (, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.64 224.10 Td ($73 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.03 224.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.53 224.10 Td (at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 212.10 Td (, as compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.12 212.10 Td ($97 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.51 212.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.01 212.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.31 212.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 195.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 195.10 Td (e also provided mortgage insurance on an international basis. In 2008, we stopped writing new international business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (and have terminated most of our international mortgage insurance risk, with the exception of our insured portfolio in Hong ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (Kong. ) Tj ET Q q 0 0 0 rg BT 76.54 171.10 Td (While we are no longer writing new business in Hong Kong, we continue to insure the existing book of business, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (has experienced a low default rate. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.27 159.10 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.35 159.10 Td (, our total amount of RIF in Hong Kong was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.61 159.10 Td ($1) Tj ET Q q 0 0 0 rg BT 471.24 159.10 Td (1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.63 159.10 Td (, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.70 147.10 Td ($19 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.09 147.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.59 147.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.89 147.10 Td (.) Tj ET Q endstream endobj 31 0 obj <> endobj 32 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (15) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (3. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Premium Rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 714.25 Td (e set our premium rates at origination when coverage is established. Premiums for our mortgage insurance products are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (established based on performance models that consider a broad range of borrower) Tj ET Q q 0 0 0 rg BT 376.48 702.25 Td (, loan and property characteristics. Premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (levels are set to be competitive within the mortgage insurance industry and to achieve an overall risk-adjusted rate of return on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (capital given our modeled performance expectations. Our actual returns may dif) Tj ET Q q 0 0 0 rg BT 369.47 678.25 Td (fer from our expectations based on market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (conditions. ) Tj ET Q q 0 0 0 rg BT 95.98 666.25 Td (The sensitivity of our returns to these market conditions will vary based on factors such as whether the insurance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (borrower) Tj ET Q q 0 0 0 rg BT 85.95 654.25 Td (-paid or lender) Tj ET Q q 0 0 0 rg BT 144.61 654.25 Td (-paid, and whether the payments are made monthly or in a single premium payment at the time of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (origination. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 119.76 642.25 Td (Item 7. Management) Tj ET Q q 0 0 0 rg BT 204.28 642.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 274.38 642.25 Td (Analysis of Financial Condition and Results of Operations Key ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (Factors ) Tj ET Q q 0 0 0 rg BT 82.93 630.25 Td (Affecting Our Results Mortgage Insurance Pr) Tj ET Q q 0 0 0 rg BT 288.37 630.25 Td (emiums.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.42 630.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 613.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 613.25 Td (e set our premium rates commensurate with anticipated policy performance assumptions, including, without limitation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.25 Td (our expectations and assumptions about the following factors: \(1\) the likelihood of default; \(2\) how long the policy will remain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.25 Td (in place; \(3\) the costs of acquiring and maintaining the insurance; \(4\) taxes; and \(5\) the capital that is required to support the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.25 Td (insurance. Our performance assumptions for claim frequency and policy life are developed based on internally developed data, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.25 Td (as well as data generated from independent, third-party sources. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 548.25 Td (Premiums on our mortgage insurance products are paid either on a monthly installment basis \(Monthly Premiums\), in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (single payment at origination \(Single Premiums\), as a combination of up-front premium at origination plus a monthly renewal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (\(split premium\), or in some cases as an annual or multi-year premium. For Monthly Premiums, we receive monthly premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (payments that provide for the ongoing renewal of our insurance coverage as long as the premiums continue to be paid. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (Single Premium insurance, we receive a single premium payment that is paid at origination and, subject to certain conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (provides coverage for the life of the loan. In addition, for our split premium products, we receive an upfront premium payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (when the loan is made, plus ongoing monthly renewal premiums. ) Tj ET Q q 0 0 0 rg BT 313.16 476.25 Td (There are many factors that influence the form of premiums ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (we receive, including, without limitation: \(1\) the percentage of mortgage originations derived from refinance transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (versus new home purchases \(refinancing transactions often are conducted with Single Premiums\); \(2\) the customers with whom ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (we do business \(with some customers having a greater tendency to pursue Single Premium originations\); and \(3\) the relative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (premium levels we and our competitors set for the various forms of premiums of) Tj ET Q q 0 0 0 rg BT 372.30 428.25 Td (fered. ) Tj ET Q q 0 0 0 rg BT 397.28 428.25 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.33 428.25 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.66 428.25 Td ( of our NIW) Tj ET Q q 0 0 0 rg BT 527.63 428.25 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.40 428.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.40 428.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (was written with Monthly Premiums or split premiums, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 416.25 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.48 416.25 Td ( was written with Single Premiums. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 399.25 Td (Mortgage insurance premiums can be financed through a number of methods and can either be paid by the borrower or by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.25 Td (the lender) Tj ET Q q 0 0 0 rg BT 88.65 387.25 Td (. Borrower) Tj ET Q q 0 0 0 rg BT 131.77 387.25 Td (-paid mortgage insurance premiums are paid either through separate escrowed amounts or financed as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (component of the mortgage loan amount. Lender paid mortgage insurance premiums are paid by the lender and are typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.25 Td (passed through to the borrower in the form of additional origination fees or a higher interest rate on the mortgage note. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.25 Td (monthly and other installment mortgage insurance premiums are established as either: \(1\) a fixed percentage of the loan) Tj ET Q q 0 0 0 rg BT 531.83 351.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.25 Td (amortizing balance over the life of the policy; or \(2\) as a fixed percentage of theinitial loan balance for a set period of time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (\(typically ten years\), which declines to a lower fixed percentage for the remaining life of the policy) Tj ET Q q 0 0 0 rg BT 445.64 327.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (4. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 306.25 Td (Underwriting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 289.25 Td (Mortgage loan applications are underwritten to determine whether they are eligible for our mortgage insurance. ) Tj ET Q q 0 0 0 rg BT 521.48 289.25 Td (W) Tj ET Q q 0 0 0 rg BT 530.12 289.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.25 Td (perform this function directly or) Tj ET Q q 0 0 0 rg BT 177.95 277.25 Td (, alternatively) Tj ET Q q 0 0 0 rg BT 232.28 277.25 Td (, we delegate to our customers the ability to underwrite the loans based on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.25 Td (underwriting guidelines.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 248.25 Td (Delegated Underwriting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.54 248.25 Td (. ) Tj ET Q q 0 0 0 rg BT 178.86 248.25 Td (Through our delegated underwriting program we approve certain customers to underwrite loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (based on our mortgage insurance underwriting guidelines. Our delegated underwriting program currently involves only lenders ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (that are approved by our risk management group. Delegated underwriting allows our customers to commit us to insure loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (that meet our underwriting guidelines. ) Tj ET Q q 0 0 0 rg BT 204.84 212.25 Td (This enables us to meet lenders) Tj ET Q q 0 0 0 rg BT 332.67 212.25 Td ( demands for immediate insurance coverage and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (increases the ef) Tj ET Q q 0 0 0 rg BT 110.95 200.25 Td (ficiency of the underwriting process. ) Tj ET Q q 0 0 0 rg BT 260.16 200.25 Td (W) Tj ET Q q 0 0 0 rg BT 268.80 200.25 Td (e use quality control sampling and performance monitoring to manage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (the risks associated with delegated underwriting. Because the delegated underwriting is performed by third parties, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (certain rights to rescind coverage if there has been a deviation from our underwriting guidelines. For a discussion of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (limited rescission rights, see ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 169.75 164.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.65 164.25 Td ( Claims Management) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 264.18 164.25 Td (Rescissions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.68 164.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.07 164.25 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.10 164.25 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.36 164.25 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.69 164.25 Td ( of our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (First-lien insurance in force had been originated on a delegated basis, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.60 152.25 Td (74%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.93 152.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.43 152.25 Td (as of December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.68 152.25 Td (. See Item) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 547.38 152.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (1A. Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 117.00 140.25 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 125.89 140.25 Td (Our delegated underwriting pr) Tj ET Q q 0 0 0 rg BT 249.12 140.25 Td (ogram may subject our mortgage insurance business to unanticipated ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (claims) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 75.61 128.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.11 128.25 Td () Tj ET Q endstream endobj 33 0 obj <> endobj 34 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (16) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Non-Delegated Underwriting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.54 731.10 Td (. In addition to our delegated underwriting program, lenders also can submit loan files to us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (and we will perform the mortgage insurance underwriting. In general, for mortgage applications that we underwrite for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (mortgage insurance, we do not exercise our rescission rights with respect to underwriting errors. ) Tj ET Q q 0 0 0 rg BT 436.61 707.10 Td (As a result, following a period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (of high rescissions after the financial crisis, we have seen an increase in the amount of business being submitted to us on a non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (delegated basis. Given the professional resources we need to maintain to underwrite loans, an increase in non-delegated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (underwriting demand generally increases our operating costs to support this program. ) Tj ET Q q 0 0 0 rg BT 393.67 671.10 Td (W) Tj ET Q q 0 0 0 rg BT 402.31 671.10 Td (e mitigate the risk of employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (underwriting error through quality control sampling and performance monitoring. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.31 659.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.34 659.10 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 647.10 Td ( of our total First-lien insurance in force had been originated on a non-delegated basis, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.70 647.10 Td (26%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.03 647.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.53 647.10 Td (as of December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 635.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 618.10 Td (Contract Underwriting. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.00 618.10 Td (In our mortgage insurance business, we also have a contract underwriting program through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (which we provide an outsourced credit underwriting service to our customers. For a fee, we underwrite our customers) Tj ET Q q 0 0 0 rg BT 523.33 606.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (mortgage loan files for secondary market compliance \(e.g., for sale to the GSEs\), and may concurrently assess the file for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (mortgage insurance eligibility) Tj ET Q q 0 0 0 rg BT 168.82 582.10 Td (. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.65 582.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.65 582.10 Td (, mortgage loans underwritten through contract underwriting accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.77 582.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.60 582.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (insurance certificates issued as part of our Flow Business. ) Tj ET Q q 0 0 0 rg BT 283.15 570.10 Td (These mortgage loans are included within the non-delegated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (underwriting percentages discussed above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 541.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 541.10 Td (e of) Tj ET Q q 0 0 0 rg BT 97.23 541.10 Td (fer limited indemnification to our contract underwriting customers with respect to those loans that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (simultaneously underwrite for both secondary market compliance and for potential mortgage insurance eligibility and may) Tj ET Q q 0 0 0 rg BT 539.26 529.10 Td (, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (certain circumstances, of) Tj ET Q q 0 0 0 rg BT 148.99 517.10 Td (fer limited indemnification when we underwrite a loan only for secondary market compliance. ) Tj ET Q q 0 0 0 rg BT 528.67 517.10 Td (W) Tj ET Q q 0 0 0 rg BT 537.31 517.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (provide our contract underwriting services through an entity that is licensed under) Tj ET Q q 0 0 0 rg BT 377.06 505.10 Td (, or otherwise compliant with, the SAFE ) Tj ET Q q 0 0 0 rg BT 540.65 505.10 Td (Act ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (in 45 states. ) Tj ET Q q 0 0 0 rg BT 99.31 493.10 Td (W) Tj ET Q q 0 0 0 rg BT 107.95 493.10 Td (e train our underwriters, require continuing education and routinely audit their performance to monitor the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (accuracy and consistency of underwriting practices.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (B. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 452.10 Td (Dir) Tj ET Q q 0 0 0 rg BT 81.76 452.10 Td (ect Risk in For) Tj ET Q q 0 0 0 rg BT 144.62 452.10 Td (ce) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 435.10 Td (Our business traditionally has involved taking credit risk in various forms across a range of asset classes, products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (geographies. Exposure in our mortgage insurance business is measured by RIF) Tj ET Q q 0 0 0 rg BT 363.91 423.10 Td (, which approximates the maximum loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (exposure that we have at any point in time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 394.10 Td (The following table shows the direct RIF \(by form of insurance and loan type\), before consideration of reinsurance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (associated with our mortgage insurance segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.11 382.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.35 382.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.79 382.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.79 382.10 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 354.6 m 477.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 354.6 m 481.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 354.6 m 546.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 354.6 m 477.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 342.6 m 477.5 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 354.6 m 546.5 354.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 342.6 m 546.5 342.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 286.6 m 477.5 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 286.6 m 546.5 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 244.60000000000002 m 477.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 231.60000000000002 m 477.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 229.60000000000002 m 477.5 229.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 244.60000000000002 m 546.5 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 231.60000000000002 m 546.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 229.60000000000002 m 546.5 229.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 67.00 358.55 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.95 357.22 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 67 345.430078125 m 109.0078125 345.430078125 l s q 0 0 0 rg BT 67.00 346.68 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 346.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.50 346.68 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 333.17 Td (Primary:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 319.17 Td ( Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.50 319.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 319.17 Td (40,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.00 319.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 319.17 Td (36,613) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 305.17 Td ( Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.50 305.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 305.17 Td (1,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 305.17 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 291.17 Td ( A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 291.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 291.17 Td (1,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 291.17 Td (1,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 277.17 Td (Total Primary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.50 277.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 277.17 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 277.17 Td (40,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 263.17 Td (Pool) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.50 263.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 263.17 Td (1,445) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 263.17 Td (1,604) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 249.17 Td (Second-lien and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.50 249.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 249.17 Td (73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 249.17 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 235.17 Td (Total Direct Mortgage Insurance RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.50 235.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 235.17 Td (44,757) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.00 235.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 235.17 Td (41,718) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 210.10 Td (The following discussion mainly focuses on our direct primary RIF) Tj ET Q q 0 0 0 rg BT 342.38 210.10 Td (, which represents approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.61 210.10 Td (96.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.44 210.10 Td ( of our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (mortgage insurance RIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 198.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.94 198.10 Td (. For additional information regarding our pool and non-traditional mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (insurance RIF) Tj ET Q q 0 0 0 rg BT 105.08 186.10 Td (, see Business) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 185.34 186.10 Td (T) Tj ET Q q 0 0 0 rg BT 190.35 186.10 Td (raditional Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.08 186.10 Td ( and Business) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 333.95 186.10 Td (Non-T) Tj ET Q q 0 0 0 rg BT 358.96 186.10 Td (raditional Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.68 186.10 Td (.) Tj ET Q endstream endobj 35 0 obj <> endobj 36 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 731.10 Td (e analyze our mortgage insurance portfolio in a number of ways to identify any concentrations or imbalances in risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (dispersion. ) Tj ET Q q 0 0 0 rg BT 95.43 719.10 Td (W) Tj ET Q q 0 0 0 rg BT 104.07 719.10 Td (e believe the performance of our mortgage insurance portfolio is af) Tj ET Q q 0 0 0 rg BT 372.11 719.10 Td (fected significantly by: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 702.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 702.10 Td (general economic conditions \(in particular home prices and unemployment\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 685.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 685.10 Td (the age of the loans insured;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 668.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 668.10 Td (the geographic dispersion of the properties securing the insured loans and the condition of the housing market;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 651.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 651.10 Td (the quality of underwriting decisions at loan origination; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 634.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 634.10 Td (the credit characteristics of the borrower and the characteristics of the loans insured \(including L) Tj ET Q q 0 0 0 rg BT 489.10 634.10 Td (TV) Tj ET Q q 0 0 0 rg BT 501.14 634.10 Td (, purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 622.10 Td (the loan, type of loan instrument, source of down payment, and type of underlying property securing the loan\).) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 601.10 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 601.10 Td (Direct Primary RIF) Tj ET Q q 0 0 0 rg BT 148.98 601.10 Td ( by ) Tj ET Q q 0 0 0 rg BT 163.24 601.10 Td (Y) Tj ET Q q 0 0 0 rg BT 168.24 601.10 Td (ear of Policy Origination) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.10 Td (The following table shows our direct primary mortgage insurance RIF by year of origination and selected information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (related to that risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.48 572.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.72 572.10 Td (:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 219.25 544.6 m 223.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.25 544.6 m 275.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275.25 544.6 m 279.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.25 544.6 m 328.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328.25 544.6 m 332.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.25 544.6 m 387.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 387.25 544.6 m 394.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.25 544.6 m 448.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.25 544.6 m 455.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.25 544.6 m 511.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 166.25 544.6 m 219.25 544.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 166.25 518.6 m 219.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.25 518.6 m 275.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.25 518.6 m 328.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.25 518.6 m 387.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.25 518.6 m 448.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.25 518.6 m 511.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 166.25 518.6 m 219.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.25 518.6 m 275.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 279.25 518.6 m 328.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.25 518.6 m 387.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.25 518.6 m 448.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455.25 518.6 m 511.25 518.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.25 378.6 m 275.25 378.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 166.25 378.6 m 219.25 378.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 166.25 365.6 m 219.25 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 166.25 363.6 m 219.25 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.25 378.6 m 275.25 378.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.25 365.6 m 275.25 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 223.25 363.6 m 275.25 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.25 378.6 m 387.25 378.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.25 365.6 m 387.25 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 332.25 363.6 m 387.25 363.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 54.75 548.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 312.00 548.68 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 54.75 521.580078125 m 101.8671875 521.580078125 l s q 0 0 0 rg BT 54.75 522.83 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 185.50 522.83 Td (RIF) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.25 530.83 Td (Number of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.50 522.83 Td (Defaults) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 281.90 530.83 Td (Delinquency) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.25 522.83 Td (Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.10 536.68 Td (Percentage of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.65 528.68 Td (Reserve for) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.10 520.73 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.80 536.68 Td (Average) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.75 528.68 Td (FICO \(1\) at) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.70 520.73 Td (Origination) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.30 530.83 Td (Original) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.00 522.83 Td (Average LTV) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 509.17 Td (2005 and prior) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.25 509.17 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.75 509.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 509.17 Td (3,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.90 509.17 Td (17,971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.90 509.17 Td (15.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.40 509.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.90 509.17 Td (34.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.40 509.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 509.17 Td (678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 509.17 Td (89.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.40 509.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 495.17 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 495.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 495.17 Td (2,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.90 495.17 Td (7,602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.90 495.17 Td (14.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.90 495.17 Td (18.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 495.17 Td (689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 495.17 Td (91.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 481.17 Td (2007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 481.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 481.17 Td (4,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.90 481.17 Td (12,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.90 481.17 Td (12.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.90 481.17 Td (33.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 481.17 Td (701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 481.17 Td (92.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 467.17 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 467.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 467.17 Td (3,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.90 467.17 Td (5,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.90 467.17 Td (7.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.90 467.17 Td (11.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 467.17 Td (724) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 467.17 Td (90.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 453.17 Td (2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 453.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 453.17 Td (1,081) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 453.17 Td (586) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.90 453.17 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.90 453.17 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 453.17 Td (752) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 453.17 Td (90.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 439.17 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 439.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.40 439.17 Td (925) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 439.17 Td (209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.90 439.17 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.90 439.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 439.17 Td (761) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 439.17 Td (91.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 425.17 Td (2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 425.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 425.17 Td (1,809) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 425.17 Td (286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.90 425.17 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.90 425.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 425.17 Td (758) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 425.17 Td (91.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 411.17 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 411.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 411.17 Td (6,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 411.17 Td (561) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.90 411.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.90 411.17 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 411.17 Td (756) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 411.17 Td (91.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 397.17 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 397.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.90 397.17 Td (10,265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 397.17 Td (701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.90 397.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.90 397.17 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 397.17 Td (751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 397.17 Td (92.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 383.17 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 383.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.90 383.17 Td (9,098) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 383.17 Td (194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.90 383.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.90 383.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.40 383.17 Td (741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.90 383.17 Td (92.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.75 369.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.25 369.17 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.75 369.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.90 369.17 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.90 369.17 Td (45,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.90 369.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.40 369.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (____________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (\(1\) Represents the borrower) Tj ET Q q 0 0 0 rg BT 161.78 341.10 Td () Tj ET Q q 0 0 0 rg BT 164.55 341.10 Td (s credit score at origination. In circumstances where there is more than one borrower) Tj ET Q q 0 0 0 rg BT 502.91 341.10 Td (, the average ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.00 329.10 Td (FICO at origination is the FICO score for the primary borrower) Tj ET Q q 0 0 0 rg BT 316.28 329.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 312.10 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 312.10 Td ( significant portion of our total mortgage insurance in force \(and consequently) Tj ET Q q 0 0 0 rg BT 392.48 312.10 Td (, our premiums earned\) is derived from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.10 Td (policies written prior to 2014.) Tj ET Q q 0 0 0 rg BT 170.96 300.10 Td (The amount of time that our insurance certificates remain in force, which is af) Tj ET Q q 0 0 0 rg BT 482.88 300.10 Td (fected by loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.10 Td (repayments and terminations of our insurance, can have a significant impact on our revenues and our results of operations.Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.10 Td (Persistency Rate, which is the percentage of insurance in force that remains on our books after any 12-month period, is one key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.10 Td (measure for assessing the impact that insurance terminations resulting in certificate cancellations have on our insurance in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.10 Td (force. Because most of our insurance premiums are earned over time, higher Persistency Rates on Monthly Premium policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td (increase the premiums we receive and generally result in increased profitability and returns. Conversely) Tj ET Q q 0 0 0 rg BT 464.25 240.10 Td (, assuming all other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (factors remain constant, higher persistency on Single Premium business lowers the overall returns from our insured portfolio, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (the premium revenue for our Single Premium policies is the same regardless of the actual life of the insurance policy and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (are required to maintain regulatory capital supporting the insurance for the life of the policy) Tj ET Q q 0 0 0 rg BT 415.94 204.10 Td (. ) Tj ET Q q 0 0 0 rg BT 420.76 204.10 Td (The Persistency Rate of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (primary mortgage insurance was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.79 192.10 Td (83.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.62 192.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.12 192.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.42 192.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.62 192.10 Td (81.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.45 192.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.95 192.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.25 192.10 Td (.Historically) Tj ET Q q 0 0 0 rg BT 524.81 192.10 Td (, there is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (a close correlation between interest rate environments and Persistency Rates, primarily as a result of refinance activity that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (tends to be more prevalent in lower interest rate environments.) Tj ET Q endstream endobj 37 0 obj <> endobj 38 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (18) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (2. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Geographic Dispersion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (The following table shows, as of December 31, 2014 and 2013, the percentage of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.73 714.25 Td (direct primary mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.06 702.25 Td ( and the associated percentage of our mortgage insurance reserve for losses \(by location of property\) for the top 10 states in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (the U.S. \(as measured by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.81 690.25 Td (direct primary mortgage insurance RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.87 690.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.37 690.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.61 690.25 Td (\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 662.75 m 318 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 662.75 m 322 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 662.75 m 396 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 662.75 m 400 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 662.75 m 465 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 662.75 m 469 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 662.75 m 546 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 662.75 m 318 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 650.75 m 318 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 662.75 m 322 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 650.75 m 322 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 662.75 m 396 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 650.75 m 396 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 662.75 m 465 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 650.75 m 465 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 662.75 m 469 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 650.75 m 469 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 662.75 m 546 662.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 650.75 m 546 650.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 638.75 m 318 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 638.75 m 396 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 638.75 m 465 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 638.75 m 546 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 638.75 m 318 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 638.75 m 396 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 638.75 m 465 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 638.75 m 546 638.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 498.75 m 318 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 498.75 m 396 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 498.75 m 465 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 498.75 m 546 498.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 485.75 m 318 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 483.75 m 318 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 485.75 m 396 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 483.75 m 396 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 485.75 m 465 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 483.75 m 465 483.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 485.75 m 546 485.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 483.75 m 546 483.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 666.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.75 666.83 Td (December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 654.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.00 654.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.50 654.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 641.580078125 m 102.44921875 641.580078125 l s q 0 0 0 rg BT 52.50 642.83 Td (Top Ten States) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.25 642.83 Td (RIF) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.80 642.83 Td (ReserveforLosses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.25 642.83 Td (RIF) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.30 642.83 Td (ReserveforLosses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 629.32 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 629.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 629.32 Td (13.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 629.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 629.32 Td (6.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 629.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 629.32 Td (13.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 629.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 629.32 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 629.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 615.32 Td (Texas) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 615.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 615.32 Td (7.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 615.32 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 615.32 Td (6.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 615.32 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 601.32 Td (Florida) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 601.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 601.32 Td (6.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 601.32 Td (16.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 601.32 Td (6.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.65 601.32 Td (18.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 587.32 Td (Illinois) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 587.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 587.32 Td (5.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 587.32 Td (6.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 587.32 Td (5.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 587.32 Td (6.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 573.32 Td (Georgia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 573.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 573.32 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 573.32 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 573.32 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 573.32 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 559.32 Td (New Jersey) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 559.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 559.32 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 559.32 Td (9.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 559.32 Td (4.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 559.32 Td (7.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 545.32 Td (Virginia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 545.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 545.32 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 545.32 Td (1.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 545.32 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 545.32 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 531.32 Td (Pennsylvania) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 531.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 531.32 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 531.32 Td (3.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 531.32 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 531.32 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 517.32 Td (Colorado) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 517.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 517.32 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 517.32 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 517.32 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 517.32 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 503.32 Td (Ohio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 503.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 503.32 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 503.32 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 503.32 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 503.32 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 489.32 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 489.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 489.32 Td (53.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 489.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 489.32 Td (55.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 489.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 489.32 Td (53.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 489.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.65 489.32 Td (56.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 489.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 464.25 Td (The following table shows, as of December 31, 2014 and 2013, the percentage of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.73 464.25 Td (direct primary mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.06 452.25 Td ( and the associated percentage of our mortgage insurance reserve for losses \(by location of property\) for the top 15 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (Metropolitan Statistical ) Tj ET Q q 0 0 0 rg BT 145.60 440.25 Td (Areas, referred to as MSAs, in the U.S. \(as measured by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.19 440.25 Td (direct primary mortgage insurance RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.25 440.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.74 428.25 Td (\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 399.75 m 318 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 399.75 m 322 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 399.75 m 396 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396 399.75 m 400 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 399.75 m 465 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 399.75 m 469 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 399.75 m 546 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 399.75 m 318 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 387.75 m 318 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 399.75 m 322 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 387.75 m 322 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 399.75 m 396 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 387.75 m 396 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 399.75 m 465 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 387.75 m 465 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 399.75 m 469 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 387.75 m 469 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 399.75 m 546 399.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 387.75 m 546 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 375.75 m 318 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 375.75 m 396 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 387.75 m 465 387.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 375.75 m 465 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 375.75 m 546 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 375.75 m 318 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 375.75 m 396 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 375.75 m 465 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 375.75 m 546 375.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 165.75 m 318 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 152.75 m 318 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253 150.75 m 318 150.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 165.75 m 396 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 152.75 m 396 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 150.75 m 396 150.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 165.75 m 465 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 152.75 m 465 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 150.75 m 465 150.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 165.75 m 546 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 152.75 m 546 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 150.75 m 546 150.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 403.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.75 403.83 Td (December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 391.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.00 391.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.50 391.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 378.580078125 m 114.4296875 378.580078125 l s q 0 0 0 rg BT 52.50 379.83 Td (Top Fifteen MSAs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.25 379.83 Td (RIF) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.80 379.83 Td (ReserveforLosses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.25 379.83 Td (RIF) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.30 379.83 Td (ReserveforLosses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 366.32 Td (Chicago, IL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 366.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 366.32 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 366.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 366.32 Td (5.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 366.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 366.32 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 366.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 366.32 Td (5.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 366.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 352.32 Td (Atlanta, GA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 352.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 352.32 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 352.32 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 352.32 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 352.32 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 338.32 Td (Los Angeles - Long Beach, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.00 338.32 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 338.32 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 338.32 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 338.32 Td (2.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 338.32 Td (1.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 324.32 Td (Washington, DC-MD-VA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.00 324.32 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 324.32 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 324.32 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 324.32 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 324.32 Td (1.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 310.32 Td (Phoenix/Mesa, AZ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 310.32 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 310.32 Td (2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 310.32 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 310.32 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 310.32 Td (1.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 296.32 Td (Denver, CO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 296.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 296.32 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 296.32 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 296.32 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 296.32 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 282.32 Td (Houston, TX) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 282.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 282.32 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 282.32 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 282.32 Td (2.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 282.32 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 268.32 Td (Minneapolis-St. Paul, MN-WI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 268.32 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 268.32 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 268.32 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 268.32 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 268.32 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 254.32 Td (Dallas, TX) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 254.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 254.32 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 254.32 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 254.32 Td (1.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 254.32 Td (0.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 240.32 Td (New York, NY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 240.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 240.32 Td (1.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 240.32 Td (5.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 240.32 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 240.32 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 226.32 Td (Riverside-San Bernardino, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 226.32 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 226.32 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 226.32 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 226.32 Td (1.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 226.32 Td (1.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 212.32 Td (Philadelphia, PA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 212.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 212.32 Td (1.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 212.32 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 212.32 Td (1.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 212.32 Td (1.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 198.32 Td (San Diego, CA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 198.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 198.32 Td (1.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 198.32 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 198.32 Td (1.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 198.32 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 184.32 Td (Portland, OR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 184.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 184.32 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 184.32 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 184.32 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 184.32 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 170.32 Td (Seattle, WA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 170.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.65 170.32 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 170.32 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 170.32 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 170.32 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 156.32 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 156.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.65 156.32 Td (33.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 156.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 156.32 Td (26.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 156.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 156.32 Td (33.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 156.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.65 156.32 Td (26.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 156.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 131.25 Td (3. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 131.25 Td (Mortgage Loan Characteristics) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 114.25 Td (In addition to geographic dispersion, other factors also contribute significantly to our overall risk diversification and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.25 Td (credit quality of our RIF) Tj ET Q q 0 0 0 rg BT 146.46 102.25 Td (, including product distribution and our risk management and underwriting practices. ) Tj ET Q q 0 0 0 rg BT 488.69 102.25 Td (W) Tj ET Q q 0 0 0 rg BT 497.33 102.25 Td (e consider a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.25 Td (number of borrower and loan characteristics in evaluating the credit quality of our portfolio and developing our pricing and risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.25 Td (management strategies.) Tj ET Q endstream endobj 39 0 obj <> endobj 40 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (19) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (L) Tj ET Q q 0 0 0 rg BT 78.86 731.10 Td (TV) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.53 731.10 Td (. ) Tj ET Q q 0 0 0 rg BT 97.48 731.10 Td (An important indicator of claim incidence in our mortgage insurance business is the relative amount of a borrower) Tj ET Q q 0 0 0 rg BT 555.21 731.10 Td () Tj ET Q q 0 0 0 rg BT 557.99 731.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (equity that exists in a home. Generally) Tj ET Q q 0 0 0 rg BT 202.98 719.10 Td (, absent other mitigating factors such as high FICO scores and other credit factors, loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (with higher L) Tj ET Q q 0 0 0 rg BT 103.02 707.10 Td (TVs at inception \(i.e., smaller down payments\) are more likely to result in a claim than lower L) Tj ET Q q 0 0 0 rg BT 483.65 707.10 Td (TV) Tj ET Q q 0 0 0 rg BT 496.80 707.10 Td ( loans. ) Tj ET Q q 0 0 0 rg BT 525.23 707.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (average L) Tj ET Q q 0 0 0 rg BT 88.27 695.10 Td (TV) Tj ET Q q 0 0 0 rg BT 101.42 695.10 Td ( of our primary NIW) Tj ET Q q 0 0 0 rg BT 184.55 695.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.33 695.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.33 695.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.88 695.10 Td (91.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.71 695.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.91 695.10 Td (91.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.74 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.18 695.10 Td (90.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.01 695.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.79 695.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.79 695.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.23 695.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.23 695.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 516.89 695.10 Td (. See the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (Percentage of primary NIW table in Item 7. Management) Tj ET Q q 0 0 0 rg BT 294.67 683.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 363.84 683.10 Td (Analysis of Financial Condition and Results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (OperationsResults of OperationsMortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 290.28 671.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 307.69 671.10 Td (, IIF) Tj ET Q q 0 0 0 rg BT 324.17 671.10 Td (, RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.71 671.10 Td ( for a breakdown of the composition of our NIW) Tj ET Q q 0 0 0 rg BT 543.64 671.10 Td ( by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 659.10 Td (TV) Tj ET Q q 0 0 0 rg BT 66.73 659.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 642.10 Td (Loan Grade/FICO Scor) Tj ET Q q 0 0 0 rg BT 168.68 642.10 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.12 642.10 Td (. ) Tj ET Q q 0 0 0 rg BT 180.44 642.10 Td (The risk of claim on non-prime loans is significantly higher than that on prime loans. ) Tj ET Q q 0 0 0 rg BT 522.96 642.10 Td (W) Tj ET Q q 0 0 0 rg BT 531.60 642.10 Td (e use ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (our proprietary models to classify a loan as either prime or non-prime on the basis of a borrower) Tj ET Q q 0 0 0 rg BT 435.03 630.10 Td () Tj ET Q q 0 0 0 rg BT 437.81 630.10 Td (s FICO score, the level of loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (file documentation and other factors. In general we consider a loan to be a prime loan if the borrower) Tj ET Q q 0 0 0 rg BT 454.44 618.10 Td () Tj ET Q q 0 0 0 rg BT 457.21 618.10 Td (s FICO score is 620 or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (higher and the loan file meets fully documented standards of our credit guidelines and/or the GSE guidelines for fully ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (documented loans. Substantially all of our NIW) Tj ET Q q 0 0 0 rg BT 240.67 594.10 Td ( after 2008 has been on prime loans. See the Percentage of primary RIF table ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (in Item 7. Management) Tj ET Q q 0 0 0 rg BT 150.02 582.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 219.19 582.10 Td (Analysis of Financial Condition and Results of OperationsResults of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (Mortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 139.74 570.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 157.16 570.10 Td (, IIF) Tj ET Q q 0 0 0 rg BT 173.64 570.10 Td (, RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.18 570.10 Td ( for a breakdown of the composition of our RIF by FICO Score.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 553.10 Td (Loans that we categorize as ) Tj ET Q q 0 0 0 rg BT 185.95 553.10 Td (Alt-A, ) Tj ET Q q 0 0 0 rg BT 213.73 553.10 Td (A) Tj ET Q q 0 0 0 rg BT 220.40 553.10 Td ( minus loans or B/C loans are considered non-prime loans due to lower FICO scores, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (reduced loan file documentation, and/or the presence of other risk characteristics. See the Percentage of primary RIF table in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (Item 7. Management) Tj ET Q q 0 0 0 rg BT 139.74 529.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 208.91 529.10 Td (Analysis of Financial Condition and Results of OperationsResults of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (Mortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 139.74 517.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 157.16 517.10 Td (, IIF) Tj ET Q q 0 0 0 rg BT 173.64 517.10 Td (, RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.18 517.10 Td ( for a breakdown of the composition of our RIF by loan grade.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 500.10 Td (Loan T) Tj ET Q q 0 0 0 rg BT 101.38 500.10 Td (ype) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.26 500.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 125.26 500.10 Td (ARMs; Inter) Tj ET Q q 0 0 0 rg BT 174.59 500.10 Td (est-Only Mortgages) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.30 500.10 Td (. ) Tj ET Q q 0 0 0 rg BT 261.25 500.10 Td (ARMs are loans that have an initial interest rate that will reset during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (life of such loans. Our claim frequency on insured ) Tj ET Q q 0 0 0 rg BT 252.22 488.10 Td (ARMs has been higher than on fixed-rate loans. It has been our experience ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (that the credit performance of loans subject to reset five years or later from origination are less likely to result in a claim than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (ARMs with shorter initial fixed periods. ) Tj ET Q q 0 0 0 rg BT 211.99 464.10 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.03 464.10 Td (67.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.53 464.10 Td (% of the ) Tj ET Q q 0 0 0 rg BT 328.35 464.10 Td (ARMs we insure, including Option ) Tj ET Q q 0 0 0 rg BT 471.13 464.10 Td (ARMs \(discussed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (below\), have already had initial interest rate resets. ) Tj ET Q q 0 0 0 rg BT 254.97 452.10 Td (An additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.19 452.10 Td (3.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.02 452.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.02 452.10 Td (2.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.85 452.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.28 452.10 Td (2.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.11 452.10 Td ( of the ) Tj ET Q q 0 0 0 rg BT 426.61 452.10 Td (ARMs we insure are scheduled to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (have initial interest rate resets during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 440.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.00 440.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.00 440.10 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 440.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.44 440.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.44 440.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 337.10 440.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 423.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 423.10 Td (e also have insured Option ) Tj ET Q q 0 0 0 rg BT 190.73 423.10 Td (ARMs that provide the borrower with dif) Tj ET Q q 0 0 0 rg BT 355.52 423.10 Td (ferent payment options. One of these options is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (minimum payment that is below the fully amortizing payment, which results in interest being capitalized and added to the loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (balance so that the loan balance continually increases, which is also referred to as negative amortization. In addition, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (insured interest-only mortgages, where the borrower pays only the interest char) Tj ET Q q 0 0 0 rg BT 366.72 387.10 Td (ge on a mortgage for a specified period of time, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (usually five to ten years, after which the loan payment increases to include principal payments. ) Tj ET Q q 0 0 0 rg BT 431.69 375.10 Td (W) Tj ET Q q 0 0 0 rg BT 440.33 375.10 Td (e have not written any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (insurance on Option ) Tj ET Q q 0 0 0 rg BT 132.54 363.10 Td (ARMs or interest-only mortgages since 2007 and 201) Tj ET Q q 0 0 0 rg BT 346.86 363.10 Td (1, respectively) Tj ET Q q 0 0 0 rg BT 404.52 363.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 346.10 Td (See the Percentage of primary RIF table in Item 7. Management) Tj ET Q q 0 0 0 rg BT 345.90 346.10 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 415.07 346.10 Td (Analysis of Financial Condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (Results of OperationsResults of OperationsMortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 333.05 334.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 350.47 334.10 Td (, IIF) Tj ET Q q 0 0 0 rg BT 366.95 334.10 Td (, RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.49 334.10 Td ( for a breakdown of the composition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.10 Td (our RIF by loan type.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 305.10 Td (Loan Purpose. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 134.89 305.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.39 305.10 Td (Loan purpose may also impact our risk of loss. For example, cash-out refinance loans, where a borrower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (receives cash in connection with refinancing a loan, have been more likely to result in a claim than new purchase loans or loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (that are refinanced only to adjust rate and term. See the Percentage of primary RIF table in Item 7. Management) Tj ET Q q 0 0 0 rg BT 513.48 281.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (Discussion and ) Tj ET Q q 0 0 0 rg BT 112.28 269.10 Td (Analysis of Financial Condition and Results of OperationsResults of OperationsMortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 66.91 257.10 Td (, IIF) Tj ET Q q 0 0 0 rg BT 83.39 257.10 Td (, RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.94 257.10 Td ( for the percentage of our NIW) Tj ET Q q 0 0 0 rg BT 232.02 257.10 Td ( and our RIF comprised of refinances.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 240.10 Td (Loan Size) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.67 240.10 Td (. Higher) Tj ET Q q 0 0 0 rg BT 147.74 240.10 Td (-priced properties with lar) Tj ET Q q 0 0 0 rg BT 251.68 240.10 Td (ger mortgage loan amounts generally have experienced wider fluctuations in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.10 Td (value than moderately priced residences and have been more likely to result in a claim. ) Tj ET Q q 0 0 0 rg BT 399.74 228.10 Td (The average loan size of our direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (primary mortgage insurance in force \(by product\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.26 216.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.50 216.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.50 216.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 216.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.94 216.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.94 216.10 Td ( was as follows:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.25 188.60000000000002 m 396.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.25 188.60000000000002 m 400.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 188.60000000000002 m 454.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.25 188.60000000000002 m 458.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.25 188.60000000000002 m 513.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.25 188.60000000000002 m 396.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.25 176.60000000000002 m 396.25 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.25 188.60000000000002 m 400.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 188.60000000000002 m 454.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 176.60000000000002 m 454.25 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454.25 188.60000000000002 m 458.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.25 188.60000000000002 m 513.25 188.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.25 176.60000000000002 m 513.25 176.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.25 176.60000000000002 m 513.25 176.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 54.75 192.55 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 397.65 191.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 54.75 179.43007812500002 m 104.328125 179.43007812500002 l s q 0 0 0 rg BT 54.75 180.68 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.25 180.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 418.75 180.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.25 180.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 167.17 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.25 167.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.75 167.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.90 167.17 Td (200.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.75 167.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.90 167.17 Td (195.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.75 167.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.90 167.17 Td (184.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 153.17 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.25 153.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.90 153.17 Td (190.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.90 153.17 Td (190.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.90 153.17 Td (193.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 139.17 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.25 139.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.90 139.17 Td (129.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.90 139.17 Td (129.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.90 139.17 Td (131.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 125.17 Td (Total portfolio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.25 125.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.90 125.17 Td (196.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.90 125.17 Td (192.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.90 125.17 Td (182.1) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 41 0 obj <> endobj 42 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 731.10 Td (e consider other factors, including property type and occupancy type, in assessing our risk of loss. In general, it has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (been our experience that our risk of claim is lower on loans secured by single family detached housing than loans on other types ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (of properties, and is higher on non-owner occupied homes purchased for investment purposes than on either primary or second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (homes.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (C. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 662.10 Td (Defaults and Claims) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 645.10 Td (Defaults.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.89 645.10 Td ( In our mortgage insurance segment, the default and claim cycle begins with the receipt of a default notice from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.10 Td (the loan servicer) Tj ET Q q 0 0 0 rg BT 115.03 633.10 Td (. ) Tj ET Q q 0 0 0 rg BT 119.85 633.10 Td (W) Tj ET Q q 0 0 0 rg BT 128.48 633.10 Td (e consider a loan to be in default for financial statement and internal tracking purposes upon receipt of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (notification by servicers that a borrower has missed two monthly payments. Defaults can occur due to a variety of factors, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (including death or illness, divorce or other family problems, unemployment, overall changes in economic conditions, housing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.10 Td (value changes that cause the outstanding mortgage amount to exceed the value of a home or other events. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 580.10 Td (The default rate in our mortgage insurance business is subject to seasonality) Tj ET Q q 0 0 0 rg BT 376.93 580.10 Td (. Historically) Tj ET Q q 0 0 0 rg BT 428.50 580.10 Td (, our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 Td (business experiences a fourth quarter seasonal increase in the number of defaults and a first quarter seasonal decline in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (number of defaults and increase in the number of cures. ) Tj ET Q q 0 0 0 rg BT 274.51 556.10 Td (While this historically has been the case, macroeconomic factors in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (given period may influence the default rate in our mortgage insurance business more than seasonality) Tj ET Q q 0 0 0 rg BT 454.28 544.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 527.10 Td (The following graph shows the trend of the number of primary defaults by each vintage year as of the end of each quarter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (following the year of original policy issuance. ) Tj ET Q /GS0 gs q 513.00 0 0 288.00 49.50 222.10 cm /I20 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 205.10 Td (The business we wrote in 2005 through 2008 contained a significant number of poorly underwritten and higher risk loans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (As a result of these loan characteristics and the economic downturn that began in 2007, we have experienced substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (higher ultimate loss ratios for this portfolio than in previous policy years. In 2008, we implemented a number of changes to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (underwriting guidelines aimed at improving the risk characteristics of the loans we insure. ) Tj ET Q q 0 0 0 rg BT 412.18 169.10 Td (As a result of our more restrictive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (underwriting guidelines, the mortgage insurance we have been writing is predominantly prime credit quality fully documented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (loans, with FICO scores of 740 or above. ) Tj ET Q q 0 0 0 rg BT 216.52 145.10 Td (W) Tj ET Q q 0 0 0 rg BT 225.15 145.10 Td (e have observed significantly improved risk characteristics of these loans, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (significant improvement in the default rates for RIF originated beginning in 2009, in particular when compared to the 2005 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (through 2008 portfolios.) Tj ET Q endstream endobj 43 0 obj <> endobj 44 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (The following table shows the states that have generated the highest number of primary insurance defaults \(measured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.79 731.10 Td (as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.91 719.10 Td (\) in our insured portfolio and the corresponding percentage of total defaults as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 691.6 m 292 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 691.6 m 296 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296 691.6 m 346 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 691.6 m 350 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 691.6 m 400 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 691.6 m 404 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 691.6 m 454 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 691.6 m 458 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 691.6 m 508 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 691.6 m 512 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 691.6 m 562 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 691.6 m 292 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 679.6 m 292 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 691.6 m 296 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292 679.6 m 296 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296 691.6 m 346 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 296 679.6 m 346 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 691.6 m 400 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 679.6 m 400 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 691.6 m 404 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 679.6 m 404 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 691.6 m 454 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 679.6 m 454 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 691.6 m 508 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 679.6 m 508 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 691.6 m 512 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 508 679.6 m 512 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 691.6 m 562 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 512 679.6 m 562 679.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 695.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.25 695.68 Td (December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 683.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.50 683.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 683.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.50 683.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 670.17 Td (States with highest number of defaults:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 656.17 Td (Florida) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 656.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 656.17 Td (6,122) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.65 656.17 Td (13.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.15 656.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 656.17 Td (9,530) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.65 656.17 Td (15.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 656.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 656.17 Td (15,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 656.17 Td (16.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 656.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 642.17 Td (New York) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 642.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 642.17 Td (3,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.65 642.17 Td (7.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 642.17 Td (3,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 642.17 Td (6.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 642.17 Td (4,586) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 642.17 Td (4.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 628.17 Td (New Jersey) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.00 628.17 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 628.17 Td (3,103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.65 628.17 Td (6.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 628.17 Td (3,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 628.17 Td (5.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 628.17 Td (4,587) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 628.17 Td (4.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 614.17 Td (Illinois) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 614.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 614.17 Td (2,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.65 614.17 Td (5.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 614.17 Td (3,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 614.17 Td (6.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 614.17 Td (6,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 614.17 Td (6.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 600.17 Td (Ohio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.00 600.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 600.17 Td (2,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.65 600.17 Td (5.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 600.17 Td (3,130) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 600.17 Td (5.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 600.17 Td (4,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 600.17 Td (4.9) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 575.10 Td (Claims. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.34 575.10 Td (Defaulted loans that fail to become current, or cure, may result in a claim under our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (policies. Mortgage insurance claim volume is influenced by the circumstances surrounding the default. ) Tj ET Q q 0 0 0 rg BT 463.36 563.10 Td (The rate at which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (defaults cure, or do not go to claim, depends in lar) Tj ET Q q 0 0 0 rg BT 250.37 551.10 Td (ge part on a borrower) Tj ET Q q 0 0 0 rg BT 336.82 551.10 Td () Tj ET Q q 0 0 0 rg BT 339.60 551.10 Td (s financial resources and circumstances \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (whether the borrower is eligible for a loan modification\), local housing prices and housing supply \(i.e., whether borrowers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (able to cure defaults by selling the property in full satisfaction of all amounts due under the mortgage\), interest rates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (regional economic conditions. In our First-lien primary insurance business, the insured lender must acquire title to the property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (\(typically through a foreclosure proceeding\) before submitting a claim. ) Tj ET Q q 0 0 0 rg BT 335.89 503.10 Td (The time for a lender to acquire title to a property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (through foreclosure varies depending on the state. Following the financial crisis, the time between a default and a request for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (claim payment increased, lar) Tj ET Q q 0 0 0 rg BT 164.27 479.10 Td (gely as a result of foreclosure delays due to, among other factors, increased scrutiny within the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (mortgage servicing industry and foreclosure process. Delays in foreclosures have continued to extend the timing of claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (submissions, in particular as compared to historical standards. In our Second-lien insurance business, which is a small ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (percentage of our RIF) Tj ET Q q 0 0 0 rg BT 136.72 443.10 Td (, foreclosure is not required and claims are typically submitted based on a contractual number of days that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (a borrower is in default. ) Tj ET Q q 0 0 0 rg BT 147.25 431.10 Td (As a result, we typically are required to pay a claim much earlier) Tj ET Q q 0 0 0 rg BT 405.91 431.10 Td (, generally within approximately 150 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (days of a borrower) Tj ET Q q 0 0 0 rg BT 125.12 419.10 Td () Tj ET Q q 0 0 0 rg BT 127.90 419.10 Td (s missed payment. For our pool insurance business, loans were insured under policies separate from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (Master Policies used in our primary mortgage insurance business. ) Tj ET Q q 0 0 0 rg BT 314.82 407.10 Td (T) Tj ET Q q 0 0 0 rg BT 320.23 407.10 Td (ypically) Tj ET Q q 0 0 0 rg BT 351.79 407.10 Td (, our pool policies require the insured to not only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (acquire title but also to actively market and ultimately liquidate the real estate asset before filing a claim, which generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (lengthens the time between a default and a claim submission.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 366.10 Td (Claim activity is not spread evenly throughout the coverage period of a book of business. Historically) Tj ET Q q 0 0 0 rg BT 479.42 366.10 Td (, relatively few ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (claims on prime business are received during the first two years following issuance of a policy) Tj ET Q q 0 0 0 rg BT 426.80 354.10 Td (, and on non-prime business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (during the first year) Tj ET Q q 0 0 0 rg BT 128.09 342.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 325.10 Td (The following table shows the gross amount of direct claims paid by policy origination year for the periods indicated. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (Direct claims paid represent First-lien claims paid prior to reinsurance recoveries and captive termination payments and exclude ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (LAE expenses paid and amounts paid under settlement agreements.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 273.6 m 303 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 273.6 m 307 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 273.6 m 360 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 273.6 m 364 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 273.6 m 411 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 273.6 m 415 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 273.6 m 463 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 273.6 m 467 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 273.6 m 511 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 273.6 m 515 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 273.6 m 563 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 273.6 m 303 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 261.6 m 303 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 273.6 m 307 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 303 261.6 m 307 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 273.6 m 360 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 261.6 m 360 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 360 273.6 m 364 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 273.6 m 411 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 261.6 m 411 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 273.6 m 415 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 261.6 m 415 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 273.6 m 463 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 261.6 m 463 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 273.6 m 511 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 261.6 m 511 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 273.6 m 515 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 261.6 m 515 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 273.6 m 563 273.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 261.6 m 563 261.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 120.60000000000002 m 303 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 120.60000000000002 m 411 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 120.60000000000002 m 463 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 120.60000000000002 m 511 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 120.60000000000002 m 563 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 107.60000000000002 m 303 107.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 105.60000000000002 m 303 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 120.60000000000002 m 360 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 107.60000000000002 m 360 107.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 307 105.60000000000002 m 360 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 120.60000000000002 m 411 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 107.60000000000002 m 411 107.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 105.60000000000002 m 411 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 120.60000000000002 m 463 120.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 107.60000000000002 m 463 107.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 105.60000000000002 m 463 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 107.60000000000002 m 511 107.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 105.60000000000002 m 511 105.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 107.60000000000002 m 563 107.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 105.60000000000002 m 563 105.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 277.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.20 277.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 264.430078125 m 99.6171875 264.430078125 l s q 0 0 0 rg BT 52.50 265.68 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 300.00 265.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.00 265.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.50 265.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 251.27 Td (Direct claims paid by origination year \(First-lien\):) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 259.50 250.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 237.17 Td (2005 and prior) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 237.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.50 237.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 237.17 Td (219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.65 237.17 Td (27.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 237.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 237.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 237.17 Td (303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 237.17 Td (25.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 237.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 237.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 237.17 Td (268) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 237.17 Td (26.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 237.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 223.17 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 223.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 223.17 Td (163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.65 223.17 Td (20.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 223.17 Td (239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 223.17 Td (20.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 223.17 Td (194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 223.17 Td (19.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 209.17 Td (2007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 209.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 209.17 Td (302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.65 209.17 Td (37.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 209.17 Td (446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 209.17 Td (37.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 209.17 Td (403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 209.17 Td (39.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 195.17 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 195.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 195.17 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.65 195.17 Td (13.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 195.17 Td (169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 195.17 Td (14.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 195.17 Td (137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 195.17 Td (13.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 181.17 Td (2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 181.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 181.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.65 181.17 Td (1.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 181.17 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 181.17 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 181.17 Td (11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 181.17 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 167.17 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 167.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 167.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.65 167.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 167.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 167.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 167.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 167.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 153.17 Td (2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 153.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 153.17 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.65 153.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 153.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 153.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 153.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 153.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 139.17 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 139.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 139.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.65 139.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 139.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 139.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 139.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 139.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 125.17 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 125.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 125.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.65 125.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 125.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 125.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 125.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 125.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 111.17 Td (Total direct claims paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.00 111.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.50 111.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.15 111.17 Td (813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 111.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.15 111.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 111.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 111.17 Td (1,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.60 111.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 111.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.50 111.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 111.17 Td (1,014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 111.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 111.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 45 0 obj <> endobj 46 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (The following table shows the states with the highest direct claims paid \(measured as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.08 731.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.66 731.10 Td (\) for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 691.6 m 409.5 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 691.6 m 413.5 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 691.6 m 478.5 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 691.6 m 482.5 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 691.6 m 545.5 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344.5 679.6 m 409.5 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 679.6 m 478.5 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482.5 679.6 m 545.5 679.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 68.00 695.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.20 695.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 74 682.430078125 m 116.0078125 682.430078125 l s q 0 0 0 rg BT 74.00 683.68 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.50 683.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.50 683.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.50 683.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 670.17 Td (States with highest direct claims paid \(First-lien\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 656.17 Td (Florida) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.50 656.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 656.17 Td (166.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 656.17 Td (247.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.00 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 656.17 Td (138.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 642.17 Td (California) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.50 642.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 642.17 Td (80.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 642.17 Td (201.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 642.17 Td (168.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 628.17 Td (Illinois) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.50 628.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 628.17 Td (73.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 628.17 Td (108.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 628.17 Td (56.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 614.17 Td (Georgia) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.50 614.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 614.17 Td (35.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 614.17 Td (63.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 614.17 Td (57.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 600.17 Td (Ohio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 600.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.15 600.17 Td (33.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.15 600.17 Td (50.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 600.17 Td (34.0) Tj ET Q BT /F1 10.00 Tf ET BT /F3 9.00 Tf ET q 0 0 0 rg BT 72.00 575.10 Td (Claim) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 94.00 575.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 96.25 575.10 Td (Severity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.46 575.10 Td (. In addition to claim volume, Claim Severity is another significant factor af) Tj ET Q q 0 0 0 rg BT 434.58 575.10 Td (fecting losses. ) Tj ET Q q 0 0 0 rg BT 493.56 575.10 Td (W) Tj ET Q q 0 0 0 rg BT 502.20 575.10 Td (e calculate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (Claim Severity by dividing the claim paid amount by the original coverage amount. Factors that impact the severity of a claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (include, but are not limited to, the size of the loan, the amount of mortgage insurance coverage placed on the loan and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (impact of our loss management activities with respect to the loan. Pre-foreclosure sales, acquisitions and other early workout ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 527.10 Td (forts help to reduce overall Claim Severity) Tj ET Q q 0 0 0 rg BT 226.94 527.10 Td (, as do actions we may take to reduce claim payment due to servicer negligence, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (discussed below in Claims Management. ) Tj ET Q q 0 0 0 rg BT 224.28 515.10 Td (The average Claim Severity for loans covered by our primary insurance was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (100.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.33 503.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.99 503.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.99 503.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 503.10 Td (97.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.02 503.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.80 503.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.80 503.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (D. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 470.10 Td (Claims Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 453.10 Td (Our claims management process is focused on promptly analyzing and processing claims to ensure that valid claims are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.10 Td (paid in a timely and accurate manner) Tj ET Q q 0 0 0 rg BT 196.66 441.10 Td (. In addition, our mortgage insurance claims management department pursues ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.10 Td (opportunities to mitigate losses both before and after claims are received. ) Tj ET Q q 0 0 0 rg BT 344.77 429.10 Td (W) Tj ET Q q 0 0 0 rg BT 353.41 429.10 Td (e dedicate significant resources to mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.10 Td (insurance claims management.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 400.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 400.10 Td (e have a dedicated loss mitigation group that works with servicers to identify and pursue loss mitigation opportunities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (for loans in both our performing and non-performing \(defaulted\) portfolios. ) Tj ET Q q 0 0 0 rg BT 353.96 388.10 Td (This work includes regular surveillance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (benchmarking of servicer performance with respect to default reporting, borrower retention ef) Tj ET Q q 0 0 0 rg BT 425.27 376.10 Td (forts, foreclosure alternatives and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (foreclosure processing. ) Tj ET Q q 0 0 0 rg BT 144.56 364.10 Td (Through this process, we seek to hold servicers accountable for their performance and communicate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (servicers identified best practices for servicer performance. ) Tj ET Q q 0 0 0 rg BT 288.65 352.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.28 352.10 Td (e evaluate and consider a number of factors that assess the quality ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (of the loan origination and the loan servicing in determining the extent of our loss mitigation reviews and which loss mitigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (strategies to pursue.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 311.10 Td (Claims. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.84 311.10 Td (In our traditional mortgage insurance business, upon receipt of a valid claim, we generally have the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (three settlement options:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 282.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 282.10 Td (pay the maximum liability and allow the insured lender to keep title to the property) Tj ET Q q 0 0 0 rg BT 435.54 282.10 Td (. ) Tj ET Q q 0 0 0 rg BT 440.36 282.10 Td (The maximum liability is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 270.10 Td (determined by multiplying ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 212.65 270.10 Td (\(x\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.75 270.10 Td ( the claim amount \(which consists of the unpaid loan principal, plus past due interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 258.10 Td (for a period of time specified in our Master Policies and certain expenses associated with the default\) by) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 520.31 258.10 Td ( \(y\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.91 258.10 Td ( the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 246.10 Td (applicable coverage percentage;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 229.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 229.10 Td (pay the amount of the claim required to make the lender whole \(not to exceed our maximum liability\), following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 217.10 Td (an approved sale; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 200.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 200.10 Td (pay the full claim amount and acquire title to the property) Tj ET Q q 0 0 0 rg BT 333.89 200.10 Td (.) Tj ET Q endstream endobj 47 0 obj <> endobj 48 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (23) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Approved sales in which the underlying property has been sold for less than the outstanding loan amount are commonly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (referred to as short sales. ) Tj ET Q q 0 0 0 rg BT 160.01 719.10 Td (Although short sales may have the ef) Tj ET Q q 0 0 0 rg BT 308.12 719.10 Td (fect of reducing our ultimate claim obligation, in some cases, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (short sale will result in the payment of a claim in an amount that is equal to the maximum liability amount. Under our Master ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Policies, we retain the right to consent prior to the consummation of any short sales.Historically) Tj ET Q q 0 0 0 rg BT 434.60 695.10 Td (, we have consented to a short ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (sale only after reviewing various factors, including among other items, the sale price relative to market and the ability of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (borrower to contribute to any shortfall in the sale proceeds as compared to the outstanding loan amount. ) Tj ET Q q 0 0 0 rg BT 467.54 671.10 Td (W) Tj ET Q q 0 0 0 rg BT 476.17 671.10 Td (e have entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (agreements with each of the GSEs, pursuant to which we delegated to the GSEs our prior consent rights with respect to short ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (sales on loans owned by the GSEs, as long as the short sales meet the GSE guidelines and processes for short sales and subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (to certain other factors set forth in these agreements. ) Tj ET Q q 0 0 0 rg BT 261.09 635.10 Td (As a result, instead of reviewing each individual transaction prior to short ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (sale with respect to GSE loans, we instead perform a post-claim quality review of these short sales to ensure that they are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (meeting the specified requirements. ) Tj ET Q q 0 0 0 rg BT 194.54 611.10 Td (W) Tj ET Q q 0 0 0 rg BT 203.18 611.10 Td (e have the ability to terminate our delegated short sale agreements with the GSEs upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (60 days notice.) Tj ET Q q 0 0 0 rg BT 112.08 599.10 Td (W) Tj ET Q q 0 0 0 rg BT 120.72 599.10 Td (e also provide for limited delegation authority to certain loan servicers for short sales under specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (circumstances. For loans that are not owned by the GSEs and for which we have not granted specific delegation authority to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.10 Td (loan servicer) Tj ET Q q 0 0 0 rg BT 100.46 575.10 Td (, we continue to perform an individual analysis of each proposed short sale and provide our consent to these sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (when appropriate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 546.10 Td (After a claim is received, our loss management specialists focus on:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 529.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 529.10 Td (a review to determine compliance with applicable loan origination programs and our mortgage insurance policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 517.10 Td (requirements, including: \(i\)whether the loan qualified for insurance at the time the certificate of coverage was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 505.10 Td (issued; and \(ii\)whether the insured has satisfied its obligation in meeting all necessary conditions in order for us ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 493.10 Td (to pay a claim \(commonly referred to as claim perfection\), including submitting all necessary documentation in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 481.10 Td (connection with the claim;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 464.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 464.10 Td (analysis and prompt processing to ensure that valid claims are paid in an accurate and timely manner;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 447.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 447.10 Td (responses to loss mitigation opportunities presented by the insured; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 430.10 Td (aggressive management and disposal of acquired real estate.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 413.10 Td (Claim Denials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.56 413.10 Td (. ) Tj ET Q q 0 0 0 rg BT 138.88 413.10 Td (W) Tj ET Q q 0 0 0 rg BT 147.51 413.10 Td (e have the legal right under our Master Policies to deny a claim if the loan servicer does not produce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.10 Td (documents necessary to perfect a claim, including evidence that the insured has acquired title to the property) Tj ET Q q 0 0 0 rg BT 482.86 401.10 Td (, within the time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (period specified in our Master Policies. Most often, a claim denial is the result of a servicer) Tj ET Q q 0 0 0 rg BT 414.76 389.10 Td () Tj ET Q q 0 0 0 rg BT 417.54 389.10 Td (s inability to provide the loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (origination file or other servicing documents for review) Tj ET Q q 0 0 0 rg BT 271.28 377.10 Td (. If, after requests by us, the loan origination file or other servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (documents are not provided to us, we generally deny the claim. ) Tj ET Q q 0 0 0 rg BT 305.08 365.10 Td (The terms of our Master Policies establish the timeline within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (which the insured must provide the necessary documents to perfect a claim. If we deny a claim, we continue to allow the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (insured the ability to perfect the claim for a period of time specified in our Master Policies. If the insured successfully perfects ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (the claim within our specified timelines, we will process the claim, including a review of the loan to ensure appropriate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (underwriting and loan servicing.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 300.10 Td (Rescissions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.61 300.10 Td (. Under the terms of our Master Policies we have the legal right, under certain conditions, to unilaterally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.10 Td (rescind coverage on our mortgage insurance policies. If we rescind coverage based on a determination that a loan did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.10 Td (qualify for insurance, we provide the insured with a period of time to challenge, or rebut, our decision.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 259.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 259.10 Td (ypical events that may give rise to our right to rescind coverage include the following: \(1\)we insure a loan under one of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (our Master Policies in reliance upon an application for insurance that contains a material misstatement, misrepresentation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (omission, whether intentional or otherwise, or that was issued as a result of any act of fraud, subject to certain exceptions; or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (\(2\)we find that there was negligence in the origination of a loan that we insured. ) Tj ET Q q 0 0 0 rg BT 375.05 223.10 Td (W) Tj ET Q q 0 0 0 rg BT 383.68 223.10 Td (e also have rights of rescission arising from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (a breach of the insured) Tj ET Q q 0 0 0 rg BT 143.35 211.10 Td (s representations and warranties contained in an endorsement to our Master Policies that is required with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (our delegated underwriting program. In certain circumstances, we may seek to rescind Structured ) Tj ET Q q 0 0 0 rg BT 441.12 199.10 Td (T) Tj ET Q q 0 0 0 rg BT 446.88 199.10 Td (ransactions for breach of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (representations and warranties pertaining to the insured loans having been underwritten in accordance with the agreed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (underwriting guidelines and in the absence of any fraud or misrepresentation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 158.10 Td (If a rebuttal to our rescission is received and the insured provides additional information supporting the continuation \(i.e., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (non-rescission\) of coverage, we have the claim re-examined internally by a second, independent group. If the additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (information supports the continuation of coverage, the insurance is reinstated and the claim is paid. ) Tj ET Q q 0 0 0 rg BT 448.00 134.10 Td (After completion of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (process, if we determine that the loan did not qualify for coverage, the insurance certificate is rescinded \(and the premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (refunded\) and we consider the rescission to be final and resolved. ) Tj ET Q q 0 0 0 rg BT 313.30 110.10 Td (Although we may make a final determination internally with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (respect to a rescission, it is possible that a legal challenge to our decision to rescind coverage may be brought after we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (rescinded coverage during a period of time that is specified under the terms of our Master Policies.) Tj ET Q endstream endobj 49 0 obj <> endobj 50 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (During the first quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.30 731.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.30 731.10 Td (, we began of) Tj ET Q q 0 0 0 rg BT 252.99 731.10 Td (fering a limited rescission waiver program under our Prior Master Policy for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (our delegated underwriting customers, in which we agree not to rescind coverage due to non-compliance with our underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (guidelines so long as the borrower makes 36 consecutive payments \(commencing with the initial required payment\) from his or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (her own funds. ) Tj ET Q q 0 0 0 rg BT 111.53 695.10 Td (This program does not restrict our rights to rescind coverage in the event of fraud or misrepresentation in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (origination of the loans we insure. ) Tj ET Q q 0 0 0 rg BT 188.08 683.10 Td (As part of our 2014 Master Policy for new insurance written after October 1, 2014, we now ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 671.10 Td (fer 12-month and 36-month rescission relief programs in accordance with the specified terms and conditions set forth in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (new policy) Tj ET Q q 0 0 0 rg BT 93.01 659.10 Td (. For a discussion of the 2014 Master Policy) Tj ET Q q 0 0 0 rg BT 268.73 659.10 Td (, see Business) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 349.00 659.10 Td (T) Tj ET Q q 0 0 0 rg BT 354.01 659.10 Td (raditional Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.73 659.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 642.10 Td (Claim Curtailments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.67 642.10 Td (. ) Tj ET Q q 0 0 0 rg BT 159.99 642.10 Td (W) Tj ET Q q 0 0 0 rg BT 168.63 642.10 Td (e also have rights under our Master Policies to curtail, and in some circumstances, deny claims ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (due to servicer negligence.Examples of servicer negligence may include, without limitation:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 613.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 613.10 Td (a failure to report information to us on a timely basis as required under our Master Policies;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 596.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 596.10 Td (a failure to pursue loss mitigation opportunities presented by borrowers, realtors and/or any other interested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 584.10 Td (parties;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 567.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 567.10 Td (a failure to pursue loan modifications and/or refinancings through programs available to borrowers or an undue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 555.10 Td (delay in presenting claims to us \(including as a result of improper handling of foreclosure proceedings\), which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 543.10 Td (increases the interest or other components of a claim we are required to pay; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 526.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 526.10 Td (a failure to initiate and diligently pursue foreclosure or other appropriate proceedings within the timeframe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 514.10 Td (specified in our Master Policies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 497.10 Td (Although we could seek post-claim recoveries from the beneficiaries of our policies if we later determine that a claim was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.10 Td (not valid, because our loss mitigation process is designed to ensure compliance with our policies prior to payment of claim, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.10 Td (have not sought, nor do we currently expect to seek, recoveries from the beneficiaries of our mortgage insurance policies once a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.10 Td (claim payment has been made.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (E. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 428.10 Td (Risk Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 411.10 Td (Our mortgage insurance business employs a comprehensive risk management function, which is responsible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (establishing our credit and counterparty risk policies, monitoring compliance with our policies, managing our insured portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (and communicating credit related issues to management and the Credit Committee of our Board.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 366.10 Td (Risk Origination and Servicing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 349.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 349.10 Td (e believe that understanding our business partners and customers is a key component of managing risk. ) Tj ET Q q 0 0 0 rg BT 496.21 349.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 545.54 349.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (assign risk managers to our customers so that they can more ef) Tj ET Q q 0 0 0 rg BT 300.09 337.10 Td (fectively perform ongoing business-level due diligence. ) Tj ET Q q 0 0 0 rg BT 525.12 337.10 Td (This also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (allows us to better customize our credit and servicing policies to address individual lender) Tj ET Q q 0 0 0 rg BT 409.48 325.10 Td (-specific and servicer) Tj ET Q q 0 0 0 rg BT 494.79 325.10 Td (-specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (strengths and weaknesses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (2. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 292.10 Td (Portfolio Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 275.10 Td (e manage the allocation of capital within our mortgage insurance business by) Tj ET Q q 0 0 0 rg BT 390.00 275.10 Td (, among other things, establishing portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (limits for product type, loan attributes, geographic concentration and counterparties. ) Tj ET Q q 0 0 0 rg BT 388.38 263.10 Td (W) Tj ET Q q 0 0 0 rg BT 397.01 263.10 Td (e also identify) Tj ET Q q 0 0 0 rg BT 453.02 263.10 Td (, evaluate and negotiate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (potential transactions for terminating insurance risk and for distributing risk to others through commutations and external ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (reinsurance arrangements discussed below under ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 251.92 239.10 Td (ReinsuranceCeded) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.24 239.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 222.10 Td (As part of our portfolio management function, we monitor and analyze the performance of various risks in our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (insurance portfolio. ) Tj ET Q q 0 0 0 rg BT 130.13 210.10 Td (W) Tj ET Q q 0 0 0 rg BT 138.77 210.10 Td (e use this information to develop our mortgage credit risk and counterparty risk policies, and as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (component of our default and prepayment analytics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 181.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 181.10 Td (e have a valuation group that analyzes the current composition of our mortgage insurance portfolio and monitors for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (compliance with our internally defined risk parameters. ) Tj ET Q q 0 0 0 rg BT 273.68 169.10 Td (This analysis involves assessing risks to the portfolio from the market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (\(e.g., the ef) Tj ET Q q 0 0 0 rg BT 94.57 157.10 Td (fects of changes in home prices and interest rates\) and analyzing risks from particular lenders, products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (geographic locales.) Tj ET Q endstream endobj 51 0 obj <> endobj 52 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (25) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (3. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Credit Policy) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 714.25 Td (e establish and maintain mortgage-related, credit risk policies that reflect our willingness to accept risk regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (counterparty) Tj ET Q q 0 0 0 rg BT 99.38 702.25 Td (, portfolio, operational and structured risks involving mortgage collateral. ) Tj ET Q q 0 0 0 rg BT 395.79 702.25 Td (W) Tj ET Q q 0 0 0 rg BT 404.43 702.25 Td (e establish risk guidelines for product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (types and loan attributes. Quality control is a key element of our credit policy function, and as part of our quality control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (program, we audit individual loan files to examine underwriting decisions for compliance with agreed-upon underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (guidelines. ) Tj ET Q q 0 0 0 rg BT 95.42 666.25 Td (These audits are conducted across loans submitted through our delegated and non-delegated underwriting channels.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (4. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 645.25 Td (ReinsuranceCeded) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 628.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 628.25 Td (e use reinsurance as a risk management tool in our mortgage insurance business.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 611.25 Td (Thir) Tj ET Q q 0 0 0 rg BT 90.36 611.25 Td (d-Party Quota Shar) Tj ET Q q 0 0 0 rg BT 169.43 611.25 Td (e T) Tj ET Q q 0 0 0 rg BT 181.38 611.25 Td (ransactions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.05 611.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.88 611.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.88 611.25 Td (, Radian Guaranty entered into two quota share reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.25 Td (agreements with a third-party reinsurance provider in order to proactively manage Radian Guaranty) Tj ET Q q 0 0 0 rg BT 451.01 599.25 Td (s Risk-to-capital. ) Tj ET Q q 0 0 0 rg BT 521.65 599.25 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.25 Td (the Initial QSR ) Tj ET Q q 0 0 0 rg BT 112.37 587.25 Td (T) Tj ET Q q 0 0 0 rg BT 118.13 587.25 Td (ransaction, Radian Guaranty agreed to cede to the third-party reinsurance provider 20% of its NIW) Tj ET Q q 0 0 0 rg BT 513.63 587.25 Td ( beginning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (with the business written in the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.29 575.25 Td (201) Tj ET Q q 0 0 0 rg BT 259.92 575.25 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.92 575.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.37 575.25 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.40 575.25 Td (, RIF ceded under the Initial QSR ) Tj ET Q q 0 0 0 rg BT 509.41 575.25 Td (T) Tj ET Q q 0 0 0 rg BT 515.17 575.25 Td (ransaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (was $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.55 563.25 Td (1.1 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.67 563.25 Td (. In the fourth quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.80 563.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.80 563.25 Td ( Radian Guaranty and the same third-party reinsurance provider entered into the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (Second QSR ) Tj ET Q q 0 0 0 rg BT 103.21 551.25 Td (T) Tj ET Q q 0 0 0 rg BT 108.97 551.25 Td (ransaction. ) Tj ET Q q 0 0 0 rg BT 154.88 551.25 Td (The limitation on ceded risk in the Second QSR ) Tj ET Q q 0 0 0 rg BT 348.84 551.25 Td (T) Tj ET Q q 0 0 0 rg BT 354.59 551.25 Td (ransaction was $750 million initially and increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (by mutual agreement of the parties up to $) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.89 539.25 Td (1.6 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.01 539.25 Td (, which was the RIF ceded under this transaction as of December 31, 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 58.76 527.25 Td (fective January 1, 2015, having ceded the maximum amounts permitted under the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 461.25 527.25 Td (T) Tj ET Q q 0 0 0 rg BT 467.00 527.25 Td (ransactions, Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (Guaranty is no longer ceding NIW) Tj ET Q q 0 0 0 rg BT 187.89 515.25 Td ( under these agreements. Each of the quota share reinsurance agreements provide Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (Guaranty with an option to reassume a portion of the related RIF in exchange for a payment of a predefined commutation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (amount from the reinsurer under certain circumstances and on specified dates. Under the Initial QSR ) Tj ET Q q 0 0 0 rg BT 454.74 491.25 Td (T) Tj ET Q q 0 0 0 rg BT 460.50 491.25 Td (ransaction Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (Guaranty had the option to recapture a portion of the ceded risk on December 31, 2014. Instead of exercising its right to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (recapture that risk, Radian Guaranty negotiated an amendment with the third-party reinsurance provider to leave the reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (in place and received a $9.2 million profit commission based on experience to date, as well as a $15.0 million upfront ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (supplemental ceding commission. ) Tj ET Q q 0 0 0 rg BT 187.63 443.25 Td (The primary purpose of this amendment was to provide Radian Guaranty continued capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.25 Td (relief in anticipation of a need to comply with the PMIERs Financial Requirements. See Note 8 of Notes to Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.25 Td (Financial Statements for information regarding these two transactions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 402.25 Td (Affiliate Reinsurance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.20 402.25 Td (Certain states limit the amount of risk a mortgage insurer may retain on a single loan to 25% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (total loan amount. Radian Guaranty currently uses reinsurance from af) Tj ET Q q 0 0 0 rg BT 331.44 390.25 Td (filiated companies to remain in compliance with these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (insurance regulations. See RegulationState Regulation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 301.38 378.25 Td (Reinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.37 378.25 Td (. In addition, Radian Guaranty has used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (reinsurance with its subsidiaries to reduce its net RIF) Tj ET Q q 0 0 0 rg BT 260.88 366.25 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 349.25 Td (Captive Reinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.09 349.25 Td (. ) Tj ET Q q 0 0 0 rg BT 164.41 349.25 Td (W) Tj ET Q q 0 0 0 rg BT 173.05 349.25 Td (e and other companies in the mortgage insurance industry participated in reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.25 Td (arrangements with mortgage lenders commonly referred to as captive reinsurance arrangements. Under captive reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.25 Td (arrangements, a mortgage lender typically established a reinsurance company that assumed part of the risk associated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.25 Td (portfolio of that lender) Tj ET Q q 0 0 0 rg BT 140.68 313.25 Td () Tj ET Q q 0 0 0 rg BT 143.46 313.25 Td (s mortgages insured by us on a flow basis \(as compared to mortgages insured in Structured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 301.25 Td (ransactions, which typically are not eligible for captive reinsurance arrangements\). In return for the reinsurance company) Tj ET Q q 0 0 0 rg BT 542.56 301.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (assumption of a portion of the risk, we ceded to the reinsurance company a portion of the mortgage insurance premiums that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.25 Td (otherwise would have been paid to us. Captive reinsurance typically was conducted on an excess-of-loss basis, with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.25 Td (captive reinsurer paying losses only after a certain level of losses had been incurred. In addition, on a limited basis, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (participated in quota share captive reinsurance arrangements under which the captive reinsurance company assumed a pro ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.25 Td (rata share of all losses in return for a pro rata share of the premiums collected. For additional information about our captive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (reinsurance arrangements, see Item 3. Legal Proceedings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 212.25 Td (As a result of the housing and related credit market downturn that began in 2007, most captive reinsurance arrangements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (have attached, meaning that losses have exceeded the threshold so that we are now entitled to cash recoveries from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (captive. Ceded losses recoverable related to captives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.19 188.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.49 188.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.92 188.25 Td ($24.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.81 188.25 Td (. ) Tj ET Q q 0 0 0 rg BT 433.63 188.25 Td (W) Tj ET Q q 0 0 0 rg BT 442.26 188.25 Td (e expect that most of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (actual cash recoveries from those captives that have not yet been terminated will be received over the next few years. ) Tj ET Q endstream endobj 53 0 obj <> endobj 54 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 731.10 Td (e have terminated a significant portion of our remaining captive reinsurance arrangements on a cut-of) Tj ET Q q 0 0 0 rg BT 492.34 731.10 Td (f basis, meaning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (that the terminated captive arrangements were dissolved and all outstanding liabilities were settled. ) Tj ET Q q 0 0 0 rg BT 447.71 719.10 Td (All of our existing captive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (reinsurance arrangements are operating on a run-of) Tj ET Q q 0 0 0 rg BT 253.67 707.10 Td (f basis, meaning that no new business is being placed in these captives. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 690.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 690.10 Td (, we have received total cash reinsurance recoveries of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.23 690.10 Td ($909.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.12 690.10 Td ( \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.10 Td (recoveries from the termination of captive arrangements discussed above\) from captive reinsurance arrangements and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.10 Td (former Smart Home Program for reinsuring risk on non-prime mortgages, with most of these recoveries coming from captive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (reinsurance arrangements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (F) Tj ET Q q 0 0 0 rg BT 54.69 621.10 Td (. ) Tj ET Q q 0 0 0 rg BT 67.50 621.10 Td (Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 604.10 Td (The principal customers of our mortgage insurance business are mortgage originators such as mortgage bankers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (mortgage brokers, commercial banks, savings institutions, credit unions and community banks. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 575.10 Td (Beginning in 2009, we launched an initiative to significantly diversify our customer base, including increasing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.10 Td (amount of business we were conducting with credit unions and community banks. Since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.99 563.10 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.99 563.10 Td (, we have added more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.67 563.10 Td (900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.67 563.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.10 Td (new customers and significantly increased the amount of business derived from mid-sized mortgage banks. ) Tj ET Q q 0 0 0 rg BT 480.59 551.10 Td (These ef) Tj ET Q q 0 0 0 rg BT 514.56 551.10 Td (forts have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.10 Td (contributed to an increase in our market share since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.03 539.10 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.03 539.10 Td ( and to the corresponding levels of NIW) Tj ET Q q 0 0 0 rg BT 438.64 539.10 Td ( that we have generated. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (addition, we believe our diversification ef) Tj ET Q q 0 0 0 rg BT 216.48 527.10 Td (forts have helped to reduce the potential impact to our business from the loss of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (one customer) Tj ET Q q 0 0 0 rg BT 102.54 515.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 498.10 Td (Our top 10 mortgage insurance customers, measured by primary NIW) Tj ET Q q 0 0 0 rg BT 352.50 498.10 Td (, represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.08 498.10 Td (22.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.91 498.10 Td ( of our primary NIW) Tj ET Q q 0 0 0 rg BT 515.04 498.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.82 498.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.82 498.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.70 486.10 Td (25.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.53 486.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.97 486.10 Td (24.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.80 486.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.58 486.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.58 486.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.02 486.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.02 486.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 297.68 486.10 Td (. ) Tj ET Q q 0 0 0 rg BT 302.50 486.10 Td (The lar) Tj ET Q q 0 0 0 rg BT 330.91 486.10 Td (gest single mortgage insurance customer \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (branches and af) Tj ET Q q 0 0 0 rg BT 112.06 474.10 Td (filiates\), measured by primary NIW) Tj ET Q q 0 0 0 rg BT 254.15 474.10 Td (, accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.34 474.10 Td (4.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.17 474.10 Td ( of NIW) Tj ET Q q 0 0 0 rg BT 370.31 474.10 Td ( during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.42 474.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.42 474.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.62 474.10 Td (5.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.45 474.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.89 474.10 Td (6.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.72 474.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 462.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 462.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 462.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 161.60 462.10 Td (. Earned premiums attributable to ) Tj ET Q q 0 0 0 rg BT 298.04 462.10 Td (W) Tj ET Q q 0 0 0 rg BT 306.68 462.10 Td (ells Far) Tj ET Q q 0 0 0 rg BT 336.22 462.10 Td (go accounted for more than 10% of our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (revenues in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.82 450.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.82 450.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.82 450.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.82 450.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.25 450.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.25 450.10 Td (. See Item 1A. Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 306.96 450.10 Td (Our NIW and franchise value could decline if we lose business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 438.10 Td (fr) Tj ET Q q 0 0 0 rg BT 55.80 438.10 Td (om significant customers) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 155.79 438.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 405.10 Td (G. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 405.10 Td (Sales, Marketing and Customer) Tj ET Q q 0 0 0 rg BT 202.87 405.10 Td ( Support) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 388.10 Td (Our sales and account management team is or) Tj ET Q q 0 0 0 rg BT 256.86 388.10 Td (ganized in various geographic regions across the U.S. ) Tj ET Q q 0 0 0 rg BT 473.85 388.10 Td (W) Tj ET Q q 0 0 0 rg BT 482.48 388.10 Td (e have a business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (development group that is focused on the creation of new mortgage insurance relationships and an account management group ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (that is responsible for supporting our existing mortgage insurance relationships. Mortgage insurance sales and account ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (management personnel are compensated by salary) Tj ET Q q 0 0 0 rg BT 249.60 352.10 Td (, commissions for NIW) Tj ET Q q 0 0 0 rg BT 343.30 352.10 Td ( and the creation or development of customer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (relationships and other incentive-based pay) Tj ET Q q 0 0 0 rg BT 222.13 340.10 Td (, which may be tied to the achievement of certain sales goals or the promotion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (certain products. ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 118.64 335.03 446.27 -9.09 re f /GS0 gs q 0 0 0 rg BT 118.64 328.10 Td (Commissions vary based on product in order to incent a sales person to achieve an appropriate mix of products ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 323.03 173.28 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 316.10 Td (in accordance with our business objectives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 299.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 299.10 Td (e have developed training programs for our customers to help their employees develop the skills to respond to changing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (market demands and regulatory requirements. Our training is provided to customers to promote the role of private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (insurance in the marketplace as well as to promote Radian Guaranty) Tj ET Q q 0 0 0 rg BT 324.96 275.10 Td (s specific products and of) Tj ET Q q 0 0 0 rg BT 426.97 275.10 Td (ferings. ) Tj ET Q q 0 0 0 rg BT 459.56 275.10 Td (W) Tj ET Q q 0 0 0 rg BT 468.20 275.10 Td (e of) Tj ET Q q 0 0 0 rg BT 483.28 275.10 Td (fer training in three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (format options: instructor) Tj ET Q q 0 0 0 rg BT 151.51 263.10 Td (-led classroom sessions, instructor) Tj ET Q q 0 0 0 rg BT 288.51 263.10 Td (-led webinars and self-directed web-based training. In 2014, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (trained more than 30,000 mortgage professionals both in-person and online, an increase of 25% from 2013. ) Tj ET Q endstream endobj 55 0 obj <> endobj 56 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (27) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (H. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 714.25 Td (e operate in the highly competitive U.S. mortgage insurance industry) Tj ET Q q 0 0 0 rg BT 357.25 714.25 Td (. Our competitors include other private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (insurers and federal and state governmental and quasi-governmental agencies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 685.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 685.25 Td (e compete with other private mortgage insurers on the basis of price, terms and conditions, customer relationships, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 673.25 Td (reputation, perceived ability to comply with applicable capital and other financial strength requirements \(including projected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 661.25 Td (compliance with the PMIERs\) and overall service. Service-based competition includes ef) Tj ET Q q 0 0 0 rg BT 406.15 661.25 Td (fective and timely delivery of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 649.25 Td (products, timeliness of claims payments, training, loss mitigation ef) Tj ET Q q 0 0 0 rg BT 320.11 649.25 Td (forts and management and field service expertise. ) Tj ET Q q 0 0 0 rg BT 520.96 649.25 Td (W) Tj ET Q q 0 0 0 rg BT 529.60 649.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 637.25 Td (currently compete directly with the following six private mortgage insurers: ) Tj ET Q q 0 0 0 rg BT 354.97 637.25 Td (Arch U.S. MI \(acquired CMG Mortgage Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 625.25 Td (fective January 30, 2014\), Essent Guaranty Inc., Genworth Financial Inc., Mortgage Guaranty Insurance Corporation, NMI ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.25 Td (Holdings, Inc. and United Guaranty Corporation. Certain of our private mortgage insurance competitors are subsidiaries of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.25 Td (lar) Tj ET Q q 0 0 0 rg BT 59.87 601.25 Td (ger corporations that may have access to greater amounts of capital and financial resources than we do and may have better ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.25 Td (financial strength ratings than we have. In addition, three of our competitors are new entrants to the industry and are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.25 Td (burdened by legacy credit risks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 560.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 560.25 Td (e also compete with various federal and state governmental and quasi-governmental agencies, principally the FHA, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (to a lesser extent, the ) Tj ET Q q 0 0 0 rg BT 135.96 548.25 Td (V) Tj ET Q q 0 0 0 rg BT 141.89 548.25 Td (A. Beginning in 2008, the FHA, which historically had not been a significant competitor) Tj ET Q q 0 0 0 rg BT 495.87 548.25 Td (, substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (increased its market share of the insured mortgage market. Since 2010, the private mortgage insurance industry has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (recapturing market share from the FHA, primarily due to improvements in the financial strength of certain private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (insurers, the development of new products and marketing ef) Tj ET Q q 0 0 0 rg BT 289.52 512.25 Td (forts directed at competing with the FHA, increases in the FHA) Tj ET Q q 0 0 0 rg BT 542.52 512.25 Td () Tj ET Q q 0 0 0 rg BT 545.30 512.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (pricing, the pursuit of legal remedies against FHA) Tj ET Q q 0 0 0 rg BT 249.46 500.25 Td ( approved lenders related to loans insured by the FHA, as well as various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (policy changes at the FHA) Tj ET Q q 0 0 0 rg BT 155.59 488.25 Td ( and the general elimination of the premium cancellation provision. For 2014, the FHA) Tj ET Q q 0 0 0 rg BT 502.45 488.25 Td () Tj ET Q q 0 0 0 rg BT 505.23 488.25 Td (s market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (share was 32.0% of the insured market. Recently) Tj ET Q q 0 0 0 rg BT 244.62 476.25 Td (, in January 2015, the FHA) Tj ET Q q 0 0 0 rg BT 352.67 476.25 Td ( announced a 50 basis point reduction to its annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (mortgage insurance premium. ) Tj ET Q q 0 0 0 rg BT 171.50 464.25 Td (The FHA) Tj ET Q q 0 0 0 rg BT 208.45 464.25 Td () Tj ET Q q 0 0 0 rg BT 211.22 464.25 Td (s reduction in annual premiums may impact our competitiveness with respect to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (high L) Tj ET Q q 0 0 0 rg BT 74.97 452.25 Td (TV) Tj ET Q q 0 0 0 rg BT 88.12 452.25 Td ( loans to borrowers with FICO scores below 720. See Item 1A. Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 407.24 452.25 Td (Our mortgage insurance business ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (faces intense competition) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 150.58 440.25 Td (.) Tj ET Q endstream endobj 57 0 obj <> endobj 58 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (28) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (III. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 731.25 Td (Mortgage and Real Estate Services \(MRES\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.25 Td (A. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 707.25 Td (Acquisition of Clayton) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 690.25 Td (On June 30, 2014, we acquired Clayton, a leading provider of services and solutions to the mortgage and real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (industries. In connection with the acquisition of Clayton, we introduced a new reporting segment Mortgage and Real Estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (Services, also referred to as MRES. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (B. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 633.25 Td (Business) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 612.25 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 612.25 Td (Services Of) Tj ET Q q 0 0 0 rg BT 114.25 612.25 Td (fered) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 595.25 Td (Our MRES segment consists primarily of Clayton and provides services and solutions to the mortgage and real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.25 Td (industries, including outsourced services, mortgage-related analytics and specialized consulting and surveillance services for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.25 Td (buyers and sellers of, and investors in, mortgage and real estate-related loans and securities and other debt instruments. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.25 Td (MRES segment provides information and services that financial institutions, investors and government entities, among others, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.25 Td (use to evaluate, acquire, securitize, service and monitor loans and asset-backed securities. ) Tj ET Q q 0 0 0 rg BT 410.29 547.25 Td (The primary services of) Tj ET Q q 0 0 0 rg BT 505.34 547.25 Td (fered are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (described further below and include: loan review and due diligence; surveillance; component services and REO management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (services of) Tj ET Q q 0 0 0 rg BT 92.36 523.25 Td (fered through Clayton) Tj ET Q q 0 0 0 rg BT 183.45 523.25 Td (s subsidiary) Tj ET Q q 0 0 0 rg BT 230.30 523.25 Td (, Green River Capital; and services for the European mortgage market of) Tj ET Q q 0 0 0 rg BT 521.12 523.25 Td (fered ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.25 Td (through Clayton) Tj ET Q q 0 0 0 rg BT 117.55 511.25 Td (s EuroRisk business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 494.25 Td (Loan Review & Due Diligence.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.54 494.25 Td ( Our loan review and due diligence services include loan-level due diligence for various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.25 Td (asset classes and securitizations, with a primary focus on the residential mortgage and RMBS markets. ) Tj ET Q q 0 0 0 rg BT 462.27 482.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.91 482.25 Td (e utilize skilled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.25 Td (professionals and proprietary technology) Tj ET Q q 0 0 0 rg BT 212.42 470.25 Td (, with of) Tj ET Q q 0 0 0 rg BT 245.84 470.25 Td (ferings focused on credit underwriting, regulatory compliance and collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.25 Td (valuation. ) Tj ET Q q 0 0 0 rg BT 91.53 458.25 Td (These services help our clients understand the risk contained in a loan file, and provide them with information to help ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (them price, acquire, securitize or service the assets we review) Tj ET Q q 0 0 0 rg BT 295.13 446.25 Td (. ) Tj ET Q q 0 0 0 rg BT 299.94 446.25 Td (W) Tj ET Q q 0 0 0 rg BT 308.58 446.25 Td (e believe that we have the leading market share among the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (providers of due diligence services for non-GSE RMBS issuance and GSE risk-sharing transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 417.25 Td (As part of our due diligence and review services, we of) Tj ET Q q 0 0 0 rg BT 294.07 417.25 Td (fer credit underwriting reviews and compliance reviews to verify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.25 Td (that loan file documentation conforms to specified guidelines and regulatory requirements. ) Tj ET Q q 0 0 0 rg BT 414.76 405.25 Td (W) Tj ET Q q 0 0 0 rg BT 423.40 405.25 Td (e leverage our underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.25 Td (expertise to of) Tj ET Q q 0 0 0 rg BT 106.52 393.25 Td (fer mortgage fraud review and re-verification, including identifying breaches in representations and warranties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.25 Td (made by sellers of the loans. In addition, we of) Tj ET Q q 0 0 0 rg BT 236.77 381.25 Td (fer data integrity services and legal document review services. For the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.25 Td (ended December 31, 2014, loan review and due diligence services contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.66 369.25 Td (36%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.99 369.25 Td ( of total services revenue for our MRES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.25 Td (segment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 340.25 Td (Surveillance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.67 340.25 Td ( Our surveillance services utilize proprietary technology and skilled professionals to provide ongoing, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.25 Td (independent monitoring of loan quality and loan servicer performance. Our of) Tj ET Q q 0 0 0 rg BT 361.16 328.25 Td (ferings include RMBS surveillance, loan servicer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.25 Td (oversight and consulting services. RMBS surveillance services monitor the servicers of mortgage loans underlying outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.25 Td (RMBS. Loan servicer oversight provides regular monitoring of servicing operations to measure and assess compliance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.25 Td (applicable policies and regulations, and also includes monthly loan-level testing of loss-mitigation and other servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.25 Td (activities. Our consulting services are focused on regulatory compliance and operational reviews of both mortgage servicers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.25 Td (loan originators. For the year ended December 31, 2014, surveillance services contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.88 268.25 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.21 268.25 Td ( of total services revenue for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.25 Td (MRES segment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 239.25 Td (Component Services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.17 239.25 Td (Our component service of) Tj ET Q q 0 0 0 rg BT 269.12 239.25 Td (ferings are primarily focused on the single family rental market, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (include valuations, property inspections, title reviews, lease reviews and tax lien reviews. ) Tj ET Q q 0 0 0 rg BT 409.21 227.25 Td (W) Tj ET Q q 0 0 0 rg BT 417.85 227.25 Td (e provide these services and due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (diligence reviews to issuers of single family rental securitizations as well as to lenders and investors in the single family rental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (market. In addition, we provide valuation services, which primarily consist of broker price opinions, to investors and servicers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (of non-performing mortgage loans and REO properties. For the year ended December 31, 2014, component services contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.25 Td (23%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 179.25 Td ( of total services revenue for our MRES segment.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 162.25 Td (REO Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.01 162.25 Td (. Our REO management services provide management of the entire REO disposition process, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.25 Td (including management of the eviction and redemption process, management of property preservation and repairs, property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.25 Td (valuation, title reviews and curative work, marketing, of) Tj ET Q q 0 0 0 rg BT 274.25 138.25 Td (fer negotiation and closing services. For the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.25 Td (2014, REO management services contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.34 126.25 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.67 126.25 Td ( of total services revenue for our MRES segment.) Tj ET Q endstream endobj 59 0 obj <> endobj 60 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (29) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 731.25 Td (EuroRisk. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.46 731.25 Td (Our EuroRisk operations provide outsourced mortgage services in the United Kingdom and Europe, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 719.25 Td (ferings that include due diligence services, quality control reviews, valuation reviews and consulting services. EuroRisk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.25 Td (provides services to mortgage originators and servicers, as well as to investors in performing and non-performing mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.25 Td (loans. For the year ended December 31, 2014, EuroRisk contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.71 695.25 Td (8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.04 695.25 Td ( of total services revenue for our MRES segment. ) Tj ET Q q 0 0 0 rg BT 537.99 695.25 Td (All of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.25 Td (the EuroRisk services revenue is generated in foreign countries, primarily the United Kingdom and Greece, and represents the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.25 Td (only revenue that Radian derives from foreign countries. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 654.25 Td (Sales volume in our MRES business segment depends in part on the overall activity in the mortgage finance market and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (the health of related industries. ) Tj ET Q q 0 0 0 rg BT 175.39 642.25 Td (W) Tj ET Q q 0 0 0 rg BT 184.03 642.25 Td (e believe the diversity of the services of) Tj ET Q q 0 0 0 rg BT 342.95 642.25 Td (fered by MRES, which are intended to cover all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (phases of the mortgage value chain, will help to sustain a demand for services throughout various economic and mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (finance environments. For example, the demand for due diligence services may decrease due to unfavorable economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (conditions resulting in lower mortgage origination and securitization volumes, whereas the demand for REO management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (services may tend to increase in such an environment. In addition, while the size of the mortgage finance market may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (adversely impacted by increased regulatory requirements, such as the recently adopted CFPB mortgage servicing standards and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.25 Td (the new regulatory requirements for third-party review of loans in asset-backed securities, these requirements may increase the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.25 Td (demand for certain of our services.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 537.25 Td (2. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 537.25 Td (Fee-for-Service Contracts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 520.25 Td (Our MRES segment is a fee-for) Tj ET Q q 0 0 0 rg BT 200.21 520.25 Td (-service business. Our services revenue is generated under three basic types of contracts: ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 503.25 Td (Fixed-Price Contracts. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 169.88 503.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.38 503.25 Td (Under a fixed-price contract, we agree to perform the specified work for a pre-determined per) Tj ET Q q 0 0 0 rg BT 547.27 503.25 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (unit or per) Tj ET Q q 0 0 0 rg BT 90.96 491.25 Td (-file price. ) Tj ET Q q 0 0 0 rg BT 134.92 491.25 Td (W) Tj ET Q q 0 0 0 rg BT 143.55 491.25 Td (e use fixed-price contracts in our component services and our loan review and due diligence services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (These contracts are also used in our surveillance business for our servicer oversight services and RMBS surveillance services, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (as well as in our REO management business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 450.25 Td (T) Tj ET Q q 0 0 0 rg BT 79.24 450.25 Td (ime-and-Expense Contracts.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 196.46 450.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.96 450.25 Td ( Under a time-and-expense contract, we are paid a fixed hourly rate for each direct labor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (hour expended, and we are reimbursed for billable out-of-pocket expenses as work is performed. ) Tj ET Q q 0 0 0 rg BT 438.63 438.25 Td (These contracts are used in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (our loan review and due diligence and EuroRisk services of) Tj ET Q q 0 0 0 rg BT 287.85 426.25 Td (ferings, as well as in the consulting services that we of) Tj ET Q q 0 0 0 rg BT 505.67 426.25 Td (fer as part of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (our surveillance business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 73.50 397.25 Td (Percentage-of-Sale Contracts.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 197.37 397.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.87 397.25 Td ( ) Tj ET Q q 0 0 0 rg BT 201.82 397.25 Td (A) Tj ET Q q 0 0 0 rg BT 208.49 397.25 Td ( portion of REO management services are provided under percentage-of-sale contracts, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.25 Td (in which we are paid a contractual percentage of the sale proceeds upon the sale of each property) Tj ET Q q 0 0 0 rg BT 436.73 385.25 Td (. ) Tj ET Q q 0 0 0 rg BT 441.55 385.25 Td (These contracts are only used ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.25 Td (for our REO management services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 356.25 Td (In most cases, our contracts with our clients do not include minimum volume commitments and can be terminated at any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (time by our clients. ) Tj ET Q q 0 0 0 rg BT 128.66 344.25 Td (Although some of our contracts and assignments are recurring in nature, and include repetitive monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (assignments, a significant portion of our engagements are transactional in nature and may be performed in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (securitizations, loan sales, loan purchases or other transactions. Due to the transactional nature of our business, our MRES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (revenues may fluctuate from period to period as transactions are commenced or completed.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 275.25 Td (C. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 275.25 Td (Customers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 258.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 258.25 Td (e have a broad range of customers for our MRES segment due to the breadth of services we are able to of) Tj ET Q q 0 0 0 rg BT 503.20 258.25 Td (fer across the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (mortgage value chain. Our principal customers are buyers and sellers of, and investors in, mortgage- and real estate-related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 Td (loans and securities and other debt instruments. ) Tj ET Q q 0 0 0 rg BT 241.50 234.25 Td (These customers comprise:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 217.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 217.25 Td (Banks, credit unions, mortgage banks and other originators of mortgage loans;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 200.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 200.25 Td (RMBS issuers, securitization trusts, the GSEs, investment banks and other investors in mortgage-related debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 188.25 Td (instruments and other securities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 171.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 171.25 Td (Mortgage servicers; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 154.25 Td (Regulators and rating agencies involved in the mortgage, real estate and housing finance markets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 137.25 Td (Our clients include many of the lar) Tj ET Q q 0 0 0 rg BT 212.72 137.25 Td (gest financial institutions and participants in the mortgage sector and, as such, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (MRES revenue is concentrated among our lar) Tj ET Q q 0 0 0 rg BT 232.04 125.25 Td (gest clients. ) Tj ET Q q 0 0 0 rg BT 281.57 125.25 Td (The top ten clients for our MRES business contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.37 125.25 Td (64%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.70 125.25 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.25 Td (total services revenues for MRES during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.73 113.25 Td (year ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.40 113.25 Td (. ) Tj ET Q q 0 0 0 rg BT 359.22 113.25 Td (The loss of a significant client could have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.25 Td (material impact on the results of operations for our MRES segment.) Tj ET Q endstream endobj 61 0 obj <> endobj 62 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (30) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (D. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 714.25 Td (e believe that we are uniquely positioned as a single provider of an array of outsourced services and solutions to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (participants in the mortgage value chain. ) Tj ET Q q 0 0 0 rg BT 214.54 702.25 Td (W) Tj ET Q q 0 0 0 rg BT 223.18 702.25 Td (e are not aware of any other firm that provides a comparable range of services to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (residential mortgage and real estate industries. However) Tj ET Q q 0 0 0 rg BT 273.74 690.25 Td (, we have multiple competitors within each of our individual lines of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (business. Our competitors mainly include small privately-held companies and subsidiaries of lar) Tj ET Q q 0 0 0 rg BT 434.23 678.25 Td (ge publicly-traded companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (Significant competitors within each of our business lines include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 649.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 649.25 Td (Loan r) Tj ET Q q 0 0 0 rg BT 116.58 649.25 Td (eview & due diligence) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.71 649.25 Td ( ) Tj ET Q q 0 0 0 rg BT 215.16 649.25 Td (American Mortgage Consultants, Inc., Digital Risk, LLC, JCIII & ) Tj ET Q q 0 0 0 rg BT 481.24 649.25 Td (Associates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 637.25 Td (LenderLive Network, Inc., Opus Capital Markets Consultants, LLC and Stewart Lender Services, Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 620.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 620.25 Td (Surveillance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.98 620.25 Td ( CoreLogic, Inc., Digital Risk, LLC, FTI Consulting, Inc., Pentalpha Surveillance LLC and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 608.25 Td (Promontory Financial Group, LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 591.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 591.25 Td (Component services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.82 591.25 Td ( Carrington Property Services, LLC, ClearCapital.com, Inc., CoreLogic, Inc., Pro ) Tj ET Q q 0 0 0 rg BT 506.11 591.25 Td (T) Tj ET Q q 0 0 0 rg BT 511.52 591.25 Td (eck ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 579.25 Td (V) Tj ET Q q 0 0 0 rg BT 96.11 579.25 Td (aluation Services and ServiceLink) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 562.25 Td (REO management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.04 562.25 Td ( ) Tj ET Q q 0 0 0 rg BT 172.49 562.25 Td (Altisource Portfolio Solutions S.A., ) Tj ET Q q 0 0 0 rg BT 317.22 562.25 Td (Atlas Nationwide, Inc., Solutionstar Holdings LLC, Stewart ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 550.25 Td (Lender Services, Inc. and ) Tj ET Q q 0 0 0 rg BT 194.22 550.25 Td (VRM Mortgage Services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 533.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 90.00 533.25 Td (Eur) Tj ET Q q 0 0 0 rg BT 104.63 533.25 Td (oRisk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.85 533.25 Td ( Deloitte LLP) Tj ET Q q 0 0 0 rg BT 188.23 533.25 Td (, PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 311.81 533.25 Td (, Ernst & ) Tj ET Q q 0 0 0 rg BT 350.33 533.25 Td (Y) Tj ET Q q 0 0 0 rg BT 356.55 533.25 Td (oung LLP) Tj ET Q q 0 0 0 rg BT 395.72 533.25 Td (, KPMG LLP) Tj ET Q q 0 0 0 rg BT 448.78 533.25 Td (, Situs Group, LLC, Euristix ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 521.25 Td (Ltd and Rockstead Ltd) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 504.25 Td (Across all business lines, we compete on the basis of industry expertise, price, technology) Tj ET Q q 0 0 0 rg BT 432.77 504.25 Td (, service levels and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.25 Td (relationships.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 459.25 Td (IV) Tj ET Q q 0 0 0 rg BT 59.32 459.25 Td (. ) Tj ET Q q 0 0 0 rg BT 72.00 459.25 Td (Discontinued Operations Financial Guaranty) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 435.25 Td (A. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 435.25 Td (Business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 418.25 Td (Radian ) Tj ET Q q 0 0 0 rg BT 103.77 418.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 127.94 418.25 Td (Assurance provides direct insurance and reinsurance on credit-based structured finance and public finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.25 Td (risks. Radian expects to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 260.00 406.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 284.17 406.25 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 338.04 406.25 Td (Assured in the first half of 2015 pursuant to the Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 73.67 394.25 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 181.15 394.25 Td (Agreement, subject to satisfaction of customary closing conditions including regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.25 Td (approvals. For additional information related to discontinued operations, see Note 3 of Notes to Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.25 Td (Statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 353.25 Td (Although closing under the Radian ) Tj ET Q q 0 0 0 rg BT 213.92 353.25 Td (Asset Stock Purchase ) Tj ET Q q 0 0 0 rg BT 301.97 353.25 Td (Agreement is subject to conditions, the purchase price is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (subject to adjustment based on Radian ) Tj ET Q q 0 0 0 rg BT 205.03 341.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 229.20 341.25 Td (Assurance) Tj ET Q q 0 0 0 rg BT 273.63 341.25 Td (s results of operations, changes in valuation or market conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.25 Td (occurring after December 31, 2014 through the closing date. ) Tj ET Q q 0 0 0 rg BT 293.40 329.25 Td (Therefore, assuming satisfaction of the closing conditions, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (we expect will be satisfied, the financial results of Radian ) Tj ET Q q 0 0 0 rg BT 282.48 317.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 306.65 317.25 Td (Assurance are not expected to have an impact on Radian) Tj ET Q q 0 0 0 rg BT 535.73 317.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.25 Td (financial condition or results of operations after December 31, 2014. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 347.45 305.25 Td (Item 1A. Risk Factors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.66 305.25 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 444.66 305.25 Td (Failur) Tj ET Q q 0 0 0 rg BT 469.84 305.25 Td (e to complete the sale ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 293.25 Td (of Radian ) Tj ET Q q 0 0 0 rg BT 90.98 293.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 114.41 293.25 Td (Assurance pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 252.83 293.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 276.26 293.25 Td (Assurance Stock Pur) Tj ET Q q 0 0 0 rg BT 359.21 293.25 Td (chase ) Tj ET Q q 0 0 0 rg BT 384.29 293.25 Td (Agr) Tj ET Q q 0 0 0 rg BT 398.92 293.25 Td (eement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.24 293.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 429.74 293.25 Td (could negatively impact our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 281.25 Td (business and our financial condition, and could adversely impact our ability to comply with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.40 281.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 433.90 281.25 Td (PMIERs Financial ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 269.25 Td (Requir) Tj ET Q q 0 0 0 rg BT 76.35 269.25 Td (ements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.61 269.25 Td () Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 236.25 Td (V) Tj ET Q q 0 0 0 rg BT 55.43 236.25 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 236.25 Td (Investment Policy and Portfolio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 219.25 Td (Our investment portfolio is our primary source of liquidity to satisfy our insured obligations and to support our ongoing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 190.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 190.25 Td (e follow an investment policy that is applied on a consolidated risk and asset allocation basis and requires the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 161.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 161.25 Td (At least 75% of our investment portfolio, based on market value, must consist of investment securities that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 149.25 Td (assigned a quality designation of NAIC 1 by the NAIC or equivalent ratings by a NRSRO \(i.e., A- or better by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 137.25 Td (S&P) Tj ET Q q 0 0 0 rg BT 122.03 137.25 Td ( and A3 or better by Moody) Tj ET Q q 0 0 0 rg BT 245.33 137.25 Td (s\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 120.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 120.25 Td (A) Tj ET Q q 0 0 0 rg BT 110.17 120.25 Td ( maximum of 15% of our investment portfolio, based on market value, may consist of investment securities that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 108.25 Td (are assigned a quality designation of NAIC 2 by the NAIC or equivalent ratings by a NRSRO \(i.e., BBB+ to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 96.25 Td (BBB- by S&P) Tj ET Q q 0 0 0 rg BT 169.25 96.25 Td ( and Baa1 to Baa3 by Moody) Tj ET Q q 0 0 0 rg BT 306.98 96.25 Td (s\); and) Tj ET Q endstream endobj 63 0 obj <> endobj 64 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 731.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 731.10 Td (A) Tj ET Q q 0 0 0 rg BT 110.17 731.10 Td ( maximum of 10% of our investment portfolio, based on market value, may consist of investment securities that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 719.10 Td (are assigned quality designations NAIC 3 through 6 or equivalent ratings by a NRSRO \(i.e., BB+ and below by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 707.10 Td (S&P) Tj ET Q q 0 0 0 rg BT 122.03 707.10 Td ( and Ba1 and below by Moody) Tj ET Q q 0 0 0 rg BT 257.00 707.10 Td (s\) and other investments not assigned NAIC quality designations \(generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 695.10 Td (equity\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 678.10 Td (Portfolio construction is modeled to maximize long-term expected return while maintaining an acceptable risk level. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.10 Td (investment objectives are to generate tax-ef) Tj ET Q q 0 0 0 rg BT 223.41 666.10 Td (ficient income, to preserve capital, and to utilize appropriate risk management. ) Tj ET Q q 0 0 0 rg BT 540.33 666.10 Td (W) Tj ET Q q 0 0 0 rg BT 548.96 666.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (manage the level of our short-term investments to meet our expected short-term cash requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 637.10 Td (Our investment policies and strategies are subject to change, depending on regulatory) Tj ET Q q 0 0 0 rg BT 414.96 637.10 Td (, economic and market conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.10 Td (and our then-existing or anticipated financial condition and operating requirements, including our tax position. ) Tj ET Q q 0 0 0 rg BT 494.20 625.10 Td (The investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.10 Td (held at our insurance subsidiaries are also subject to insurance regulatory requirements applicable to such insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.10 Td (subsidiaries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 584.10 Td (Oversight responsibility of our investment portfolio rests with management, and allocations are set by periodic asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (allocation studies, calibrated by risk and return and after) Tj ET Q q 0 0 0 rg BT 274.50 572.10 Td (-tax considerations. ) Tj ET Q q 0 0 0 rg BT 355.13 572.10 Td (W) Tj ET Q q 0 0 0 rg BT 363.76 572.10 Td (e manage approximately 40% of the investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (portfolio \(the portion of the portfolio lar) Tj ET Q q 0 0 0 rg BT 209.84 560.10 Td (gely consisting of U.S. ) Tj ET Q q 0 0 0 rg BT 303.54 560.10 Td (T) Tj ET Q q 0 0 0 rg BT 309.30 560.10 Td (reasury obligations and short-term investments\) internally) Tj ET Q q 0 0 0 rg BT 540.54 560.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (with the remainder managed by six external managers. External managers are selected by management based primarily upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (the selected allocations, as well as factors such as historical returns and stability of their management teams. Management) Tj ET Q q 0 0 0 rg BT 540.17 536.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (selections are presented to and approved by the Investment and Finance Committee of our Board.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 507.10 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.58 507.10 Td (, our investment portfolio \(excluding assets held for sale related to discontinued operations\) had a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (cost basis of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.44 495.10 Td ($3.55 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.55 495.10 Td ( and carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.79 495.10 Td ($3.63 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.90 495.10 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.18 495.10 Td ($1.30 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.29 495.10 Td ( of short-term investments. Our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (portfolio did not include any real estate or whole mortgage loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.81 483.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.11 483.10 Td (. ) Tj ET Q q 0 0 0 rg BT 403.93 483.10 Td (The portfolio included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.41 483.10 Td (1) Tj ET Q q 0 0 0 rg BT 501.04 483.10 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.04 483.10 Td ( privately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (placed, investment grade securities with an aggregate carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.33 471.10 Td ($316.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.22 471.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.72 471.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.02 471.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.47 471.10 Td (At December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 459.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 459.10 Td (93.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.33 459.10 Td ( of our investment portfolio was rated investment grade.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 438.10 Td (A. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 438.10 Td (Investment Portfolio Diversification) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 421.10 Td (The diversification of our investment portfolio, excluding assets held for sale, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.03 421.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.33 421.10 Td ( was as follows:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 385.6 m 465.25 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 385.6 m 534.25 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 219.60000000000002 m 465.25 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 219.60000000000002 m 534.25 219.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 206.60000000000002 m 465.25 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 204.60000000000002 m 465.25 204.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 206.60000000000002 m 534.25 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 204.60000000000002 m 534.25 204.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.95 397.68 Td (Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.60 389.68 Td (V) Tj ET Q q 0 0 0 rg BT 427.64 389.68 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.20 389.83 Td (Percent) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 54.75 376.430078125 m 101.8671875 376.430078125 l s q 0 0 0 rg BT 54.75 377.68 Td (\($ in millions\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 364.17 Td (U.S. government and agency securities \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.25 364.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.75 364.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 364.17 Td (140.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 364.17 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 364.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 350.17 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.25 350.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 350.17 Td (362.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 350.17 Td (10.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 336.17 Td (Money market instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 336.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 336.17 Td (600.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 336.17 Td (16.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 322.17 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 322.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 322.17 Td (992.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 322.17 Td (27.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 308.17 Td (RMBS \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.25 308.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 308.17 Td (132.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 308.17 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 294.17 Td (CMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.25 294.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 294.17 Td (246.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 294.17 Td (6.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 280.17 Td (Other ABS \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.25 280.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 280.17 Td (185.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 280.17 Td (5.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 266.17 Td (Foreign government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.25 266.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 266.17 Td (37.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 266.17 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 252.17 Td (Equity securities \(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.25 252.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 252.17 Td (215.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 252.17 Td (5.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 238.17 Td (Other investments \(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.25 238.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 238.17 Td (20.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 238.17 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 224.17 Td (Short-term investmentsU.S. government treasury bills) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.25 224.17 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 224.17 Td (700.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 224.17 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.75 210.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.25 210.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.75 210.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.40 210.17 Td (3,635.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 210.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 210.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (___________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 182.10 Td (Substantially all of these securities are backed by the full faith and credit of the U.S. government.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 170.10 Td (These RMBS are guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 158.10 Td (Primarily comprised of ) Tj ET Q q 0 0 0 rg BT 166.71 158.10 Td (AAA-rated obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 146.10 Td (Comprised of broadly diversified domestic equity mutual funds \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.95 146.10 Td ($143.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.84 146.10 Td ( fair value\) and various preferred and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 134.10 Td (common stocks invested across numerous companies and industries \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.17 134.10 Td ($72.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.06 134.10 Td ( fair value\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 122.10 Td (Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.38 122.10 Td ($20.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.27 122.10 Td ( \(fair value\) of investments that have a carrying value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.68 122.10 Td ($14.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.57 122.10 Td (, which represents amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 110.10 Td (cost.) Tj ET Q endstream endobj 65 0 obj <> endobj 66 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (32) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (B. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Investment Portfolio Scheduled Maturity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (The weighted average duration of the assets in our investment portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.47 714.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.72 714.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.27 714.25 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.77 714.25 Td ( years. ) Tj ET Q q 0 0 0 rg BT 523.19 714.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (following table shows the scheduled maturities of the securities held in our investment portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.53 702.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.83 702.25 Td (:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 666.75 m 465.25 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 666.75 m 534.25 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 528.75 m 465.25 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 528.75 m 534.25 528.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 515.75 m 465.25 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400.25 513.75 m 465.25 513.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 515.75 m 534.25 515.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.25 513.75 m 534.25 513.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.95 678.83 Td (Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.60 670.83 Td (V) Tj ET Q q 0 0 0 rg BT 427.64 670.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.20 670.98 Td (Percent) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 54.75 657.580078125 m 101.8671875 657.580078125 l s q 0 0 0 rg BT 54.75 658.83 Td (\($ inmillions\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 645.32 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.25 645.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.75 645.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.40 645.32 Td (1,300.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 645.32 Td (35.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 645.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 631.32 Td (Due in one year or less \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.25 631.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 631.32 Td (87.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 631.32 Td (2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 617.32 Td (Due after one year through five years \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.25 617.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 617.32 Td (304.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 617.32 Td (8.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 603.32 Td (Due after five years through ten years \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.25 603.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 603.32 Td (680.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 603.32 Td (18.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 589.32 Td (Due after ten years \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.25 589.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 589.32 Td (461.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 589.32 Td (12.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 575.32 Td (RMBS \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.25 575.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 575.32 Td (132.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 575.32 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 561.32 Td (CMBS \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.25 561.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 561.32 Td (246.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 561.32 Td (6.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 547.32 Td (Other ABS \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.25 547.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 547.32 Td (185.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 547.32 Td (5.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 533.32 Td (Other investments \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.25 533.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 533.32 Td (236.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 533.32 Td (6.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.75 519.32 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.25 519.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.75 519.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.40 519.32 Td (3,635.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 519.32 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.40 519.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (___________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 491.25 Td (Actual maturities may dif) Tj ET Q q 0 0 0 rg BT 174.29 491.25 Td (fer as a result of calls before scheduled maturity) Tj ET Q q 0 0 0 rg BT 365.78 491.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 479.25 Td (RMBS, CMBS and other ) Tj ET Q q 0 0 0 rg BT 174.52 479.25 Td (ABS are shown separately) Tj ET Q q 0 0 0 rg BT 279.68 479.25 Td (, as they are not due at a single maturity date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 467.25 Td (No stated maturity date.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 446.25 Td (C. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 446.25 Td (Investment Portfolio by Rating) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 429.25 Td (The following table shows the ratings of our investment portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.34 429.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.59 429.25 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 393.75 m 463 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 393.75 m 532 393.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 283.75 m 463 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 283.75 m 532 283.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 270.75 m 463 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 268.75 m 463 268.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 270.75 m 532 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 467 268.75 m 532 268.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.70 405.83 Td (Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.35 397.83 Td (V) Tj ET Q q 0 0 0 rg BT 425.39 397.83 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.95 397.98 Td (Percent) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 384.580078125 m 99.6171875 384.580078125 l s q 0 0 0 rg BT 52.50 385.83 Td (\($ inmillions\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 372.32 Td (Rating \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 358.32 Td (AAA \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 358.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 358.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 358.32 Td (1,920.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.65 358.32 Td (52.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 358.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 344.32 Td (AA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 344.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 344.32 Td (376.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.65 344.32 Td (10.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 330.32 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.00 330.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 330.32 Td (772.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.65 330.32 Td (21.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 316.32 Td (BBB) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 316.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 316.32 Td (330.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.65 316.32 Td (9.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 302.32 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 302.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 302.32 Td (215.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.65 302.32 Td (5.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 288.32 Td (Other invested assets \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 288.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 288.32 Td (20.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.65 288.32 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 274.32 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 274.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 274.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 274.32 Td (3,635.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 274.32 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.15 274.32 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (___________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 246.25 Td (Reflects the highest NRSRO rating assigned to the security as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.79 246.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.37 246.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 234.25 Td (Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.38 234.25 Td ($832.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.27 234.25 Td ( of ) Tj ET Q q 0 0 0 rg BT 180.05 234.25 Td (AAA-rated U.S. government and agency securities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.59 234.25 Td ($68.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.48 234.25 Td ( in Ginnie Mae securities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 222.25 Td ($42.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.89 222.25 Td ( in Freddie Mac securities, and $28.6 million in Fannie Mae securities that have not been rated by a NRSRO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 210.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.24 210.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 198.25 Td (Includes limited partnership investments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 177.25 Td (D. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 177.25 Td (Investment Risk Concentration) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 160.25 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 160.25 Td ( we did not have any investment in any person and its af) Tj ET Q q 0 0 0 rg BT 401.29 160.25 Td (filiates that exceeded 10% of our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.25 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 148.25 Td ( equity) Tj ET Q q 0 0 0 rg BT 129.48 148.25 Td (.) Tj ET Q endstream endobj 67 0 obj <> endobj 68 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (33) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (VI. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 731.25 Td (Regulation) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (A. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 710.25 Td (State Regulation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 693.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 693.25 Td (e and our insurance subsidiaries are subject to comprehensive regulation principally designed for the protection of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (policyholders, rather than for the benefit of investors, by the insurance departments in the various states where our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (subsidiaries are licensed to transact business. Insurance laws vary from state to state, but generally grant broad supervisory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (powers to agencies or of) Tj ET Q q 0 0 0 rg BT 147.06 657.25 Td (ficials to examine insurance companies and enforce rules or exercise discretion af) Tj ET Q q 0 0 0 rg BT 473.68 657.25 Td (fecting almost every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (significant aspect of the insurance business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 628.25 Td (Insurance regulations address, among other things, the licensing of companies to transact business, claims handling, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.25 Td (reinsurance requirements, premium rates and policy forms of) Tj ET Q q 0 0 0 rg BT 293.68 616.25 Td (fered to customers, financial statements, periodic reporting, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (permissible investments and adherence to financial standards relating to surplus, dividends and other measures of solvency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (intended to assure the satisfaction of obligations to policyholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 575.25 Td (Our insurance subsidiaries) Tj ET Q q 0 0 0 rg BT 182.17 575.25 Td ( premium rates and policy forms are generally subject to regulation in every state in which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (they are licensed to transact business. ) Tj ET Q q 0 0 0 rg BT 201.77 563.25 Td (These regulations are intended to protect policyholders against the adverse ef) Tj ET Q q 0 0 0 rg BT 510.36 563.25 Td (fects of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (excessive, inadequate or unfairly discriminatory rates and to encourage competition in the insurance marketplace. In most states ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (where our insurance subsidiaries are licensed, premium rates and policy forms must be filed with the state insurance regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (authority and, in some states, must be approved, before their use. Changes in premium rates may be subject to actuarial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (justification, generally on the basis of the insurer) Tj ET Q q 0 0 0 rg BT 245.37 515.25 Td () Tj ET Q q 0 0 0 rg BT 248.15 515.25 Td (s loss experience, expenses and future projections. In addition, states may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (consider general default experience in the mortgage insurance industry in assessing the premium rates char) Tj ET Q q 0 0 0 rg BT 476.94 503.25 Td (ged by mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (insurers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 474.25 Td (Each insurance subsidiary is required by the insurance regulatory authority of its state of domicile, and the insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (regulatory authority of each other jurisdiction in which it is licensed to transact business, to make various filings with those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (insurance regulatory authorities and with the NAIC, including quarterly and annual financial statements prepared in accordance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (with statutory accounting principles. In addition, our insurance subsidiaries are subject to examination by the insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (regulatory authorities of each of the states in which they are licensed to transact business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 409.25 Td (Given the significant losses incurred by many mortgage and financial guaranty insurers in the recent past, our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.25 Td (subsidiaries have been subject to heightened scrutiny by insurance regulators, and in particular) Tj ET Q q 0 0 0 rg BT 427.59 397.25 Td (, the insurance regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.25 Td (authorities of the states in which our subsidiaries are domiciled. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 368.25 Td (The following represent our principal insurance companies: ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 351.25 Td (Radian Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.22 351.25 Td (. RadianGuaranty is domiciled and licensed in Pennsylvania as astock casualty insurance company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.25 Td (authorized to carry on the business of credit insurance, which includes the authority to write mortgage guaranty insurance. It is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (a monoline insurer) Tj ET Q q 0 0 0 rg BT 124.08 327.25 Td (, restricted to writing only residential mortgage guaranty insurance. In addition to Pennsylvania, Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.25 Td (Guaranty is authorized to write mortgage guaranty insurance \(or in states where there is no specific authorization for mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.25 Td (guaranty insurance, the applicable line of insurance under which mortgage guaranty insurance is regulated\) in each of the other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.25 Td (49 states, the District of Columbia andGuam. Radian Guaranty is a direct subsidiary of Radian Group.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 274.25 Td (Radian ) Tj ET Q q 0 0 0 rg BT 104.71 274.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 128.13 274.25 Td (Assurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.79 274.25 Td (. Radian ) Tj ET Q q 0 0 0 rg BT 207.57 274.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 231.74 274.25 Td (Assurance is domiciled and licensed in New ) Tj ET Q q 0 0 0 rg BT 411.04 274.25 Td (Y) Tj ET Q q 0 0 0 rg BT 417.26 274.25 Td (ork as a monoline financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (guaranty insurer) Tj ET Q q 0 0 0 rg BT 114.20 262.25 Td (. Radian ) Tj ET Q q 0 0 0 rg BT 149.48 262.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 173.65 262.25 Td (Assurance is also licensed under New ) Tj ET Q q 0 0 0 rg BT 327.12 262.25 Td (Y) Tj ET Q q 0 0 0 rg BT 333.34 262.25 Td (ork insurance law to write some types of surety ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (insurance and credit insurance. Radian ) Tj ET Q q 0 0 0 rg BT 206.11 250.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 230.28 250.25 Td (Assurance is a direct subsidiary of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 437.62 250.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 233.25 Td (In addition to New ) Tj ET Q q 0 0 0 rg BT 150.89 233.25 Td (Y) Tj ET Q q 0 0 0 rg BT 157.11 233.25 Td (ork, Radian ) Tj ET Q q 0 0 0 rg BT 205.72 233.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 229.89 233.25 Td (Assurance is authorized to write financial guaranty or surety insurance \(or in one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.25 Td (state where there is no specific authorization for financial guaranty insurance, credit insurance\) in each of the other 49 states, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (the District of Columbia, Guam, the U.S. ) Tj ET Q q 0 0 0 rg BT 216.24 209.25 Td (V) Tj ET Q q 0 0 0 rg BT 222.86 209.25 Td (ir) Tj ET Q q 0 0 0 rg BT 228.79 209.25 Td (gin Islands and the Commonwealth of Puerto Rico. See, Discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (Operations Financial Guaranty) Tj ET Q q 0 0 0 rg BT 184.65 197.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 180.25 Td (RGRI. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.27 180.25 Td (Radian Guaranty Reinsurance Inc. is domiciled and licensed in Pennsylvania as a stock casualty insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.25 Td (company authorized to carry on the business of credit insurance, which includes the authority to reinsure policies of mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.25 Td (guaranty insurance. It is a monoline insurer restricted to writing only mortgage guaranty insurance or reinsurance. RGRI is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.25 Td (licensed or authorized to write direct mortgage guaranty insurance in any states other than Pennsylvania and ) Tj ET Q q 0 0 0 rg BT 484.73 144.25 Td (T) Tj ET Q q 0 0 0 rg BT 490.14 144.25 Td (exas. RGRI is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.25 Td (wholly-owned subsidiary of Radian Group.) Tj ET Q endstream endobj 69 0 obj <> endobj 70 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (34) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Radian Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.88 731.10 Td (. RadianInsurance is domiciled and licensed in Pennsylvania as astock casualty insurance company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (authorized to carry on the business of credit insurance, which includes the authority to write mortgage guaranty and financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (guaranty insurance, as well as the authority to reinsure policies of mortgage guaranty insurance. Radian Insurance is also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (authorized in Hong Kong to carry on the business of credit insurance, suretyship and miscellaneous financial loss \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (mortgage guaranty insurance\) through its Hong Kong branch of) Tj ET Q q 0 0 0 rg BT 304.25 683.10 Td (fice. Radian Insurance is not licensed or authorized to write ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (direct credit insurance in any locality other than Pennsylvania and Hong Kong. Radian Insurance is a direct subsidiary of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 116.88 659.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 642.10 Td (Radian Mortgage Insurance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.32 642.10 Td ( Radian Mortgage Insurance is domiciled and licensed in Pennsylvania as a stock casualty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (insurance company authorized to carry on the business of credit insurance, which includes the authority to reinsure policies of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (mortgage guaranty insurance. Radian Mortgage Insurance is a monoline insurer restricted to writing only mortgage guaranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (insurance or reinsurance. Radian Mortgage Insurance is not licensed or authorized to write direct mortgage guaranty insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (in any states other than Pennsylvania and ) Tj ET Q q 0 0 0 rg BT 216.41 594.10 Td (Arizona. Radian Mortgage Insurance is a direct subsidiary of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 530.38 594.10 Td (. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 577.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 577.10 Td (Radian Investor Sur) Tj ET Q q 0 0 0 rg BT 152.18 577.10 Td (ety Inc. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.10 577.10 Td (Radian Investor Surety Inc. is domiciled and licensed in Pennsylvania as a stock casualty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (insurance company authorized to carry on the business of mortgage credit-related products. Radian Investor Surety Inc. is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (licensed in any jurisdiction other than Pennsylvania. Radian Investor Surety Inc. is an indirect subsidiary of Radian Group.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 532.10 Td (Insurance Holding Company Regulation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 515.10 Td (Radian Group is an insurance holding company and our insurance subsidiaries belong to an insurance holding company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.10 Td (system. ) Tj ET Q q 0 0 0 rg BT 81.73 503.10 Td (All states have enacted legislation regulating insurance holding company systems, including the non-insurer holding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (company within that system. ) Tj ET Q q 0 0 0 rg BT 166.80 491.10 Td (These laws generally require each insurance subsidiary within an insurance holding company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (system to register with the insurance regulatory authority of its domiciliary state, and to furnish to the regulators in these states ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (applicable financial statements, statements related to intercompany transactions and other information concerning the holding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (company and its af) Tj ET Q q 0 0 0 rg BT 125.13 455.10 Td (filiated companies within the holding company system that may materially af) Tj ET Q q 0 0 0 rg BT 434.31 455.10 Td (fect the operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (management or financial condition of insurers or the holding company system.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 426.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 426.10 Td (e currently have insurance subsidiaries domiciled in Pennsylvania and New ) Tj ET Q q 0 0 0 rg BT 384.62 426.10 Td (Y) Tj ET Q q 0 0 0 rg BT 390.84 426.10 Td (ork. ) Tj ET Q q 0 0 0 rg BT 408.62 426.10 Td (As a result, Radian Group is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (considered an insurance holding company and the insurance holding company laws of Pennsylvania and New ) Tj ET Q q 0 0 0 rg BT 490.40 414.10 Td (Y) Tj ET Q q 0 0 0 rg BT 496.62 414.10 Td (ork regulate, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (among other things, certain transactions between Radian Group, our insurance subsidiaries and other parties af) Tj ET Q q 0 0 0 rg BT 491.96 402.10 Td (filiated with us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (These laws also govern certain transactions involving Radian Group) Tj ET Q q 0 0 0 rg BT 325.54 390.10 Td (s common stock, including transactions that constitute a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (change of control of Radian Group and, consequently) Tj ET Q q 0 0 0 rg BT 272.11 378.10 Td (, a change of control of our insurance subsidiaries.Specifically) Tj ET Q q 0 0 0 rg BT 532.20 378.10 Td (, no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (person may) Tj ET Q q 0 0 0 rg BT 95.23 366.10 Td (, directly or indirectly) Tj ET Q q 0 0 0 rg BT 181.77 366.10 Td (, seek to acquire control of Radian Group or any of its insurance subsidiaries unless that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (person files a statement and other documents with the commissioners of insurance of the states in which our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (subsidiaries are domiciled and each commissioner) Tj ET Q q 0 0 0 rg BT 250.64 342.10 Td () Tj ET Q q 0 0 0 rg BT 253.42 342.10 Td (s prior approval is obtained.Control generally is defined broadly in these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (statutes.For example, under Pennsylvania) Tj ET Q q 0 0 0 rg BT 221.13 330.10 Td (s insurance statutes, control is presumed to exist if any person, directly or indirectly) Tj ET Q q 0 0 0 rg BT 559.56 330.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (owns, controls, holds with power to vote or holds proxies representing ten percent \(10%\) or more of the voting securities of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (holding company of a Pennsylvania domestic insurer) Tj ET Q q 0 0 0 rg BT 261.13 306.10 Td (. ) Tj ET Q q 0 0 0 rg BT 265.95 306.10 Td (The statute further defines control as the possession, direct or indirect, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (of the power to direct or cause the direction of the management and policies of an insurer) Tj ET Q q 0 0 0 rg BT 410.48 294.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 277.10 Td (In addition, material transactions between us or our af) Tj ET Q q 0 0 0 rg BT 289.08 277.10 Td (filiates and our insurance subsidiaries or among our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (subsidiaries are subject to certain conditions, including that they be fair and reasonable. ) Tj ET Q q 0 0 0 rg BT 410.58 265.10 Td (These conditions generally apply to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (all persons controlling, or who are under common control with, us or our insurance subsidiaries. Certain transactions between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (us or our af) Tj ET Q q 0 0 0 rg BT 95.14 241.10 Td (filiates and our insurance subsidiaries may not be entered into unless the applicable commissioner of insurance is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (given 30 days) Tj ET Q q 0 0 0 rg BT 107.63 229.10 Td ( prior notification and does not disapprove the transaction during that 30-dayperiod.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 212.10 Td (In 2012, Pennsylvania adopted amendments to its insurance holding company statutes that impose more extensive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (informational and reporting requirements on parents and other af) Tj ET Q q 0 0 0 rg BT 308.67 200.10 Td (filiates of Pennsylvania-domiciled insurers with the purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (protecting them from enterprise risk. Pennsylvania also adopted the Risk Management and Own Risk and Solvency ) Tj ET Q q 0 0 0 rg BT 513.57 188.10 Td (Assessment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (Act, which is ef) Tj ET Q q 0 0 0 rg BT 112.63 176.10 Td (fective January 1, 2015 and requires, among other things, that Pennsylvania-domiciled insurers maintain a risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (management framework and conduct an Own Risk and Solvency ) Tj ET Q q 0 0 0 rg BT 311.38 164.10 Td (Assessment \(ORSA\) in accordance with applicable NAIC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (requirements.) Tj ET Q endstream endobj 71 0 obj <> endobj 72 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (35) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (2. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Dividends) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 142.67 714.25 Td (, Radian Insurance, RMAI, Radian Mortgage Insurance, RGRI and Radian Investor Sur) Tj ET Q q 0 0 0 rg BT 494.18 714.25 Td (ety Inc. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.10 714.25 Td ( Under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (Pennsylvania) Tj ET Q q 0 0 0 rg BT 105.60 702.25 Td (s insurance laws, dividends and other distributions may only be paid out of an insurer) Tj ET Q q 0 0 0 rg BT 447.85 702.25 Td () Tj ET Q q 0 0 0 rg BT 450.63 702.25 Td (s positive unassigned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (surplus, measured as of the end of the prior fiscal year) Tj ET Q q 0 0 0 rg BT 265.97 690.25 Td (, unless the Pennsylvania Insurance Commissioner approves the payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (of dividends or other distributions from another source. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 341.00 678.25 Td (, Radian Insurance, RMAI, Radian Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (Insurance and RGRI each had negative unassigned surplus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.65 666.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.95 666.25 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.28 666.25 Td ($715.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.18 666.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.18 666.25 Td ($279.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.07 666.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.07 666.25 Td ($161.5 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 654.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.39 654.25 Td ($46.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.28 654.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.72 654.25 Td ($341.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.61 654.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 268.27 654.25 Td (. In addition, Radian Investor Surety Inc. was formed during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.39 654.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.39 654.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (had an immaterial amount of negative unassigned surplus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.22 642.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.52 642.25 Td (. ) Tj ET Q q 0 0 0 rg BT 375.34 642.25 Td (Therefore, no dividends or other distributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (can be paid by these subsidiaries in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.07 630.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.07 630.25 Td ( without approval from the Pennsylvania Insurance Commissioner) Tj ET Q q 0 0 0 rg BT 477.75 630.25 Td (. Similarly) Tj ET Q q 0 0 0 rg BT 519.32 630.25 Td (, Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 86.06 618.25 Td (, Radian Insurance, RMAI, Radian Mortgage Insurance and RGRI did not have positive unassigned surplus as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.27 606.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.27 606.25 Td (, and therefore did not have the ability to pay any dividends in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.31 606.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.31 606.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 589.25 Td (While all proposed dividends and distributions to shareholders must be filed with the Pennsylvania Insurance Department ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.25 Td (prior to payment, if a Pennsylvania domiciled insurer had positive unassigned surplus as of the end of the prior fiscal year) Tj ET Q q 0 0 0 rg BT 536.48 577.25 Td (, then ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.25 Td (unless the prior approval of the Pennsylvania Insurance Commissioner is obtained, such insurer could only pay dividends or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.25 Td (other distributions during any 12-month period in an aggregate amount less than or equal to the greater of: \(i\) 10% of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.25 Td (preceding year) Tj ET Q q 0 0 0 rg BT 108.43 541.25 Td (-end statutory policyholders) Tj ET Q q 0 0 0 rg BT 223.22 541.25 Td ( surplus; or \(ii\) the preceding year) Tj ET Q q 0 0 0 rg BT 359.65 541.25 Td () Tj ET Q q 0 0 0 rg BT 362.43 541.25 Td (s statutory net income. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 524.25 Td (Radian ) Tj ET Q q 0 0 0 rg BT 104.71 524.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 128.13 524.25 Td (Assurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.79 524.25 Td (. Under New ) Tj ET Q q 0 0 0 rg BT 225.79 524.25 Td (Y) Tj ET Q q 0 0 0 rg BT 232.02 524.25 Td (ork insurance laws, Radian ) Tj ET Q q 0 0 0 rg BT 342.26 524.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 366.43 524.25 Td (Assurance may only pay dividends from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (statutory earned surplus. ) Tj ET Q q 0 0 0 rg BT 149.85 512.25 Td (While all proposed dividends and distributions to shareholders must be filed with the NYSDFS prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (to payment, Radian ) Tj ET Q q 0 0 0 rg BT 129.49 500.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 153.66 500.25 Td (Assurance may pay ordinary dividends without prior approval of the NYSDFS when the total of all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.25 Td (other dividends declared or distributed by it during the preceding 12 months, is the lesser of 10% of its statutory surplus to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.25 Td (policyholders, as shown on its last statement on file with the NYSDFS, or 100% of statutory adjusted net investment income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.25 Td (during such period. In addition the NYSDFS, in its discretion, may approve a dividend distribution greater than would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (permitted as an ordinary dividend.) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.23529411764705882 0.23529411764705882 0.23529411764705882 rg BT 186.96 452.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 189.46 452.25 Td (In the third quarter of 2014, Radian ) Tj ET Q q 0 0 0 rg BT 333.31 452.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 357.48 452.25 Td (Assurance, upon receipt of approval from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.25 Td (NYSDFS, declared and paid an Extraordinary Dividend of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.38 440.25 Td ($150 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.78 440.25 Td ( to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 417.94 440.25 Td (. ) Tj ET Q q 0 0 0 rg BT 422.39 440.25 Td (As a result of the pending sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.25 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 428.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 428.25 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 157.82 428.25 Td (Assured, which is expected to occur in the first half of 2015, we do not expect Radian ) Tj ET Q q 0 0 0 rg BT 503.01 428.25 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.25 Td (Assurance to have the capacity to distribute any additional ordinary dividends to Radian Guaranty or to request any further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.25 Td (NYSDFS approval for an Extraordinary Dividend prior to the completion of the sale.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 383.25 Td (3. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 383.25 Td (Risk-to-Capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 366.25 Td (Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (a minimum ratio of statutory capital relative to the level of net RIF) Tj ET Q q 0 0 0 rg BT 315.85 354.25 Td (, or risk-to-capital. ) Tj ET Q q 0 0 0 rg BT 401.46 354.25 Td (The sixteen RBC States currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (impose a Statutory RBC Requirement. ) Tj ET Q q 0 0 0 rg BT 205.97 342.25 Td (The most common Statutory RBC Requirement is that a mortgage insurer) Tj ET Q q 0 0 0 rg BT 501.29 342.25 Td () Tj ET Q q 0 0 0 rg BT 504.07 342.25 Td (s Risk-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (capital may not exceed 25 to 1. In certain of the RBC States there is a Statutory RBC Requirement that Radian Guaranty must ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (satisfy a MPP) Tj ET Q q 0 0 0 rg BT 104.69 318.25 Td ( Requirement. ) Tj ET Q q 0 0 0 rg BT 163.66 318.25 Td (The statutory capital requirements for the non-RBC States are de minimis \(ranging from $1 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.25 Td (to $5 million\); however) Tj ET Q q 0 0 0 rg BT 143.81 306.25 Td (, the insurance laws of these states generally grant broad supervisory powers to state agencies or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 294.25 Td (ficials to enforce rules or exercise discretion af) Tj ET Q q 0 0 0 rg BT 244.88 294.25 Td (fecting almost every significant aspect of insurance business, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (power to revoke or restrict an insurance company) Tj ET Q q 0 0 0 rg BT 250.26 282.25 Td (s ability to write new business. Unless an RBC State grants a waiver or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.25 Td (form of relief, if a mortgage insurer is not in compliance with the Statutory RBC Requirement of such state, it may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.25 Td (prohibited from writing new mortgage insurance business in that state. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 404.97 258.25 Td (s domiciliary state, Pennsylvania, is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.25 Td (not one of the RBC States. In 2014 and 2013, the RBC States accounted for approximately 56.3% and 55.7%, respectively) Tj ET Q q 0 0 0 rg BT 538.75 246.25 Td (, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 120.31 234.25 Td (s total primary NIW) Tj ET Q q 0 0 0 rg BT 200.20 234.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.70 234.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 217.25 Td (The NAIC is in the process of reviewing the minimum capital and surplus requirements for mortgage insurers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (considering changes to the Model ) Tj ET Q q 0 0 0 rg BT 186.41 205.25 Td (Act. ) Tj ET Q q 0 0 0 rg BT 205.67 205.25 Td (While the outcome of this process is not known, it is possible that the NAIC will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.25 Td (recommend and adopt more stringent capital requirements that could increase the capital requirements for Radian Guaranty in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.25 Td (states that adopt the new Model ) Tj ET Q q 0 0 0 rg BT 178.36 181.25 Td (Act. If the NAIC proposals include more onerous capital requirements, we may need to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.25 Td (additional capital support to, or arrange additional capital relief for) Tj ET Q q 0 0 0 rg BT 316.22 169.25 Td (, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 388.60 169.25 Td (. See Item 1A. Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 513.30 169.25 Td (Radian ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 157.25 Td (Gr) Tj ET Q q 0 0 0 rg BT 60.24 157.25 Td (oup) Tj ET Q q 0 0 0 rg BT 77.28 157.25 Td (s sour) Tj ET Q q 0 0 0 rg BT 101.09 157.25 Td (ces of liquidity may be insufficient to fund its obligations.) Tj ET Q endstream endobj 73 0 obj <> endobj 74 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 731.10 Td (, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 252.34 731.10 Td (s Risk-to-capital, after giving ef) Tj ET Q q 0 0 0 rg BT 379.62 731.10 Td (fect to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.32 731.10 Td ($100 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.71 731.10 Td ( capital contribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (from Radian Group in February 2015, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.24 719.10 Td (17.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.74 719.10 Td ( to 1 and Radian Guaranty was in compliance with all applicable Statutory RBC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (Requirements. See Item 1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 234.74 707.10 Td (Our insurance subsidiaries ar) Tj ET Q q 0 0 0 rg BT 354.66 707.10 Td (e subject to compr) Tj ET Q q 0 0 0 rg BT 427.88 707.10 Td (ehensive state insurance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 695.10 Td (egulations and other r) Tj ET Q q 0 0 0 rg BT 141.81 695.10 Td (equir) Tj ET Q q 0 0 0 rg BT 162.55 695.10 Td (ements, including capital adequacy measur) Tj ET Q q 0 0 0 rg BT 335.75 695.10 Td (es, which if we fail to satisfy) Tj ET Q q 0 0 0 rg BT 448.25 695.10 Td (, could limit our ability to ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (write new insurance and incr) Tj ET Q q 0 0 0 rg BT 166.34 683.10 Td (ease r) Tj ET Q q 0 0 0 rg BT 190.13 683.10 Td (estrictions and r) Tj ET Q q 0 0 0 rg BT 255.32 683.10 Td (equir) Tj ET Q q 0 0 0 rg BT 276.05 683.10 Td (ements placed on our insurance subsidiaries.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (4. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 662.10 Td (Contingency Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 645.10 Td (For statutory reporting, mortgage insurance companies are required annually to set aside contingency reserves in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.10 Td (amount equal to 50% of earned premiums. Such amounts cannot be released into surplus for a period of 10 years, except when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (loss ratios exceed 35%, in which case the amount above 35% can be released under certain circumstances. ) Tj ET Q q 0 0 0 rg BT 477.21 621.10 Td (The contingency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (reserve, which is designed to be a reserve against catastrophic losses, essentially restricts dividends and other distributions by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.10 Td (mortgage insurance companies. ) Tj ET Q q 0 0 0 rg BT 178.16 597.10 Td (W) Tj ET Q q 0 0 0 rg BT 186.80 597.10 Td (e classify the contingency reserves of our mortgage insurance subsidiaries as a statutory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (liability) Tj ET Q q 0 0 0 rg BT 79.96 585.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.41 585.10 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.49 585.10 Td (, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 247.87 585.10 Td (, Radian Insurance, Radian Mortgage Insurance and RGRI had contingency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.10 Td (reserves of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.59 573.10 Td ($389.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.48 573.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.48 573.10 Td ($46.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.37 573.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.37 573.10 Td ($12.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.26 573.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.70 573.10 Td ($81.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.59 573.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 398.25 573.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 556.10 Td (Our financial guaranty business also is required to establish contingency reserves. ) Tj ET Q q 0 0 0 rg BT 403.23 556.10 Td (The contingency reserve on direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (financial guaranty business written is established net of reinsurance, in an amount equal to the greater of 50% of premiums ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (written or a stated percentage \(based on the type of obligation insured or reinsured\) of the net amount of principal guaranteed, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (ratably over 15 to 20 years, depending on the category of obligation insured. ) Tj ET Q q 0 0 0 rg BT 357.84 520.10 Td (The contingency reserve may be released with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (regulatory approval to the extent that losses in any calendar year exceed a pre-determined percentage of earned premiums for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (such year) Tj ET Q q 0 0 0 rg BT 87.14 496.10 Td (, with the percentage threshold dependent upon the category of obligation insured. Such reserves may also be released, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (subject to regulatory approval in certain instances, upon demonstration that the reserve amount is excessive in relation to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (outstanding obligation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 455.10 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.33 455.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.33 455.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.33 455.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.33 455.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.77 455.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.77 455.10 Td ( we received approval from the NYSDFS to release approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.57 455.10 Td ($102.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.46 455.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.46 455.10 Td ($61.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.36 455.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 443.10 Td ($54.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 443.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 172.99 443.10 Td (, from the contingency reserves of Radian ) Tj ET Q q 0 0 0 rg BT 342.38 443.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 366.55 443.10 Td (Assurance to statutory surplus as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (certain policies that had matured and other insurance coverage that was terminated, in addition to an aggregate of $93.2 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (of contingency reserves that were released in 2012 and 2013 as a result of reinsurance commutations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 402.10 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.58 402.10 Td (, Radian ) Tj ET Q q 0 0 0 rg BT 199.86 402.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 224.03 402.10 Td (Assurance had contingency reserves of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.58 402.10 Td ($189.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.47 402.10 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (5. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 381.10 Td (Reinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 364.10 Td (Certain states limit the amount of risk a mortgage insurer may retain on a single loan to 25% of the total loan amount. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (Coverage in excess of 25% \(i.e., deep coverage\) must be reinsured. Radian Guaranty currently reinsures coverage in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (25% with RGRI, Radian Insurance and Radian Mortgage Insurance in order to remain in compliance with these insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (regulations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (B. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 307.10 Td (Dir) Tj ET Q q 0 0 0 rg BT 81.76 307.10 Td (ect Federal Regulation) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 286.10 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 286.10 Td (GSE Requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 269.10 Td (As the lar) Tj ET Q q 0 0 0 rg BT 112.20 269.10 Td (gest purchasers of conventional mortgage loans, and therefore, the main beneficiaries of private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (insurance, the GSEs impose eligibility requirements that private mortgage insurers must satisfy in order to be approved to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (insure loans purchased by the GSEs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 228.10 Td (Curr) Tj ET Q q 0 0 0 rg BT 92.58 228.10 Td (ent Eligibility Requir) Tj ET Q q 0 0 0 rg BT 176.64 228.10 Td (ements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.91 228.10 Td (The current eligibility requirements, among other things, impose limitations on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (type of risk insured, standards for the geographic and customer diversification of risk, procedures for claims handling, standards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (for acceptable underwriting practices, standards for certain reinsurance cessions and financial requirements, including capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (adequacy standards. In order to maintain the highest level of eligibility with the GSEs, mortgage insurers historically had to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (maintain an insurance financial strength rating of ) Tj ET Q q 0 0 0 rg BT 248.04 180.10 Td (AA- or ) Tj ET Q q 0 0 0 rg BT 278.60 180.10 Td (Aa3 from at least two of the three rating agencies by which they are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (customarily rated. ) Tj ET Q q 0 0 0 rg BT 123.65 168.10 Td (Although our ratings have been substantially below these required ratings for several years, the GSEs have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (allowed Radian Guaranty and certain other private mortgage insurers to operate under business and financial remediation plans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (and retain their eligibility status. If the GSEs were to determine that our remediation plans are not satisfactory) Tj ET Q q 0 0 0 rg BT 488.16 144.10 Td (, including in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (particular that our plans will not provide the level of capital required by our mortgage insurance business, we could lose our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (eligibility with the GSEs. See Item 1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 278.37 120.10 Td (Radian Guaranty may be unable to comply with applicable GSE ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (eligibility r) Tj ET Q q 0 0 0 rg BT 93.85 108.10 Td (equir) Tj ET Q q 0 0 0 rg BT 114.58 108.10 Td (ements, including the final PMIERs, which if adopted in their curr) Tj ET Q q 0 0 0 rg BT 379.73 108.10 Td (ent pr) Tj ET Q q 0 0 0 rg BT 402.97 108.10 Td (oposed form, could negatively impact ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 96.10 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 121.26 96.10 Td (s expected r) Tj ET Q q 0 0 0 rg BT 168.64 96.10 Td (eturn on equity) Tj ET Q q 0 0 0 rg BT 228.63 96.10 Td (, decr) Tj ET Q q 0 0 0 rg BT 251.03 96.10 Td (ease Radian Guaranty) Tj ET Q q 0 0 0 rg BT 343.05 96.10 Td (s NIW) Tj ET Q q 0 0 0 rg BT 366.86 96.10 Td (, and subject Radian Guaranty to extensive and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 84.10 Td (mor) Tj ET Q q 0 0 0 rg BT 65.24 84.10 Td (e stringent operational r) Tj ET Q q 0 0 0 rg BT 162.92 84.10 Td (equir) Tj ET Q q 0 0 0 rg BT 183.66 84.10 Td (ements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 213.93 84.10 Td () Tj ET Q endstream endobj 75 0 obj <> endobj 76 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (As discussed below) Tj ET Q q 0 0 0 rg BT 151.73 731.10 Td (, the GSEs are in the process of revising their eligibility requirements for private mortgage insurers. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (September 2014, Fannie Mae notified us \(and other private mortgage insurers operating under remediation plans\), that for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (period until the new eligibility requirements are finalized, Fannie Mae would impose additional terms and conditions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Radian Guaranty to maintain eligibility as a Fannie Mae approved mortgage insurer) Tj ET Q q 0 0 0 rg BT 384.13 695.10 Td (. In the event that Radian Guaranty fails to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (comply with the additional requirements, Fannie Mae may impose further conditions on Radian Guaranty) Tj ET Q q 0 0 0 rg BT 471.53 683.10 Td (, or may suspend or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (terminate its status as an eligible insurer) Tj ET Q q 0 0 0 rg BT 209.46 671.10 Td (. ) Tj ET Q q 0 0 0 rg BT 214.28 671.10 Td (These additional requirements provide that Radian Guaranty must obtain Fannie ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Mae) Tj ET Q q 0 0 0 rg BT 70.05 659.10 Td (s prior written approval before taking any of the following actions:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 642.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 642.10 Td (enter into any new or alter any existing capital support agreement, assumption of liabilities, or guaranty agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 630.10 Td (\(except for contractual agreements in the normal course of business\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 613.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 613.10 Td (enter into any new arrangements or alter any existing arrangements under lease, tax-sharing, and intercompany ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 601.10 Td (expense-sharing agreements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 584.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 584.10 Td (make any investment, contribution, or loan to any af) Tj ET Q q 0 0 0 rg BT 312.71 584.10 Td (filiates, subsidiaries or non-af) Tj ET Q q 0 0 0 rg BT 431.39 584.10 Td (filiated entities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 567.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 567.10 Td (pay dividends to its af) Tj ET Q q 0 0 0 rg BT 191.64 567.10 Td (filiates or its holding company;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 550.10 Td (enter into any new risk novation or commutation transaction;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 533.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 533.10 Td (incur or assume an obligation or indebtedness, contingent or otherwise, including, without limitation, an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 521.10 Td (obligation to provide additional insurance, or related service or product, or to provide remedy to an obligation of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 509.10 Td (subsidiary;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 492.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 492.10 Td (permit a material change in, or acquisition of, control or beneficial ownership \(deemed to occur if any person or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 480.10 Td (entity or group of persons or entities acquires or seeks to acquire 10% or more of the voting securities or securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 468.10 Td (convertible into voting securities\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 451.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 451.10 Td (make changes to its corporate or legal structure;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 434.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 434.10 Td (transfer or otherwise shift its assets, risk, or liabilities to any subdivision, segment, or segregated or separate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 422.10 Td (account or a U.S. mortgage insurance af) Tj ET Q q 0 0 0 rg BT 263.81 422.10 Td (filiate or subsidiary;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 405.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 405.10 Td (assume any material risk other than directly providing mortgage guaranty insurance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 388.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 388.10 Td (provide capital, capital support, or financial guaranty to any U.S. mortgage insurance af) Tj ET Q q 0 0 0 rg BT 454.31 388.10 Td (filiate or subsidiary that is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 376.10 Td (either an approved insurer or an exclusive af) Tj ET Q q 0 0 0 rg BT 281.30 376.10 Td (filiated reinsurer;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 359.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 359.10 Td (enter into any new or alter any existing reinsurance or risk sharing transaction; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 342.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 342.10 Td (with respect to lender captive reinsurance arrangements:) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 127.50 322.94 cm /I21 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 325.10 Td (allow lender captive reinsurance providers to pay dividends or distribute funds to the parent or af) Tj ET Q q 0 0 0 rg BT 533.25 325.10 Td (filiates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 313.10 Td (of the lender captive reinsurer in amounts greater than permitted by the lender captive reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 301.10 Td (contract;) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 127.50 281.94 cm /I22 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 284.10 Td (ef) Tj ET Q q 0 0 0 rg BT 153.09 284.10 Td (fect a material or economically adverse alteration or amendment to a lender captive reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 272.10 Td (contract; and) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 10.09 127.50 252.94 cm /I23 Do Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 255.10 Td (terminate any lender captive reinsurance contract unless it would receive at least 80% of the value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.50 243.10 Td (assets in the captive trust.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 226.10 Td (e expect the foregoing additional requirements to remain in ef) Tj ET Q q 0 0 0 rg BT 305.36 226.10 Td (fect until the PMIERs are finalized and become ef) Tj ET Q q 0 0 0 rg BT 505.66 226.10 Td (fective.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 209.10 Td (PMIERs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.88 209.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 119.88 209.10 Td ( Private Mortgage Insur) Tj ET Q q 0 0 0 rg BT 216.99 209.10 Td (er Eligibility Requir) Tj ET Q q 0 0 0 rg BT 297.16 209.10 Td (ements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.93 209.10 Td ( ) Tj ET Q q 0 0 0 rg BT 332.25 209.10 Td (The GSEs are in the process of revising their eligibility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.10 Td (requirements for private mortgage insurers. ) Tj ET Q q 0 0 0 rg BT 225.00 197.10 Td (As part of this process, the FHF) Tj ET Q q 0 0 0 rg BT 351.75 197.10 Td (A) Tj ET Q q 0 0 0 rg BT 358.42 197.10 Td ( released proposed PMIERs for public comment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.10 Td (on July 10, 2014. ) Tj ET Q q 0 0 0 rg BT 120.99 185.10 Td (The PMIERs, when finalized and adopted, will establish the revised requirements that the GSEs will impose ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.10 Td (on private mortgage insurers, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 276.84 173.10 Td (, to remain eligible insurers of mortgage loans purchased by the GSEs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.10 Td (The proposed PMIERs include the PMIERs Financial Requirements that are expected to replace the capital adequacy standards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.10 Td (under the current GSE eligibility requirements.) Tj ET Q q 0 0 0 rg BT 240.10 149.10 Td (The proposed PMIERs Financial Requirements require a mortgage insurer) Tj ET Q q 0 0 0 rg BT 538.17 149.10 Td () Tj ET Q q 0 0 0 rg BT 540.95 149.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.98 137.10 Td (vailable ) Tj ET Q q 0 0 0 rg BT 89.58 137.10 Td (Assets to meet or exceed Minimum Required ) Tj ET Q q 0 0 0 rg BT 272.60 137.10 Td (Assets that are calculated based on RIF and a variety of measures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (designed to evaluate credit quality) Tj ET Q q 0 0 0 rg BT 186.02 125.10 Td (. ) Tj ET Q q 0 0 0 rg BT 190.47 125.10 Td (Among other things, the proposed PMIERs exclude from ) Tj ET Q q 0 0 0 rg BT 421.28 125.10 Td (A) Tj ET Q q 0 0 0 rg BT 427.76 125.10 Td (vailable ) Tj ET Q q 0 0 0 rg BT 461.36 125.10 Td (Assets: \(i\) an amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (equal to Unearned Premium Reserves; and \(ii\) certain subsidiary capital, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 453.54 113.10 Td (s capital that is attributable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.10 Td (to its ownership of Radian ) Tj ET Q q 0 0 0 rg BT 156.99 101.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 181.16 101.10 Td (Assurance.) Tj ET Q endstream endobj 77 0 obj <> endobj 78 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The public comment period for the proposed PMIERs ended on September 8, 2014. ) Tj ET Q q 0 0 0 rg BT 410.75 731.10 Td (The FHF) Tj ET Q q 0 0 0 rg BT 446.40 731.10 Td (A) Tj ET Q q 0 0 0 rg BT 453.07 731.10 Td ( is currently reviewing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (considering input before adopting the final PMIERs. ) Tj ET Q q 0 0 0 rg BT 261.69 719.10 Td (All aspects of the final PMIERs are expected to become ef) Tj ET Q q 0 0 0 rg BT 495.87 719.10 Td (fective 180 days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (after their final publication. ) Tj ET Q q 0 0 0 rg BT 161.40 707.10 Td (Approved insurers who fail to meet the PMIERs Financial Requirements when they become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 695.10 Td (fective 180 days after their publication may) Tj ET Q q 0 0 0 rg BT 230.82 695.10 Td (, at the discretion of the GSEs, operate under a transition plan during an extended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (transition period of up to two years from the final publication date, and would continue to be eligible insurers during that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (period. ) Tj ET Q q 0 0 0 rg BT 79.87 671.10 Td (W) Tj ET Q q 0 0 0 rg BT 88.50 671.10 Td (e expect the final PMIERs to be published during the first half of 2015 and to become ef) Tj ET Q q 0 0 0 rg BT 441.84 671.10 Td (fective by the end of 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (See Item 1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 174.20 659.10 Td (Radian Guaranty may be unable to comply with applicable GSE eligibility r) Tj ET Q q 0 0 0 rg BT 478.50 659.10 Td (equir) Tj ET Q q 0 0 0 rg BT 499.24 659.10 Td (ements, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (including the final PMIERs, which if adopted in their curr) Tj ET Q q 0 0 0 rg BT 281.88 647.10 Td (ent pr) Tj ET Q q 0 0 0 rg BT 305.12 647.10 Td (oposed form, could negatively impact Radian Guaranty) Tj ET Q q 0 0 0 rg BT 529.62 647.10 Td (s ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (expected r) Tj ET Q q 0 0 0 rg BT 90.49 635.10 Td (eturn on equity) Tj ET Q q 0 0 0 rg BT 150.48 635.10 Td (, decr) Tj ET Q q 0 0 0 rg BT 172.88 635.10 Td (ease Radian Guaranty) Tj ET Q q 0 0 0 rg BT 264.91 635.10 Td (s NIW) Tj ET Q q 0 0 0 rg BT 288.71 635.10 Td (, and subject Radian Guaranty to extensive and mor) Tj ET Q q 0 0 0 rg BT 496.91 635.10 Td (e stringent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (operational r) Tj ET Q q 0 0 0 rg BT 102.19 623.10 Td (equir) Tj ET Q q 0 0 0 rg BT 122.92 623.10 Td (ements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 153.19 623.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 606.10 Td (Other GSE Business Practices and Requir) Tj ET Q q 0 0 0 rg BT 242.27 606.10 Td (ements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.54 606.10 Td (The GSEs acting independently or through their conservator) Tj ET Q q 0 0 0 rg BT 518.46 606.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (FHF) Tj ET Q q 0 0 0 rg BT 67.10 594.10 Td (A, have the ability to change their business practices and requirements in ways that impact our business. Recent examples ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (of changes in the GSEs) Tj ET Q q 0 0 0 rg BT 145.40 582.10 Td ( business practices and requirements that impact our business are: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 565.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 565.10 Td (implementation of new minimum requirements for master insurance policies for loans the GSEs acquire that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 553.10 Td (include, among other requirements, specific standards for loss mitigation and claims processing activities; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 536.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 536.10 Td (the proposed PMIERs which, once adopted, will implement new GSE eligibility requirements for private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 524.10 Td (mortgage insurers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.10 Td (Other changes in the business practices or requirements of the GSEs that could impact our business include changes in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.10 Td (underwriting standards for mortgages they purchase, changes in the terms on which mortgage insurance coverage may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.10 Td (cancelled and changes in the LLP) Tj ET Q q 0 0 0 rg BT 183.25 483.10 Td (As and guarantee fees for loans they purchase. See Item 1A. Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 491.49 483.10 Td (Because most of ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (the mortgage loans that we insur) Tj ET Q q 0 0 0 rg BT 181.07 471.10 Td (e ar) Tj ET Q q 0 0 0 rg BT 196.53 471.10 Td (e sold to Fr) Tj ET Q q 0 0 0 rg BT 242.55 471.10 Td (eddie Mac and Fannie Mae, changes in their charters or business practices ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (could significantly impact our mortgage insurance business) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 288.92 459.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.42 459.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 442.10 Td (The GSEs had discontinued programs to acquire loans with L) Tj ET Q q 0 0 0 rg BT 312.92 442.10 Td (TV) Tj ET Q q 0 0 0 rg BT 326.07 442.10 Td ( ratios at or above 97% in January 2013. However) Tj ET Q q 0 0 0 rg BT 526.17 442.10 Td (, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.10 Td (December 2014, the GSEs announced new lending guidelines that enable them to acquire loans with L) Tj ET Q q 0 0 0 rg BT 459.02 430.10 Td (TV) Tj ET Q q 0 0 0 rg BT 472.17 430.10 Td ( ratios of 97% for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.10 Td (certain qualifying borrowers. ) Tj ET Q q 0 0 0 rg BT 167.80 418.10 Td (Although most of these loans will require private mortgage insurance coverage, we expect that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.10 Td (FHA) Tj ET Q q 0 0 0 rg BT 68.95 406.10 Td ( pricing for a portion of these loans will be more favorable than our pricing. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 389.10 Td (In January 2014, the FHF) Tj ET Q q 0 0 0 rg BT 169.25 389.10 Td (A) Tj ET Q q 0 0 0 rg BT 175.92 389.10 Td ( delayed the implementation of planned increases in the GSEs) Tj ET Q q 0 0 0 rg BT 426.49 389.10 Td ( guarantee fees in order to further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (review and consider the impact that these increases might have on the availability of mortgage credit. ) Tj ET Q q 0 0 0 rg BT 457.23 377.10 Td (The review is expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (consider responses that were provided to a FHF) Tj ET Q q 0 0 0 rg BT 239.55 365.10 Td (A) Tj ET Q q 0 0 0 rg BT 246.22 365.10 Td ( Request for Comment on guarantee fees. ) Tj ET Q q 0 0 0 rg BT 414.32 365.10 Td (W) Tj ET Q q 0 0 0 rg BT 422.96 365.10 Td (e expect the FHF) Tj ET Q q 0 0 0 rg BT 490.81 365.10 Td (A) Tj ET Q q 0 0 0 rg BT 497.48 365.10 Td ( to make a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (decision about whether to change the GSEs) Tj ET Q q 0 0 0 rg BT 225.93 353.10 Td ( LLP) Tj ET Q q 0 0 0 rg BT 245.29 353.10 Td (As and guarantee fees in 2015. If the FHF) Tj ET Q q 0 0 0 rg BT 412.56 353.10 Td (A) Tj ET Q q 0 0 0 rg BT 419.23 353.10 Td ( were to lower these fees, it could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.10 Td (positively impact the competitiveness of our pricing in relation to the FHA) Tj ET Q q 0 0 0 rg BT 347.50 341.10 Td () Tj ET Q q 0 0 0 rg BT 350.28 341.10 Td (s pricing.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (C. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 320.10 Td (Other) Tj ET Q q 0 0 0 rg BT 92.87 320.10 Td ( Federal Regulation) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 299.10 Td (Housing Finance Reform) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 282.10 Td (Presently) Tj ET Q q 0 0 0 rg BT 110.07 282.10 Td (, the federal government plays a dominant role in the U.S. housing finance system through, among other things, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (the involvement of the FHF) Tj ET Q q 0 0 0 rg BT 159.86 270.10 Td (A) Tj ET Q q 0 0 0 rg BT 166.53 270.10 Td ( and GSEs, the FHA) Tj ET Q q 0 0 0 rg BT 247.92 270.10 Td ( and the ) Tj ET Q q 0 0 0 rg BT 281.89 270.10 Td (V) Tj ET Q q 0 0 0 rg BT 287.83 270.10 Td (A. ) Tj ET Q q 0 0 0 rg BT 299.87 270.10 Td (There has been ongoing debate about the roles that the federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (government and private capital should play in the housing finance system, and in recent years there generally has been broad ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (policy consensus that there is a need to increase the role of private capital. Since FHF) Tj ET Q q 0 0 0 rg BT 390.87 246.10 Td (A) Tj ET Q q 0 0 0 rg BT 397.54 246.10 Td ( was appointed as conservator of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (GSEs in September 2008, there has been a wide range of legislative proposals to reform the U.S. housing finance market, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (including proposals for GSE reform ranging from some that advocate nearly complete privatization and elimination of the role ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (of the GSEs to others that support a system that combines a federal role with private capital.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 193.10 Td (In February 201) Tj ET Q q 0 0 0 rg BT 137.56 193.10 Td (1, the Obama ) Tj ET Q q 0 0 0 rg BT 193.10 193.10 Td (Administration released a proposal to reform the U.S. housing finance market. In its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (proposal, the Obama ) Tj ET Q q 0 0 0 rg BT 134.48 181.10 Td (Administration sought to gradually reduce the federal government) Tj ET Q q 0 0 0 rg BT 401.90 181.10 Td (s role in housing finance, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (ultimate wind-down of the GSEs, and to increase the role of private capital. ) Tj ET Q q 0 0 0 rg BT 353.95 169.10 Td (The Obama ) Tj ET Q q 0 0 0 rg BT 402.82 169.10 Td (Administration) Tj ET Q q 0 0 0 rg BT 466.15 169.10 Td (s proposal has shaped ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (the debate in Congress as the Senate Banking Committee and the House Financial Services Committee have each introduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (and considered legislation to reform the housing finance market. ) Tj ET Q q 0 0 0 rg BT 309.79 145.10 Td (The placement of the GSEs into the conservatorship of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (FHF) Tj ET Q q 0 0 0 rg BT 67.10 133.10 Td (A) Tj ET Q q 0 0 0 rg BT 73.77 133.10 Td ( increases the likelihood that Congress will address the role and purpose of the GSEs in the U.S. housing finance market, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 121.10 Td (, it remains unclear whether housing finance reform legislation will be adopted and, if so, what form it will ultimately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.10 Td (take.) Tj ET Q endstream endobj 79 0 obj <> endobj 80 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (As the regulator and conservator of the GSEs, the FHF) Tj ET Q q 0 0 0 rg BT 292.16 731.10 Td (A) Tj ET Q q 0 0 0 rg BT 298.83 731.10 Td ( has made changes to the business and operations of the GSEs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (Both Fannie Mae and Freddie Mac have reported profits for the past several quarters and this development may impact the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (timing and outcome of ef) Tj ET Q q 0 0 0 rg BT 150.40 707.10 Td (forts to reform the GSEs and the housing finance system in the U.S. ) Tj ET Q q 0 0 0 rg BT 424.34 707.10 Td (The FHF) Tj ET Q q 0 0 0 rg BT 459.99 707.10 Td (A) Tj ET Q q 0 0 0 rg BT 466.66 707.10 Td ( annually releases a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (strategic plan for the next phase of the conservatorship. ) Tj ET Q q 0 0 0 rg BT 273.13 695.10 Td (The strategic plan announced for 2015 includes development of a single ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (platform infrastructure for the mortgage market, planned regulations for the treatment of long-delinquent non-performing loans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (revised private mortgage insurance eligibility guidelines, review of LLP) Tj ET Q q 0 0 0 rg BT 337.11 671.10 Td (A) Tj ET Q q 0 0 0 rg BT 343.78 671.10 Td ( and guarantee fees, ef) Tj ET Q q 0 0 0 rg BT 433.26 671.10 Td (forts to increase the size and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (diversity of risk share transactions to try and reduce the role of the GSEs, increasing private sector participation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (maintaining liquidity in the mortgage market and general mortgage credit availability) Tj ET Q q 0 0 0 rg BT 390.41 647.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 630.10 Td (There is a possibility that new federal legislation could change the role of private mortgage insurance by) Tj ET Q q 0 0 0 rg BT 490.49 630.10 Td (, among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (items, changing the combined L) Tj ET Q q 0 0 0 rg BT 177.16 618.10 Td (TV) Tj ET Q q 0 0 0 rg BT 190.31 618.10 Td ( ratio for which private mortgage insurance or other loan level credit enhancement is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (required by the GSEs, changing the role of the GSEs in the secondary mortgage market, or continuing to change the GSE LLP) Tj ET Q q 0 0 0 rg BT 554.29 606.10 Td (A) Tj ET Q q 0 0 0 rg BT 560.96 606.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (and guarantee fees and FHA) Tj ET Q q 0 0 0 rg BT 162.79 594.10 Td ( premium pricing. See Item 1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 361.92 594.10 Td (Because most of the mortgage loans that we ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (insur) Tj ET Q q 0 0 0 rg BT 69.69 582.10 Td (e ar) Tj ET Q q 0 0 0 rg BT 85.15 582.10 Td (e sold to Fr) Tj ET Q q 0 0 0 rg BT 131.17 582.10 Td (eddie Mac and Fannie Mae, changes in their charters or business practices could significantly impact our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (mortgage insurance business) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 166.16 570.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.22 570.10 Td (and) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 188.66 570.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 208.11 570.10 Td (Our mortgage insurance business faces intense competition) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 446.97 570.10 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (2. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 549.10 Td (FHA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 532.10 Td (Private mortgage insurance competes with the single-family mortgage insurance programs of the FHA. ) Tj ET Q q 0 0 0 rg BT 487.83 532.10 Td (As such, the FHA) Tj ET Q q 0 0 0 rg BT 558.94 532.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (is one of our biggest competitors. ) Tj ET Q q 0 0 0 rg BT 185.69 520.10 Td (W) Tj ET Q q 0 0 0 rg BT 194.32 520.10 Td (e compete on the basis of loan limits, pricing and credit guidelines. Historically) Tj ET Q q 0 0 0 rg BT 511.38 520.10 Td (, the loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (limits for FHA-insured loans and the loan limits for GSE conforming loans have been substantially the same, as is the case ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (presently) Tj ET Q q 0 0 0 rg BT 85.51 496.10 Td (. However) Tj ET Q q 0 0 0 rg BT 126.76 496.10 Td (, in 201) Tj ET Q q 0 0 0 rg BT 156.66 496.10 Td (1 Congress increased FHA) Tj ET Q q 0 0 0 rg BT 263.59 496.10 Td ( loan limits for certain high cost areas to $729,750, while the GSE limits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (for high-cost areas remained at $625,500, resulting in loan limits for FHA-insured loans that were higher than loan limits for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (privately-insured loans for the first time in history) Tj ET Q q 0 0 0 rg BT 249.08 472.10 Td (, enabling the FHA) Tj ET Q q 0 0 0 rg BT 325.19 472.10 Td ( to insure a broader range of loans than private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (insurers. ) Tj ET Q q 0 0 0 rg BT 85.98 460.10 Td (These higher FHA) Tj ET Q q 0 0 0 rg BT 159.86 460.10 Td ( loan limits expired December 31, 2013. It is possible that, in the future, Congress could again ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (impose dif) Tj ET Q q 0 0 0 rg BT 91.81 448.10 Td (ferent loan limits for FHA) Tj ET Q q 0 0 0 rg BT 196.24 448.10 Td ( loans than for GSE conforming loans, which could impact the competitiveness of private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.10 Td (mortgage insurance in relation to FHA) Tj ET Q q 0 0 0 rg BT 203.63 436.10 Td ( programs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 419.10 Td (In November 201) Tj ET Q q 0 0 0 rg BT 143.67 419.10 Td (1, HUD released its annual report to Congress on the financial condition of the FHA) Tj ET Q q 0 0 0 rg BT 480.54 419.10 Td ( Mutual Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (Insurance Fund, which found that the FHA) Tj ET Q q 0 0 0 rg BT 220.31 407.10 Td () Tj ET Q q 0 0 0 rg BT 223.08 407.10 Td (s single family mortgage and reverse mortgage insurance programs had fallen below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (the statutorily-required 2% capital reserve ratio. ) Tj ET Q q 0 0 0 rg BT 243.41 395.10 Td (The FHA) Tj ET Q q 0 0 0 rg BT 280.91 395.10 Td ( remains below the statutorily-required 2% capital ratio today) Tj ET Q q 0 0 0 rg BT 526.29 395.10 Td (, based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (on the most recent actuarial report and is likely to remain well below the required level for the next two to five years, based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (industry estimates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 354.10 Td (Despite being below the 2% capital ratio, the FHA) Tj ET Q q 0 0 0 rg BT 275.39 354.10 Td ( reduced its annual mortgage insurance premium by 50 basis points for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (loans entering the origination process on or after January 26, 2015, including refinancings. ) Tj ET Q q 0 0 0 rg BT 414.22 342.10 Td (The FHA) Tj ET Q q 0 0 0 rg BT 451.17 342.10 Td () Tj ET Q q 0 0 0 rg BT 453.94 342.10 Td (s upfront mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (insurance premium was not changed. ) Tj ET Q q 0 0 0 rg BT 200.38 330.10 Td (The FHA) Tj ET Q q 0 0 0 rg BT 237.33 330.10 Td () Tj ET Q q 0 0 0 rg BT 240.11 330.10 Td (s reduction in annual premiums may impact our competitiveness on certain high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (L) Tj ET Q q 0 0 0 rg BT 54.69 318.10 Td (TV) Tj ET Q q 0 0 0 rg BT 67.84 318.10 Td ( loans to borrowers with FICO scores below 720. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 301.10 Td (Congress has been considering FHA) Tj ET Q q 0 0 0 rg BT 219.04 301.10 Td ( reform in addition to GSE reform. Legislation to significantly change the solvency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (of the FHA) Tj ET Q q 0 0 0 rg BT 94.50 289.10 Td ( has been introduced in Congress. ) Tj ET Q q 0 0 0 rg BT 231.42 289.10 Td (Among other things, the proposed legislation seeks to raise the minimum capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (ratio for the FHA. Given that FHA) Tj ET Q q 0 0 0 rg BT 188.09 277.10 Td ( and GSE reform have significant impacts on each other) Tj ET Q q 0 0 0 rg BT 411.79 277.10 Td (, as well as on borrower access to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (credit and the housing market more broadly) Tj ET Q q 0 0 0 rg BT 223.80 265.10 Td (, policymakers may consider both GSE reform and FHA) Tj ET Q q 0 0 0 rg BT 449.03 265.10 Td ( reform together) Tj ET Q q 0 0 0 rg BT 513.45 265.10 Td (. It is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (unclear whether FHA) Tj ET Q q 0 0 0 rg BT 135.58 253.10 Td ( reform legislation will be adopted and, if so, what provisions it might ultimately contain and how it might ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (impact the private mortgage insurance industry) Tj ET Q q 0 0 0 rg BT 237.40 241.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 220.10 Td (3. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 220.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 139.91 220.10 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 203.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 142.38 203.10 Td (Act contains many requirements and mandates significant rulemaking by several regulatory agencies to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (implement the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 160.32 191.10 Td (Act) Tj ET Q q 0 0 0 rg BT 177.53 191.10 Td (s provisions. ) Tj ET Q q 0 0 0 rg BT 230.41 191.10 Td (The full scope of the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 366.49 191.10 Td (Act and its impact on our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (business remain uncertain. ) Tj ET Q q 0 0 0 rg BT 158.18 179.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 227.05 179.10 Td (Act established the CFPB to regulate the of) Tj ET Q q 0 0 0 rg BT 400.45 179.10 Td (fering and provision of consumer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.10 Td (financial products and services, including residential mortgages, under federal law and transferred authority to the CFPB to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (enforce many existing consumer related federal laws, including ) Tj ET Q q 0 0 0 rg BT 305.61 155.10 Td (TILA) Tj ET Q q 0 0 0 rg BT 327.83 155.10 Td ( and RESP) Tj ET Q q 0 0 0 rg BT 370.25 155.10 Td (A. ) Tj ET Q q 0 0 0 rg BT 381.92 155.10 Td (Among the most significant provisions for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.10 Td (private mortgage insurers under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 245.00 143.10 Td (Act are the ability to repay \(A) Tj ET Q q 0 0 0 rg BT 368.28 143.10 Td (TR\) mortgage provisions, the securitization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.10 Td (risk retention provisions and the expanded mortgage servicing requirements under ) Tj ET Q q 0 0 0 rg BT 380.89 131.10 Td (TILA) Tj ET Q q 0 0 0 rg BT 403.11 131.10 Td ( and RESP) Tj ET Q q 0 0 0 rg BT 445.53 131.10 Td (A. Each of these is more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (fully discussed below) Tj ET Q q 0 0 0 rg BT 135.51 119.10 Td (. ) Tj ET Q endstream endobj 81 0 obj <> endobj 82 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (40) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Qualified Mortgage Requir) Tj ET Q q 0 0 0 rg BT 182.56 731.10 Td (ements - ) Tj ET Q q 0 0 0 rg BT 218.48 731.10 Td (Ability to Repay Requir) Tj ET Q q 0 0 0 rg BT 312.25 731.10 Td (ements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.51 731.10 Td (Under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 440.55 731.10 Td (Act, the CFPB is authorized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (to issue regulations prohibiting a creditor from making a residential mortgage loan unless the creditor makes a reasonable and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (good faith determination that, at the time the loan is consummated, the consumer has a reasonable ability to repay the loan \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Ability to Repay rule\). ) Tj ET Q q 0 0 0 rg BT 151.23 695.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 220.11 695.10 Td (Act provides that a creditor may presume that a borrower will be able to repay a loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (if the loan has certain low-risk characteristics that meet the definition of a QM.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 666.10 Td (On January 10, 2013, the CFPB issued the CFPB QM Rule. ) Tj ET Q q 0 0 0 rg BT 315.00 666.10 Td (The CFPB QM Rule became ef) Tj ET Q q 0 0 0 rg BT 440.63 666.10 Td (fective on January 10, 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (Under the CFPB QM Rule, a loan is deemed to be a QM if, among other factors:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 637.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 637.10 Td (the term of the loan is less than or equal to 30 years;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 620.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 620.10 Td (there are no negative amortization, interest-only or balloon features;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 603.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 603.10 Td (the lender properly documents the loan in accordance with the requirements;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 586.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 586.10 Td (the total points and fees do not exceed certain thresholds \(as further discussed below\); and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 569.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 569.10 Td (the total debt-to-income ratio of the borrower does not exceed 43%.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 552.10 Td (Loans that meet the definition of a QM under the CFPB) Tj ET Q q 0 0 0 rg BT 299.57 552.10 Td (s QM Rule receive either a rebuttable or conclusive presumption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.10 Td (of compliance with the rule) Tj ET Q q 0 0 0 rg BT 162.24 540.10 Td (s ability to repay requirements depending upon the pricing of the loan relative to the ) Tj ET Q q 0 0 0 rg BT 500.75 540.10 Td (A) Tj ET Q q 0 0 0 rg BT 507.23 540.10 Td (verage Prime ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.10 Td (Of) Tj ET Q q 0 0 0 rg BT 59.87 528.10 Td (fer Rate. ) Tj ET Q q 0 0 0 rg BT 96.61 528.10 Td (The CFPB) Tj ET Q q 0 0 0 rg BT 141.90 528.10 Td (s QM Rule provides a safe harbor for loans that otherwise satisfy the CFPB) Tj ET Q q 0 0 0 rg BT 455.45 528.10 Td (s QM requirements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.10 Td (have ) Tj ET Q q 0 0 0 rg BT 70.33 516.10 Td (APRs below the threshold of 150 basis points over the ) Tj ET Q q 0 0 0 rg BT 289.75 516.10 Td (A) Tj ET Q q 0 0 0 rg BT 296.23 516.10 Td (verage Prime Of) Tj ET Q q 0 0 0 rg BT 362.14 516.10 Td (fer Rate, and a rebuttable presumption for loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.10 Td (that otherwise satisfy the CFPB QM requirements and have an ) Tj ET Q q 0 0 0 rg BT 301.68 504.10 Td (APR at or above that threshold. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 487.10 Td (Significantly for private mortgage insurers, as noted above, for a loan to satisfy the CFPB QM Rule,the points and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td (feespayable in connectionwith the loan may not exceed 3% of the total loan amount \(for loans of $100,000 or more; dif) Tj ET Q q 0 0 0 rg BT 531.68 475.10 Td (ferent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (limitations apply to smaller balance loans\).) Tj ET Q q 0 0 0 rg BT 223.63 463.10 Td (As it relates to private mortgage insurance, any premium char) Tj ET Q q 0 0 0 rg BT 470.58 463.10 Td (ges payable after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.10 Td (closing \(e.g., monthly premiums\) are excluded from the points and fees calculation. ) Tj ET Q q 0 0 0 rg BT 386.44 451.10 Td (W) Tj ET Q q 0 0 0 rg BT 395.48 451.10 Td (ith regard to up-front private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.10 Td (insurance premiums \(premium char) Tj ET Q q 0 0 0 rg BT 191.77 439.10 Td (gespayable at or before closing\), the portion of the premium that is not in excess of the then ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (current up-front FHA) Tj ET Q q 0 0 0 rg BT 135.04 427.10 Td ( premium at the time of the loan) Tj ET Q q 0 0 0 rg BT 266.39 427.10 Td (s origination is also excluded from the points and fees calculation \(so ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.10 Td (long as the char) Tj ET Q q 0 0 0 rg BT 112.35 415.10 Td (ges meet certain refundability criteria\), while any portion that is in excess of the current up-front FHA) Tj ET Q q 0 0 0 rg BT 520.28 415.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.10 Td (premiumis included in the calculation of points and fees.) Tj ET Q q 0 0 0 rg BT 281.20 403.10 Td (W) Tj ET Q q 0 0 0 rg BT 289.84 403.10 Td (e of) Tj ET Q q 0 0 0 rg BT 304.93 403.10 Td (fer mortgage insurance products that provide for up-front ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.10 Td (premiums and to the extent that these products cause a loan not to meet the CFPB) Tj ET Q q 0 0 0 rg BT 379.15 391.10 Td (s QM Rule requirements, it may impact the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (structure, marketability and pricing of these products which could impact the amount and mix of new insurance we write and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (our share of the private mortgage insurance market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 350.10 Td (Most notably for the private mortgage insurance industry) Tj ET Q q 0 0 0 rg BT 301.41 350.10 Td (, however) Tj ET Q q 0 0 0 rg BT 340.43 350.10 Td (, is that the CFPB QM Rule establishes a temporary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (alternative QM definitionapplicable to any loansthat are eligible to be purchased, guaranteed or insured by the GSEs. Loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.10 Td (acquired by the GSEs are allowed QM status under this temporary rule if they meetrequirements to avoid certain loan features ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.10 Td (that are considered as increasing the risk of default \(e.g.,no negative amortization and generally no balloons or interest-only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.10 Td (features\) andthe limitation on points and fees discussed above.Under the temporary alternative QM definition, loans acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.10 Td (by the GSEs do not need to satisfy the debt-to-income ratio of 43% requirement that is part of the CFPB QM Rule. ) Tj ET Q q 0 0 0 rg BT 511.18 290.10 Td (W) Tj ET Q q 0 0 0 rg BT 520.22 290.10 Td (ith regard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.10 Td (to GSE-eligible loans, the temporary alternative QM definition will expire on the earlier of seven years from the ef) Tj ET Q q 0 0 0 rg BT 508.33 278.10 Td (fective date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.10 Td (of the rule or when GSE conservatorship or receivership ends.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 249.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 142.38 249.10 Td (Act separately granted statutory authority to HUD \(for FHA-insured loans\), the ) Tj ET Q q 0 0 0 rg BT 462.11 249.10 Td (V) Tj ET Q q 0 0 0 rg BT 468.05 249.10 Td (A) Tj ET Q q 0 0 0 rg BT 474.72 249.10 Td ( \(for ) Tj ET Q q 0 0 0 rg BT 494.53 249.10 Td (V) Tj ET Q q 0 0 0 rg BT 500.46 249.10 Td (A-guaranteed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.10 Td (loans\), the U.S. Department of ) Tj ET Q q 0 0 0 rg BT 173.92 237.10 Td (Agriculture \(USDA\) and the Rural Housing Service \(RHS\) to develop their own definitions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.10 Td (of a qualified mortgage in consultation with the CFPB.In December 2013, HUD adopted a separate definition of a qualified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.10 Td (mortgage for loans insured by the FHA.HUD) Tj ET Q q 0 0 0 rg BT 236.14 213.10 Td (s qualified mortgage definition is less restrictive than the CFPB QM Rule in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (certain respects. ) Tj ET Q q 0 0 0 rg BT 116.23 201.10 Td (T) Tj ET Q q 0 0 0 rg BT 121.64 201.10 Td (o the extent other government agencies that guarantee residential mortgage loans also adopt their own ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.10 Td (definitions of a qualified mortgage and those definitions are more favorable to lenders and mortgage holders than the CFPB ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.10 Td (QM Rule that applies to the GSEs and the markets in which we operate, it could have a negative impact on our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.10 Td (insurance business.) Tj ET Q endstream endobj 83 0 obj <> endobj 84 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (41) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Qualified Residential Mortgage Regulations - Securitization Risk Retention Requir) Tj ET Q q 0 0 0 rg BT 404.74 731.10 Td (ements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.01 731.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 508.89 731.10 Td (Act requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (securitizers to retain some of the credit risk associated with mortgage loans that they transfer) Tj ET Q q 0 0 0 rg BT 420.09 719.10 Td (, sell or convey) Tj ET Q q 0 0 0 rg BT 480.53 719.10 Td (, unless the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (mortgage loans are QRMs or are insured by the FHA) Tj ET Q q 0 0 0 rg BT 261.40 707.10 Td ( or another federal agency) Tj ET Q q 0 0 0 rg BT 365.13 707.10 Td (. In October 2014, federal regulators published ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (the final risk retention rules which generally define a QRM as a mortgage meeting the requirements of a qualified mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (under the CFPB QM Rule \(including the temporary alternative QM definition\) described above. Because of the capital support ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (provided by the U.S. Government to the GSEs, the GSEs satisfy the proposed risk retention requirements of the Dodd-Frank ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Act while they are in conservatorship, so sellers of loans to the GSEs will not be subject to the risk retention requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (referenced above. ) Tj ET Q q 0 0 0 rg BT 122.88 647.10 Td (This means that lenders that originate loans that are sold to or securitized with the GSEs while the GSEs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (in conservatorship would not be required to retain risk under the final QRM rule.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 618.10 Td (Mortgage Servicing Rules. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.42 618.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 254.30 618.10 Td (Act amended and expanded upon mortgage servicing requirements under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (TILA) Tj ET Q q 0 0 0 rg BT 71.72 606.10 Td ( and RESP) Tj ET Q q 0 0 0 rg BT 114.14 606.10 Td (A. ) Tj ET Q q 0 0 0 rg BT 126.18 606.10 Td (The CFPB was required to amend Regulation Z \(promulgated under ) Tj ET Q q 0 0 0 rg BT 400.94 606.10 Td (TILA\) and Regulation X \(promulgated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (under RESP) Tj ET Q q 0 0 0 rg BT 97.75 594.10 Td (A\) to conform these regulations to the new statutory requirements. ) Tj ET Q q 0 0 0 rg BT 366.11 594.10 Td (The final rules implementing these expanded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (and detailed mortgage servicing requirements became ef) Tj ET Q q 0 0 0 rg BT 275.33 582.10 Td (fective in January 2014. ) Tj ET Q q 0 0 0 rg BT 373.36 582.10 Td (Among other things, the rules include new or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (enhanced requirements for handling loans that are in default. For example, a provision of the required loss mitigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (procedures prohibits a loan holder from commencing foreclosure until 120 days after the borrower) Tj ET Q q 0 0 0 rg BT 443.91 558.10 Td () Tj ET Q q 0 0 0 rg BT 446.69 558.10 Td (s delinquency) Tj ET Q q 0 0 0 rg BT 501.30 558.10 Td (. Complying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (with the new rules has been challenging and costly for many loan servicers. Our MRES segment provides services to financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (institutions that are focused on evaluating compliance with and establishing processes and procedures to implement compliance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (with national and state servicing standards, including the CFPB) Tj ET Q q 0 0 0 rg BT 306.41 522.10 Td (s new servicing regulations. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 505.10 Td (Other) Tj ET Q q 0 0 0 rg BT 95.72 505.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.22 505.10 Td (In addition to the foregoing, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 283.74 505.10 Td (Act establishes a Federal Insurance Of) Tj ET Q q 0 0 0 rg BT 437.67 505.10 Td (fice within the U.S. ) Tj ET Q q 0 0 0 rg BT 518.03 505.10 Td (T) Tj ET Q q 0 0 0 rg BT 523.79 505.10 Td (reasury) Tj ET Q q 0 0 0 rg BT 552.57 505.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (While not having a general supervisory or regulatory authority over the business of insurance, the director of this of) Tj ET Q q 0 0 0 rg BT 512.24 493.10 Td (fice ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (performs various functions with respect to insurance, including serving as a non-voting member of the Financial Stability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (Oversight Council and making recommendations to the Financial Stability Oversight Council regarding insurers to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (designated as systemically important institutions and subject to more stringent regulation. In December 2013, the Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (Insurance Of) Tj ET Q q 0 0 0 rg BT 101.24 445.10 Td (fice published a study on how to modernize and improve the system of insurance regulation in the U.S., which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (recommended the development and implementation of federal oversight for private mortgage insurers. ) Tj ET Q q 0 0 0 rg BT 461.68 433.10 Td (T) Tj ET Q q 0 0 0 rg BT 467.09 433.10 Td (o the extent these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (recommendations are acted upon by legislators or other executive action, a diver) Tj ET Q q 0 0 0 rg BT 371.42 421.10 Td (gence from the current system of state ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (regulation could increase compliance burdens and possibly impact our financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 392.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 392.10 Td (e cannot predict the requirements of the remaining final regulations ultimately adopted under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 522.28 392.10 Td (Act, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (full ef) Tj ET Q q 0 0 0 rg BT 73.47 380.10 Td (fect such regulations will have on financial markets generally) Tj ET Q q 0 0 0 rg BT 318.85 380.10 Td (, or on our mortgage insurance business, the additional costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (associated with compliance with such regulations or changes to our operations that may be necessary to comply with the Dodd-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (Frank ) Tj ET Q q 0 0 0 rg BT 74.78 356.10 Td (Act and the rules adopted thereunder) Tj ET Q q 0 0 0 rg BT 221.82 356.10 Td (, any of which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 410.44 356.10 Td (fect on our business, and business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (prospects.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (4. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 323.10 Td (RESP) Tj ET Q q 0 0 0 rg BT 91.77 323.10 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 306.10 Td (Settlement service providers in connection with the origination or refinance of a federally regulated mortgage loan are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (subject to RESP) Tj ET Q q 0 0 0 rg BT 113.59 294.10 Td (A. Mortgage insurance may be considered to be a settlement service for purposes of RESP) Tj ET Q q 0 0 0 rg BT 475.07 294.10 Td (A) Tj ET Q q 0 0 0 rg BT 481.74 294.10 Td ( under applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (regulations. ) Tj ET Q q 0 0 0 rg BT 98.38 282.10 Td (As a result, mortgage insurers are subject to the anti-referral fee provisions of Section8\(a\) of RESP) Tj ET Q q 0 0 0 rg BT 495.96 282.10 Td (A) Tj ET Q q 0 0 0 rg BT 502.63 282.10 Td ( which, among ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (other things, generally provide that mortgage insurers are prohibited from paying or accepting any thing of value in connection ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (with the referral of a settlement service. Under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 304.13 258.10 Td (Act, the authority to implement and enforce RESP) Tj ET Q q 0 0 0 rg BT 504.83 258.10 Td (A) Tj ET Q q 0 0 0 rg BT 511.50 258.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (transferred to the CFPB. RESP) Tj ET Q q 0 0 0 rg BT 172.75 246.10 Td (A) Tj ET Q q 0 0 0 rg BT 179.42 246.10 Td ( authorizes the CFPB, Department of Justice, state attorneys general and state insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (commissioners to bring civil enforcement actions, and also provides for criminal penalties and private rights of action.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 217.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 217.10 Td (e and other mortgage insurers are currently facing private lawsuits alleging, among other things, that our captive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (reinsurance arrangements constitute unlawful payments to mortgage lenders under RESP) Tj ET Q q 0 0 0 rg BT 404.87 205.10 Td (A, and in the past, we have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (subject to lawsuits alleging that our pool insurance and contract underwriting services violated RESP) Tj ET Q q 0 0 0 rg BT 453.21 193.10 Td (A. In addition, we and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (other mortgage insurers have been subject to inquiries and investigative demands from state and federal governmental agencies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (including the CFPB, requesting information relating to captive reinsurance. In ) Tj ET Q q 0 0 0 rg BT 363.88 169.10 Td (April 2013, we reached a settlement with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (CFPB that concluded its investigation with respect to Radian Guaranty without any findings of wrongdoing. For additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (information about litigation and governmental inquiries regarding RESP) Tj ET Q q 0 0 0 rg BT 338.25 145.10 Td (A) Tj ET Q q 0 0 0 rg BT 344.92 145.10 Td ( and our captive reinsurance arrangements, see Item ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (3. Legal Proceedings and Item 1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 265.28 133.10 Td (Legislation and r) Tj ET Q q 0 0 0 rg BT 333.81 133.10 Td (egulatory changes and interpr) Tj ET Q q 0 0 0 rg BT 454.81 133.10 Td (etations could impact our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (businesses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.72 121.10 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 132.54 121.10 Td (W) Tj ET Q q 0 0 0 rg BT 139.95 121.10 Td (e ar) Tj ET Q q 0 0 0 rg BT 155.41 121.10 Td (e subject to the risk of litigation and r) Tj ET Q q 0 0 0 rg BT 306.14 121.10 Td (egulatory pr) Tj ET Q q 0 0 0 rg BT 355.48 121.10 Td (oceedings) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 395.47 121.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.97 121.10 Td ( ) Tj ET Q q 0 0 0 rg BT 404.72 121.10 Td (W) Tj ET Q q 0 0 0 rg BT 413.36 121.10 Td (e have not entered into any new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.10 Td (captive reinsurance arrangement since 2007.) Tj ET Q endstream endobj 85 0 obj <> endobj 86 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (42) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (5. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Homeowner ) Tj ET Q q 0 0 0 rg BT 120.19 731.25 Td (Assistance Programs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (The Emer) Tj ET Q q 0 0 0 rg BT 113.02 714.25 Td (gency Economic Stimulus ) Tj ET Q q 0 0 0 rg BT 219.96 714.25 Td (Act of 2008 \(EESA\) included provisions that require the U.S. Secretary of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 702.25 Td (reasury \(T) Tj ET Q q 0 0 0 rg BT 100.71 702.25 Td (reasury Secretary\) to encourage further use of the Hope for Homeowners program. Under EESA, the ) Tj ET Q q 0 0 0 rg BT 510.65 702.25 Td (T) Tj ET Q q 0 0 0 rg BT 516.41 702.25 Td (reasury ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (Secretary is required to maximize assistance to homeowners and encourage mortgage servicers to take advantage of available ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (programs \(including the Hope for Homeowners program\) to minimize foreclosures. In 2008, the U.S. ) Tj ET Q q 0 0 0 rg BT 461.44 678.25 Td (T) Tj ET Q q 0 0 0 rg BT 467.20 678.25 Td (reasury announced the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (Homeowner ) Tj ET Q q 0 0 0 rg BT 100.88 666.25 Td (Af) Tj ET Q q 0 0 0 rg BT 111.25 666.25 Td (fordability and Stability Plan to restructure or refinance mortgages to avoid foreclosures through: \(i\)refinancing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (mortgage loans through HARP; \(ii\)modifying First- and Second-lien mortgage loans through HAMP) Tj ET Q q 0 0 0 rg BT 455.19 654.25 Td ( and the Second Lien ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (Modification Program; and \(iii\)of) Tj ET Q q 0 0 0 rg BT 186.51 642.25 Td (fering other alternatives to foreclosure through HAF) Tj ET Q q 0 0 0 rg BT 395.15 642.25 Td (A. Details of these programs are as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 613.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 613.25 Td (In 2009, the GSEs began of) Tj ET Q q 0 0 0 rg BT 213.86 613.25 Td (fering the HARP) Tj ET Q q 0 0 0 rg BT 281.25 613.25 Td ( program, which allows a borrower who is not delinquent to refinance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 601.25 Td (his or her mortgage to a more stable or af) Tj ET Q q 0 0 0 rg BT 268.54 601.25 Td (fordable loan if such borrower has been unable to take advantage of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 589.25 Td (lower interest rates because his or her home has decreased in value. ) Tj ET Q q 0 0 0 rg BT 375.71 589.25 Td (T) Tj ET Q q 0 0 0 rg BT 381.12 589.25 Td (o be eligible, a borrower must meet certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 577.25 Td (conditions, including that the borrower must be current on the mortgage at the time of the refinance, with no late ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 565.25 Td (payment in the past six months and no more than one late payment in the past 12 months. In November 201) Tj ET Q q 0 0 0 rg BT 533.88 565.25 Td (1, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 553.25 Td (FHF) Tj ET Q q 0 0 0 rg BT 121.10 553.25 Td (A) Tj ET Q q 0 0 0 rg BT 127.77 553.25 Td ( implemented the HARP) Tj ET Q q 0 0 0 rg BT 226.00 553.25 Td ( 2 program which made enhancements to the HARP) Tj ET Q q 0 0 0 rg BT 433.91 553.25 Td ( program that have increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 541.25 Td (the number of borrowers who can qualify for refinancing. ) Tj ET Q q 0 0 0 rg BT 336.57 541.25 Td (The HARP) Tj ET Q q 0 0 0 rg BT 380.92 541.25 Td ( 2 program has been extended to December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 529.25 Td (31, 2015 for loans that were originated or acquired by the GSEs by or before May 30, 2009. Importantly) Tj ET Q q 0 0 0 rg BT 520.25 529.25 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 517.25 Td (FHF) Tj ET Q q 0 0 0 rg BT 121.10 517.25 Td (A) Tj ET Q q 0 0 0 rg BT 127.77 517.25 Td ( reached an agreement with private mortgage insurers to facilitate the transfer of mortgage insurance on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 505.25 Td (loans to be refinanced without regard to L) Tj ET Q q 0 0 0 rg BT 270.58 505.25 Td (TV) Tj ET Q q 0 0 0 rg BT 282.62 505.25 Td (. ) Tj ET Q q 0 0 0 rg BT 287.44 505.25 Td (The FHF) Tj ET Q q 0 0 0 rg BT 323.09 505.25 Td (A) Tj ET Q q 0 0 0 rg BT 329.76 505.25 Td ( has the authority to make changes to the HARP) Tj ET Q q 0 0 0 rg BT 521.85 505.25 Td ( program.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 488.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 488.25 Td (In February 2009, the U.S. ) Tj ET Q q 0 0 0 rg BT 212.75 488.25 Td (T) Tj ET Q q 0 0 0 rg BT 218.50 488.25 Td (reasury established HAMP) Tj ET Q q 0 0 0 rg BT 325.89 488.25 Td ( as a program to modify certain loans to make them more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 476.25 Td (af) Tj ET Q q 0 0 0 rg BT 111.09 476.25 Td (fordable to borrowers, with the goal of reducing the number of foreclosures. Under HAMP) Tj ET Q q 0 0 0 rg BT 473.49 476.25 Td (, an eligible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 464.25 Td (borrower) Tj ET Q q 0 0 0 rg BT 140.52 464.25 Td () Tj ET Q q 0 0 0 rg BT 143.30 464.25 Td (s monthly payments may be lowered by lowering interest rates, extending the term of the mortgage or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 452.25 Td (deferring principal. ) Tj ET Q q 0 0 0 rg BT 183.01 452.25 Td (T) Tj ET Q q 0 0 0 rg BT 188.42 452.25 Td (o be eligible, a borrower must meet certain conditions, including conditions with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 440.25 Td (the borrower) Tj ET Q q 0 0 0 rg BT 155.24 440.25 Td () Tj ET Q q 0 0 0 rg BT 158.02 440.25 Td (s current income and non-mortgage debt obligations. In June 2012, the HAMP) Tj ET Q q 0 0 0 rg BT 471.75 440.25 Td ( program extended the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 428.25 Td (population of eligible homeowners to \(i\) homeowners applying for a modification on a property that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 416.25 Td (homeowner currently rents or intends to rent; \(ii\) homeowners who were previously ineligible because their debt-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 404.25 Td (to-income ratio was 31% or lower; \(iii\) homeowners who previously received a HAMP) Tj ET Q q 0 0 0 rg BT 452.48 404.25 Td ( trial period plan, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 392.25 Td (defaulted in their trial payments; and \(iv\) homeowners who previously received a HAMP) Tj ET Q q 0 0 0 rg BT 460.25 392.25 Td ( permanent modification, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 380.25 Td (but defaulted in their payments, therefore losing good standing. ) Tj ET Q q 0 0 0 rg BT 359.65 380.25 Td (The HAMP) Tj ET Q q 0 0 0 rg BT 406.22 380.25 Td ( program has been extended to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 368.25 Td (December 31, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 351.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 351.25 Td (HAF) Tj ET Q q 0 0 0 rg BT 122.76 351.25 Td (A, which became ef) Tj ET Q q 0 0 0 rg BT 202.54 351.25 Td (fective in ) Tj ET Q q 0 0 0 rg BT 241.97 351.25 Td (April 2010, is intended to provide additional alternatives to foreclosures by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 339.25 Td (providing incentives to encourage a borrower and servicer to agree that: \(i\)a borrower can sell his or her home for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 327.25 Td (less than the full amount due on the mortgage and fully satisfy the mortgage; or \(ii\)a borrower can voluntarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 315.25 Td (transfer ownership of his or her home to the servicer in full satisfaction of the mortgage. Loans that are eligible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 303.25 Td (this program must have been originated prior to January 1, 2009.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 286.25 Td (The U.S. ) Tj ET Q q 0 0 0 rg BT 141.65 286.25 Td (T) Tj ET Q q 0 0 0 rg BT 147.41 286.25 Td (reasury also has developed uniform guidance for loan modifications to be used by participating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 274.25 Td (servicers in the private sector) Tj ET Q q 0 0 0 rg BT 220.12 274.25 Td (. ) Tj ET Q q 0 0 0 rg BT 224.94 274.25 Td (The GSEs have incorporated material aspects of these guidelines for loans that they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 262.25 Td (own and loans backing securities that they guaranty) Tj ET Q q 0 0 0 rg BT 309.74 262.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 245.25 Td (See Item 1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 198.20 245.25 Td (Loan modification, r) Tj ET Q q 0 0 0 rg BT 280.34 245.25 Td (efinancing and other similar pr) Tj ET Q q 0 0 0 rg BT 405.52 245.25 Td (ograms may not continue to pr) Tj ET Q q 0 0 0 rg BT 528.19 245.25 Td (ovide us ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 233.25 Td (with a material benefit) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 140.33 233.25 Td (.) Tj ET Q endstream endobj 87 0 obj <> endobj 88 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (43) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (6. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (The SAFE Mortgage Licensing ) Tj ET Q q 0 0 0 rg BT 199.37 731.25 Td (Act \(SAFE ) Tj ET Q q 0 0 0 rg BT 251.78 731.25 Td (Act\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (The SAFE ) Tj ET Q q 0 0 0 rg BT 117.95 714.25 Td (Act requires mortgage loan originators to be licensed and/or registered with the Nationwide Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (Licensing System and Registry \(the Registry\). ) Tj ET Q q 0 0 0 rg BT 245.67 702.25 Td (The Registry is a database established by the Conference of State Bank ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (Supervisors and the ) Tj ET Q q 0 0 0 rg BT 130.33 690.25 Td (American ) Tj ET Q q 0 0 0 rg BT 171.70 690.25 Td (Association of Residential Mortgage Regulators. ) Tj ET Q q 0 0 0 rg BT 368.88 690.25 Td (Among other things, the database was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (established to support the licensing of mortgage loan originators by each state.) Tj ET Q q 0 0 0 rg BT 365.26 678.25 Td (As part of this licensing and registration process, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (loan originators who are employees of institutions other than depository institutions or certain of their subsidiaries that, in each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (case, are regulated by a federal banking agency) Tj ET Q q 0 0 0 rg BT 238.19 654.25 Td (, must generally be licensed under the SAFE ) Tj ET Q q 0 0 0 rg BT 418.43 654.25 Td (Act guidelines enacted by each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (state in which they engage in loan originator activities and registered with the Registry) Tj ET Q q 0 0 0 rg BT 395.70 642.25 Td (. ) Tj ET Q q 0 0 0 rg BT 400.52 642.25 Td (T) Tj ET Q q 0 0 0 rg BT 405.93 642.25 Td (o the extent that the SAFE ) Tj ET Q q 0 0 0 rg BT 513.69 642.25 Td (Act is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (interpreted to apply to our contract underwriters and we are unable to achieve compliance with the SAFE ) Tj ET Q q 0 0 0 rg BT 472.41 630.25 Td (Act in one or more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (applicable states, we may seek to provide our services through a licensed third-party vendor) Tj ET Q q 0 0 0 rg BT 416.76 618.25 Td (, and if this is not feasible, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (be required to cease or limit our contract underwriting services in such applicable states. ) Tj ET Q q 0 0 0 rg BT 405.03 606.25 Td (W) Tj ET Q q 0 0 0 rg BT 413.67 606.25 Td (e provide our contract underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (services through an entity that is currently licensed under) Tj ET Q q 0 0 0 rg BT 277.92 594.25 Td (, or otherwise compliant with, the SAFE ) Tj ET Q q 0 0 0 rg BT 441.51 594.25 Td (Act in 45 states. See Item ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 132.00 582.25 Td (W) Tj ET Q q 0 0 0 rg BT 139.41 582.25 Td (e face risks associated with our contract underwriting business) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.18 582.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 561.25 Td (7. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 561.25 Td (Home Mortgage Disclosure ) Tj ET Q q 0 0 0 rg BT 183.52 561.25 Td (Act of 1975 \(HMDA\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 544.25 Td (HMDA) Tj ET Q q 0 0 0 rg BT 103.50 544.25 Td ( requires most originators of mortgage loans \(among others\) to collect and report data relating to a mortgage loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.25 Td (applicant) Tj ET Q q 0 0 0 rg BT 88.93 532.25 Td (s race, nationality) Tj ET Q q 0 0 0 rg BT 159.08 532.25 Td (, gender) Tj ET Q q 0 0 0 rg BT 190.89 532.25 Td (, marital status and census tract to their respective federal reporting agency) Tj ET Q q 0 0 0 rg BT 489.56 532.25 Td (. ) Tj ET Q q 0 0 0 rg BT 494.38 532.25 Td (The purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.25 Td (the HMDA) Tj ET Q q 0 0 0 rg BT 94.22 520.25 Td ( is to detect possible discrimination in home lending and, through disclosure, to discourage this discrimination. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.25 Td (Mortgage insurers are not required pursuant to any law or regulation to report HMDA) Tj ET Q q 0 0 0 rg BT 392.46 508.25 Td ( data. However) Tj ET Q q 0 0 0 rg BT 452.87 508.25 Td (, mortgage insurers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.25 Td (including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 157.16 496.25 Td (, have voluntarily agreed to report the same data on loans submitted for insurance as is required for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.25 Td (most mortgage lenders under HMDA.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (8. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 463.25 Td (Mortgage Insurance Cancellation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 446.25 Td (The HP) Tj ET Q q 0 0 0 rg BT 103.41 446.25 Td (A) Tj ET Q q 0 0 0 rg BT 110.08 446.25 Td ( imposes certain cancellation and termination requirements for borrower) Tj ET Q q 0 0 0 rg BT 399.22 446.25 Td (-paid private mortgage insurance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (requires certain disclosures to borrowers regarding their rights under the law) Tj ET Q q 0 0 0 rg BT 354.86 434.25 Td (. ) Tj ET Q q 0 0 0 rg BT 359.68 434.25 Td (The HP) Tj ET Q q 0 0 0 rg BT 389.59 434.25 Td (A) Tj ET Q q 0 0 0 rg BT 396.26 434.25 Td ( also requires certain disclosures for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (loans covered by lender) Tj ET Q q 0 0 0 rg BT 144.54 422.25 Td (-paid private mortgage insurance. Specifically) Tj ET Q q 0 0 0 rg BT 328.54 422.25 Td (, the HP) Tj ET Q q 0 0 0 rg BT 360.12 422.25 Td (A) Tj ET Q q 0 0 0 rg BT 366.79 422.25 Td ( provides that private mortgage insurance on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (most loans originated on or after July29, 1999 may be cancelled at the request of the borrower once the L) Tj ET Q q 0 0 0 rg BT 472.61 410.25 Td (TV) Tj ET Q q 0 0 0 rg BT 485.76 410.25 Td ( reaches 80% of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (the original unpaid principal balance, provided that certain conditions are satisfied. Under HP) Tj ET Q q 0 0 0 rg BT 422.91 398.25 Td (A, private mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (must be canceled automatically once the L) Tj ET Q q 0 0 0 rg BT 219.07 386.25 Td (TV) Tj ET Q q 0 0 0 rg BT 232.21 386.25 Td ( reaches 78% of the unpaid principal balance \(or) Tj ET Q q 0 0 0 rg BT 425.62 386.25 Td (, if the loan is not current on that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (date, on the date that the loan becomes current\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 357.25 Td (The HP) Tj ET Q q 0 0 0 rg BT 103.41 357.25 Td (A) Tj ET Q q 0 0 0 rg BT 110.08 357.25 Td ( establishes special rules for the termination of private mortgage insurance in connection with loans that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.25 Td (high risk. ) Tj ET Q q 0 0 0 rg BT 98.47 345.25 Td (The HP) Tj ET Q q 0 0 0 rg BT 128.39 345.25 Td (A) Tj ET Q q 0 0 0 rg BT 135.06 345.25 Td ( does not define high risk loans, but leaves that determination to the GSEs for loans up to the GSE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.25 Td (conforming loan limits and to lenders for any other loan. For high risk loans above the GSE conforming loan limits, private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.25 Td (mortgage insurance must be terminated on the date that the L) Tj ET Q q 0 0 0 rg BT 293.50 321.25 Td (TV) Tj ET Q q 0 0 0 rg BT 306.65 321.25 Td ( is first scheduled to reach 77% of the unpaid principal balance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.25 Td (In no case, however) Tj ET Q q 0 0 0 rg BT 129.07 309.25 Td (, may private mortgage insurance be required beyond the midpoint of the amortization period of the loan if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.25 Td (the borrower is current on the payments required by the terms of the mortgage.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 276.25 Td (9. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 276.25 Td (The Fair Credit Reporting ) Tj ET Q q 0 0 0 rg BT 178.25 276.25 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 259.25 Td (The FCRA, as amended, imposes restrictions on the permissible use of credit report information. FCRA) Tj ET Q q 0 0 0 rg BT 488.71 259.25 Td ( has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.25 Td (interpreted by some Federal ) Tj ET Q q 0 0 0 rg BT 163.72 247.25 Td (T) Tj ET Q q 0 0 0 rg BT 169.48 247.25 Td (rade Commission \(FTC\) staf) Tj ET Q q 0 0 0 rg BT 292.89 247.25 Td (f to require mortgage insurance companies to provide adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.25 Td (action notices to consumers in the event an application for mortgage insurance is declined on the basis of a review of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.25 Td (consumer) Tj ET Q q 0 0 0 rg BT 88.75 223.25 Td () Tj ET Q q 0 0 0 rg BT 91.53 223.25 Td (s credit.) Tj ET Q endstream endobj 89 0 obj <> endobj 90 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (44) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (10. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (Privacy and Information Security - Gramm-Leach-Bliley ) Tj ET Q q 0 0 0 rg BT 304.33 731.25 Td (Act of 1999 \(the GLB\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (The GLB imposes privacy requirements on financial institutions, including obligations to protect and safeguard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (consumers) Tj ET Q q 0 0 0 rg BT 94.86 702.25 Td ( nonpublic personal information and records, and limitations on the re-use of such information. Federal regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (agencies have issued the Interagency Guidelines Establishing Information Security Standards, or Security Guidelines, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (interagency regulations regarding financial privacy) Tj ET Q q 0 0 0 rg BT 253.21 678.25 Td (, or Privacy Rule, implementing sections of GLB. ) Tj ET Q q 0 0 0 rg BT 463.26 678.25 Td (The Security Guidelines ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (establish standards relating to administrative, technical, and physical safeguards to ensure the security) Tj ET Q q 0 0 0 rg BT 456.50 666.25 Td (, confidentiality) Tj ET Q q 0 0 0 rg BT 519.17 666.25 Td (, integrity) Tj ET Q q 0 0 0 rg BT 557.40 666.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (and the proper disposal of consumer information. ) Tj ET Q q 0 0 0 rg BT 249.27 654.25 Td (The Privacy Rule limits a financial institution) Tj ET Q q 0 0 0 rg BT 434.79 654.25 Td (s disclosure of nonpublic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (personal information to unaf) Tj ET Q q 0 0 0 rg BT 163.46 642.25 Td (filiated third parties unless certain notice requirements are met and the consumer does not elect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (prevent or opt out of the disclosure. Pursuant to the ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.12156862745098039 0.28627450980392155 0.49019607843137253 rg BT 265.84 630.25 Td (P) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 271.40 630.25 Td (rivacy Rule, financial institutions that are required to provide privacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (notices) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.12156862745098039 0.28627450980392155 0.49019607843137253 rg BT 77.83 618.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 80.33 618.25 Td (to their customers and consumers are required to describe the financial institutions) Tj ET Q q 0 0 0 rg BT 412.54 618.25 Td ( policies and practices to protect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (confidentiality and security of the information. ) Tj ET Q q 0 0 0 rg BT 238.99 606.25 Td (W) Tj ET Q q 0 0 0 rg BT 248.03 606.25 Td (ith respect to our business, GLB is enforced by the FTC and state insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (regulators. Many states have enacted legislation implementing GLB and establishing information security regulation. Many ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (states have enacted privacy and data security laws that impose compliance obligations beyond GLB, including obligations to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.25 Td (protect social security numbers and provide notification in the event that a security breach results in a reasonable belief that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.25 Td (unauthorized persons may have obtained access to consumer nonpublic information.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 541.25 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 541.25 Td (1. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 541.25 Td (Asset Backed Securitizations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td ( ) Tj ET Q q 0 0 0 rg BT 85.50 524.25 Td (Our MRES business provides services to issuers of and investors in asset backed securitizations and similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (transactions. ) Tj ET Q q 0 0 0 rg BT 101.71 512.25 Td (As a result, regulations impacting the asset backed securitization market may impact our MRES business directly) Tj ET Q q 0 0 0 rg BT 554.28 512.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (or indirectly through the regulation of our MRES customers. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 483.25 Td (In ) Tj ET Q q 0 0 0 rg BT 95.78 483.25 Td (August 2014, the SEC adopted final rules under Regulation ) Tj ET Q q 0 0 0 rg BT 335.74 483.25 Td (AB that substantially revise the of) Tj ET Q q 0 0 0 rg BT 471.93 483.25 Td (fering process, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.25 Td (disclosure and reporting requirements for of) Tj ET Q q 0 0 0 rg BT 225.65 471.25 Td (ferings of ) Tj ET Q q 0 0 0 rg BT 266.20 471.25 Td (ABS. ) Tj ET Q q 0 0 0 rg BT 290.47 471.25 Td (The final Regulation ) Tj ET Q q 0 0 0 rg BT 375.17 471.25 Td (AB II rules implement several key areas of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.25 Td (reform. Specifically) Tj ET Q q 0 0 0 rg BT 128.82 459.25 Td (, Regulation ) Tj ET Q q 0 0 0 rg BT 179.65 459.25 Td (AB II introduces several new requirements related to public of) Tj ET Q q 0 0 0 rg BT 429.66 459.25 Td (ferings of ) Tj ET Q q 0 0 0 rg BT 470.20 459.25 Td (ABS, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (following that are significant for our MRES business: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 430.25 Td (New asset-level disclosure requirements for ) Tj ET Q q 0 0 0 rg BT 280.94 430.25 Td (ABS backed by residential mortgage loans, commercial mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 418.25 Td (loans, automobile loans or leases, re-securitizations of ) Tj ET Q q 0 0 0 rg BT 322.05 418.25 Td (ABS backed by any of those asset types, and debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 406.25 Td (securities; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 389.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 389.25 Td (A) Tj ET Q q 0 0 0 rg BT 110.17 389.25 Td ( requirement that the transaction documents provide for the appointment of an asset representations manager ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 377.25 Td (to review the pool assets when certain trigger events occur) Tj ET Q q 0 0 0 rg BT 337.03 377.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 360.25 Td (Issuers of publicly of) Tj ET Q q 0 0 0 rg BT 156.53 360.25 Td (fered ) Tj ET Q q 0 0 0 rg BT 179.01 360.25 Td (ABS must comply with Regulation ) Tj ET Q q 0 0 0 rg BT 321.52 360.25 Td (AB II) Tj ET Q q 0 0 0 rg BT 347.35 360.25 Td (s new rules, forms and disclosures no later than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.25 Td (November 23, 2015, except for the asset-level disclosure requirements which become applicable on November 23, 2016.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 331.25 Td (In ) Tj ET Q q 0 0 0 rg BT 82.28 331.25 Td (August 2014, the SEC also adopted its final credit rating agency reform rules. ) Tj ET Q q 0 0 0 rg BT 395.63 331.25 Td (These rules will become ef) Tj ET Q q 0 0 0 rg BT 503.19 331.25 Td (fective June ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.25 Td (15, 2015. ) Tj ET Q q 0 0 0 rg BT 89.32 319.25 Td (The new NRSRO rules include, among other things, new rules and forms that apply to providers of third-party due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.25 Td (diligence services \(such as our MRES business\) for both publicly and privately issued Exchange ) Tj ET Q q 0 0 0 rg BT 437.20 307.25 Td (Act-ABS \(which includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.25 Td (CLOs, CDOs and synthetic securitizations\). ) Tj ET Q q 0 0 0 rg BT 227.35 295.25 Td (The new NRSRO rules require any issuer or underwriter of registered or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.25 Td (unregistered ) Tj ET Q q 0 0 0 rg BT 100.87 283.25 Td (ABS that are to be rated by a NRSRO, to furnish a form filed on the SEC) Tj ET Q q 0 0 0 rg BT 396.66 283.25 Td (s EDGAR system that describes the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.25 Td (findings and conclusions of any third-party due diligence report obtained by the issuer or underwriter) Tj ET Q q 0 0 0 rg BT 453.84 271.25 Td (. ) Tj ET Q q 0 0 0 rg BT 458.66 271.25 Td (The rule also requires ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.25 Td (that a due diligence firm \(such as our MRES business\) that is engaged to perform services in connection with any rated ) Tj ET Q q 0 0 0 rg BT 527.99 259.25 Td (ABS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.25 Td (issuance furnish a form that describes the scope of due diligence services performed and a summary of their findings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.25 Td (conclusions. ) Tj ET Q q 0 0 0 rg BT 101.54 235.25 Td (The form is required to be posted on the ) Tj ET Q q 0 0 0 rg BT 264.00 235.25 Td (ABS issuer) Tj ET Q q 0 0 0 rg BT 309.65 235.25 Td () Tj ET Q q 0 0 0 rg BT 312.43 235.25 Td (s password-protected website that is required under Rule ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.25 Td (17g-5 of the Exchange ) Tj ET Q q 0 0 0 rg BT 142.25 223.25 Td (Act. ) Tj ET Q endstream endobj 91 0 obj <> endobj 92 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (45) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (12. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (FDCP) Tj ET Q q 0 0 0 rg BT 93.43 731.25 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 714.25 Td (The FDCP) Tj ET Q q 0 0 0 rg BT 114.14 714.25 Td (A) Tj ET Q q 0 0 0 rg BT 120.81 714.25 Td ( prohibits third party debt collectors from using abusive, unfair or deceptive practices to collect a debt. ) Tj ET Q q 0 0 0 rg BT 533.00 714.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (FDCP) Tj ET Q q 0 0 0 rg BT 73.60 702.25 Td (A) Tj ET Q q 0 0 0 rg BT 80.27 702.25 Td ( is enforced by the FTC. For purposes of the FDCP) Tj ET Q q 0 0 0 rg BT 284.06 702.25 Td (A, a debt collector is a person who regularly collects or attempts to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (collect consumer debts for another person or institution. ) Tj ET Q q 0 0 0 rg BT 275.65 690.25 Td (The FDCP) Tj ET Q q 0 0 0 rg BT 317.80 690.25 Td (A) Tj ET Q q 0 0 0 rg BT 324.47 690.25 Td ( specifies, among other things, the times and places where ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (a debt collector may communicate with the consumer and which third parties a debt collector may contact other than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (consumer) Tj ET Q q 0 0 0 rg BT 87.98 666.25 Td (, as well as the ways in which such communication may be conducted. Failure to comply with the FDCP) Tj ET Q q 0 0 0 rg BT 505.32 666.25 Td (A) Tj ET Q q 0 0 0 rg BT 511.99 666.25 Td ( may result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (in liability for actual damages, punitive damages and other costs and fees, all as set forth in the FDCP) Tj ET Q q 0 0 0 rg BT 455.15 654.25 Td (A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 637.25 Td (Certain of our MRES business activitiesinvolve direct communications with consumers who have defaulted on mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.25 Td (loans, primarily to determine their desire to explore their options with the loan servicer or investor) Tj ET Q q 0 0 0 rg BT 442.32 625.25 Td (, and to make these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.25 Td (introductions, as necessary) Tj ET Q q 0 0 0 rg BT 156.32 613.25 Td (. ) Tj ET Q q 0 0 0 rg BT 161.14 613.25 Td (These consumer) Tj ET Q q 0 0 0 rg BT 226.19 613.25 Td (-related interactions may be construed to constitute debt collection activities within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.25 Td (the meaning of the FDCP) Tj ET Q q 0 0 0 rg BT 150.79 601.25 Td (A. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (D. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 580.25 Td (Basel III) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 563.25 Td (In 1988, the BCBS developed Basel I, which established international benchmarks for assessing banks) Tj ET Q q 0 0 0 rg BT 486.28 563.25 Td ( capital adequacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (requirements. In June 2005, the BCBS issued Basel II which, among other things, governs the capital treatment for mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (insurance purchased by domestic and international banks in both their origination and securitization activities. Basel II was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (implemented by many banks in the U.S. and in many other countries in 2009 and 2010.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 510.25 Td (In September 2010, the BCBS released Basel III guidelines, which increased the capital requirements for certain banking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.25 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 498.25 Td (ganizations. In December 2010, the BCBS released a new bank capital framework, which we refer to as the Basel III capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (adequacy guidelines, that raised minimum capital requirements for banks. Implementation of Basel III and the Basel III capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (adequacy guidelines in the U.S. required formal regulations to be adopted by the three U.S. federal banking regulators.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 457.25 Td (In July 2013, the federal bank regulators published rules to implement Basel III. ) Tj ET Q q 0 0 0 rg BT 395.92 457.25 Td (As published, these rules would have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.25 Td (made extensive changes to the capital requirements for residential mortgages. In addition, the published rules would have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.25 Td (eliminated existing capital recognition for certain low down payment mortgages if covered by mortgage insurance. ) Tj ET Q q 0 0 0 rg BT 511.02 433.25 Td (After ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.25 Td (consideration of extensive comments on the published rules, the federal regulators revised the Basel III rules to retain the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.25 Td (current treatment for residential mortgages under the general risk-based capital rules for U.S. banking institutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 392.25 Td (As discussed above, the revised Basel III rules, as implemented by the U.S. bank regulators, retain the existing risk-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.25 Td (weighting for mortgage-backed pass-through securities guaranteed by the GSEs. However) Tj ET Q q 0 0 0 rg BT 410.10 380.25 Td (, these revised Basel III rules ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.25 Td (significantly change the calculation of risk weights for securitization exposures in which credit risk is tranched. Under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (revised Basel III rules, the risk weighting for these securitization exposures is subject to a 20% floor and can increase to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.25 Td (1,250% for junior tranches. Under the QRM risk-retention rules, sponsors of securitizations of non-QRM loans will be required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (to retain an exposure to securitizations they sponsor) Tj ET Q q 0 0 0 rg BT 256.39 332.25 Td (. ) Tj ET Q q 0 0 0 rg BT 261.21 332.25 Td (Therefore, under the final Basel III rules, it is possible that these bank ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (sponsors will be required to hold greater amounts of capital with respect to a securitization of non-QRM loans than if the bank ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (had retained the entire portfolio of loans. ) Tj ET Q q 0 0 0 rg BT 215.37 308.25 Td (This may create a disincentive to originate non-QRM loans, which may decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (demand for our private mortgage insurance products in the non-QRM market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 279.25 Td (On December 22, 2014, the BCBS released a new proposed guideline that revised the previous risk-weighting guideline. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (Unlike the previous international guidelines, this new proposal no longer assigns a 35% risk weight to residential real estate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.25 Td (assets. Instead, risk weights vary based on L) Tj ET Q q 0 0 0 rg BT 226.04 255.25 Td (TV) Tj ET Q q 0 0 0 rg BT 239.19 255.25 Td ( and DTI. In calculating L) Tj ET Q q 0 0 0 rg BT 342.68 255.25 Td (TV) Tj ET Q q 0 0 0 rg BT 354.72 255.25 Td (, the loan amount is gross of any credit risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (mitigant such as private mortgage insurance. ) Tj ET Q q 0 0 0 rg BT 230.65 243.25 Td (The proposal also includes revisions to provisions in Basel III that allow for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.25 Td (substitution of risk weighting of a credit enhancement for that of the underlying exposure. ) Tj ET Q q 0 0 0 rg BT 411.73 231.25 Td (The BCBS is seeking comment on its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.25 Td (December proposal through March 15, 2015. Following consideration of the comments received, it is possible that newly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.25 Td (revised risk weighting guidelines may be proposed and that the U.S. bank regulators may consider changes to the existing rules. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.25 Td (It is unclear whether new guidelines will be proposed or finalized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 178.25 Td (See Item 1A. Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 198.20 178.25 Td (The implementation of the Basel III guidelines may discourage the use of mortgage ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 166.25 Td (.) Tj ET Q endstream endobj 93 0 obj <> endobj 94 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (46) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (E. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 731.25 Td (For) Tj ET Q q 0 0 0 rg BT 82.87 731.25 Td (eign Regulation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (By reason of Radian Insurance) Tj ET Q q 0 0 0 rg BT 199.57 714.25 Td (s authorization, in September 2006, to conduct insurance business through a branch in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (Hong Kong, we are subject to regulation by the Hong Kong Insurance ) Tj ET Q q 0 0 0 rg BT 331.93 702.25 Td (Authority \(HKIA\). ) Tj ET Q q 0 0 0 rg BT 418.67 702.25 Td (The HKIA) Tj ET Q q 0 0 0 rg BT 460.60 702.25 Td () Tj ET Q q 0 0 0 rg BT 463.38 702.25 Td (s principal purpose is to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (supervise and regulate the insurance industry) Tj ET Q q 0 0 0 rg BT 229.07 690.25 Td (, primarily for the protection of policyholders and the stability of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (industry) Tj ET Q q 0 0 0 rg BT 81.63 678.25 Td (.Hong Kong insurers are required by the Insurance Companies Ordinance to maintain minimum capital as well as an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (excess of assets over liabilities of not less than a required solvency mar) Tj ET Q q 0 0 0 rg BT 334.24 666.25 Td (gin, which is determined on the basis of a statutory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (formula.Foreign-owned insurers are also required to maintain assets in Hong Kong in an amount suf) Tj ET Q q 0 0 0 rg BT 453.12 654.25 Td (ficient to ensure that assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (will be available in Hong Kong to meet the claims of Hong Kong policyholders if the insurer should become insolvent. ) Tj ET Q q 0 0 0 rg BT 528.39 642.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (HKIA) Tj ET Q q 0 0 0 rg BT 73.94 630.25 Td ( also reviews the backgrounds and qualifications of insurance companies) Tj ET Q q 0 0 0 rg BT 367.83 630.25 Td ( directors and key local management to ensure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (that these controllers are fit and proper to hold their positions and has the authority to approve or disapprove key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (appointments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 573.25 Td (VII. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 72.00 573.25 Td (Employees) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 556.25 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.58 556.25 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.68 556.25 Td (1,702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.18 556.25 Td ( employees, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.72 556.25 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.72 556.25 Td ( individuals employed by Radian Group, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.92 556.25 Td (906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.92 556.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.92 556.25 Td (702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.92 556.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.36 556.25 Td (35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.36 556.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.25 Td (individuals employed in our MRES, mortgage insurance and financial guaranty businesses, respectively) Tj ET Q q 0 0 0 rg BT 464.58 544.25 Td (. Management considers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.25 Td (employee relations to be good.) Tj ET Q endstream endobj 95 0 obj <> endobj 96 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (47) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item1A. ) Tj ET Q q 0 0 0 rg BT 103.50 731.25 Td (Risk Factors.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (Radian Guaranty may be unable to comply with applicable GSE eligibility requirements, including the final PMIERs, which ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (if adopted in their current proposed form, could negatively impact Radian Guaranty) Tj ET Q q 0 0 0 rg BT 397.65 698.25 Td (s expected return on equity) Tj ET Q q 0 0 0 rg BT 508.38 698.25 Td (, decrease ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 124.05 686.25 Td (s NIW) Tj ET Q q 0 0 0 rg BT 149.71 686.25 Td (, and subject Radian Guaranty to extensive and more stringent operational requirements.) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 669.25 Td (In order to be eligible to insure loans purchased by the GSEs, mortgage insurers must meet the GSEs) Tj ET Q q 0 0 0 rg BT 478.39 669.25 Td ( eligibility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (requirements. If we are unable to satisfy one or more of these requirements, Freddie Mac and/or Fannie Mae could restrict ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (Radian Guaranty from conducting certain types of business with them or take actions that may include not purchasing loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (insured by Radian Guaranty) Tj ET Q q 0 0 0 rg BT 161.32 633.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 616.25 Td (The current GSE eligibility requirements, which are in the process of being revised, impose financial and capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (requirements as well as limitations on the type of risk that may be insured, standards for the diversification of risk, procedures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (for claims handling, standards for acceptable underwriting practices, and standards for certain reinsurance cessions, among ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (other things. In addition, under the existing GSE eligibility requirements, in order to maintain the highest level of eligibility) Tj ET Q q 0 0 0 rg BT 543.48 580.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.25 Td (mortgage insurers are required to maintain certain specified financial strength ratings from at least two of the rating agencies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.25 Td (Because Radian Guaranty does not meet the financial strength rating requirements specified in the GSEs) Tj ET Q q 0 0 0 rg BT 470.29 556.25 Td ( existing eligibility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.25 Td (guidelines, Radian Guaranty currently is operating as an eligible insurer under remediation plans with the GSEs that describe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.25 Td (how we intend to achieve consistent levels of operating profitability and ultimately regain higher financial strength ratings for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.25 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 116.88 520.25 Td (. ) Tj ET Q q 0 0 0 rg BT 121.70 520.25 Td (W) Tj ET Q q 0 0 0 rg BT 130.34 520.25 Td (e cannot be certain whether) Tj ET Q q 0 0 0 rg BT 239.88 520.25 Td (, or for how long, either of the GSEs will continue to allow Radian Guaranty to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.25 Td (operate as an eligible insurer under our remediation plans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 491.25 Td (The GSEs are in the process of revising their eligibility requirements for private mortgage insurers. In September 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (Fannie Mae notified us \(and other private mortgage insurers operating under remediation plans\), that for the period until the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (new eligibility requirements are finalized, Fannie Mae would be imposing additional terms and conditions for Radian Guaranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (to maintain eligibility as a Fannie Mae approved mortgage insurer) Tj ET Q q 0 0 0 rg BT 313.60 455.25 Td (. In the event that Radian Guaranty fails to comply with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.25 Td (additional requirements, Fannie Mae may impose further conditions on Radian Guaranty) Tj ET Q q 0 0 0 rg BT 404.04 443.25 Td (, or may suspend or terminate its status ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.25 Td (as an eligible insurer) Tj ET Q q 0 0 0 rg BT 131.98 431.25 Td (. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 153.91 431.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.48 431.25 Td (Item 1. Business Regulation Direct Federal Regulation ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 418.60 431.25 Td (GSE Requir) Tj ET Q q 0 0 0 rg BT 466.27 431.25 Td (ements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 414.25 Td (On July 10, 2014, the FHF) Tj ET Q q 0 0 0 rg BT 178.21 414.25 Td (A) Tj ET Q q 0 0 0 rg BT 184.88 414.25 Td ( released proposed PMIERs for public comment. ) Tj ET Q q 0 0 0 rg BT 382.43 414.25 Td (The PMIERs, when finalized and ef) Tj ET Q q 0 0 0 rg BT 526.10 414.25 Td (fective, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.25 Td (will establish the revised requirements that the GSEs will impose on private mortgage insurers, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 540.13 402.25 Td (, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.25 Td (remain eligible insurers of mortgage loans purchased by the GSEs. ) Tj ET Q q 0 0 0 rg BT 318.97 390.25 Td (The proposed PMIERs include the PMIERs Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.25 Td (Requirements that are expected to replace the capital adequacy standards under the current GSE eligibility requirements. ) Tj ET Q q 0 0 0 rg BT 534.41 378.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (proposed PMIERs Financial Requirements require a mortgage insurer) Tj ET Q q 0 0 0 rg BT 329.52 366.25 Td () Tj ET Q q 0 0 0 rg BT 332.30 366.25 Td (s ) Tj ET Q q 0 0 0 rg BT 338.14 366.25 Td (A) Tj ET Q q 0 0 0 rg BT 344.62 366.25 Td (vailable ) Tj ET Q q 0 0 0 rg BT 378.22 366.25 Td (Assets to meet or exceed its Minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.25 Td (Required ) Tj ET Q q 0 0 0 rg BT 88.10 354.25 Td (Assets, which is an amount that is calculated based on net RIF and a variety of measures designed to evaluate credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.25 Td (quality) Tj ET Q q 0 0 0 rg BT 76.62 342.25 Td (. ) Tj ET Q q 0 0 0 rg BT 81.07 342.25 Td (Among other things, the proposed PMIERs exclude from ) Tj ET Q q 0 0 0 rg BT 311.88 342.25 Td (A) Tj ET Q q 0 0 0 rg BT 318.36 342.25 Td (vailable ) Tj ET Q q 0 0 0 rg BT 351.96 342.25 Td (Assets: \(i\) an amount equal to Unearned Premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.25 Td (Reserves; and \(ii\) certain subsidiary capital, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 338.58 330.25 Td (s capital that is attributable to its ownership of Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 73.67 318.25 Td (Assurance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 301.25 Td (The public comment period for the proposed PMIERs ended on September 8, 2014. ) Tj ET Q q 0 0 0 rg BT 409.25 301.25 Td (The FHF) Tj ET Q q 0 0 0 rg BT 444.90 301.25 Td (A) Tj ET Q q 0 0 0 rg BT 451.57 301.25 Td ( is currently reviewing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (considering input before adopting the final PMIERs. ) Tj ET Q q 0 0 0 rg BT 261.69 289.25 Td (All aspects of the final PMIERs are expected to become ef) Tj ET Q q 0 0 0 rg BT 495.87 289.25 Td (fective 180 days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.25 Td (after their final publication. ) Tj ET Q q 0 0 0 rg BT 161.40 277.25 Td (Approved mortgage insurers that fail to meet the PMIERs Financial Requirements when they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.25 Td (become ef) Tj ET Q q 0 0 0 rg BT 90.68 265.25 Td (fective may) Tj ET Q q 0 0 0 rg BT 136.95 265.25 Td (, at the GSE) Tj ET Q q 0 0 0 rg BT 188.05 265.25 Td (s discretion, operate under a transition plan during an extended transition period of up to two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (years from the final publication date, and would continue to be eligible insurers during that period. ) Tj ET Q q 0 0 0 rg BT 446.43 253.25 Td (W) Tj ET Q q 0 0 0 rg BT 455.07 253.25 Td (e expect the final PMIERs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.25 Td (to be published in the first half of 2015 and to become ef) Tj ET Q q 0 0 0 rg BT 276.48 241.25 Td (fective by the end of 2015. Based on an assumed final publication date ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (of June 30, 2015, with an ef) Tj ET Q q 0 0 0 rg BT 160.96 229.25 Td (fective date of December 31, 2015, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 375.05 229.25 Td (s estimated net shortfall in ) Tj ET Q q 0 0 0 rg BT 482.53 229.25 Td (A) Tj ET Q q 0 0 0 rg BT 489.01 229.25 Td (vailable ) Tj ET Q q 0 0 0 rg BT 522.61 229.25 Td (Assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (would be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.20 217.25 Td ($350 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.59 217.25 Td ( as of December31, 2015, after giving consideration to existing holding company cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (balances of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.25 205.25 Td ($670 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.65 205.25 Td ( and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.34 205.25 Td ($790 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.73 205.25 Td ( in anticipated proceeds from the pending sale of Radian ) Tj ET Q q 0 0 0 rg BT 507.44 205.25 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.25 Td (Assurance. ) Tj ET Q q 0 0 0 rg BT 95.97 193.25 Td (W) Tj ET Q q 0 0 0 rg BT 104.61 193.25 Td (e have derived these estimates independently and without verification from the GSEs. It is possible that the GSEs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.25 Td (may apply the PMIERs dif) Tj ET Q q 0 0 0 rg BT 156.53 181.25 Td (ferently than we have, which could change the size of our projected net shortfall in ) Tj ET Q q 0 0 0 rg BT 489.74 181.25 Td (A) Tj ET Q q 0 0 0 rg BT 496.22 181.25 Td (vailable ) Tj ET Q q 0 0 0 rg BT 529.82 181.25 Td (Assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.25 Td (In order for Radian Guaranty to comply with the PMIERs Financial Requirements as proposed, we expect to contribute a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.25 Td (substantial portion of our holding company cash and investments to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 390.17 157.25 Td (, and also that we will be successful in: \(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.25 Td (completing the pending sale of Radian ) Tj ET Q q 0 0 0 rg BT 205.57 145.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 229.74 145.25 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 283.62 145.25 Td (Assured pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 411.10 145.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 435.27 145.25 Td (Assurance Stock Purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.25 Td (Agreement; and \(2\) leveraging other options such as commutations of existing risk or external reinsurance for a portion of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.25 Td (mortgage insurance RIF in a manner that provides capital relief and is compliant with the PMIERs. In the event we are unable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.25 Td (to successfully execute these or similar transactions or strategies, or such transactions are not available on terms that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.25 Td (attractive to us, we may seek additional capital by incurring additional debt, by issuing additional equity) Tj ET Q q 0 0 0 rg BT 465.69 97.25 Td (, or by selling assets, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 85.25 Td (which we may not be able to do on favorable terms, if at all.) Tj ET Q endstream endobj 97 0 obj <> endobj 98 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (The amount of capital or capital relief that may be required to comply with the PMIERs also may be impacted by: \(1\) the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (performance of our mortgage insurance business, including our level of defaults, the losses we incur on new or existing defaults ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (and the amount and credit characteristics of new business we write, among other factors; and \(2\) changes in the final PMIERs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Financial Requirements from their proposed form that af) Tj ET Q q 0 0 0 rg BT 276.20 695.10 Td (fect the amount of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 422.54 695.10 Td (s Minimum Required ) Tj ET Q q 0 0 0 rg BT 510.04 695.10 Td (Assets or its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.98 683.10 Td (vailable ) Tj ET Q q 0 0 0 rg BT 89.58 683.10 Td (Assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 666.10 Td (Although we expect to be able to retain Radian Guaranty) Tj ET Q q 0 0 0 rg BT 302.76 666.10 Td (s eligibility status with the GSEs and to be able to comply with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (the final PMIERs, we cannot provide any assurance that this will occur) Tj ET Q q 0 0 0 rg BT 333.32 654.10 Td (. Loss of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 441.35 654.10 Td (s eligibility status with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (GSEs would likely have an immediate and material adverse impact on the franchise value of our mortgage insurance business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (and our future prospects and a material negative impact on our results of operations and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 613.10 Td (Absent a change in our mortgage insurance pricing, the more onerous financial requirements in the proposed PMIERs for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 69.31 601.10 Td ( would likely have a negative impact on our returns on equity) Tj ET Q q 0 0 0 rg BT 314.43 601.10 Td (. ) Tj ET Q q 0 0 0 rg BT 318.88 601.10 Td (Any potential change in our mortgage insurance pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.10 Td (likely will depend on competition and our evaluation of projected risk-adjusted returns on the business we write, among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.10 Td (factors. ) Tj ET Q q 0 0 0 rg BT 81.16 577.10 Td (An increase in pricing may not be feasible for a number of reasons, including competition from other private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (insurers, the FHA) Tj ET Q q 0 0 0 rg BT 120.33 565.10 Td ( or other credit enhancement products.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.10 Td (The PMIERs Financial Requirements are most pronounced for delinquent loans, loans written between 2005 and 2008 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (that have not been refinanced through HARP) Tj ET Q q 0 0 0 rg BT 229.63 536.10 Td ( and loans with higher L) Tj ET Q q 0 0 0 rg BT 326.19 536.10 Td (TVs and lower FICO scores. ) Tj ET Q q 0 0 0 rg BT 442.84 536.10 Td (As a result, there is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (possibility that we may choose to limit the type of business we are willing to write to avoid the increased financial requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (and the higher likelihood of default that are associated with loans with higher L) Tj ET Q q 0 0 0 rg BT 366.55 512.10 Td (TVs and lower FICO scores. ) Tj ET Q q 0 0 0 rg BT 483.57 512.10 Td (This could reduce ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (the amount of NIW) Tj ET Q q 0 0 0 rg BT 127.35 500.10 Td ( we write, which could reduce our revenues.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 483.10 Td (The proposed PMIERs contain requirements related to the operations of our mortgage insurance business, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.10 Td (extensive and more stringent operational requirements in areas such as claim processing, loss mitigation, document retention, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.10 Td (underwriting, quality control, reporting and monitoring, among others.) Tj ET Q q 0 0 0 rg BT 334.27 459.10 Td (The requirements in the proposed PMIERs, if adopted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (their current form, could require changes to our business practices that may result in substantial additional costs in order to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (achieve and maintain compliance with the PMIERs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (Our insurance subsidiaries are subject to comprehensive state insurance regulations and other requirements, including ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (capital adequacy measures, which if we fail to satisfy) Tj ET Q q 0 0 0 rg BT 267.17 402.10 Td (, could limit our ability to write new insurance and increase restrictions ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (and requirements placed on our insurance subsidiaries.) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 373.10 Td (W) Tj ET Q q 0 0 0 rg BT 81.14 373.10 Td (e and our insurance subsidiaries are subject to comprehensive, detailed regulation by the insurance departments in each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.10 Td (of the states where they are licensed to transact business. ) Tj ET Q q 0 0 0 rg BT 278.96 361.10 Td (These regulations are principally designed for the protection of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.10 Td (insurance policyholders rather than for the benefit of investors. Insurance laws vary from state to state, but generally grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.10 Td (broad supervisory powers to examine insurance companies and enforce rules or exercise discretion af) Tj ET Q q 0 0 0 rg BT 455.00 337.10 Td (fecting almost every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (significant aspect of the insurance business, including the power to revoke or restrict an insurance company) Tj ET Q q 0 0 0 rg BT 482.70 325.10 Td (s ability to write ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (new business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 296.10 Td (The state insurance regulators impose various capital requirements on our insurance subsidiaries. ) Tj ET Q q 0 0 0 rg BT 463.03 296.10 Td (These include risk-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (capital ratios, other risk-based capital measures and surplus requirements that potentially may limit the amount of insurance that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (our insurance subsidiaries may write. State insurance regulators also possess significant discretion with respect to our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (subsidiaries. Our failure to maintain adequate levels of capital, among other things, could lead to intervention by the various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (insurance regulatory authorities, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 341.16 248.10 Td (fect our business, business prospects and financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 219.10 Td (Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.10 Td (a minimum ratio of statutory capital relative to the level of net RIF) Tj ET Q q 0 0 0 rg BT 315.85 207.10 Td (, or risk-to-capital. ) Tj ET Q q 0 0 0 rg BT 401.46 207.10 Td (The sixteen RBC States currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (impose a Statutory RBC Requirement. ) Tj ET Q q 0 0 0 rg BT 205.97 195.10 Td (The most common Statutory RBC Requirement is that a mortgage insurer) Tj ET Q q 0 0 0 rg BT 501.29 195.10 Td () Tj ET Q q 0 0 0 rg BT 504.07 195.10 Td (s Risk-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (capital may not exceed 25 to 1. In certain of the RBC States, there is a Statutory RBC Requirement that the mortgage insurer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (must satisfy a MPP) Tj ET Q q 0 0 0 rg BT 126.64 171.10 Td ( Requirement. ) Tj ET Q q 0 0 0 rg BT 185.61 171.10 Td (The statutory capital requirements for the non-RBC States are de minimis \(ranging from $1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (million to $5 million\); however) Tj ET Q q 0 0 0 rg BT 175.20 159.10 Td (, the insurance laws of these states generally grant broad supervisory powers to state agencies or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 147.10 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 147.10 Td (ficials to enforce rules or exercise discretion af) Tj ET Q q 0 0 0 rg BT 244.88 147.10 Td (fecting almost every significant aspect of the insurance business, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.10 Td (power to revoke or restrict an insurance company) Tj ET Q q 0 0 0 rg BT 250.26 135.10 Td (s ability to write new business. Unless an RBC State grants a waiver or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (form of relief, if a mortgage insurer is not in compliance with the Statutory RBC Requirement of such state, that mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (insurer may be prohibited from writing new mortgage insurance business in that state. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 466.89 111.10 Td (s domiciliary state, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (Pennsylvania, is not one of the RBC States. ) Tj ET Q q 0 0 0 rg BT 225.60 99.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.05 99.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.63 99.10 Td (, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 404.44 99.10 Td (s Risk-to-capital, after giving ef) Tj ET Q q 0 0 0 rg BT 531.72 99.10 Td (fect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.44 87.10 Td ($100 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.83 87.10 Td ( capital contribution from Radian Group in February 2015, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.61 87.10 Td (17.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.11 87.10 Td ( to 1 and Radian Guaranty was in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 75.10 Td (compliance with all applicable Statutory RBC Requirements.) Tj ET Q endstream endobj 99 0 obj <> endobj 100 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 731.10 Td (Absent an increase in capital, including through statutory income, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 408.07 731.10 Td (s Risk-to-capital generally increases if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (we increase our net RIF or if we incur operating losses. ) Tj ET Q q 0 0 0 rg BT 273.14 719.10 Td (W) Tj ET Q q 0 0 0 rg BT 282.18 719.10 Td (ith respect to incurred losses, the ultimate amount and timing of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (future incurred losses will depend, in part, on general economic conditions and other factors, including the health of credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (markets, home prices and unemployment rates, all of which are dif) Tj ET Q q 0 0 0 rg BT 316.45 695.10 Td (ficult to predict and beyond our control. Our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (insurance incurred losses are driven primarily by new mortgage insurance defaults and changes in the assumptions used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (determine our loss reserves. Establishing loss reserves in our businesses requires significant judgment by management with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (respect to the likelihood, magnitude and timing of anticipated losses. If the actual losses we ultimately realize are in excess of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (the loss estimates we use in establishing loss reserves, we may be required to take unexpected char) Tj ET Q q 0 0 0 rg BT 444.48 647.10 Td (ges to income, which could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (adversely af) Tj ET Q q 0 0 0 rg BT 97.90 635.10 Td (fect Radian Guaranty) Tj ET Q q 0 0 0 rg BT 186.20 635.10 Td (s statutory capital position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 618.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 618.10 Td (e use reinsurance from af) Tj ET Q q 0 0 0 rg BT 181.02 618.10 Td (filiated companies to support Radian Guaranty) Tj ET Q q 0 0 0 rg BT 370.69 618.10 Td (s risk-to-capital ratio. Certain of these af) Tj ET Q q 0 0 0 rg BT 532.39 618.10 Td (filiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (reinsurance companies have required, and may in the future require, additional capital contributions from Radian Group. If we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (are limited in, or prohibited from, using these reinsurance arrangements to reduce Radian Guaranty) Tj ET Q q 0 0 0 rg BT 449.08 594.10 Td (s risk, including as a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (of any new eligibility requirements adopted by the GSEs, it would adversely af) Tj ET Q q 0 0 0 rg BT 365.63 582.10 Td (fect Radian Guaranty) Tj ET Q q 0 0 0 rg BT 453.93 582.10 Td (s risk-to-capital position.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 565.10 Td ( In addition to the proposed new GSE eligibility guidelines, the NAIC is in the process of reviewing the minimum capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (and surplus requirements for mortgage insurers and considering changes to the Model ) Tj ET Q q 0 0 0 rg BT 394.97 553.10 Td (Act. ) Tj ET Q q 0 0 0 rg BT 414.23 553.10 Td (While the outcome of this process is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (not known, it is possible that among other changes, the NAIC will recommend and adopt more stringent capital requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (that could increase the capital requirements for Radian Guaranty in states that adopt the new Model ) Tj ET Q q 0 0 0 rg BT 449.37 529.10 Td (Act.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 512.10 Td (If Radian Guaranty is not in compliance with a state) Tj ET Q q 0 0 0 rg BT 283.83 512.10 Td (s applicable Statutory RBC Requirement, it may be prohibited from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (writing new business in that state until it is back in compliance or it receives a waiver of, or similar relief from, the requirement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (In those states that do not have a Statutory RBC Requirement, it is not clear what actions the applicable state regulators would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (take if a mortgage insurer fails to meet the Statutory RBC Requirement established by another state. ) Tj ET Q q 0 0 0 rg BT 451.90 476.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 501.23 476.10 Td (, if Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (Guaranty were to fail to meet the Statutory RBC Requirement in one or more states, it could be required to suspend writing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (business in some or all of the states in which it does business. In addition, the GSEs and our mortgage lending customers may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (decide not to conduct new business with Radian Guaranty \(or may reduce current business levels\) or impose restrictions on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (Radian Guaranty while its capital position remained at such levels. ) Tj ET Q q 0 0 0 rg BT 318.97 428.10 Td (The franchise value of our mortgage insurance business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (would likely be significantly diminished if we were prohibited from writing new business or restricted in the amount of new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (business we could write in one or more states.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 387.10 Td (Our existing capital resources may not be suf) Tj ET Q q 0 0 0 rg BT 252.10 387.10 Td (ficient to successfully manage Radian Guaranty) Tj ET Q q 0 0 0 rg BT 446.20 387.10 Td (s regulatory capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (requirements. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 128.08 375.10 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 170.21 375.10 Td (oup) Tj ET Q q 0 0 0 rg BT 187.25 375.10 Td (s sour) Tj ET Q q 0 0 0 rg BT 211.05 375.10 Td (ces of liquidity may be insufficient to fund its obligations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.48 375.10 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (Failure to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 209.40 354.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 233.20 354.10 Td (Assurance pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 376.49 354.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 400.29 354.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 512.43 354.10 Td (Agreement ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (could negatively impact our business and our financial condition, and could adversely impact Radian Guaranty) Tj ET Q q 0 0 0 rg BT 511.29 342.10 Td (s ability to ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (comply with the PMIERs Financial Requirements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 313.10 Td (On December 22, 2014, Radian Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 337.31 313.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 361.48 313.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 468.95 313.10 Td (Agreement to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.83 301.10 Td ( of the issued and outstanding shares of Radian ) Tj ET Q q 0 0 0 rg BT 263.07 301.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 287.24 301.10 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 341.12 301.10 Td (Assured, for a purchase price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 301.10 Td ($810 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 289.10 Td (, subject to certain adjustments. ) Tj ET Q q 0 0 0 rg BT 206.42 289.10 Td (After closing costs and other adjustments, we expect net cash proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td ($790 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.89 277.10 Td ( from the sale. ) Tj ET Q q 0 0 0 rg BT 160.41 277.10 Td (The completion of the sale is subject to customary closing conditions, including regulatory approval ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (from the state insurance departments of Maryland, New ) Tj ET Q q 0 0 0 rg BT 274.89 265.10 Td (Y) Tj ET Q q 0 0 0 rg BT 281.11 265.10 Td (ork and California. ) Tj ET Q q 0 0 0 rg BT 359.24 265.10 Td (The Radian ) Tj ET Q q 0 0 0 rg BT 407.56 265.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 431.73 265.10 Td (Assurance Stock Purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (Agreement also may be terminated by either party) Tj ET Q q 0 0 0 rg BT 249.61 253.10 Td (, subject to certain conditions, if the sale has not been completed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (September 22, 2015. ) Tj ET Q q 0 0 0 rg BT 134.21 241.10 Td (Although we currently expect to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 379.13 241.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 403.30 241.10 Td (Assurance during the first half of 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (we can provide no assurance that the closing conditions will be satisfied, including the receipt of required regulatory approvals, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (or whether the transaction otherwise will be completed. ) Tj ET Q endstream endobj 101 0 obj <> endobj 102 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The sale of Radian ) Tj ET Q q 0 0 0 rg BT 150.70 731.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 174.87 731.10 Td (Assurance is a critical component of our strategy to accelerate Radian Guaranty) Tj ET Q q 0 0 0 rg BT 496.68 731.10 Td (s ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (comply with the proposed PMIERs Financial Requirements. ) Tj ET Q q 0 0 0 rg BT 292.81 719.10 Td (Although we expect that the conditions to closing will be satisfied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (and that the sale of Radian ) Tj ET Q q 0 0 0 rg BT 157.80 707.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 181.97 707.10 Td (Assurance will be completed pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 392.47 707.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 416.64 707.10 Td (Assurance Stock Purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Agreement, there can be no assurance that this will occur) Tj ET Q q 0 0 0 rg BT 277.75 695.10 Td (. If we are unable to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 473.23 695.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 497.40 695.10 Td (Assurance in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (time to satisfy the PMIERs Financial Requirements once they become ef) Tj ET Q q 0 0 0 rg BT 340.36 683.10 Td (fective, there can be no assurance that we will be able ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (to implement an alternative transaction to successfully monetize Radian ) Tj ET Q q 0 0 0 rg BT 339.13 671.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 363.30 671.10 Td (Assurance or to otherwise utilize the capital in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 659.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 659.10 Td (Assurance such that we are provided credit for such capital under the PMIERs Financial Requirements. If we are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (able to implement an alternative transaction, there can be no assurance that we would receive the same or greater value for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 635.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 635.10 Td (Assurance than is provided for under the Radian ) Tj ET Q q 0 0 0 rg BT 299.45 635.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 323.62 635.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 431.09 635.10 Td (Agreement. If we are unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (complete the transaction under the terms of the Radian ) Tj ET Q q 0 0 0 rg BT 270.26 623.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 294.43 623.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 401.91 623.10 Td (Agreement or an alternative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (transaction, in order to comply with the PMIERs Financial Requirements, we may be required to seek additional capital or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (capital relief by increasing the amount of reinsurance we are planning to utilize or by incurring additional debt, by issuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (additional equity) Tj ET Q q 0 0 0 rg BT 116.34 587.10 Td (, or by selling assets, which we may not be able to do on favorable terms, if at all.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 570.10 Td ( In the past, the assets and liabilities associated with the financial guaranty business have been a source of significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (volatility to our results of operations due to various factors, including fluctuations in fair value and credit risk. ) Tj ET Q q 0 0 0 rg BT 491.62 558.10 Td (As a result of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 546.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 546.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 211.42 546.10 Td (Agreement, we have reclassified the operating results related to the pending disposition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (of Radian ) Tj ET Q q 0 0 0 rg BT 90.60 534.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 114.77 534.10 Td (Assurance as discontinued operations. In addition, due to the pending disposition, we are no longer reporting a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (financial guaranty business segment and we do not expect the financial results of Radian ) Tj ET Q q 0 0 0 rg BT 406.06 522.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 430.23 522.10 Td (Assurance to have an impact on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (Radian) Tj ET Q q 0 0 0 rg BT 80.60 510.10 Td (s consolidated net income after December 31, 2014. In the event that the sale is not completed and Radian ) Tj ET Q q 0 0 0 rg BT 506.86 510.10 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (Assurance is no longer classified as held for sale, we would not realize a loss on the sale of Radian ) Tj ET Q q 0 0 0 rg BT 446.33 498.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 470.50 498.10 Td (Assurance and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (financial results of Radian ) Tj ET Q q 0 0 0 rg BT 156.69 486.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 180.86 486.10 Td (Assurance would have an impact on Radian Group) Tj ET Q q 0 0 0 rg BT 387.20 486.10 Td (s consolidated net income. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (failure to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 201.39 474.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 225.56 474.10 Td (Assurance pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 361.92 474.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 386.09 474.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 493.56 474.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (would likely make it more dif) Tj ET Q q 0 0 0 rg BT 168.46 462.10 Td (ficult, and potentially more costly) Tj ET Q q 0 0 0 rg BT 303.05 462.10 Td (, for Radian Guaranty to comply with the PMIERs Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (Requirements and could negatively impact the franchise value of our mortgage insurance business.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 429.10 Td (The credit performance of our insured portfolio is impacted by macroeconomic conditions and specific events that af) Tj ET Q q 0 0 0 rg BT 529.29 429.10 Td (fect the ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 417.10 Td (ability of borrowers to satisfy mortgage obligations.) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 400.10 Td (As a seller of credit protection, our results are subject to macroeconomic conditions and specific events that impact the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (credit performance of our underlying insured assets. Many of these conditions are beyond our control, including national and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (regional economic conditions, housing prices, unemployment levels, interest rate changes, the availability of credit and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (factors. In general, favorable economic conditions increase the likelihood that borrowers will be able to satisfy their mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (obligations and also have a positive impact on the value of homes. Conversely) Tj ET Q q 0 0 0 rg BT 362.39 352.10 Td (, a deterioration in economic conditions generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (decreases the likelihood that borrowers will have suf) Tj ET Q q 0 0 0 rg BT 260.09 340.10 Td (ficient income to satisfy their mortgage obligations and can also adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 328.10 Td (fect housing values, which in turn can influence the willingness of borrowers to continue to make mortgage payments despite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (having the financial resources to do so.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 299.10 Td (Mortgage defaults also can occur due to a variety of specific events af) Tj ET Q q 0 0 0 rg BT 353.20 299.10 Td (fecting borrowers, including death or illness, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (divorce or other family problems, unemployment, increases in the interest rates of adjustable rate mortgages, changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.10 Td (regional economic conditions, and housing value changes that cause the outstanding mortgage amount to exceed the value of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (home or other events.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 246.10 Td (The financial crisis and the downturn in the U.S. housing and related credit markets that began in 2007 had a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (negative impact on the operating environment and results of operations for our mortgage insurance business. ) Tj ET Q q 0 0 0 rg BT 486.05 234.10 Td (Although there has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (been continued improvement in the U.S. economy and the operating environment for our mortgage insurance business, the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (economy and certain housing markets are still recovering and, in many areas, are still weak compared to historical standards. ) Tj ET Q q 0 0 0 rg BT 551.00 210.10 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (a result, it is dif) Tj ET Q q 0 0 0 rg BT 111.81 198.10 Td (ficult to predict with any degree of certainty the ultimate loss performance on our insured portfolio. ) Tj ET Q q 0 0 0 rg BT 511.78 198.10 Td (While we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.10 Td (expect the economy and housing market will continue to recover and strengthen in 2015 and that our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (incurred losses will continue to improve, these expectations are based on factors that are beyond our control, and therefore, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (can provide no assurance whether our projections will prove to be accurate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 145.10 Td (In addition to the factors cited above, our results of operations and financial condition could be negatively impacted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (natural disasters or other catastrophic events, acts of terrorism, war or other severe conflicts, event-specific economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.10 Td (depressions or other harmful events in the regions, including in foreign countries, where we do business or have insured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.10 Td (exposure.) Tj ET Q endstream endobj 103 0 obj <> endobj 104 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (51) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (The length of time that our policies remain in force could decline and result in a decrease in our actual versus projected ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (revenue.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 702.25 Td (In each year) Tj ET Q q 0 0 0 rg BT 120.45 702.25 Td (, most of our earned premiums are derived from insurance that was written in prior years. ) Tj ET Q q 0 0 0 rg BT 479.78 702.25 Td (As a result, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (length of time insurance remains in force, which is also generally referred to as persistency) Tj ET Q q 0 0 0 rg BT 412.88 690.25 Td (, is a significant determinant of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (revenues. ) Tj ET Q q 0 0 0 rg BT 89.86 678.25 Td (The factors af) Tj ET Q q 0 0 0 rg BT 145.20 678.25 Td (fecting the length of time that our insurance remains in force include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 661.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 661.25 Td (the mortgage interest rates being of) Tj ET Q q 0 0 0 rg BT 244.66 661.25 Td (fered in the market compared to the mortgage rates on our insurance in force, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 649.25 Td (which af) Tj ET Q q 0 0 0 rg BT 138.03 649.25 Td (fects the vulnerability of our insurance in force to refinancings \(i.e., lower current interest rates make it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 637.25 Td (more attractive for borrowers to refinance and receive a lower interest rate\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 620.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 620.25 Td (applicable policies for mortgage insurance cancellation, along with the current value of the homes underlying the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 608.25 Td (mortgages in our insurance in force; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 591.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 591.25 Td (the credit policies of lenders, which may make it more dif) Tj ET Q q 0 0 0 rg BT 334.63 591.25 Td (ficult for homeowners to refinance loans; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 574.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 574.25 Td (economic conditions that can af) Tj ET Q q 0 0 0 rg BT 230.50 574.25 Td (fect a borrower) Tj ET Q q 0 0 0 rg BT 291.94 574.25 Td () Tj ET Q q 0 0 0 rg BT 294.72 574.25 Td (s decision to pay-of) Tj ET Q q 0 0 0 rg BT 373.13 574.25 Td (f a mortgage earlier than required.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 557.25 Td (Current mortgage interest rates are at or near historic lows, and therefore, the risk of refinancing remains elevated in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.25 Td (today) Tj ET Q q 0 0 0 rg BT 74.50 545.25 Td (s mortgage market. Our revenues might be negatively impacted if the length of time that our policies remain in force ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.25 Td (declines as a result of any of the factors highlighted above. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (Our loss mitigation strategies are less ef) Tj ET Q q 0 0 0 rg BT 213.77 512.25 Td (fective during poor economic environments and in weaker housing markets.) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 495.25 Td (The amount of mortgage insurance loss we suf) Tj ET Q q 0 0 0 rg BT 260.21 495.25 Td (fer depends in part on the extent to which the home of a borrower who has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.25 Td (defaulted on a mortgage can be sold for an amount that will cover the unpaid principal and interest on the mortgage and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.25 Td (expenses of the sale. In the event of a claim under our Master Policies, we generally have the option of paying the entire loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.25 Td (amount and taking title to a mortgaged property or paying our coverage percentage. In the past, during strong housing markets, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (we were able to take title to properties underlying certain defaulted loans and sell the properties at prices that allowed us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.25 Td (recover some or all of our losses. However) Tj ET Q q 0 0 0 rg BT 220.71 435.25 Td (, in more recent years, our ability to mitigate our losses in this manner has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.25 Td (significantly reduced. Further) Tj ET Q q 0 0 0 rg BT 167.67 423.25 Td (, in certain cases and subject to certain conditions, we consent to a sale of the property by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (borrower for less than the amount needed to cover the borrower) Tj ET Q q 0 0 0 rg BT 304.78 411.25 Td () Tj ET Q q 0 0 0 rg BT 307.56 411.25 Td (s mortgage obligation \(a short sale\), which often has the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.25 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 399.25 Td (fect of reducing our ultimate claim payment obligation. Under our Master Policies, we retain the right to consent prior to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.25 Td (consummation of any short sales. However) Tj ET Q q 0 0 0 rg BT 221.84 387.25 Td (, we have entered into agreements with each of the GSEs \(with respect to loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.25 Td (owned by the GSEs\) and with certain loan servicers pursuant to which we have delegated to them our prior consent rights with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.25 Td (respect to short sales, subject to certain conditions, and as a result, we do not review the transactions ef) Tj ET Q q 0 0 0 rg BT 461.14 363.25 Td (fected pursuant to this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.25 Td (delegated authority prior to the short sale. If housing values decline on either a broad geographic basis or in the regions where ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.25 Td (our business is concentrated, the frequency of defaulted loans resulting in claims under our policies could increase and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (ability to mitigate our losses on defaulted mortgages through short sales or through the resale of properties we acquire may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.25 Td (reduced, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 242.00 315.25 Td (fect on our business, financial condition and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 294.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 294.25 Td (e expect a reduced level of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 235.02 294.25 Td (Activity with respect to the claims we receive and further Loss Mitigation ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 282.25 Td (Activities may negatively impact our relationships with customers.) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 265.25 Td (Following the financial crisis, the amount of insurance we rescinded due to fraud, misrepresentation, underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (negligence or other non-compliance with our insurance policies increased significantly) Tj ET Q q 0 0 0 rg BT 396.23 253.25 Td (. Likewise, the number of claims that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.25 Td (denied also increased, primarily due to the inability of our servicing customers to provide the loan origination file or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (servicing records that are necessary for our review in order to perfect a claim. ) Tj ET Q q 0 0 0 rg BT 362.23 229.25 Td (These rescissions and denials have materially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (mitigated our paid losses and resulted in a significant reduction in our loss reserves. More recently) Tj ET Q q 0 0 0 rg BT 442.63 217.25 Td (, our level of Loss Mitigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.25 Td (Activity has been decreasing, although it still remains elevated compared to historical levels. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 188.25 Td (In addition, as part of our claims review process, we assess whether defaulted loans were serviced appropriately in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (accordance with our insurance policies and servicing guidelines. ) Tj ET Q q 0 0 0 rg BT 309.50 176.25 Td (T) Tj ET Q q 0 0 0 rg BT 314.92 176.25 Td (o the extent a servicer has failed to satisfy its servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (obligations, our policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (coverage or deny the claim. Since 201) Tj ET Q q 0 0 0 rg BT 202.13 152.25 Td (1, claim curtailments have increased both in frequency and in size, which has contributed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (to a reduction in the severity of our claim payments during this period. ) Tj ET Q q 0 0 0 rg BT 334.25 140.25 Td (W) Tj ET Q q 0 0 0 rg BT 342.89 140.25 Td (e cannot give assurance regarding the extent or level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (at which such claim curtailments will continue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 111.25 Td (As our Legacy Portfolio has become a smaller percentage of our overall insured portfolio, there has been a decrease in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (amount of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 158.39 99.25 Td (Activity with respect to the claims we receive, and we expect this trend to continue. ) Tj ET Q q 0 0 0 rg BT 495.22 99.25 Td (As a result, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.25 Td (future Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 141.44 87.25 Td (Activity is not expected to mitigate our paid losses to the same extent as in prior years. ) Tj ET Q endstream endobj 105 0 obj <> endobj 106 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 157.11 731.10 Td (Activities have resulted in disputes with our customers, which has heightened the risk of litigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (and in some cases, damaged our relationships with certain customers. ) Tj ET Q q 0 0 0 rg BT 329.80 719.10 Td (While we have resolved many of our disputes, a risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (remains that our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 182.54 707.10 Td (Activities could have a negative impact on our relationships with customers or potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (customers, including the potential loss of business. Further) Tj ET Q q 0 0 0 rg BT 284.35 695.10 Td (, if ongoing disputes continue and are not resolved, it could result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (arbitration or judicial proceedings. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Because most of the mortgage loans that we insure are sold to Freddie Mac and Fannie Mae, changes in their charters or ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (business practices could significantly impact our mortgage insurance business) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 372.31 650.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 633.10 Td (The GSEs are the beneficiaries of the majority of our mortgage insurance policies. ) Tj ET Q q 0 0 0 rg BT 405.42 633.10 Td (The GSEs) Tj ET Q q 0 0 0 rg BT 448.84 633.10 Td ( federal charters generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (prohibit them from purchasing any mortgage with a loan amount that exceeds 80% of a home) Tj ET Q q 0 0 0 rg BT 426.34 621.10 Td (s value, unless that mortgage is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (insured by a qualified mortgage insurer) Tj ET Q q 0 0 0 rg BT 206.55 609.10 Td (, the mortgage seller retains at least a 10% participation in the loan or the seller agrees to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.10 Td (repurchase or replace the loan in the event of a default. ) Tj ET Q q 0 0 0 rg BT 271.06 597.10 Td (As a result, high-L) Tj ET Q q 0 0 0 rg BT 345.13 597.10 Td (TV) Tj ET Q q 0 0 0 rg BT 358.28 597.10 Td ( mortgages purchased by the GSEs generally are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (insured with private mortgage insurance. Changes in the charters or business practices of either of the GSEs, including as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.10 Td (result of developments in the regulatory environment in which they operate, could reduce the number of mortgages they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.10 Td (purchase that are insured by us and consequently diminish our franchise value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 544.10 Td (The GSEs) Tj ET Q q 0 0 0 rg BT 116.92 544.10 Td ( business practices may be impacted by their results of operations, as well as by legislative or regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (changes governing their operations. In July 2008, an overhaul of regulatory oversight of the GSEs was enacted, and in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (September 2008, the FHF) Tj ET Q q 0 0 0 rg BT 152.08 520.10 Td (A) Tj ET Q q 0 0 0 rg BT 158.75 520.10 Td ( was appointed as the conservator of the GSEs to control and direct the operations of the GSEs. ) Tj ET Q q 0 0 0 rg BT 542.09 520.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (FHF) Tj ET Q q 0 0 0 rg BT 67.10 508.10 Td (A) Tj ET Q q 0 0 0 rg BT 73.77 508.10 Td ( annually releases a strategic plan for the next phase of the conservatorship. ) Tj ET Q q 0 0 0 rg BT 377.92 508.10 Td (The strategic plan announced for 2015 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (includes development of a single platform infrastructure for the mortgage market, planned regulations for the treatment of long-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (delinquent non-performing loans, the PMIERs, review of LLP) Tj ET Q q 0 0 0 rg BT 297.70 484.10 Td (As and guarantee fees, ef) Tj ET Q q 0 0 0 rg BT 398.30 484.10 Td (forts to increase the size and diversity of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (risk share transactions to reduce the role of the GSEs, increasing private sector participation and maintaining liquidity in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (mortgage market and general mortgage credit availability) Tj ET Q q 0 0 0 rg BT 278.75 460.10 Td (. ) Tj ET Q q 0 0 0 rg BT 283.57 460.10 Td (The continued role of the conservator may increase the likelihood ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 448.10 Td (that the business practices of the GSEs will be changed, and potentially in ways that may have an adverse ef) Tj ET Q q 0 0 0 rg BT 481.97 448.10 Td (fect on us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 431.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 431.10 Td (ith respect to loans purchased by the GSEs, changes in the business practices of the GSEs which can be implemented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (by the GSEs acting independently or through their conservator) Tj ET Q q 0 0 0 rg BT 299.59 419.10 Td (, the FHF) Tj ET Q q 0 0 0 rg BT 336.91 419.10 Td (A, could negatively impact our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (business and financial performance, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 390.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 390.10 Td (implementation of new eligibility requirements for mortgage insurers, including more onerous capital standards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 378.10 Td (\(see ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 122.04 378.10 Td (Radian Guaranty may be unable to comply with applicable GSE eligibility r) Tj ET Q q 0 0 0 rg BT 426.34 378.10 Td (equir) Tj ET Q q 0 0 0 rg BT 447.08 378.10 Td (ements, including the final ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 366.10 Td (PMIERs, which if adopted in their curr) Tj ET Q q 0 0 0 rg BT 255.55 366.10 Td (ent pr) Tj ET Q q 0 0 0 rg BT 278.79 366.10 Td (oposed form, could negatively impact Radian Guaranty) Tj ET Q q 0 0 0 rg BT 503.29 366.10 Td (s expected ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 354.10 Td (r) Tj ET Q q 0 0 0 rg BT 102.52 354.10 Td (eturn on equity) Tj ET Q q 0 0 0 rg BT 162.51 354.10 Td (, decr) Tj ET Q q 0 0 0 rg BT 184.91 354.10 Td (ease Radian Guaranty) Tj ET Q q 0 0 0 rg BT 276.93 354.10 Td (s NIW) Tj ET Q q 0 0 0 rg BT 300.74 354.10 Td (, and subject Radian Guaranty to extensive and mor) Tj ET Q q 0 0 0 rg BT 508.94 354.10 Td (e stringent ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 342.10 Td (operational r) Tj ET Q q 0 0 0 rg BT 151.69 342.10 Td (equir) Tj ET Q q 0 0 0 rg BT 172.42 342.10 Td (ements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 202.69 342.10 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.58 342.10 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 325.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 325.10 Td (changing the underwriting standards on mortgages they purchase;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 308.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 308.10 Td (establishing policies or requirements that may result in a reduction in the number of mortgages they acquire;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 291.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 291.10 Td (altering the national conforming loan limit for mortgages acquired by them;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 274.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 274.10 Td (altering the terms on which mortgage insurance coverage may be canceled before reaching the cancellation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 262.10 Td (thresholds established by law;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 245.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 245.10 Td (changing the terms required to be included in mortgage insurance policies they acquire;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 228.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 228.10 Td (requiring private mortgage insurers to perform specified activities intended to avoid or mitigate loss on insured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 216.10 Td (mortgages that are in default;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 199.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 199.10 Td (changing the amount of LLP) Tj ET Q q 0 0 0 rg BT 213.06 199.10 Td (As or guarantee fees \(which may result in a higher cost to borrowers\) that the GSEs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 187.10 Td (char) Tj ET Q q 0 0 0 rg BT 116.03 187.10 Td (ge on loans that require mortgage insurance \(see ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 316.50 187.10 Td (Our mortgage insurance business faces intense ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 99.00 175.10 Td (competition) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 146.21 175.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.27 175.10 Td (\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 158.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 158.10 Td (intervening in mortgage insurers) Tj ET Q q 0 0 0 rg BT 231.83 158.10 Td ( rescission practices or settlements with servicers; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.00 141.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 141.10 Td (influencing a mortgage lender) Tj ET Q q 0 0 0 rg BT 219.60 141.10 Td () Tj ET Q q 0 0 0 rg BT 222.38 141.10 Td (s selection of the mortgage insurer providing coverage.) Tj ET Q endstream endobj 107 0 obj <> endobj 108 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Certain of the GSEs) Tj ET Q q 0 0 0 rg BT 156.35 731.10 Td ( programs require less insurance coverage than they historically have required, and they have the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (ability to further reduce coverage requirements, which could reduce the amount of mortgage insurance they purchase from us, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (and consequently could adversely af) Tj ET Q q 0 0 0 rg BT 194.82 707.10 Td (fect our results of operations. For a number of years, the GSEs have had programs under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (which lenders could choose, for certain loans, a mortgage insurance coverage percentage that was the minimum required by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (GSEs) Tj ET Q q 0 0 0 rg BT 74.87 683.10 Td ( charters, with the GSEs paying a lower price for these loans \(charter coverage\). In 2010, Fannie Mae broadly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (expanded the types of loans eligible for charter coverage. ) Tj ET Q q 0 0 0 rg BT 280.89 671.10 Td (T) Tj ET Q q 0 0 0 rg BT 286.30 671.10 Td (o the extent lenders selling loans to Fannie Mae choose charter ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (coverage for loans that we insure, our revenues would likely be reduced.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 642.10 Td (The future structure of the residential housing finance system remains uncertain, including the impact of any changes on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (our business. In February 201) Tj ET Q q 0 0 0 rg BT 168.28 630.10 Td (1, the Obama ) Tj ET Q q 0 0 0 rg BT 223.82 630.10 Td (Administration released a proposal to reform the U.S. housing finance market. In its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (proposal, the Obama ) Tj ET Q q 0 0 0 rg BT 134.48 618.10 Td (Administration sought to gradually reduce the federal government) Tj ET Q q 0 0 0 rg BT 401.90 618.10 Td (s role in housing finance, including the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (ultimate wind-down of the GSEs, and to increase the role of private capital. ) Tj ET Q q 0 0 0 rg BT 353.95 606.10 Td (The Obama ) Tj ET Q q 0 0 0 rg BT 402.82 606.10 Td (Administration) Tj ET Q q 0 0 0 rg BT 466.15 606.10 Td (s proposal has shaped ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (the debate in Congress as the Senate Banking Committee and the House Financial Services Committee have each introduced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (and considered legislation to reform the housing finance market. ) Tj ET Q q 0 0 0 rg BT 309.79 582.10 Td (The placement of the GSEs into the conservatorship of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (FHF) Tj ET Q q 0 0 0 rg BT 67.10 570.10 Td (A) Tj ET Q q 0 0 0 rg BT 73.77 570.10 Td ( increases the likelihood that Congress will address the role and purpose of the GSEs in the U.S. housing finance market, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 558.10 Td (, it remains unclear whether housing finance reform legislation will be adopted and, if so, what form it will ultimately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (take.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 529.10 Td (Although we believe that traditional private mortgage insurance will continue to play an important role in any future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (housing finance structure, new federal legislation could reduce the level of private mortgage insurance coverage used by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (GSEs as credit enhancement, or even eliminate the requirement, which would reduce our available market and could adversely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 493.10 Td (fect our mortgage insurance business. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (A) Tj ET Q q 0 0 0 rg BT 55.62 472.10 Td ( decrease in the volume of home mortgage originations could result in fewer opportunities for us to write new insurance ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 460.10 Td (business and reduce our NIW) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 171.56 460.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 443.10 Td (The amount of new business we write depends, among other things, on a steady flow of low down payment mortgages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (that require our mortgage insurance. Factors that af) Tj ET Q q 0 0 0 rg BT 254.24 431.10 Td (fect the volume of low down payment mortgage originations include: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 414.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 414.10 Td (restrictions on mortgage credit due to more stringent lender underwriting standards, more restrictive regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 402.10 Td (requirements such as the required ability-to-pay determination prior to extending credit and liquidity issues af) Tj ET Q q 0 0 0 rg BT 533.08 402.10 Td (fecting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 390.10 Td (lenders;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 373.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 373.10 Td (the level of home mortgage interest rates; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 356.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 356.10 Td (the health of the domestic economy as well as conditions in regional and local economies; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 339.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 339.10 Td (housing af) Tj ET Q q 0 0 0 rg BT 136.26 339.10 Td (fordability; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 322.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 322.10 Td (population trends, including the rate of household formation; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 305.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 305.10 Td (the rate of home price appreciation, which can af) Tj ET Q q 0 0 0 rg BT 290.06 305.10 Td (fect whether refinance loans have loan-to-value ratios that require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 293.10 Td (private mortgage insurance; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 276.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 276.10 Td (government housing policy encouraging loans to first-time homebuyers; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 259.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 259.10 Td (the extent to which the guaranty fees, LLP) Tj ET Q q 0 0 0 rg BT 263.53 259.10 Td (As, credit underwriting guidelines and other business terms provided by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 247.10 Td (the GSEs af) Tj ET Q q 0 0 0 rg BT 142.09 247.10 Td (fect lenders) Tj ET Q q 0 0 0 rg BT 191.04 247.10 Td ( willingness to extend credit for low down payment mortgages.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 230.10 Td (In addition, losses from the financial crisis and housing downturn caused lenders to substantially reduce the availability of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (these low down payment loans and to significantly tighten their underwriting standards. Fewer loan products and more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (restrictive loan qualifications, while improving the overall quality of new mortgage originations, have in turn reduced the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (number of qualified homebuyers and made it more dif) Tj ET Q q 0 0 0 rg BT 265.92 194.10 Td (ficult for buyers \(in particular first-time buyers\) to obtain mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (financing or to refinance their existing mortgages. In addition, the significant disruption in the housing and related credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (markets that began in 2007 led to reduced investor demand for mortgage loans and MBS in the secondary market, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (historically has been a source of funding for many mortgage lenders. ) Tj ET Q q 0 0 0 rg BT 327.01 158.10 Td (This significantly reduced liquidity in the mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (funding marketplace has forced many lenders to retain a lar) Tj ET Q q 0 0 0 rg BT 287.27 146.10 Td (ger portion of their mortgage loans and MBS and has left them with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (less capacity to continue to originate new mortgages.) Tj ET Q endstream endobj 109 0 obj <> endobj 110 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 731.10 Td (otal domestic mortgage originations have decreased significantly from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.98 731.10 Td ($2.7 trillion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.20 731.10 Td ( in 2006 \(pre-dating the housing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (downturn\) to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.20 719.10 Td ($1.2 trillion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.42 719.10 Td (. If the volume of new mortgage originations continues to remain at low levels for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (prolonged period, we will likely experience a reduced opportunity to write new insurance business and will be subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (increased competition with respect to that opportunity) Tj ET Q q 0 0 0 rg BT 264.91 695.10 Td (, which could reduce the size of our mortgage insurance business and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (have a significant negative ef) Tj ET Q q 0 0 0 rg BT 166.49 683.10 Td (fect on our returns on new business, our ability to execute our business plans and our overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (franchise value. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 136.68 671.10 Td (Our mortgage insurance business faces intense competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.54 671.10 Td (. Further) Tj ET Q q 0 0 0 rg BT 414.01 671.10 Td (, the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 484.56 671.10 Td (Act) Tj ET Q q 0 0 0 rg BT 501.78 671.10 Td (s reforms to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (strengthen lending standards, improve underwriting standards and increase accountability in the loan origination and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (securitization processes could further reduce the total number of mortgage originations in the future, in particular with respect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (to the high-L) Tj ET Q q 0 0 0 rg BT 100.79 635.10 Td (TV) Tj ET Q q 0 0 0 rg BT 113.94 635.10 Td ( market. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 614.10 Td (Our NIW) Tj ET Q q 0 0 0 rg BT 88.50 614.10 Td ( and franchise value could decline if we lose business from significant customers) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 421.29 614.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 597.10 Td (Our mortgage insurance business depends on our relationships with our customers, and in particular) Tj ET Q q 0 0 0 rg BT 473.01 597.10 Td (, our relationships ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (with our lar) Tj ET Q q 0 0 0 rg BT 95.97 585.10 Td (gest lending customers. Our customers place insurance with us directly on loans that they originate and they also do ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.10 Td (business with us indirectly through purchases of loans that already have our mortgage insurance coverage. Our relationships ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.10 Td (with our customers may influence both the amount of business they do with us directly and also their willingness to continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (approve us as a mortgage insurance provider for loans that they purchase. ) Tj ET Q q 0 0 0 rg BT 346.16 549.10 Td (The loss of business from significant customers could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.10 Td (have an adverse ef) Tj ET Q q 0 0 0 rg BT 123.44 537.10 Td (fect on the amount of new business we are able to write, and consequently) Tj ET Q q 0 0 0 rg BT 419.92 537.10 Td (, our franchise value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 520.10 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.33 520.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.33 520.10 Td (, our top 10 mortgage insurance customers \(measured by NIW\) were generally responsible for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.37 520.10 Td (22.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.20 520.10 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (primary NIW) Tj ET Q q 0 0 0 rg BT 103.46 508.10 Td ( in that year) Tj ET Q q 0 0 0 rg BT 150.39 508.10 Td (. For the past several years we have been focused on expanding and diversifying our customer base. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (While we have been successful in this initiative, maintaining our business relationships and business volumes with our lar) Tj ET Q q 0 0 0 rg BT 537.00 496.10 Td (gest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (lending customers remains critical to the success of our business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 467.10 Td (In response to the financial crisis and the related deterioration in housing markets, we tightened our underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (guidelines, and as a result, we declined to insure some of the loans originated by our lar) Tj ET Q q 0 0 0 rg BT 399.78 455.10 Td (ger customers. ) Tj ET Q q 0 0 0 rg BT 460.41 455.10 Td (W) Tj ET Q q 0 0 0 rg BT 469.05 455.10 Td (e also increased our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 115.06 443.10 Td (Activities to enforce our rights under our mortgage insurance policies with respect to loans originated during a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (period of historically poor underwriting and a subsequent period of servicing problems that increased our risk of loss. Our more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (restrictive underwriting guidelines and increased level of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 345.26 419.10 Td (Activity have negatively af) Tj ET Q q 0 0 0 rg BT 453.65 419.10 Td (fected our relationships ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (with certain of our customers and in some cases have resulted in customers choosing to limit the amount of business they ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (conduct with us or ceasing to do business with us entirely) Tj ET Q q 0 0 0 rg BT 279.37 395.10 Td (. ) Tj ET Q q 0 0 0 rg BT 284.19 395.10 Td (While we have taken steps to resolve our past disputes with many of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (our customers, a risk remains that customers will choose to reduce the amount of business they do with us due to our past Loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (Mitigation ) Tj ET Q q 0 0 0 rg BT 93.67 371.10 Td (Activities or actions we may take in the future. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 304.99 371.10 Td (W) Tj ET Q q 0 0 0 rg BT 312.40 371.10 Td (e expect a r) Tj ET Q q 0 0 0 rg BT 358.39 371.10 Td (educed level of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 486.24 371.10 Td (Activity with ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 359.10 Td (espect to the claims we r) Tj ET Q q 0 0 0 rg BT 151.24 359.10 Td (eceive and further Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 291.87 359.10 Td (Activities may negatively impact our r) Tj ET Q q 0 0 0 rg BT 443.96 359.10 Td (elationships with customers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.57 359.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 342.10 Td (Although we have taken steps to significantly expand and diversify our customer base in recent years, we cannot be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (certain that any loss of business from significant customers, or any single lender) Tj ET Q q 0 0 0 rg BT 369.86 330.10 Td (, would be replaced by other customers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (existing or new) Tj ET Q q 0 0 0 rg BT 110.51 318.10 Td (. ) Tj ET Q q 0 0 0 rg BT 114.95 318.10 Td (As a result of current market conditions and increased regulatory requirements, our lending customers may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (decide to write business only with a limited number of mortgage insurers or only with certain mortgage insurers, based on their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (views with respect to an insurer) Tj ET Q q 0 0 0 rg BT 176.78 294.10 Td () Tj ET Q q 0 0 0 rg BT 179.56 294.10 Td (s pricing, service levels, underwriting guidelines, loss mitigation practices, financial strength or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (other factors. ) Tj ET Q q 0 0 0 rg BT 104.20 282.10 Td (Alternatively) Tj ET Q q 0 0 0 rg BT 156.31 282.10 Td (, in light of the increased number of participants in the private mortgage insurance industry) Tj ET Q q 0 0 0 rg BT 519.72 282.10 Td (, certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (of our customers have chosen for risk management purposes to diversify and expand the number of mortgage insurers with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (which they do business, which has negatively af) Tj ET Q q 0 0 0 rg BT 242.05 258.10 Td (fected our level of NIW) Tj ET Q q 0 0 0 rg BT 337.38 258.10 Td ( and market share with such customers. Given the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (amount of business we currently do with many of our customers, it is possible that further diversification could continue, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (could have a negative impact on our NIW) Tj ET Q q 0 0 0 rg BT 216.76 234.10 Td ( if we are unable to mitigate the market share loss through new customers or increases ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (in business with other customers.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 201.10 Td (Our mortgage insurance business faces intense competition) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 295.08 201.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 184.10 Td (The U.S. mortgage insurance industry is highly competitive. Our competitors include other private mortgage insurers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.10 Td (federal and state governmental and quasi-governmental agencies, principally the FHA.) Tj ET Q endstream endobj 111 0 obj <> endobj 112 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (55) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 731.10 Td (e compete with other private mortgage insurers on the basis of price, terms and conditions, customer relationships, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (reputation, perceived ability to comply with applicable capital and other financial strength requirements \(including projected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (compliance with the PMIERs\) and overall service. ) Tj ET Q q 0 0 0 rg BT 253.70 707.10 Td (The improvement in the credit quality of new loans being insured in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (current market, combined with the deterioration of the financial positions of many existing private mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (companies during the financial crisis \(which led insurance regulators to take action with respect to certain companies\) has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (brought new entrants to our industry and could encourage additional new competitors. Radian Guaranty currently competes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (with six other private mortgage insurers eligible to write business for the GSEs. Certain of our private mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (competitors have stronger financial strength ratings than Radian Guaranty and are subsidiaries of lar) Tj ET Q q 0 0 0 rg BT 450.58 647.10 Td (ger corporations that may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (have greater access to capital and financial resources than we do. In addition, three of our competitors who are new entrants to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (the industry are not burdened by legacy credit risks. If we are unable to compete with other providers, including new entrants ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (that are not burdened by legacy credit risks or by Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 313.33 611.10 Td (Activities on legacy insurance portfolios, it could have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (material adverse ef) Tj ET Q q 0 0 0 rg BT 125.38 599.10 Td (fect on our business position, financial condition and operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 582.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 582.10 Td (e also compete with governmental and quasi-governmental entities that typically do not have the same capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (requirements or business objectives that we and other private mortgage insurance companies have, and therefore, may have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (greater financial flexibility in their pricing guidelines and capacity that could put us at a competitive disadvantage. In the event ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (that a government-owned entity in one of our markets decides to reduce prices significantly or alter the terms and conditions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (its mortgage insurance or other credit enhancement products in furtherance of political, social or other goals rather than a profit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (motive, we may be unable to compete in that market ef) Tj ET Q q 0 0 0 rg BT 269.52 522.10 Td (fectively) Tj ET Q q 0 0 0 rg BT 303.85 522.10 Td (, which could have an adverse ef) Tj ET Q q 0 0 0 rg BT 434.45 522.10 Td (fect on our business, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (condition and operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 493.10 Td (Beginning in 2008, the FHA, which historically had not been a significant competitor) Tj ET Q q 0 0 0 rg BT 415.26 493.10 Td (, substantially increased its share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (the mortgage insurance market, including by insuring a number of loans that would meet our current underwriting guidelines, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (sometimes at a lower monthly cost to the borrower than a loan that carries our mortgage insurance. Since 2010, the private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (mortgage insurance industry has been recapturing market share from the FHA, primarily due to increases in the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (strength of private mortgage insurers, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 309.89 445.10 Td (, the development of new products and marketing ef) Tj ET Q q 0 0 0 rg BT 518.25 445.10 Td (forts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (directed at competing with the FHA, increases in the FHA) Tj ET Q q 0 0 0 rg BT 281.67 433.10 Td () Tj ET Q q 0 0 0 rg BT 284.45 433.10 Td (s pricing, the Department of Justice) Tj ET Q q 0 0 0 rg BT 429.41 433.10 Td (s pursuit of legal remedies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (against lenders doing business with the FHA, as well as various policy changes at the FHA, such as reversing a past FHA) Tj ET Q q 0 0 0 rg BT 534.70 421.10 Td ( policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (that cancelled premiums for mortgage insurance coverage on certain loans once the loans had been paid down below a certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (percentage. More recently) Tj ET Q q 0 0 0 rg BT 153.51 397.10 Td (, in January 2015, the FHA) Tj ET Q q 0 0 0 rg BT 261.56 397.10 Td ( announced a 50 basis point reduction to its annual mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (premium which may adversely impact our competitiveness on certain high L) Tj ET Q q 0 0 0 rg BT 355.72 385.10 Td (TV) Tj ET Q q 0 0 0 rg BT 368.87 385.10 Td ( loans to borrowers with FICO scores below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.10 Td (720. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 356.10 Td (Although the FHA) Tj ET Q q 0 0 0 rg BT 147.39 356.10 Td () Tj ET Q q 0 0 0 rg BT 150.17 356.10 Td (s market share has been gradually declining, the FHA) Tj ET Q q 0 0 0 rg BT 364.28 356.10 Td ( may continue to maintain a strong market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (position and could increase its market position again in the future. Factors that could cause the FHA) Tj ET Q q 0 0 0 rg BT 449.13 344.10 Td ( to maintain or increase its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (share of the mortgage insurance market include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 315.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 315.10 Td (governmental policy) Tj ET Q q 0 0 0 rg BT 185.33 315.10 Td (, including further decreases in the pricing of FHA) Tj ET Q q 0 0 0 rg BT 387.22 315.10 Td ( insurance or changes in the terms of such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 303.10 Td (insurance;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 286.10 Td (past and potential future capital constraints of the private mortgage insurance industry;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 269.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 269.10 Td (the tightening by private mortgage insurers of underwriting guidelines based on past loan performance or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 257.10 Td (risk concerns;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 240.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 240.10 Td (the increased levels of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 260.69 240.10 Td (Activity by private mortgage insurers on older vintage portfolios compared ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 228.10 Td (to the FHA) Tj ET Q q 0 0 0 rg BT 147.39 228.10 Td () Tj ET Q q 0 0 0 rg BT 150.17 228.10 Td (s historical practice of engaging in limited Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 387.07 228.10 Td (Activities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 211.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 211.10 Td (a decrease in the Department of Justice) Tj ET Q q 0 0 0 rg BT 262.88 211.10 Td (s pursuit of remedies against lenders doing business with the FHA;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 194.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 194.10 Td (increases in the LLP) Tj ET Q q 0 0 0 rg BT 184.50 194.10 Td (As char) Tj ET Q q 0 0 0 rg BT 215.14 194.10 Td (ged by the GSEs on loans that require mortgage insurance and changes in the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 182.10 Td (of guarantee fees for the loans that the GSEs acquire \(which may result in higher cost to borrowers\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 165.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 165.10 Td (the perceived operational ease of using FHA) Tj ET Q q 0 0 0 rg BT 281.22 165.10 Td ( insurance compared to the products of private mortgage insurers; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 148.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 148.10 Td (the implementation of new regulations under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 351.22 148.10 Td (Act and the Basel III guidelines that may be more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 136.10 Td (favorable to the FHA) Tj ET Q q 0 0 0 rg BT 188.20 136.10 Td ( compared to private mortgage insurers \(see Item 1. BusinessRegulationOther Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 124.10 Td (Regulation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 157.38 124.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 227.19 124.10 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.52 124.10 Td (. and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 266.89 124.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 272.46 124.10 Td (The implementation of the Basel III guidelines may discourage the use ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 112.10 Td (of mortgage insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 194.05 112.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.61 112.10 Td (\).) Tj ET Q endstream endobj 113 0 obj <> endobj 114 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (One or more private mortgage insurers may seek to regain market share from the FHA) Tj ET Q q 0 0 0 rg BT 418.94 731.10 Td ( or other mortgage insurers by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (reducing pricing, loosening their underwriting guidelines, or relaxing their loss mitigation practices, which could, in turn, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (improve their competitive position in the industry and negatively impact our level of NIW) Tj ET Q q 0 0 0 rg BT 409.32 707.10 Td (. ) Tj ET Q q 0 0 0 rg BT 413.77 707.10 Td (A) Tj ET Q q 0 0 0 rg BT 420.44 707.10 Td ( decline in industry NIW) Tj ET Q q 0 0 0 rg BT 519.68 707.10 Td ( might ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (result in increased competition as certain private mortgage insurance companies may seek to maintain their NIW) Tj ET Q q 0 0 0 rg BT 500.54 695.10 Td ( levels within a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (smaller market overall. In addition, as market conditions change, alternatives to traditional private mortgage insurance may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (develop which could reduce the demand for private mortgage insurance.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (Our business depends, in part, on ef) Tj ET Q q 0 0 0 rg BT 197.68 650.10 Td (fective and reliable loan servicing.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 633.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 633.10 Td (e depend on reliable, consistent third-party servicing of the loans that we insure. Dependable servicing generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (ensures timely billing and ef) Tj ET Q q 0 0 0 rg BT 163.18 621.10 Td (fective loss mitigation opportunities for delinquent or near) Tj ET Q q 0 0 0 rg BT 396.54 621.10 Td (-delinquent loans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 604.10 Td (Challenging economic and market conditions following the financial crisis negatively af) Tj ET Q q 0 0 0 rg BT 426.55 604.10 Td (fected the ability of many of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (servicers to ef) Tj ET Q q 0 0 0 rg BT 105.40 592.10 Td (fectively maintain their servicing operations. In addition, the financial crisis and economic downturn led to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.10 Td (significant increase in the number of delinquent mortgage loans. ) Tj ET Q q 0 0 0 rg BT 309.24 580.10 Td (These increases strained the resources of servicers, reducing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 Td (their ability to undertake loss mitigation ef) Tj ET Q q 0 0 0 rg BT 219.84 568.10 Td (forts in a timely manner) Tj ET Q q 0 0 0 rg BT 315.52 568.10 Td (, including the processing of potential loan modifications, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (which could help limit our losses. Further) Tj ET Q q 0 0 0 rg BT 216.02 556.10 Td (, due to the strain on the resources of servicers, delinquent loan servicing is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (increasingly being transferred to specialty servicers. ) Tj ET Q q 0 0 0 rg BT 260.07 544.10 Td (The transfer of servicing can cause a disruption in the servicing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (delinquent loans. ) Tj ET Q q 0 0 0 rg BT 119.77 532.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 169.67 532.10 Td (, specialty servicers may not have suf) Tj ET Q q 0 0 0 rg BT 319.16 532.10 Td (ficient resources to ef) Tj ET Q q 0 0 0 rg BT 405.33 532.10 Td (fectively handle the substantially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (higher volume of delinquent loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 503.10 Td (Recent state and federal inquiries and investigations into whether servicers have acted improperly in foreclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (proceedings, including the cost of and conditions imposed in settlements of such inquiries or investigations, have further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (strained the resources of servicers. In January 2014, the CFPB) Tj ET Q q 0 0 0 rg BT 301.38 479.10 Td (s rules establishing national servicing standards for servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (residential mortgage loans became ef) Tj ET Q q 0 0 0 rg BT 198.14 467.10 Td (fective. ) Tj ET Q q 0 0 0 rg BT 230.16 467.10 Td (These rules impose new and more burdensome requirements, procedures and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (standards and complying with the new rules may impact the servicing of mortgage loans covered by our insurance policies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 438.10 Td (If a disruption occurs in the servicing of mortgage loans covered by our insurance policies, this, in turn, could contribute ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.10 Td (to a rise in delinquencies and/or claims among those loans, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 443.35 426.10 Td (fect on our business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (financial condition and operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (Loan modification, refinancing and other similar programs may not continue to provide us with a material benefit) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 519.82 393.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 376.10 Td (The Federal Deposit Insurance Corporation \(FDIC\), the GSEs and various lenders have adopted programs to modify ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (loans to make them more af) Tj ET Q q 0 0 0 rg BT 160.67 364.10 Td (fordable to borrowers with the goal of reducing the number of foreclosures. In 2008, the U.S. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 352.10 Td (reasury announced the Homeowner ) Tj ET Q q 0 0 0 rg BT 199.09 352.10 Td (Af) Tj ET Q q 0 0 0 rg BT 209.47 352.10 Td (fordability and Stability Plan to restructure or refinance mortgages to avoid foreclosures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (through: \(1\)refinancing mortgage loans through HARP; \(2\)modifying First- and Second-lien mortgage loans through HAMP) Tj ET Q q 0 0 0 rg BT 553.22 340.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.10 Td (and the Second Lien Modification Program; and \(3\)of) Tj ET Q q 0 0 0 rg BT 267.60 328.10 Td (fering other alternatives to foreclosure through HAF) Tj ET Q q 0 0 0 rg BT 476.23 328.10 Td (A. For additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.10 Td (information about these loan modification programs and other initiatives, see Item 1. BusinessRegulationDirect Federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.10 Td (Regulation. ) Tj ET Q q 0 0 0 rg BT 102.64 304.10 Td (These programs have benefited the composition and credit quality of our Legacy Portfolio. ) Tj ET Q q 0 0 0 rg BT 468.09 304.10 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.10 Td (2014, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 292.10 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.09 292.10 Td ( of our total primary mortgage insurance RIF had successfully completed a HARP) Tj ET Q q 0 0 0 rg BT 481.53 292.10 Td ( refinance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.10 Td (While modifications continue to be made under these programs, we expect the number of loans remaining in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.10 Td (mortgage insurance portfolio that will successfully complete a HARP) Tj ET Q q 0 0 0 rg BT 327.40 263.10 Td ( refinance or other loan modification to decline. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.10 Td (addition, it is unclear how many successful loan modifications will result from these programs, in particular in light of the high ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (level of re-default rates for loans that have been modified through these programs. ) Tj ET Q q 0 0 0 rg BT 380.87 239.10 Td (T) Tj ET Q q 0 0 0 rg BT 386.28 239.10 Td (o the extent modifications cure previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (defaulted loans, our loss reserves do not account for potential re-defaults unless at the time the reserve is established, the re-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (default has already occurred. ) Tj ET Q q 0 0 0 rg BT 167.31 215.10 Td (The expiration, termination or temporary cessation of any of these programs could result in an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (increased number of claims in our mortgage insurance business and could adversely af) Tj ET Q q 0 0 0 rg BT 395.87 203.10 Td (fect our business and results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 174.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 174.10 Td (e cannot ascertain the total benefits we may derive from these loan modification programs, particularly given the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (uncertainty around the re-default rates for loans that have been modified through these programs. Re-defaults can result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (losses that could be greater than we would have paid had the loan not been modified. If a mortgage balance is reduced as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (result of a loan modification program, we may still be responsible under our Master Policies to pay the original balance if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (borrower re-defaults on that mortgage after its balance has been reduced.) Tj ET Q endstream endobj 115 0 obj <> endobj 116 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (57) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (The extended period of time that a loan remains in our delinquent loan inventory may increase the severity of claims we ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (ultimately are required to pay) Tj ET Q q 0 0 0 rg BT 170.78 719.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 702.25 Td (Foreclosure backlogs may delay our receipt of claims, resulting in an increase in the period that a loan remains in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (delinquent loan inventory) Tj ET Q q 0 0 0 rg BT 151.60 690.25 Td (, and may increase the severity of claims that we are ultimately required to pay) Tj ET Q q 0 0 0 rg BT 466.11 690.25 Td (. Over the past several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (years, the average time it takes to receive a claim associated with a defaulted loan has increased. ) Tj ET Q q 0 0 0 rg BT 437.20 678.25 Td (This is, in part, due to new loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (mitigation protocols established by servicers and to a significant backlog of foreclosure proceedings in many states, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (especially in those states that impose a judicial process for foreclosures. Generally) Tj ET Q q 0 0 0 rg BT 378.19 654.25 Td (, foreclosure delays do not stop the accrual of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (interest or af) Tj ET Q q 0 0 0 rg BT 99.85 642.25 Td (fect other expenses on a loan, and unless a loan is cured during such delay) Tj ET Q q 0 0 0 rg BT 396.05 642.25 Td (, once title to the property ultimately is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (obtained and a claim is filed, our paid claim amount may include additional interest and expenses, increasing the severity of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (claims we ultimately are required to pay) Tj ET Q q 0 0 0 rg BT 209.90 618.25 Td (. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 597.25 Td (Our success depends on our ability to assess and manage our underwriting risks; the premiums we charge may not be ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 585.25 Td (adequate to compensate us for our liability for losses and the amount of capital we are required to hold against our insured ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 573.25 Td (risks.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 556.25 Td ( ) Tj ET Q q 0 0 0 rg BT 75.82 556.25 Td (The estimates and expectations we use to establish premium rates are based on assumptions made at the time our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.25 Td (insurance is written. See Item 1. BusinessMortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 320.82 544.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 330.45 544.25 Td (emium Rates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.82 544.25 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 388.76 544.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.26 544.25 Td (Our mortgage insurance premiums are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.25 Td (based on, among other items, the amount of capital we are required to hold against such risks and our long-term expected risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.25 Td (of claims on insured loans and take into account, among other factors, each loan) Tj ET Q q 0 0 0 rg BT 373.01 520.25 Td (s L) Tj ET Q q 0 0 0 rg BT 384.59 520.25 Td (TV) Tj ET Q q 0 0 0 rg BT 396.63 520.25 Td (, type \(e.g., prime vs. non-prime or fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.25 Td (vs. variable payments\), premium structure \(e.g., single lump sum, monthly or other variations\), term, coverage percentage and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.25 Td (whether there is a deductible in front of our loss position. ) Tj ET Q q 0 0 0 rg BT 280.94 496.25 Td (These assumptions may ultimately prove to be inaccurate. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.25 Td (particular) Tj ET Q q 0 0 0 rg BT 87.41 484.25 Td (, the predictive value of historical data may be less reliable during periods of greater economic stress and, accordingly) Tj ET Q q 0 0 0 rg BT 558.81 484.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.25 Td (our ability to correctly estimate our premium requirements may be impaired during periods of economic uncertainty such as we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.25 Td (have recently experienced.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 443.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 443.25 Td (e generally cannot cancel or elect not to renew the mortgage insurance we provide, and because we generally fix ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.25 Td (premium rates for the life of a policy when issued, we cannot adjust renewal premiums or otherwise adjust premiums during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.25 Td (life of a policy) Tj ET Q q 0 0 0 rg BT 107.44 419.25 Td (. ) Tj ET Q q 0 0 0 rg BT 112.26 419.25 Td (Therefore, if the risk underlying many of the mortgage loans we have insured develops more adversely than we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.25 Td (anticipated, including as a result of the ongoing weakness in many parts of the economy and in certain housing markets, and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.25 Td (premiums our customers are currently paying for similar coverage on new business from us and others has increased, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.25 Td (generally cannot increase the premium rates on this in-force business, or cancel coverage or elect not to renew coverage, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.25 Td (mitigate the ef) Tj ET Q q 0 0 0 rg BT 107.07 371.25 Td (fects of such adverse developments. Similarly) Tj ET Q q 0 0 0 rg BT 290.26 371.25 Td (, if the amount of capital we are required to hold against our insured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.25 Td (risks increases from the amount we were required to hold at the time a policy was written, as we expect generally will be the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.25 Td (case when the PMIERs Financial Requirements become ef) Tj ET Q q 0 0 0 rg BT 283.97 347.25 Td (fective, we cannot adjust the premiums to compensate for this, and, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.25 Td (as a result, the returns on our business may be lower than we assumed or expected. Our premiums earned and the associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (investment income on those premiums may ultimately prove to be inadequate to compensate for the losses that we may incur ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (and may not provide an adequate return on increased capital that may be required. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 397.14 311.25 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 402.70 311.25 Td (The cr) Tj ET Q q 0 0 0 rg BT 428.16 311.25 Td (edit performance of our insur) Tj ET Q q 0 0 0 rg BT 546.11 311.25 Td (ed ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 299.25 Td (portfolio is impacted by macr) Tj ET Q q 0 0 0 rg BT 167.45 299.25 Td (oeconomic conditions and specific events that affect the ability of borr) Tj ET Q q 0 0 0 rg BT 448.68 299.25 Td (owers to satisfy mortgage ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 287.25 Td (obligations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 97.00 287.25 Td () Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (Our delegated underwriting program may subject our mortgage insurance business to unanticipated claims) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 491.22 266.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 249.25 Td (In our mortgage insurance business, we enter into agreements with our mortgage lender customers that commit us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.25 Td (insure loans made by them using pre-established underwriting guidelines. Once we accept a lender into our delegated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.25 Td (underwriting program, we generally insure a loan originated by that lender even if the lender has not followed our specified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.25 Td (underwriting guidelines. Under this program, a lender could commit us to insure a material number of loans with unacceptable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.25 Td (risk profiles before we discover the problem and terminate that lender) Tj ET Q q 0 0 0 rg BT 329.21 201.25 Td () Tj ET Q q 0 0 0 rg BT 331.99 201.25 Td (s delegated underwriting authority or pursue other rights ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.25 Td (that may be available to us, such as our rights to rescind coverage or deny claims.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 168.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 168.25 Td (e face risks associated with our contract underwriting business) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 316.02 168.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 151.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 151.25 Td (e provide contract underwriting services for certain of our mortgage lender customers, including on loans for which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.25 Td (are not providing mortgage insurance. Our contract underwriting program of) Tj ET Q q 0 0 0 rg BT 355.89 139.25 Td (fers a limited indemnification in the event of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.25 Td (material underwriting error) Tj ET Q q 0 0 0 rg BT 157.79 127.25 Td (. ) Tj ET Q q 0 0 0 rg BT 162.61 127.25 Td (W) Tj ET Q q 0 0 0 rg BT 171.25 127.25 Td (e of) Tj ET Q q 0 0 0 rg BT 186.34 127.25 Td (fer limited indemnification rights for underwriting errors with respect to those loans that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.25 Td (simultaneously underwrite for both secondary market compliance and for potential mortgage insurance eligibility and may) Tj ET Q q 0 0 0 rg BT 539.26 115.25 Td (, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.25 Td (certain circumstances, of) Tj ET Q q 0 0 0 rg BT 148.99 103.25 Td (fer limited indemnification when we underwrite a loan only for secondary market compliance. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.25 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 53.94 91.25 Td (Legislation and r) Tj ET Q q 0 0 0 rg BT 122.46 91.25 Td (egulatory changes and interpr) Tj ET Q q 0 0 0 rg BT 243.46 91.25 Td (etations could impact our businesses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.68 91.25 Td (.) Tj ET Q endstream endobj 117 0 obj <> endobj 118 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (58) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Our current credit ratings and the insurance financial strength ratings assigned to our mortgage insurance subsidiaries ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (could weaken our competitive position) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 207.27 719.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 702.25 Td (Recently) Tj ET Q q 0 0 0 rg BT 108.39 702.25 Td (, the credit ratings of Radian Group and the insurance financial strength ratings assigned to our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (insurance subsidiaries have been subject to upgrades, reflecting the improvement in our overall financial condition and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (operating environment for our business. Notwithstanding these upgrades, however) Tj ET Q q 0 0 0 rg BT 379.03 678.25 Td (, our ratings remain below investment grade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (and may be downgraded in the future. ) Tj ET Q q 0 0 0 rg BT 203.71 666.25 Td (The current financial strength ratings for Radian Guaranty are Ba2 by Moody) Tj ET Q q 0 0 0 rg BT 516.67 666.25 Td (s and BB- ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (by S&P) Tj ET Q q 0 0 0 rg BT 79.79 654.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 637.25 Td (Historically) Tj ET Q q 0 0 0 rg BT 120.06 637.25 Td (, our ratings were critical to our ability to market our products and to maintain our competitive position and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.25 Td (customer confidence in our products. In addition, in order to maintain the highest level of eligibility with the GSEs, mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.25 Td (insurers historically had to maintain an insurance financial strength rating of ) Tj ET Q q 0 0 0 rg BT 356.91 613.25 Td (AA- or ) Tj ET Q q 0 0 0 rg BT 387.46 613.25 Td (Aa3 from at least two of the three rating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.25 Td (agencies by which they are customarily rated. ) Tj ET Q q 0 0 0 rg BT 234.43 601.25 Td (Although Radian Guaranty) Tj ET Q q 0 0 0 rg BT 345.52 601.25 Td (s ratings are substantially below those required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.25 Td (ratings, the GSEs have allowed Radian Guaranty to operate under business and financial remediation plans and retain its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.25 Td (eligibility status. In July 2014, the FHF) Tj ET Q q 0 0 0 rg BT 205.98 577.25 Td (A) Tj ET Q q 0 0 0 rg BT 212.65 577.25 Td ( issued the proposed PMIERs, which do not include a specific ratings requirement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 560.25 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 144.31 560.25 Td (s financial strength ratings currently are below the ratings assigned to certain other private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (insurers, some of which have been assigned investment grade ratings. Despite this, we have been successful in competing in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.25 Td (private mortgage insurance market, and we do not believe our current ratings have had a material adverse af) Tj ET Q q 0 0 0 rg BT 481.36 536.25 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.25 Td (relationships with customers. ) Tj ET Q q 0 0 0 rg BT 168.75 524.25 Td (T) Tj ET Q q 0 0 0 rg BT 174.16 524.25 Td (o the extent this changes, however) Tj ET Q q 0 0 0 rg BT 311.49 524.25 Td (, and financial strength ratings become a more prominent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.25 Td (consideration for lenders, we may be competitively disadvantaged by customers choosing to do business with private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.25 Td (insurers that have higher financial strength ratings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 483.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 483.25 Td (e believe that financial strength ratings remain a significant consideration for participants seeking to secure credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.25 Td (enhancement in the non-GSE mortgage market, which includes most non-QM loans. ) Tj ET Q q 0 0 0 rg BT 390.08 471.25 Td (While this market has remained limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.25 Td (since the financial crisis, we view this market as an area of potential future growth and our ability to participate in this market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.25 Td (could depend on our ability to secure investment grade ratings for our mortgage insurance subsidiaries. In addition, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.25 Td (legislative or regulatory changes were to alter the current state of the housing finance industry such that the GSEs no longer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.25 Td (operated in their current capacity) Tj ET Q q 0 0 0 rg BT 181.00 423.25 Td (, we may be forced to compete in a new marketplace in which financial strength ratings may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (play a greater role. If we are unable to compete ef) Tj ET Q q 0 0 0 rg BT 248.38 411.25 Td (fectively in the current or any future markets as a result of the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.25 Td (strength ratings assigned to our mortgage insurance subsidiaries, the franchise value and future prospects for our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.25 Td (insurance business could be negatively af) Tj ET Q q 0 0 0 rg BT 215.10 387.25 Td (fected.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 366.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 366.25 Td (e expect to incur future losses beyond what we have recorded in our financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 349.25 Td (In accordance with industry practice, we do not establish reserves in our mortgage insurance business until we are notified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.25 Td (that a borrower has failed to make at least two monthly payments when due. Because our mortgage insurance reserving does ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.25 Td (not account for the impact of future losses that we expect to incur with respect to performing \(non-defaulted\) loans, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.25 Td (obligation for ultimate losses that we expect to incur at any period end is not reflected in our financial statements, except to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.25 Td (extent that a premium deficiency exists. ) Tj ET Q q 0 0 0 rg BT 210.84 301.25 Td (As a result, future losses beyond what we have recorded in our financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (may have a material impact on future results as defaults occur) Tj ET Q q 0 0 0 rg BT 296.63 289.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 268.25 Td (If the estimates we use in establishing loss reserves are incorrect, we may be required to take unexpected charges to income, ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 256.25 Td (which could adversely af) Tj ET Q q 0 0 0 rg BT 151.25 256.25 Td (fect our capital position) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 248.75 256.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 239.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 239.25 Td (e establish loss reserves in our mortgage insurance business to provide for the estimated cost of future claims. Because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (our reserves represent only our best estimate of claims to be paid in the future, these reserves may be insuf) Tj ET Q q 0 0 0 rg BT 475.29 227.25 Td (ficient to satisfy the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (full amount of claims that we ultimately have to pay) Tj ET Q q 0 0 0 rg BT 257.96 215.25 Td (. Setting our loss reserves requires significant judgment by management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.25 Td (with respect to the likelihood, magnitude and timing of each potential loss, including an estimate of the impact of our Loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.25 Td (Mitigation ) Tj ET Q q 0 0 0 rg BT 93.67 191.25 Td (Activities with respect to defaulted loans. ) Tj ET Q q 0 0 0 rg BT 262.05 191.25 Td (The models, assumptions and estimates we use to establish loss reserves ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.25 Td (may not prove to be accurate, especially during an extended economic downturn or a period of extreme market volatility and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.25 Td (uncertainty) Tj ET Q q 0 0 0 rg BT 93.83 167.25 Td (, such as we have recently experienced.) Tj ET Q endstream endobj 119 0 obj <> endobj 120 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Many of the programs and initiatives that have been implemented to prevent or forestall mortgage foreclosures, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (the significant backlog of foreclosure proceedings in many states that impose a judicial process on such proceedings, have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (resulted in fewer defaulted loans moving to claim, and consequently) Tj ET Q q 0 0 0 rg BT 322.10 707.10 Td (, an increase in the aging of our inventory of defaulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (loans. ) Tj ET Q q 0 0 0 rg BT 75.06 695.10 Td (As a result, the number of our defaulted loans that have been in default for an extended period of time currently represent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (a much lar) Tj ET Q q 0 0 0 rg BT 91.52 683.10 Td (ger portion of our default inventory than has historically been the case. ) Tj ET Q q 0 0 0 rg BT 377.08 683.10 Td (While these loans are generally assigned a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (higher loss reserve based on our belief that they are more likely to result in a claim, we also assume, based on historical trends, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (that a significant portion of these loans will cure or otherwise not result in a claim. Given the significant period of time that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (these loans have been in default, it is possible that the ultimate cure rate for these defaulted loans will be significantly less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (historical rates, and therefore, less than our current estimates of cures for this inventory of defaults. Further) Tj ET Q q 0 0 0 rg BT 477.57 635.10 Td (, the foreclosure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (moratoriums and other delays have resulted in further aging of our defaulted loan portfolio, which has created additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (uncertainty regarding the likelihood, magnitude and timing of anticipated losses. If our estimates are inadequate, we may be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (required to increase our reserves, which could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 340.29 599.10 Td (fect on our financial condition, capital position and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 570.10 Td (In addition to establishing mortgage insurance loss reserves for defaulted loans, under GAAP) Tj ET Q q 0 0 0 rg BT 445.91 570.10 Td (, we are required to establish ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (a premium deficiency reserve, or PDR, for our mortgage insurance products if the amount by which the net present value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (expected future losses for a particular product and the expenses for such product exceeds the net present value of expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (future premiums and existing reserves for such product. ) Tj ET Q q 0 0 0 rg BT 275.09 534.10 Td (W) Tj ET Q q 0 0 0 rg BT 283.73 534.10 Td (e evaluate whether a premium deficiency exists at the end of each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (fiscal quarter) Tj ET Q q 0 0 0 rg BT 101.42 522.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.87 522.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.89 522.10 Td (, a PDR of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.88 522.10 Td ($2.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.77 522.10 Td ( existed for our Second-lien insurance business. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (Our evaluation of premium deficiency is based on our best estimate of future losses, expenses and premiums. ) Tj ET Q q 0 0 0 rg BT 488.92 510.10 Td (This evaluation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (depends upon many significant assumptions, including assumptions regarding future macroeconomic conditions, and therefore, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (is inherently uncertain and may prove to be inaccurate. ) Tj ET Q q 0 0 0 rg BT 271.08 486.10 Td (Although no premium deficiency existed on our First-lien insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.89 474.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.19 474.10 Td (, there can be no assurance that a PDR will not be required for this product or our other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.10 Td (mortgage insurance products in future periods.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 441.10 Td (Our success depends, in part, on our ability to manage risks in our investment portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 424.10 Td (Our investment portfolio is our primary source of liquidity) Tj ET Q q 0 0 0 rg BT 307.25 424.10 Td (. ) Tj ET Q q 0 0 0 rg BT 312.07 424.10 Td (W) Tj ET Q q 0 0 0 rg BT 320.71 424.10 Td (e maintain an investment policy to manage our investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.10 Td (and those of our insurance subsidiaries. ) Tj ET Q q 0 0 0 rg BT 209.56 412.10 Td (W) Tj ET Q q 0 0 0 rg BT 218.20 412.10 Td (e may be forced to change our investments or investment policies depending upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.10 Td (regulatory) Tj ET Q q 0 0 0 rg BT 89.94 400.10 Td (, economic and market conditions and our existing or anticipated financial condition and operating requirements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (including the tax position, of our business segments. In addition, if we underestimate our policy liabilities or improperly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (structure our investments to meet those liabilities, we could have unexpected losses, including losses resulting from the forced ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.10 Td (liquidation of investments before their maturity) Tj ET Q q 0 0 0 rg BT 238.53 364.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 347.10 Td (Our investment objectives may not be achieved. ) Tj ET Q q 0 0 0 rg BT 267.89 347.10 Td (Although our portfolio consists mostly of highly-rated investments, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (success of our investment strategy is af) Tj ET Q q 0 0 0 rg BT 205.95 335.10 Td (fected by general economic conditions, which may adversely af) Tj ET Q q 0 0 0 rg BT 460.39 335.10 Td (fect the markets for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (credit and interest-rate-sensitive securities, including the extent and timing of investor participation in these markets, the level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (and volatility of interest rates and, consequently) Tj ET Q q 0 0 0 rg BT 240.74 311.10 Td (, the value of our fixed-income securities. ) Tj ET Q q 0 0 0 rg BT 409.67 311.10 Td (V) Tj ET Q q 0 0 0 rg BT 415.60 311.10 Td (olatility or lack of liquidity in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.10 Td (markets in which we hold positions has at times reduced the market value of some of our investments, and if this worsens ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.10 Td (substantially it could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 239.52 287.10 Td (fect on our liquidity) Tj ET Q q 0 0 0 rg BT 318.58 287.10 Td (, financial condition and operating results.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 270.10 Td (Compared to historical averages, interest rates and investment yields on our investments generally have declined in recent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (years, which has reduced the investment income we generate. In addition, we have kept a lar) Tj ET Q q 0 0 0 rg BT 419.73 258.10 Td (ger portion of our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (portfolio in shorter maturity investments in order to meet the expected liquidity needs of our operating subsidiaries. ) Tj ET Q q 0 0 0 rg BT 513.66 246.10 Td (This, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (turn, has further reduced our investment income, as interest rates on short-term investments have been minimal. ) Tj ET Q q 0 0 0 rg BT 498.91 234.10 Td (W) Tj ET Q q 0 0 0 rg BT 507.55 234.10 Td (e depend on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (our investments as a source of revenue and a prolonged period of lower than expected investment yields would have an adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (impact on our revenues and could potentially adversely af) Tj ET Q q 0 0 0 rg BT 280.91 210.10 Td (fect our results of operations.) Tj ET Q endstream endobj 121 0 obj <> endobj 122 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (60) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Radian Group) Tj ET Q q 0 0 0 rg BT 111.27 731.25 Td (s sources of liquidity may be insuf) Tj ET Q q 0 0 0 rg BT 251.10 731.25 Td (ficient to fund its obligations) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 369.45 731.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 714.25 Td (Radian Group serves as the holding company for our operating subsidiaries and does not have any significant operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (of its own. Radian Group) Tj ET Q q 0 0 0 rg BT 153.66 702.25 Td (s principal liquidity demands are expected to include funds for: \(i\)additional capital support for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (Radian Guaranty; \(ii\) the payment of corporate expenses; \(iii\)interest payments on our outstanding long-term debt; \(iv\)the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (repayment of our outstanding long-term debt, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.45 678.25 Td ($195.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.34 678.25 Td ( principal amount of outstanding debt due in June 2017, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td ($450 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.89 666.25 Td ( principal amount of convertible debt due in November 2017, and, at our option, any related conversion premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (that we elect to settle in cash, potentially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.72 654.25 Td ($400 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.12 654.25 Td ( of convertible debt due in March 2019 for which the principal amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (and any conversion premium may) Tj ET Q q 0 0 0 rg BT 184.92 642.25 Td (, at our option, be settled in cash, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.56 642.25 Td ($300 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.95 642.25 Td ( principal amount of outstanding debt due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (in June 2019; \(v\)potential payments to the U.S. ) Tj ET Q q 0 0 0 rg BT 243.46 630.25 Td (T) Tj ET Q q 0 0 0 rg BT 249.22 630.25 Td (reasury resulting from our dispute with the IRS relating to the examination of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (our 2000 through 2007 consolidated federal income tax returns by the IRS \( See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 376.64 618.25 Td (Resolution of our dispute with the IRS could ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 606.25 Td (adversely affect us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.42 606.25 Td (.\); \(vi\) potential investments to support our long-term strategy of growing our fee-based businesses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.25 Td (diversifying our sources of revenues; and \(vii\)the payment of dividends on our common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 577.25 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.08 577.25 Td (, Radian Group had immediately available, either directly or through an unregulated subsidiary) Tj ET Q q 0 0 0 rg BT 542.32 577.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.05 Td (unrestricted cash and liquid investments of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.61 564.05 Td ($670 million) Tj ET Q BT /F1 11.00 Tf ET q 0 0 0 rg BT 335.00 564.05 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.50 564.05 Td (after giving ef) Tj ET Q q 0 0 0 rg BT 396.96 564.05 Td (fect to the $100 million capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.05 Td (contribution from Radian Guaranty in February 2015. ) Tj ET Q q 0 0 0 rg BT 267.05 552.05 Td (The approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.35 552.05 Td ($670 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.75 552.05 Td ( of available cash and liquid investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.05 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.74 540.05 Td ( excludes certain additional cash and liquid investments that have been advanced from our subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.05 Td (for corporate expenses and interest payments. Substantially all of Radian Group) Tj ET Q q 0 0 0 rg BT 371.91 528.05 Td (s obligations to pay corporate expenses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.05 Td (interest payments on outstanding debt are reimbursed to Radian Group through the expense-sharing arrangements currently in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.05 Td (place with its subsidiaries. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 487.05 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 487.05 Td (e expect the PMIERs Financial Requirements to be ef) Tj ET Q q 0 0 0 rg BT 295.40 487.05 Td (fective by the end of 2015. ) Tj ET Q q 0 0 0 rg BT 404.91 487.05 Td (W) Tj ET Q q 0 0 0 rg BT 413.54 487.05 Td (e currently expect that Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.05 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 89.49 475.05 Td (s compliance with the PMIERs Financial Requirements as proposed will require Radian Group to contribute a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.05 Td (substantial portion of its cash and investments to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 314.08 463.05 Td (. ) Tj ET Q q 0 0 0 rg BT 318.90 463.05 Td (The amount that we ultimately decide to contribute to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.05 Td (Radian Guaranty will depend on, among other things, the amount of cash and investments that we plan to maintain at Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.05 Td (Group to carry out our business strategy) Tj ET Q q 0 0 0 rg BT 209.37 439.05 Td (, and whether we are successful in: \(1\) completing the pending sale of Radian ) Tj ET Q q 0 0 0 rg BT 521.78 439.05 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.05 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 103.38 427.05 Td (Assured pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 230.86 427.05 Td (Asset ) Tj ET Q q 0 0 0 rg BT 255.03 427.05 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 362.50 427.05 Td (Agreement; and \(2\) leveraging other options such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.05 Td (as commutations of existing risk or external reinsurance for a portion of our mortgage insurance RIF in a manner that provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.05 Td (capital relief and is compliant with the PMIERs.In the event we are unable to successfully execute these or similar transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.05 Td (or strategies, or such transactions are not available on terms that are attractive to us, we may seek additional capital by incurring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.05 Td (additional debt, by issuing additional equity) Tj ET Q q 0 0 0 rg BT 224.38 379.05 Td (, or by selling assets, which we may not be able to do on favorable terms, if at all.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 362.05 Td ( ) Tj ET Q q 0 0 0 rg BT 73.95 362.05 Td (Assuming that Radian Group contributes a substantial portion of its cash and investments to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 511.83 362.05 Td (, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.05 Td (financial flexibility may be significantly reduced, leaving us with limited funds to satisfy our financial obligations, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.05 Td (our long-term debt that is scheduled to mature in June and November of 2017. In this case, we would expect to seek to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.05 Td (refinance this long-term debt, which we may not be able to do on attractive terms, if at all.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 309.05 Td (Radian Group also could be required to provide capital support for Radian Guaranty and our other mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.05 Td (subsidiaries if additional capital is required pursuant to insurance laws and regulations. ) Tj ET Q q 0 0 0 rg BT 399.50 297.05 Td (The NAIC is in the process of reviewing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.05 Td (the minimum capital and surplus requirements for mortgage insurers and considering changes to the Model ) Tj ET Q q 0 0 0 rg BT 480.23 285.05 Td (Act. ) Tj ET Q q 0 0 0 rg BT 499.49 285.05 Td (These changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.05 Td (could include more stringent capital requirements for Radian Guaranty) Tj ET Q q 0 0 0 rg BT 332.09 273.05 Td (, which, if adopted, could increase the capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.05 Td (requirements for Radian Guaranty in states that adopt the new Model ) Tj ET Q q 0 0 0 rg BT 328.04 261.05 Td (Act. In addition, certain of our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.05 Td (subsidiaries that provide reinsurance to Radian Guaranty have required, and in the future may again require, additional capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.05 Td (contributions from Radian Group.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 220.05 Td (Cash flows from our investment portfolio, dividends from Clayton and Radian Guaranty and permitted payments to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.05 Td (Radian Group under tax- and expense-sharing arrangements with our subsidiaries are Radian Group) Tj ET Q q 0 0 0 rg BT 452.16 208.05 Td (s principal sources of cash. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.05 Td (Radian Group expects to receive a modest amount of dividend payments over the next 12 months from positive cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.05 Td (generated by Clayton and these potential dividend payments would be adversely impacted if unanticipated events and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.05 Td (circumstances were to result in lower earnings than expected. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 319.11 172.05 Td (W) Tj ET Q q 0 0 0 rg BT 326.53 172.05 Td (e face risks associated with our acquisition of Clayton and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 160.05 Td (we may fail to r) Tj ET Q q 0 0 0 rg BT 111.90 160.05 Td (ealize the anticipated benefits of the Clayton acquisition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.64 160.05 Td ( ) Tj ET Q q 0 0 0 rg BT 346.40 160.05 Td (W) Tj ET Q q 0 0 0 rg BT 355.04 160.05 Td (e do not anticipate that Radian Guaranty will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.05 Td (permitted under applicable insurance laws to issue dividends to Radian Group for the foreseeable future in light of Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.05 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 89.49 136.05 Td (s periods of operating losses. ) Tj ET Q q 0 0 0 rg BT 207.62 136.05 Td (The expense-sharing arrangements between Radian Group and our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.05 Td (subsidiaries, as amended, have been approved by applicable state insurance departments, but such approval may be revoked at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.05 Td (any time.) Tj ET Q endstream endobj 123 0 obj <> endobj 124 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (61) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (In light of Radian Group) Tj ET Q q 0 0 0 rg BT 173.65 731.10 Td (s long- and short-term needs, it is possible that our sources of liquidity could be insuf) Tj ET Q q 0 0 0 rg BT 514.53 731.10 Td (ficient to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (fund our obligations and could exceed currently available holding company funds. If this were to occur) Tj ET Q q 0 0 0 rg BT 461.75 719.10 Td (, we may need or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (otherwise may decide to increase our available liquidity by incurring additional debt, by issuing additional equity or by selling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (assets, any of which we may be unable to do on favorable terms, if at all.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Our reported earnings are subject to fluctuations based on changes in our trading securities and short-term investments that ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (require us to adjust their fair market value and changes in our stock price impacting the fair value of certain stock-based ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 650.10 Td (compensation awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 633.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 633.10 Td (e have significant assets that we carry at fair value, with changes in fair market value recorded on our statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (operations each period. ) Tj ET Q q 0 0 0 rg BT 144.84 621.10 Td (These assets include our trading securities and short-term investments. Because the changes in fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (value of these financial instruments are reflected on our statements of operations, they have the potential to af) Tj ET Q q 0 0 0 rg BT 488.05 609.10 Td (fect our reported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.10 Td (earnings and create earnings volatility) Tj ET Q q 0 0 0 rg BT 201.01 597.10 Td (. Economic conditions, as well as adverse capital market conditions, including but not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (limited to, interest rate changes, market volatility and declines in the value of underlying collateral will impact the value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.10 Td (investments, potentially resulting in unrealized losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 556.10 Td (Under our long-term incentive compensation program, we currently have outstanding stock-based performance awards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (that are settled in cash. ) Tj ET Q q 0 0 0 rg BT 143.17 544.10 Td (These awards mainly consist of performance-based RSU awards that were granted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.83 544.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.83 544.10 Td ( and which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (vest in June 2015.For more information regarding these awards, see Note 15 of Notes to Consolidated Financial Statements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (Because these awards are cash-settled, we are required to determine their fair value as of the end of each reporting period and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (record any changes in their fair value within other operating expenses. ) Tj ET Q q 0 0 0 rg BT 332.73 508.10 Td (As a result, any change in the fair value of these awards, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (which is highly correlated to changes in our stock price, can result in volatility in our results of operations during the periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (that these awards remain outstanding.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 463.10 Td (Our information technology systems may fail or we may experience an interruption in their operation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 446.10 Td (Our business is highly dependent on the ef) Tj ET Q q 0 0 0 rg BT 243.57 446.10 Td (fective operation of our information technology systems. Our information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (technology systems are vulnerable to damage or interruption from power outages, computer and telecommunications failures, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.10 Td (computer viruses, cyber) Tj ET Q q 0 0 0 rg BT 145.10 422.10 Td (-attacks, security breaches, catastrophic events and errors in usage. ) Tj ET Q q 0 0 0 rg BT 414.44 422.10 Td (Although we have disaster recovery ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.10 Td (and business continuity plans in place, we may not be able to adequately execute these plans in a timely fashion.) Tj ET Q q 0 0 0 rg BT 501.41 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 510.05 410.10 Td (e rely on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (information technology systems for many enterprise-critical functions and a prolonged failure or interruption of these systems ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (for any reason could cause significant disruption to our operations and have a material adverse ef) Tj ET Q q 0 0 0 rg BT 437.79 386.10 Td (fect on our business, financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (condition and operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 353.10 Td (e may lose business if we are unable to meet our customers) Tj ET Q q 0 0 0 rg BT 302.74 353.10 Td ( technological demands.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 336.10 Td (Our ability to meet the needs of our customers is dependent on our ability to keep pace with technological advances and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.10 Td (to invest in new technology as it becomes available or otherwise upgrade our technological capabilities. Participants in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.10 Td (mortgage insurance industry rely on e-commerce and other technologies to provide their products and services. Our customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.10 Td (generally require that we provide aspects of our products and services electronically and the percentage of our NIW) Tj ET Q q 0 0 0 rg BT 512.18 300.10 Td ( and claims ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.10 Td (processing that we deliver electronically has continued to increase. ) Tj ET Q q 0 0 0 rg BT 319.22 288.10 Td (W) Tj ET Q q 0 0 0 rg BT 327.85 288.10 Td (e expect this trend to continue and, accordingly) Tj ET Q q 0 0 0 rg BT 516.58 288.10 Td (, we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.10 Td (not satisfy our customers) Tj ET Q q 0 0 0 rg BT 152.35 276.10 Td ( requirements if we fail to invest suf) Tj ET Q q 0 0 0 rg BT 296.85 276.10 Td (ficient resources or otherwise are unable to maintain and upgrade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.10 Td (our technological capabilities. ) Tj ET Q q 0 0 0 rg BT 172.05 264.10 Td (This may result in a decrease in the business we receive, which could negatively impact our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.10 Td (business and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (Our information technology systems may become outdated and we may not be able to make timely modifications to support ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (our products and services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 202.10 Td (Our business is highly dependent on the ef) Tj ET Q q 0 0 0 rg BT 243.57 202.10 Td (fective operation of our information technology systems. Many of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (information technology systems have been in place for a number of years. ) Tj ET Q q 0 0 0 rg BT 347.83 190.10 Td (When we make changes to our existing products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (services, or as new products with new features emer) Tj ET Q q 0 0 0 rg BT 257.85 178.10 Td (ge, our systems require modification in order to support these products and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (process transactions appropriately) Tj ET Q q 0 0 0 rg BT 184.92 166.10 Td (. Making appropriate modifications to our systems involves inherent time lags and may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (require us to incur significant expenses. If we are unable to make necessary modifications to our systems in a timely and cost-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 142.10 Td (fective manner or successfully upgrade our systems to avoid obsolescence of our information technology platform, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (business, financial condition and operating results could be negatively af) Tj ET Q q 0 0 0 rg BT 340.35 130.10 Td (fected.) Tj ET Q endstream endobj 125 0 obj <> endobj 126 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 731.10 Td (e are in the process of implementing a major technology project to improve our operating systems, including a new ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (platform for our mortgage insurance underwriting, policy administration, claims management and billing processes. ) Tj ET Q q 0 0 0 rg BT 515.31 719.10 Td (The project ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (is intended to enhance our business and technological capabilities by increasing operational ef) Tj ET Q q 0 0 0 rg BT 425.86 707.10 Td (ficiencies and reducing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (complexity) Tj ET Q q 0 0 0 rg BT 93.84 695.10 Td (. ) Tj ET Q q 0 0 0 rg BT 98.66 695.10 Td (The implementation of these technological improvements is complex, expensive, time consuming and, in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (respects, depends on the ability of third parties to perform their obligations in a timely manner) Tj ET Q q 0 0 0 rg BT 426.07 683.10 Td (. If we fail to timely and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (successfully implement the new technology systems and business processes, or if the systems do not operate as expected, it ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (could have an adverse impact on our business, business prospects and results of operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 638.10 Td (The security of our information technology systems may be compromised and confidential information, including non-) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 626.10 Td (public personal information that we maintain, could be improperly disclosed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 609.10 Td (Our information technology systems may be vulnerable to physical or electronic intrusions, computer viruses or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.10 Td (attacks. ) Tj ET Q q 0 0 0 rg BT 81.71 597.10 Td (As part of our business, we, and certain of our subsidiaries and af) Tj ET Q q 0 0 0 rg BT 343.13 597.10 Td (filiates, maintain lar) Tj ET Q q 0 0 0 rg BT 423.20 597.10 Td (ge amounts of confidential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (information, including non-public personal information on consumers and our employees. Breaches in security could result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.10 Td (the loss or misuse of this information, which could, in turn, result in potential regulatory actions or litigation, including material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.10 Td (claims for damages, as well as interruption to our operations and damage to our reputation. ) Tj ET Q q 0 0 0 rg BT 415.60 561.10 Td (While we believe we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.10 Td (appropriate information security policies and systems in place in order to prevent unauthorized use or disclosure of confidential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.10 Td (information, including non-public personal information, there can be no assurance that such use or disclosure will not occur) Tj ET Q q 0 0 0 rg BT 544.09 537.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.10 Td (Any compromise of the security of our information technology systems, or unauthorized use or disclosure of confidential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.10 Td (information, could subject us to liability) Tj ET Q q 0 0 0 rg BT 209.38 513.10 Td (, damage our reputation and customer relationships and have a material adverse ef) Tj ET Q q 0 0 0 rg BT 537.68 513.10 Td (fect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.10 Td (on our business, financial condition and operating results.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 480.10 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 480.10 Td (e are subject to the risk of litigation and regulatory proceedings) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 318.76 480.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 463.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 463.10 Td (e operate in highly regulated industries that inherently pose a heightened risk of litigation and regulatory proceedings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 451.10 Td (e currently are a party to material litigation and are subject to certain regulatory proceedings. ) Tj ET Q q 0 0 0 rg BT 431.69 451.10 Td (The cost to defend these actions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.10 Td (and the ultimate resolution of these matters could have a material adverse impact on our business, financial condition and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.10 Td (results of operations. ) Tj ET Q q 0 0 0 rg BT 135.04 427.10 Td (Additional lawsuits, regulatory proceedings and other matters may also arise in the future.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 410.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 410.10 Td (e and other private mortgage insurers currently are defendants in a series of putative class action lawsuits under RESP) Tj ET Q q 0 0 0 rg BT 553.29 410.10 Td (A) Tj ET Q q 0 0 0 rg BT 559.96 410.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.10 Td (with respect to our captive reinsurance agreements. In addition, we and other mortgage insurers have been, and with respect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.10 Td (the Minnesota Department of Commerce we currently are, subject to inquiries and investigative demands from state and federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.10 Td (governmental agencies requesting information relating to our captive reinsurance arrangements. See Item 3. Legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.10 Td (Proceedings. ) Tj ET Q q 0 0 0 rg BT 107.63 362.10 Td (V) Tj ET Q q 0 0 0 rg BT 113.75 362.10 Td (arious regulators, including the CFPB, state insurance commissioners or state attorneys general may bring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.10 Td (additional actions or proceedings regarding our compliance with RESP) Tj ET Q q 0 0 0 rg BT 332.96 350.10 Td (A) Tj ET Q q 0 0 0 rg BT 339.63 350.10 Td ( or other laws applicable to our businesses. ) Tj ET Q q 0 0 0 rg BT 513.57 350.10 Td (W) Tj ET Q q 0 0 0 rg BT 522.21 350.10 Td (e cannot ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.10 Td (predict whether additional actions or proceedings will be brought against us or the outcome of any such actions or proceedings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 321.10 Td (During the period following the financial crisis, the amount of insurance we rescinded due to fraud, misrepresentation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.10 Td (underwriting negligence or other non-compliance with our insurance policies increased significantly and we denied a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.10 Td (significant number of claims for failing to satisfy the claim perfection requirements under our Prior Master Policy) Tj ET Q q 0 0 0 rg BT 504.28 297.10 Td (. In more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.10 Td (recent years, we have curtailed a significant number of claims as a result of servicers failing to satisfy the standards set forth in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (our Prior Master Policy and servicing guidelines, thereby increasing our risk of loss. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 256.10 Td (Our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 157.11 256.10 Td (Activities and claim payment practices have resulted in disputes with our customers, which has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.10 Td (heightened the risk of litigation and in some cases, damaged our relationships with certain customers. ) Tj ET Q q 0 0 0 rg BT 457.83 244.10 Td (While we have resolved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.10 Td (many of our remaining disputes, if we do not successfully resolve our continuing disputes, it could result in arbitration or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.10 Td (judicial proceedings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 203.10 Td (See also ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 113.49 203.10 Td (Legislation and r) Tj ET Q q 0 0 0 rg BT 182.01 203.10 Td (egulatory changes and interpr) Tj ET Q q 0 0 0 rg BT 303.01 203.10 Td (etations could impact our businesses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.22 203.10 Td ( and ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 478.54 203.10 Td (Resolution of our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (dispute with the IRS could adversely affect us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.90 191.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (Resolution of our dispute with the IRS could adversely af) Tj ET Q q 0 0 0 rg BT 284.62 170.10 Td (fect us.) Tj ET Q BT /F4 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 153.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 153.10 Td (e are currently contesting proposed adjustments resulting from the examination by the IRS of our 2000 through 2007 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (consolidated federal income tax returns. ) Tj ET Q q 0 0 0 rg BT 212.03 141.10 Td (The IRS opposes the recognition of certain tax losses and deductions that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.10 Td (generated through RGRI) Tj ET Q q 0 0 0 rg BT 151.14 129.10 Td (s investment in a portfolio of non-economic REMIC residual interests and has proposed adjustments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (denying the associated tax benefits of these items. ) Tj ET Q q 0 0 0 rg BT 251.76 117.10 Td (W) Tj ET Q q 0 0 0 rg BT 260.40 117.10 Td (e appealed these proposed adjustments to ) Tj ET Q q 0 0 0 rg BT 427.58 117.10 Td (Appeals and made qualified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (deposits with the U.S. ) Tj ET Q q 0 0 0 rg BT 144.31 105.10 Td (T) Tj ET Q q 0 0 0 rg BT 150.07 105.10 Td (reasury in the amount of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.58 105.10 Td ($85 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.97 105.10 Td ( in June 2008 relating to the 2000 through 2004 tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (years and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.30 93.10 Td ($4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.69 93.10 Td ( in May 2010 relating to the 2005 through 2007 tax years to avoid the accrual of above-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (market-rate interest with respect to the proposed adjustments.) Tj ET Q endstream endobj 127 0 obj <> endobj 128 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Although we made several attempts to reach a compromised settlement with ) Tj ET Q q 0 0 0 rg BT 380.91 731.10 Td (Appeals, on September 4, 2014, we received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (Notices of Deficiency covering the 2000 through 2007 tax years.) Tj ET Q q 0 0 0 rg BT 311.18 719.10 Td (The Notices of Deficiency exclude any potential benefit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (related to our NOL) Tj ET Q q 0 0 0 rg BT 125.49 707.10 Td ( carryback ability and assert unpaid taxes and penalties related to the REMIC matters of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.80 707.10 Td ($157 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 695.10 Td (. ) Tj ET Q q 0 0 0 rg BT 82.84 695.10 Td (As of December 31, 2014, there also would be interest of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.42 695.10 Td ($1) Tj ET Q q 0 0 0 rg BT 384.05 695.10 Td (15 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.44 695.10 Td ( related to these matters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (Depending on the outcome, additional state income taxes, penalties and interest \(in the aggregate estimated to be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td ($30 million\) also may become due when a final resolution is reached. ) Tj ET Q q 0 0 0 rg BT 330.07 671.10 Td (The Notices of Deficiency also reflected additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (amounts due of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.91 659.10 Td ($105 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.31 659.10 Td (, which are primarily associated with the disallowance of the previously filed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (carryback of our 2008 NOL) Tj ET Q q 0 0 0 rg BT 160.75 647.10 Td ( to the 2006 and 2007 tax years. ) Tj ET Q q 0 0 0 rg BT 290.82 647.10 Td (W) Tj ET Q q 0 0 0 rg BT 299.46 647.10 Td (e currently believe that the disallowance of our 2008 NOL) Tj ET Q q 0 0 0 rg BT 532.62 647.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL) Tj ET Q q 0 0 0 rg BT 485.13 635.10 Td ( carryback claim.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 618.10 Td (On December 3, 2014, we petitioned the U.S. ) Tj ET Q q 0 0 0 rg BT 258.28 618.10 Td (T) Tj ET Q q 0 0 0 rg BT 263.69 618.10 Td (ax Court to litigate the Deficiency ) Tj ET Q q 0 0 0 rg BT 401.98 618.10 Td (Amount. ) Tj ET Q q 0 0 0 rg BT 439.57 618.10 Td (The litigation could take ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (several years to resolve and may result in substantial legal expenses. ) Tj ET Q q 0 0 0 rg BT 325.34 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 333.98 606.10 Td (e can provide no assurance regarding the outcome of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (such litigation or whether a compromised settlement with the IRS will ultimately be reached. If the ultimate resolution of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (matter produces a result that dif) Tj ET Q q 0 0 0 rg BT 176.22 582.10 Td (fers materially from our current expectations, there could be a material impact on our ef) Tj ET Q q 0 0 0 rg BT 527.28 582.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (tax rate, results of operations and cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 553.10 Td (Radian Group has assumed the obligation to pay RGRI) Tj ET Q q 0 0 0 rg BT 296.80 553.10 Td (s portion of the liabilities associated with these tax matters by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (indemnifying RGRI for such liabilities, including any portion of the qualified deposits that is used to satisfy such liabilities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 70.88 529.10 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 113.01 529.10 Td (oup) Tj ET Q q 0 0 0 rg BT 130.05 529.10 Td (s sour) Tj ET Q q 0 0 0 rg BT 153.85 529.10 Td (ces of liquidity may be insufficient to fund its obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.77 529.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (Our ability to recognize tax benefits on future U.S. tax losses and our existing U.S. loss positions may be limited under ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (applicable tax laws.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 479.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 479.10 Td (e have generated substantial NOLs, loss carryforwards and other tax attributes for U.S. tax purposes that can be used to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (reduce our future federal income tax obligations. Our ability to fully utilize these tax assets \(including NOLs of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td ($1.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.61 455.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.11 455.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.36 455.10 Td (\) on a timely basis \(i.e. to of) Tj ET Q q 0 0 0 rg BT 310.65 455.10 Td (fset operating income as generated\) will be adversely af) Tj ET Q q 0 0 0 rg BT 533.71 455.10 Td (fected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (if we have an ownership change within the meaning of Section382. ) Tj ET Q q 0 0 0 rg BT 331.92 443.10 Td (An ownership change is generally defined as a greater ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (than 50 percentage point increase in equity ownership by five-percent shareholders \(as that term is defined for purposes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (Section382\) in any three-year period. ) Tj ET Q q 0 0 0 rg BT 203.43 419.10 Td (W) Tj ET Q q 0 0 0 rg BT 212.07 419.10 Td (e may experience an ownership change in the future as a result of changes in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (stock ownership.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 390.10 Td (On October8, 2009, our Board adopted a ) Tj ET Q q 0 0 0 rg BT 241.61 390.10 Td (T) Tj ET Q q 0 0 0 rg BT 247.02 390.10 Td (ax Benefit Preservation Plan \(the Plan\), which, as amended, was approved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (by our stockholders at our 2010 and 2013 annual meetings. ) Tj ET Q q 0 0 0 rg BT 288.44 378.10 Td (W) Tj ET Q q 0 0 0 rg BT 297.08 378.10 Td (e also adopted certain amendments to our amended and restated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (bylaws \(the Bylaw ) Tj ET Q q 0 0 0 rg BT 130.87 366.10 Td (Amendment\) and at our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.06 366.10 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.06 366.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.50 366.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.50 366.10 Td ( annual meetings, our stockholders approved certain amendments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (to our amended and restated certificate of incorporation \(the Charter ) Tj ET Q q 0 0 0 rg BT 328.82 354.10 Td (Amendment\). ) Tj ET Q q 0 0 0 rg BT 390.84 354.10 Td (The Plan, the Bylaw ) Tj ET Q q 0 0 0 rg BT 474.44 354.10 Td (Amendment and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (Charter ) Tj ET Q q 0 0 0 rg BT 81.43 342.10 Td (Amendment were implemented in order to protect our ability to utilize our NOLs and other tax assets and prevent an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (ownership change under U.S. federal income tax rules by restricting or discouraging certain transfers of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (that would: \(i\)create or result in a person becoming a five-percent shareholder under Section382; or \(ii\)increase the stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (ownership of any existing five-percent shareholder under Section382. ) Tj ET Q q 0 0 0 rg BT 333.12 306.10 Td (The continued ef) Tj ET Q q 0 0 0 rg BT 400.69 306.10 Td (fectiveness of the Plan, the Bylaw ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (Amendment and the Charter ) Tj ET Q q 0 0 0 rg BT 165.02 294.10 Td (Amendment are subject to the reapproval of the Plan and the Charter ) Tj ET Q q 0 0 0 rg BT 442.15 294.10 Td (Amendment by our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (stockholders every three years and there can be no assurance that if we elect to present them to our stockholders for reapproval ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (in the future, our stockholders will reapprove them.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 253.10 Td (There is no guarantee that our tax benefit preservation strategy will be ef) Tj ET Q q 0 0 0 rg BT 364.32 253.10 Td (fective in protecting our NOLs and other tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (assets. ) Tj ET Q q 0 0 0 rg BT 77.65 241.10 Td (The amount of our NOLs has not been audited or otherwise validated by the IRS. ) Tj ET Q q 0 0 0 rg BT 405.17 241.10 Td (The IRS could challenge the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (our NOLs and other tax assets, which could result in an increase in our liability in the future for income taxes. In addition, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (determining whether an ownership change has occurred is subject to uncertainty) Tj ET Q q 0 0 0 rg BT 378.73 217.10 Td (, both because of the complexity and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (ambiguity of Section382 and because of limitations on a publicly traded company) Tj ET Q q 0 0 0 rg BT 382.20 205.10 Td (s knowledge as to the ownership of, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (transactions in, its securities. ) Tj ET Q q 0 0 0 rg BT 167.07 193.10 Td (Therefore, even though we currently have several measures in place to protect our NOLs \(such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (the Plan, the Bylaw ) Tj ET Q q 0 0 0 rg BT 129.77 181.10 Td (Amendment and the Charter ) Tj ET Q q 0 0 0 rg BT 245.29 181.10 Td (Amendment\), we cannot provide any assurance that the IRS or other taxing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (authority will not claim that we have experienced an ownership change and attempt to reduce the benefit of our tax assets.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 148.10 Td (Legislation and regulatory changes and interpretations could impact our businesses) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 394.82 148.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 131.10 Td (Our businesses are subject to or may be impacted by many federal and state lending, insurance and consumer laws and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.10 Td (regulations and may be af) Tj ET Q q 0 0 0 rg BT 152.62 119.10 Td (fected by changes in these laws and regulations. In particular) Tj ET Q q 0 0 0 rg BT 396.01 119.10 Td (, our businesses may be significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.10 Td (impacted by the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 90.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 90.10 Td (Legislation or regulatory action impacting the charters or business practices of the GSEs;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 73.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 73.10 Td (Legislative reform of the U.S. housing finance system;) Tj ET Q endstream endobj 129 0 obj <> endobj 130 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 731.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 731.10 Td (Legislation and regulation impacting the FHA) Tj ET Q q 0 0 0 rg BT 281.63 731.10 Td ( and its competitive position versus private mortgage insurers. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 719.10 Td () Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 101.94 719.10 Td (Our mortgage insurance business faces intense competition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.80 719.10 Td (.;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 702.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 702.10 Td (State insurance laws and regulations that address, among other items, licensing of companies to transact business, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 690.10 Td (claims handling, reinsurance requirements, premium rates, policy forms of) Tj ET Q q 0 0 0 rg BT 395.84 690.10 Td (fered to customers and requirements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 678.10 Td (Risk-to-capital, minimum policyholder positions, reserves \(including contingency reserves\), surplus, reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 666.10 Td (and payment of dividends. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.47 666.10 Td (Our insurance subsidiaries ar) Tj ET Q q 0 0 0 rg BT 347.38 666.10 Td (e subject to compr) Tj ET Q q 0 0 0 rg BT 420.60 666.10 Td (ehensive state insurance ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 97.50 654.10 Td (r) Tj ET Q q 0 0 0 rg BT 101.02 654.10 Td (egulations and other r) Tj ET Q q 0 0 0 rg BT 189.81 654.10 Td (equir) Tj ET Q q 0 0 0 rg BT 210.55 654.10 Td (ements, including capital adequacy measur) Tj ET Q q 0 0 0 rg BT 383.75 654.10 Td (es, which if we fail to satisfy) Tj ET Q q 0 0 0 rg BT 496.25 654.10 Td (, could limit our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 97.50 642.10 Td (ability to write new insurance and incr) Tj ET Q q 0 0 0 rg BT 252.67 642.10 Td (ease r) Tj ET Q q 0 0 0 rg BT 276.46 642.10 Td (estrictions and r) Tj ET Q q 0 0 0 rg BT 341.65 642.10 Td (equir) Tj ET Q q 0 0 0 rg BT 362.38 642.10 Td (ements placed on our insurance subsidiaries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.48 642.10 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 625.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 625.10 Td (The application of state, federal or private sector programs aimed at supporting borrowers and the housing market;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 608.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 608.10 Td (The application of RESP) Tj ET Q q 0 0 0 rg BT 196.29 608.10 Td (A, the FCRA) Tj ET Q q 0 0 0 rg BT 248.80 608.10 Td ( and other laws to mortgage insurers, including with respect to captive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 596.10 Td (reinsurance arrangements. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 226.32 596.10 Td (W) Tj ET Q q 0 0 0 rg BT 233.74 596.10 Td (e ar) Tj ET Q q 0 0 0 rg BT 249.19 596.10 Td (e subject to the risk of litigation and r) Tj ET Q q 0 0 0 rg BT 399.92 596.10 Td (egulatory pr) Tj ET Q q 0 0 0 rg BT 449.27 596.10 Td (oceedings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.75 596.10 Td (;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 579.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 579.10 Td (The amendments to Regulation ) Tj ET Q q 0 0 0 rg BT 224.70 579.10 Td (AB \(commonly referred to as Regulation ) Tj ET Q q 0 0 0 rg BT 390.77 579.10 Td (AB II\) that were adopted by the SEC in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 567.10 Td (August 2014 to introduce several new requirements related to public of) Tj ET Q q 0 0 0 rg BT 382.24 567.10 Td (ferings of ) Tj ET Q q 0 0 0 rg BT 422.78 567.10 Td (ABS, including public of) Tj ET Q q 0 0 0 rg BT 523.15 567.10 Td (ferings of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 555.10 Td (RMBS for which our MRES business traditionally has provided due diligence and servicer surveillance services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 543.10 Td (and new credit rating agency reform rules \(the NRSRO Rules\) adopted by the SEC in ) Tj ET Q q 0 0 0 rg BT 450.46 543.10 Td (August 2014, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 531.10 Td (new requirements applicable to providers of third-party due diligence services, such as our MRES business, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 519.10 Td (both publicly and privately issued ) Tj ET Q q 0 0 0 rg BT 234.98 519.10 Td (ABS;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 502.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 502.10 Td (New federal standards and oversight for mortgage insurers, including as a result of the Federal Insurance Of) Tj ET Q q 0 0 0 rg BT 529.67 502.10 Td (fice of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 490.10 Td (the U.S. ) Tj ET Q q 0 0 0 rg BT 132.32 490.10 Td (T) Tj ET Q q 0 0 0 rg BT 138.08 490.10 Td (reasury having published a study on how to modernize and improve the system of insurance regulation in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 478.10 Td (the U.S. that, among other things, calls for federal standards and oversight for mortgage insurers to be developed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 466.10 Td (and implemented. See Item 1. BusinessRegulationOther Federal Regulation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 434.93 466.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 504.74 466.10 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.06 466.10 Td (.;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 449.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 449.10 Td (The implementation of new regulations under the Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 348.55 449.10 Td (Act. See Item 1. BusinessRegulationOther ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 437.10 Td (Federal Regulation) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 183.87 437.10 Td (The Dodd-Frank ) Tj ET Q q 0 0 0 rg BT 253.68 437.10 Td (Act) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.00 437.10 Td (.; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 420.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 420.10 Td (The implementation in the U.S. of the Basel II capital adequacy requirements and the Basel III guidelines. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 545.96 420.10 Td (The ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 97.50 408.10 Td (implementation of the Basel III guidelines may discourage the use of mortgage insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.21 408.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 391.10 Td (Any of the items discussed above could adversely af) Tj ET Q q 0 0 0 rg BT 281.76 391.10 Td (fect our operating results, financial condition and business prospects. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.10 Td (In addition, our mortgage insurance business could be impacted by new legislation or regulations, as well as changes to existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.10 Td (legislation or regulations, that are not currently contemplated and which could occur at any time.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (The implementation of the Basel III guidelines may discourage the use of mortgage insurance) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 437.57 346.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 329.10 Td (In 1988, the BCBS developed Basel I, which established international benchmarks for assessing banks) Tj ET Q q 0 0 0 rg BT 486.28 329.10 Td ( capital adequacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (requirements. In June 2005, the BCBS issued Basel II which, among other things, governs the capital treatment for mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (insurance purchased by domestic and international banks in both their origination and securitization activities. Basel II was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (implemented by many banks in the U.S. and in many other countries in 2009 and 2010.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 276.10 Td (In September 2010, the BCBS released Basel III guidelines, which increased the capital requirements for certain banking ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.10 Td (or) Tj ET Q q 0 0 0 rg BT 57.65 264.10 Td (ganizations. In December 2010, the BCBS released a new bank capital framework, which we refer to as the Basel III capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.10 Td (adequacy guidelines, that raised minimum capital requirements for banks. Implementation of Basel III and the Basel III capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td (adequacy guidelines in the U.S. required formal regulations to be adopted by the three U.S. federal banking regulators.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 223.10 Td (In July 2013, the federal bank regulators published rules to implement the Basel III guidelines. ) Tj ET Q q 0 0 0 rg BT 454.24 223.10 Td (As published, these rules ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (would have made extensive changes to the capital requirements for residential mortgages. In addition, the published rules ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (would have eliminated existing capital recognition for certain low down payment mortgages if covered by mortgage insurance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (After consideration of extensive comments on the published rules, the federal regulators revised the Basel III rules to retain the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (current treatment for residential mortgages under the general risk-based capital rules for U.S. banking institutions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 158.10 Td (If implementation of the Basel III Rules increases the capital requirements of banking institutions with respect to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (residential mortgages we insure, it could reduce the demand for our mortgage insurance. If the federal bank regulators revise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (their rules to implement Basel III to reduce or eliminate the capital benefit banks receive from insuring low down payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (loans with private mortgage insurance, our business and business prospects could be adversely af) Tj ET Q q 0 0 0 rg BT 438.11 122.10 Td (fected.) Tj ET Q endstream endobj 131 0 obj <> endobj 132 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (65) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (W) Tj ET Q q 0 0 0 rg BT 57.65 731.25 Td (e face risks associated with our acquisition of Clayton and we may fail to realize the anticipated benefits of the Clayton ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 719.25 Td (acquisition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 702.25 Td (As a result of our acquisition of Clayton and our entry into the businesses of our MRES segment, we are exposed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (certain risks that may negatively af) Tj ET Q q 0 0 0 rg BT 189.54 690.25 Td (fect our financial results, including, among others, the following:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 673.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 673.25 Td (Our MRES revenue is dependent on a limited number of lar) Tj ET Q q 0 0 0 rg BT 324.70 673.25 Td (ge customers that represent a significant proportion of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 661.25 Td (MRES total revenues. Radian Guaranty also does business with many of these significant customers. In the event of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 649.25 Td (dispute between a significant customer and either of our business segments, the overall customer relationship for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 637.25 Td (Radian could be negatively impacted. ) Tj ET Q q 0 0 0 rg BT 238.60 637.25 Td (The loss or reduction of business from one or more of these significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 625.25 Td (customers could adversely af) Tj ET Q q 0 0 0 rg BT 201.67 625.25 Td (fect our revenues and results of operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 608.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 608.25 Td (While Clayton is not a defendant in litigation arising out of the financial crisis involving the issuance of RMBS in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 596.25 Td (connection with which it has provided services, it has been in the past, and may again be in the future, subpoenaed by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 584.25 Td (various parties to provide documents and information related to such litigation, and there can be no assurance that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 572.25 Td (Clayton will not be subject to future claims against it, whether in connection with such litigation or otherwise. It is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 560.25 Td (possible that our exposure to potential liabilities resulting from our MRES business, some of which may be material or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 548.25 Td (unknown, could exceed amounts we can recover through indemnification claims.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 531.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 531.25 Td (Our goodwill and other intangible assets were established primarily in connection with our acquisition of Clayton. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 519.25 Td (Goodwill represents the estimated future economic benefits arising from the assets we have acquired that did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 507.25 Td (qualify to be identified and recognized individually) Tj ET Q q 0 0 0 rg BT 290.34 507.25 Td (, and includes the value of expected future cash flows of Clayton, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 495.25 Td (Clayton) Tj ET Q q 0 0 0 rg BT 119.94 495.25 Td (s workforce, expected syner) Tj ET Q q 0 0 0 rg BT 231.94 495.25 Td (gies with our other af) Tj ET Q q 0 0 0 rg BT 317.29 495.25 Td (filiates and other unidentifiable intangible assets. Goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 483.25 Td (is deemed to have an indefinite useful life and is subject to review for impairment annually) Tj ET Q q 0 0 0 rg BT 448.90 483.25 Td (, or more frequently) Tj ET Q q 0 0 0 rg BT 528.22 483.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 471.25 Td (whenever circumstances indicate potential impairment. ) Tj ET Q q 0 0 0 rg BT 308.57 471.25 Td (The value of goodwill is supported by revenue, which is driven ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 459.25 Td (primarily by transaction volume. Intangible assets other than goodwill primarily consist of customer relationships, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 447.25 Td (client backlog, trade name and trademarks, software and non-competition agreements; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 430.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 430.25 Td (The calculation of the estimated fair value of goodwill and other intangibles requires the use of significant estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 418.25 Td (and assumptions that are highly subjective in nature, such as attrition rates, discount rates, future expected cash flows ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 406.25 Td (and market conditions. Our estimates are based upon assumptions believed to be reasonable, but which are inherently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 394.25 Td (uncertain and unpredictable. If actual results dif) Tj ET Q q 0 0 0 rg BT 276.63 394.25 Td (fer from our assumptions, we may not realize the full value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 382.25 Td (intangible assets and goodwill.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 365.25 Td (For these and other reasons there can be no assurance that the anticipated benefits from the transaction will be realized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.25 Td (fully or at all. If we fail to realize the anticipated benefits of the Clayton acquisition, we may not realize the full value of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.25 Td (intangible assets and goodwill related to the acquisition, in which case we may be required to write down or write of) Tj ET Q q 0 0 0 rg BT 515.02 341.25 Td (f all such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.25 Td (intangible assets or goodwill. Such an impairment of our goodwill or intangible assets could have a material adverse ef) Tj ET Q q 0 0 0 rg BT 525.03 329.25 Td (fect on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.25 Td (our results of operations.) Tj ET Q endstream endobj 133 0 obj <> endobj 134 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (66) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item 1B. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 731.25 Td (Unr) Tj ET Q q 0 0 0 rg BT 120.54 731.25 Td (esolved Staff Comments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td ( ) Tj ET Q q 0 0 0 rg BT 103.50 710.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (Item2. ) Tj ET Q q 0 0 0 rg BT 103.50 677.25 Td (Pr) Tj ET Q q 0 0 0 rg BT 113.87 677.25 Td (operties.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 660.25 Td (At our corporate headquarters in Philadelphia, Pennsylvania, we lease approximately 151,197 square feet of of) Tj ET Q q 0 0 0 rg BT 516.23 660.25 Td (fice space ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.25 Td (and an additional 1,740 square feet of space for data storage under a lease that expires in ) Tj ET Q q 0 0 0 rg BT 405.47 648.25 Td (August 2017. ) Tj ET Q q 0 0 0 rg BT 461.68 648.25 Td (W) Tj ET Q q 0 0 0 rg BT 470.32 648.25 Td (e also lease 23,453 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.25 Td (square feet of of) Tj ET Q q 0 0 0 rg BT 114.56 636.25 Td (fice space in Philadelphia, Pennsylvania, separate from our headquarters, for various operational and IT) Tj ET Q q 0 0 0 rg BT 529.23 636.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (personnel.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 607.25 Td (In addition, we lease of) Tj ET Q q 0 0 0 rg BT 166.90 607.25 Td (fice space for our mortgage insurance operations in: ) Tj ET Q q 0 0 0 rg BT 377.19 607.25 Td (W) Tj ET Q q 0 0 0 rg BT 385.83 607.25 Td (orthington, Ohio; Dayton Ohio; and Hong ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.25 Td (Kong. Following the Clayton acquisition in 2014, we also have leases for of) Tj ET Q q 0 0 0 rg BT 353.71 595.25 Td (fice space for our MRES operations in various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.25 Td (cities in Connecticut, Florida, Colorado, Geor) Tj ET Q q 0 0 0 rg BT 232.62 583.25 Td (gia and Utah, as well as in Bristol, England. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 566.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 566.25 Td (e also currently lease 121,093 square feet of of) Tj ET Q q 0 0 0 rg BT 268.83 566.25 Td (fice space for our financial guaranty business in New ) Tj ET Q q 0 0 0 rg BT 483.66 566.25 Td (Y) Tj ET Q q 0 0 0 rg BT 489.88 566.25 Td (ork City) Tj ET Q q 0 0 0 rg BT 522.28 566.25 Td (, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.25 Td (portion of which is subleased to unrelated third parties. ) Tj ET Q q 0 0 0 rg BT 272.04 554.25 Td (The lease for this space expires in ) Tj ET Q q 0 0 0 rg BT 409.50 554.25 Td (August 2015 and, following the sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.25 Td (of Radian ) Tj ET Q q 0 0 0 rg BT 90.60 542.25 Td (Asset to ) Tj ET Q q 0 0 0 rg BT 125.05 542.25 Td (Assured we do not expect to renew this lease.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 525.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 525.25 Td (e currently have a co-location agreement with Xand that supports data center space and services. Xand serves as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.25 Td (production and disaster recovery location in ) Tj ET Q q 0 0 0 rg BT 227.22 513.25 Td (Audubon, Pennsylvania. ) Tj ET Q q 0 0 0 rg BT 327.59 513.25 Td (This agreement expires June 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 496.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 496.25 Td (e believe our existing properties are well utilized, suitable and adequate for our present circumstances.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (Item3. ) Tj ET Q q 0 0 0 rg BT 103.50 463.25 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 140.25 463.25 Td (oceedings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 446.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 446.25 Td (e are routinely involved in a number of legal actions and proceedings, the outcome of which are uncertain. ) Tj ET Q q 0 0 0 rg BT 508.14 446.25 Td (The legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (significant expenditures or have other ef) Tj ET Q q 0 0 0 rg BT 210.65 422.25 Td (fects on our business. In accordance with applicable accounting standards and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (guidance, we establish accruals for a legal proceeding only when we determine both that it is probable that a loss has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (incurred and the amount of the loss is reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 291.20 398.25 Td (W) Tj ET Q q 0 0 0 rg BT 299.84 398.25 Td (e accrue the amount that represents our best estimate of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.25 Td (probable loss; however) Tj ET Q q 0 0 0 rg BT 141.85 386.25 Td (, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.25 Td (judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely) Tj ET Q q 0 0 0 rg BT 460.13 374.25 Td (, we accrue the minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.25 Td (amount of the range.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 345.25 Td (In the course of our regular review of pending legal matters, we determine whether it is reasonably possible that a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.25 Td (potential loss relating to a legal proceeding may have a material impact on our liquidity) Tj ET Q q 0 0 0 rg BT 398.74 333.25 Td (, results of operations or financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.25 Td (condition. If we determine such a loss is reasonably possible, we disclose information relating to any such potential loss, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.25 Td (including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly and annual basis, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.25 Td (review relevant information with respect to legal loss contingencies and update our accruals, disclosures and estimates of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.25 Td (reasonably possible losses or range of losses based on such reviews. ) Tj ET Q q 0 0 0 rg BT 324.26 285.25 Td (W) Tj ET Q q 0 0 0 rg BT 332.90 285.25 Td (e are often unable to estimate the possible loss or range ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.25 Td (of loss until developments in such matters have provided suf) Tj ET Q q 0 0 0 rg BT 291.78 273.25 Td (ficient information to support an assessment of the range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.25 Td (possible loss, such as quantification of a damage demand from plaintif) Tj ET Q q 0 0 0 rg BT 331.19 261.25 Td (fs, discovery from other parties and investigation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.25 Td (factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.25 Td (In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 225.25 Td (disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.25 Td (accrued, if any) Tj ET Q q 0 0 0 rg BT 107.98 213.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 196.25 Td (Loss estimates are inherently subjective, based on currently available information, and are subject to management) Tj ET Q q 0 0 0 rg BT 529.67 196.25 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.25 Td (judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.25 Td (unpredictability surrounding the outcome of legal proceedings, actual results may dif) Tj ET Q q 0 0 0 rg BT 389.50 172.25 Td (fer materially from any amounts that have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.25 Td (been accrued.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 135 0 obj <> endobj 136 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 731.10 Td (e have been named as a defendant in a number of putative class action lawsuits alleging, among other things, that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (captive reinsurance agreements violate RESP) Tj ET Q q 0 0 0 rg BT 230.18 719.10 Td (A. On December 9, 201) Tj ET Q q 0 0 0 rg BT 325.34 719.10 Td (1, an action titled Samp v) Tj ET Q q 0 0 0 rg BT 426.89 719.10 Td (. JPMor) Tj ET Q q 0 0 0 rg BT 458.39 719.10 Td (gan \(the JPMor) Tj ET Q q 0 0 0 rg BT 524.30 719.10 Td (gan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (Case\) was filed in the U.S. District Court for the Central District of California.) Tj ET Q q 0 0 0 rg BT 370.63 707.10 Td (The defendants were JPMor) Tj ET Q q 0 0 0 rg BT 482.92 707.10 Td (gan and several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (mortgage insurers, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 234.08 695.10 Td (. ) Tj ET Q q 0 0 0 rg BT 238.90 695.10 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 285.65 695.10 Td (fs purported to represent a class of borrowers whose loans allegedly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (were referred to mortgage insurers by JPMor) Tj ET Q q 0 0 0 rg BT 229.26 683.10 Td (gan in exchange for reinsurance agreements between the mortgage insurers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (JPMor) Tj ET Q q 0 0 0 rg BT 75.99 671.10 Td (gan) Tj ET Q q 0 0 0 rg BT 93.21 671.10 Td (s captive reinsurer) Tj ET Q q 0 0 0 rg BT 165.96 671.10 Td (.Plaintif) Tj ET Q q 0 0 0 rg BT 200.22 671.10 Td (fs asserted violations of RESP) Tj ET Q q 0 0 0 rg BT 320.41 671.10 Td (A. On October 4, 2012, Radian Guaranty filed a motion to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (dismiss on a number of grounds, and on May 7, 2013, the court granted the motion and dismissed the plaintif) Tj ET Q q 0 0 0 rg BT 485.92 659.10 Td (fs) Tj ET Q q 0 0 0 rg BT 495.73 659.10 Td ( claims with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (prejudice.) Tj ET Q q 0 0 0 rg BT 91.52 647.10 Td (The court ruled that the plaintif) Tj ET Q q 0 0 0 rg BT 216.58 647.10 Td (fs could not state a claim against Radian Guaranty because it did not insure their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (loans, and, in addition, ruled that their claims were barred by the statute of limitations. On June 5, 2013, plaintif) Tj ET Q q 0 0 0 rg BT 496.72 635.10 Td (fs appealed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (these rulings to the U.S. Court of ) Tj ET Q q 0 0 0 rg BT 183.66 623.10 Td (Appeals for the Ninth Circuit. On November 9, 2013, plaintif) Tj ET Q q 0 0 0 rg BT 428.99 623.10 Td (fs voluntarily dismissed their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (appeal.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 594.10 Td (Each of the cases described below are putative class actions \(with alleged facts substantially similar to the facts alleged in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (the JPMor) Tj ET Q q 0 0 0 rg BT 90.71 582.10 Td (gan Case discussed above\) in which Radian Guaranty has been named as a defendant and has insured at least one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (loan of one of the plaintif) Tj ET Q q 0 0 0 rg BT 151.23 570.10 Td (fs:) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 553.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 553.10 Td (On December 30, 201) Tj ET Q q 0 0 0 rg BT 195.43 553.10 Td (1, a putative class action under RESP) Tj ET Q q 0 0 0 rg BT 344.21 553.10 Td (A) Tj ET Q q 0 0 0 rg BT 350.88 553.10 Td ( titled ) Tj ET Q q 0 0 0 rg BT 376.25 553.10 Td (White v) Tj ET Q q 0 0 0 rg BT 407.53 553.10 Td (. PNC Financial Services Group \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 541.10 Td (White Case\) was filed in the U.S. District Court for the Eastern District of Pennsylvania. On September 29, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 529.10 Td (2012, plaintif) Tj ET Q q 0 0 0 rg BT 161.20 529.10 Td (fs filed an amended complaint. On November 26, 2012, Radian Guaranty filed a motion to dismiss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 517.10 Td (the plaintif) Tj ET Q q 0 0 0 rg BT 150.92 517.10 Td (fs) Tj ET Q q 0 0 0 rg BT 160.73 517.10 Td ( claims as barred by the statute of limitations. On June 20, 2013, the court granted Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 505.10 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 147.49 505.10 Td (s motion and dismissed plaintif) Tj ET Q q 0 0 0 rg BT 272.30 505.10 Td (fs) Tj ET Q q 0 0 0 rg BT 282.11 505.10 Td ( claims, but granted plaintif) Tj ET Q q 0 0 0 rg BT 392.18 505.10 Td (fs leave to file a second amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 493.10 Td (complaint. Plaintif) Tj ET Q q 0 0 0 rg BT 181.75 493.10 Td (fs filed their second amended complaint on July 5, 2013, reasserting a putative claim under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 481.10 Td (RESP) Tj ET Q q 0 0 0 rg BT 130.48 481.10 Td (A) Tj ET Q q 0 0 0 rg BT 137.15 481.10 Td ( on substantially the same allegations. Radian Guaranty filed a motion to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 491.91 481.10 Td (fs) Tj ET Q q 0 0 0 rg BT 501.72 481.10 Td ( second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 469.10 Td (amended complaint on July 22, 2013. ) Tj ET Q q 0 0 0 rg BT 260.07 469.10 Td (The court denied Radian Guaranty) Tj ET Q q 0 0 0 rg BT 401.13 469.10 Td (s motion on ) Tj ET Q q 0 0 0 rg BT 450.31 469.10 Td (August 18, 2014, without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 457.10 Td (prejudice to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 228.29 457.10 Td (s ability to raise the statute of limitations bar on a motion for summary judgment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 445.10 Td (On January 20, 2015, plaintif) Tj ET Q q 0 0 0 rg BT 224.52 445.10 Td (fs in the ) Tj ET Q q 0 0 0 rg BT 259.06 445.10 Td (White Case filed a motion to strike certain of the af) Tj ET Q q 0 0 0 rg BT 464.36 445.10 Td (firmative defenses, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 433.10 Td (not the statute of limitations defense, that had been asserted by Radian Guaranty in its answer to plaintif) Tj ET Q q 0 0 0 rg BT 523.32 433.10 Td (fs) Tj ET Q q 0 0 0 rg BT 533.13 433.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 421.10 Td (second amended complaint. ) Tj ET Q q 0 0 0 rg BT 221.17 421.10 Td (The parties are continuing to file procedural motions in this litigation. However) Tj ET Q q 0 0 0 rg BT 539.02 421.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 409.10 Td (White Case is currently stayed pending a decision by the ) Tj ET Q q 0 0 0 rg BT 336.70 409.10 Td (Third Circuit Court of ) Tj ET Q q 0 0 0 rg BT 427.25 409.10 Td (Appeals in the case Cunningham ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 397.10 Td (v) Tj ET Q q 0 0 0 rg BT 111.85 397.10 Td (. M&T) Tj ET Q q 0 0 0 rg BT 139.45 397.10 Td ( Bank Corp., which is another putative class action under RESP) Tj ET Q q 0 0 0 rg BT 393.49 397.10 Td (A) Tj ET Q q 0 0 0 rg BT 400.16 397.10 Td ( in which Radian Guaranty is not a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 385.10 Td (party) Tj ET Q q 0 0 0 rg BT 127.40 385.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 368.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 368.10 Td (On January 13, 2012, a putative class action under RESP) Tj ET Q q 0 0 0 rg BT 334.59 368.10 Td (A) Tj ET Q q 0 0 0 rg BT 341.26 368.10 Td ( titled Menichino, et al. v) Tj ET Q q 0 0 0 rg BT 441.43 368.10 Td (. Citibank, N.A., et al. \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 356.10 Td (Menichino Case\), was filed in the U.S. District Court for the ) Tj ET Q q 0 0 0 rg BT 360.60 356.10 Td (W) Tj ET Q q 0 0 0 rg BT 369.23 356.10 Td (estern District of Pennsylvania. Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 344.10 Td (Guaranty was not named as a defendant in the original complaint. On December 4, 2012, plaintif) Tj ET Q q 0 0 0 rg BT 494.98 344.10 Td (fs amended their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 332.10 Td (complaint to add Radian Guaranty as an additional defendant. On February 4, 2013, Radian Guaranty filed a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 320.10 Td (motion to dismiss the claims against it as barred by the statute of limitations. On July 19, 2013, the court granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 308.10 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 178.31 308.10 Td (s motion and dismissed plaintif) Tj ET Q q 0 0 0 rg BT 303.13 308.10 Td (fs) Tj ET Q q 0 0 0 rg BT 312.93 308.10 Td ( claims, but granted plaintif) Tj ET Q q 0 0 0 rg BT 423.00 308.10 Td (fs leave to file a second amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 296.10 Td (complaint. Plaintif) Tj ET Q q 0 0 0 rg BT 181.75 296.10 Td (fs filed their second amended complaint on ) Tj ET Q q 0 0 0 rg BT 356.43 296.10 Td (August 16, 2013, reasserting a putative claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 284.10 Td (under RESP) Tj ET Q q 0 0 0 rg BT 155.75 284.10 Td (A) Tj ET Q q 0 0 0 rg BT 162.42 284.10 Td ( on substantially the same allegations. Radian Guaranty filed a motion to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 517.18 284.10 Td (fs) Tj ET Q q 0 0 0 rg BT 526.99 284.10 Td ( second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 272.10 Td (amended complaint on September 17, 2013. ) Tj ET Q q 0 0 0 rg BT 286.17 272.10 Td (The court denied Radian Guaranty) Tj ET Q q 0 0 0 rg BT 427.23 272.10 Td (s motion on February 4, 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 260.10 Td (without prejudice to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 261.35 260.10 Td (s ability to raise the statute of limitations bar on a motion for summary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 248.10 Td (judgment. ) Tj ET Q q 0 0 0 rg BT 150.09 248.10 Td (The Menichino Case is currently stayed pending a decision by the ) Tj ET Q q 0 0 0 rg BT 416.23 248.10 Td (Third Circuit Court of ) Tj ET Q q 0 0 0 rg BT 506.78 248.10 Td (Appeals in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 236.10 Td (the case Cunningham v) Tj ET Q q 0 0 0 rg BT 200.44 236.10 Td (. M&T) Tj ET Q q 0 0 0 rg BT 228.04 236.10 Td ( Bank Corp., which is another putative class action under RESP) Tj ET Q q 0 0 0 rg BT 482.08 236.10 Td (A) Tj ET Q q 0 0 0 rg BT 488.75 236.10 Td ( in which Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 224.10 Td (Guaranty is not a party) Tj ET Q q 0 0 0 rg BT 198.49 224.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 137 0 obj <> endobj 138 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 731.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 731.10 Td (On ) Tj ET Q q 0 0 0 rg BT 121.67 731.10 Td (April 5, 2012, a putative class action under RESP) Tj ET Q q 0 0 0 rg BT 319.05 731.10 Td (A) Tj ET Q q 0 0 0 rg BT 325.72 731.10 Td ( titled Manners, et al. v) Tj ET Q q 0 0 0 rg BT 417.55 731.10 Td (. Fifth ) Tj ET Q q 0 0 0 rg BT 444.32 731.10 Td (Third Bank, et al \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 719.10 Td (Manners Case\) was filed in the U.S. District Court for the ) Tj ET Q q 0 0 0 rg BT 349.76 719.10 Td (W) Tj ET Q q 0 0 0 rg BT 358.40 719.10 Td (estern District of Pennsylvania. On November 28, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 707.10 Td (2012, Radian Guaranty moved to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 304.24 707.10 Td (fs) Tj ET Q q 0 0 0 rg BT 314.05 707.10 Td ( claims as barred by the statute of limitations. On July 19, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 695.10 Td (2013, the court granted Radian Guaranty) Tj ET Q q 0 0 0 rg BT 273.56 695.10 Td (s motion and dismissed plaintif) Tj ET Q q 0 0 0 rg BT 398.37 695.10 Td (fs) Tj ET Q q 0 0 0 rg BT 408.18 695.10 Td ( claims, but granted plaintif) Tj ET Q q 0 0 0 rg BT 518.25 695.10 Td (fs leave to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 683.10 Td (file a second amended complaint. Plaintif) Tj ET Q q 0 0 0 rg BT 273.38 683.10 Td (fs filed their second amended complaint on ) Tj ET Q q 0 0 0 rg BT 448.05 683.10 Td (August 16, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 671.10 Td (reasserting a putative claim under RESP) Tj ET Q q 0 0 0 rg BT 267.93 671.10 Td (A) Tj ET Q q 0 0 0 rg BT 274.60 671.10 Td ( on substantially the same allegations. Radian Guaranty filed a motion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 659.10 Td (to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 178.99 659.10 Td (fs) Tj ET Q q 0 0 0 rg BT 188.80 659.10 Td ( second amended complaint on September 17, 2013. ) Tj ET Q q 0 0 0 rg BT 400.23 659.10 Td (The court denied Radian Guaranty) Tj ET Q q 0 0 0 rg BT 541.29 659.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 647.10 Td (motion on February 5, 2014, without prejudice to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 378.28 647.10 Td (s ability to raise the statute of limitations bar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 635.10 Td (on a motion for summary judgment. ) Tj ET Q q 0 0 0 rg BT 254.24 635.10 Td (The Manners Case is currently stayed pending a decision by the ) Tj ET Q q 0 0 0 rg BT 512.05 635.10 Td (Third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 623.10 Td (Circuit Court of ) Tj ET Q q 0 0 0 rg BT 173.33 623.10 Td (Appeals in the case Cunningham v) Tj ET Q q 0 0 0 rg BT 311.82 623.10 Td (. M&T) Tj ET Q q 0 0 0 rg BT 339.41 623.10 Td ( Bank Corp., which is another putative class action ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 611.10 Td (under RESP) Tj ET Q q 0 0 0 rg BT 155.75 611.10 Td (A) Tj ET Q q 0 0 0 rg BT 162.42 611.10 Td ( in which Radian Guaranty is not a party) Tj ET Q q 0 0 0 rg BT 323.96 611.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 594.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.54 594.10 Td (ith respect to the putative class action cases discussed above, Radian Guaranty believes that the claims are without merit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (and intends to vigorously defend itself against these claims. ) Tj ET Q q 0 0 0 rg BT 290.38 582.10 Td (W) Tj ET Q q 0 0 0 rg BT 299.02 582.10 Td (e are not able to estimate the reasonably possible loss or range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (loss, if any) Tj ET Q q 0 0 0 rg BT 92.46 570.10 Td (, for these matters because the proceedings are still in a preliminary stage and there is uncertainty as to the likelihood ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (of a class being certified or the ultimate size of a class.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 541.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 541.10 Td (e are contesting adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (income tax returns. ) Tj ET Q q 0 0 0 rg BT 128.74 529.10 Td (The IRS opposes the recognition of certain tax losses and deductions that were generated through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (investment in a portfolio of non-economic REMIC residual interests and proposed adjustments denying the associated tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (benefits of these items. ) Tj ET Q q 0 0 0 rg BT 144.02 505.10 Td (W) Tj ET Q q 0 0 0 rg BT 152.65 505.10 Td (e appealed the proposed adjustments to ) Tj ET Q q 0 0 0 rg BT 311.50 505.10 Td (Appeals and made qualified deposits with the U.S. ) Tj ET Q q 0 0 0 rg BT 525.16 505.10 Td (T) Tj ET Q q 0 0 0 rg BT 530.92 505.10 Td (reasury ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.59 493.10 Td ($85 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.98 493.10 Td ( in June 2008 relating to the 2000 through 2004 tax years and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.25 493.10 Td ($4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.64 493.10 Td ( in May ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (2010 relating to the 2005 through 2007 tax years in order to avoid the accrual of above-market-rate interest with respect to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (proposed adjustments.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 452.10 Td (Although we made several attempts to reach a compromised settlement with ) Tj ET Q q 0 0 0 rg BT 378.91 452.10 Td (Appeals, on September 4, 2014, we received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes and penalties related to the REMIC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (matters of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.52 428.10 Td ($157 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.91 428.10 Td ( and exclude any potential benefit related to our NOL) Tj ET Q q 0 0 0 rg BT 417.63 428.10 Td ( carryback ability) Tj ET Q q 0 0 0 rg BT 486.95 428.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.39 428.10 Td (As of December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 416.10 Td (, there also would be interest of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.05 416.10 Td ($1) Tj ET Q q 0 0 0 rg BT 282.68 416.10 Td (15 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.08 416.10 Td ( related to these matters. Depending on the outcome, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (additional state income taxes, penalties and interest \(estimated in the aggregate to be approximately) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.69 404.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.19 404.10 Td ($30 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.58 404.10 Td ( as of December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (31, 2014\) also may become due when a final resolution is reached. ) Tj ET Q q 0 0 0 rg BT 318.68 392.10 Td (The Notices of Deficiency also reflected additional amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (due of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.53 380.10 Td ($105 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.92 380.10 Td (, which are primarily associated with the disallowance of the previously filed carryback of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (our 2008 NOL) Tj ET Q q 0 0 0 rg BT 108.01 368.10 Td ( to the 2006 and 2007 tax years. ) Tj ET Q q 0 0 0 rg BT 238.08 368.10 Td (W) Tj ET Q q 0 0 0 rg BT 246.72 368.10 Td (e currently believe that the disallowance of our 2008 NOL) Tj ET Q q 0 0 0 rg BT 479.88 368.10 Td ( carryback is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL) Tj ET Q q 0 0 0 rg BT 427.10 356.10 Td ( carryback claim.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.23 356.10 Td ( On December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (3, 2014, we petitioned the U.S. ) Tj ET Q q 0 0 0 rg BT 175.97 344.10 Td (T) Tj ET Q q 0 0 0 rg BT 181.38 344.10 Td (ax Court to litigate the Deficiency ) Tj ET Q q 0 0 0 rg BT 319.67 344.10 Td (Amount. ) Tj ET Q q 0 0 0 rg BT 357.27 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 365.91 344.10 Td (e can provide no assurance regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (outcome of any such litigation, which could take several years to resolve, or whether a compromised settlement with the IRS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (will ultimately be reached. ) Tj ET Q q 0 0 0 rg BT 158.45 320.10 Td (W) Tj ET Q q 0 0 0 rg BT 167.08 320.10 Td (e believe that an adequate provision for income taxes has been made for the potential liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (that may result from this matter) Tj ET Q q 0 0 0 rg BT 175.31 308.10 Td (. However) Tj ET Q q 0 0 0 rg BT 216.56 308.10 Td (, if the ultimate resolution of this matter produces a result that dif) Tj ET Q q 0 0 0 rg BT 477.14 308.10 Td (fers materially from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (our current expectations, there could be a material impact on our ef) Tj ET Q q 0 0 0 rg BT 318.09 296.10 Td (fective tax rate, results of operations and cash flows.) Tj ET Q endstream endobj 139 0 obj <> endobj 140 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 731.10 Td (In addition to the litigation discussed above, we are involved in litigation that has arisen in the normal course of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (business. ) Tj ET Q q 0 0 0 rg BT 88.21 719.10 Td (W) Tj ET Q q 0 0 0 rg BT 96.85 719.10 Td (e are contesting the allegations in each such pending action and management believes, based on current knowledge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (and after consultation with counsel, that the outcome of such litigation will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 471.41 707.10 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (consolidated financial condition. However) Tj ET Q q 0 0 0 rg BT 219.05 695.10 Td (, the outcome of litigation and other legal and regulatory matters is inherently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (uncertain, and it is possible that one or more of the matters currently pending or threatened could have an unanticipated adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 671.10 Td (fect on our liquidity) Tj ET Q q 0 0 0 rg BT 136.15 671.10 Td (, financial condition or results of operations for any particular period.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 654.10 Td (In addition to the private lawsuits discussed above, we and other mortgage insurers have been subject to inquiries from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (Minnesota Department of Commerce requesting information relating to captive reinsurance. ) Tj ET Q q 0 0 0 rg BT 420.58 642.10 Td (W) Tj ET Q q 0 0 0 rg BT 429.22 642.10 Td (e have cooperated with these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (requests for information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 630.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.14 630.10 Td (In ) Tj ET Q q 0 0 0 rg BT 161.42 630.10 Td (August 2013, Radian Guaranty and other mortgage insurers first received a draft Consent Order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (from the Minnesota Department of Commerce, containing proposed conditions and unspecified penalties, to resolve its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (outstanding inquiries related to captive reinsurance arrangements involving mortgage insurance in Minnesota. ) Tj ET Q q 0 0 0 rg BT 491.69 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 500.33 606.10 Td (e continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (cooperate with the Minnesota Department of Commerce and are engaged in active discussions with them with respect to their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (inquiries, including the penalties they are seeking and various alternatives for resolving this matter) Tj ET Q q 0 0 0 rg BT 443.28 582.10 Td (. ) Tj ET Q q 0 0 0 rg BT 448.10 582.10 Td (W) Tj ET Q q 0 0 0 rg BT 456.74 582.10 Td (e cannot predict the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (outcome of this matter or whether additional actions or proceedings may be brought against us. ) Tj ET Q q 0 0 0 rg BT 432.55 570.10 Td (W) Tj ET Q q 0 0 0 rg BT 441.19 570.10 Td (e have not entered into any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (new captive reinsurance arrangements since 2007.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 541.10 Td (Through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.44 541.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.02 541.10 Td (, Radian ) Tj ET Q q 0 0 0 rg BT 222.30 541.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 246.47 541.10 Td (Assurance has received a series of claims totaling 13.5 million \($16.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (million\) from one of its trade credit and surety ceding companies related to surety bonds for Spanish housing cooperative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (developments. ) Tj ET Q q 0 0 0 rg BT 109.86 517.10 Td (The ceding company is still in the process of settling additional similar claims, so the ultimate amount the ceding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (company will claim is uncertain. Based on information we received from the ceding company and the advice of our legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (advisors, we believe that these claims are subject to a number of defenses, including that the risk under these surety bonds was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (not eligible for cession to Radian ) Tj ET Q q 0 0 0 rg BT 183.92 481.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 208.09 481.10 Td (Assurance under the terms and conditions of the applicable reinsurance treaties. ) Tj ET Q q 0 0 0 rg BT 529.46 481.10 Td (W) Tj ET Q q 0 0 0 rg BT 538.09 481.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (have rejected all claims related to these surety bonds and, because we do not believe a loss is probable, we have not recorded a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (liability with respect to any of these claims. In May 2014, the ceding company sent us a demand to arbitrate this dispute. ) Tj ET Q q 0 0 0 rg BT 533.92 457.10 Td (W) Tj ET Q q 0 0 0 rg BT 542.56 457.10 Td (e are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (in the process of finalizing the arbitration panel and are preparing for this arbitration. Formal arbitration proceedings could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (commence before the end of 2015. ) Tj ET Q q 0 0 0 rg BT 190.65 433.10 Td (W) Tj ET Q q 0 0 0 rg BT 199.69 433.10 Td (ithout giving any consideration to our defenses, we estimate the maximum aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (potential liability for claims received and future claims related to these surety bonds to be 17.1 million \($20.8 million\). ) Tj ET Q q 0 0 0 rg BT 531.98 421.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (legal matter is part of our discontinued operations. See Note 3 of Notes to Consolidated Financial Statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (Item 4. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 376.10 Td (Mine Safety Disclosur) Tj ET Q q 0 0 0 rg BT 197.20 376.10 Td (es.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.10 Td ( ) Tj ET Q q 0 0 0 rg BT 103.50 355.10 Td (Not applicable.) Tj ET Q endstream endobj 141 0 obj <> endobj 142 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (70) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 287.85 731.25 Td (P) Tj ET Q q 0 0 0 rg BT 293.22 731.25 Td (AR) Tj ET Q q 0 0 0 rg BT 307.31 731.25 Td (T) Tj ET Q q 0 0 0 rg BT 313.80 731.25 Td ( II) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.25 Td (Item 5. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 707.25 Td (Market for) Tj ET Q q 0 0 0 rg BT 150.79 707.25 Td ( Registrant) Tj ET Q q 0 0 0 rg BT 201.24 707.25 Td (s Common Equity) Tj ET Q q 0 0 0 rg BT 277.93 707.25 Td (, Related Stockholder) Tj ET Q q 0 0 0 rg BT 369.69 707.25 Td ( Matters and Issuer) Tj ET Q q 0 0 0 rg BT 453.11 707.25 Td ( Pur) Tj ET Q q 0 0 0 rg BT 471.54 707.25 Td (chases of Equity ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 695.25 Td (Securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 678.25 Td (Our common stock is listed on the NYSE under the symbol RDN. ) Tj ET Q q 0 0 0 rg BT 348.19 678.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.69 678.25 Td (February24, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.29 678.25 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.71 678.25 Td (191,135,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.71 678.25 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (of our common stock outstanding and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.63 666.25 Td (63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.63 666.25 Td ( holders of record. ) Tj ET Q q 0 0 0 rg BT 349.25 666.25 Td (The following table shows the high and low sales ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (prices of our common stock on the NYSE for the financial quarters indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 626.75 m 339.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339.5 626.75 m 343.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 626.75 m 408.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 626.75 m 477.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 626.75 m 481.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 626.75 m 546.5 626.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 614.75 m 339.5 614.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 614.75 m 408.5 614.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 614.75 m 477.5 614.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 614.75 m 546.5 614.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274.5 614.75 m 339.5 614.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 614.75 m 477.5 614.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 614.75 m 546.5 614.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 67.00 630.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.00 630.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.00 630.83 Td (2013) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 67.00 618.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 298.05 618.83 Td (High) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.90 618.83 Td (Low) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.05 618.83 Td (High) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.90 618.83 Td (Low) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 605.32 Td (1st Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 605.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 605.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 605.32 Td (16.24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 605.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 605.32 Td (13.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.00 605.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 605.32 Td (10.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.00 605.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 605.32 Td (5.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 591.32 Td (2nd Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.50 591.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 591.32 Td (15.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 591.32 Td (13.39) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 591.32 Td (14.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 591.32 Td (9.62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 577.32 Td (3rd Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 577.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 577.32 Td (15.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 577.32 Td (12.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 577.32 Td (14.80) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 577.32 Td (11.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 563.32 Td (4th Quarter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 563.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.15 563.32 Td (17.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 563.32 Td (13.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 563.32 Td (15.15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 563.32 Td (12.57) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 538.25 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.33 538.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.33 538.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.77 538.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.77 538.25 Td (, we declared quarterly cash dividends on our common stock equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.41 538.25 Td ($0.0025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.91 538.25 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 499.59 538.25 Td (W) Tj ET Q q 0 0 0 rg BT 508.23 538.25 Td (e presently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.25 Td (expect to continue to declare a regular quarterly dividend on our common stock. For information on Radian Group) Tj ET Q q 0 0 0 rg BT 510.48 526.25 Td (s ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.25 Td (pay dividends, see Item 7. Management) Tj ET Q q 0 0 0 rg BT 215.84 514.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 285.01 514.25 Td (Analysis of Financial Condition and Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (Liquidity and Capital Resources.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 485.25 Td (Reference is made to the information in Item 12 of this report under the caption Equity Compensation Plans, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.25 Td (incorporated herein by this reference.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 452.25 Td (Issuer Purchases of Equity Securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 435.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.33 435.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.33 435.25 Td (, we did not repurchase any of our common stock; however) Tj ET Q q 0 0 0 rg BT 361.36 435.25 Td (, upon the vesting of certain restricted stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.25 Td (awards under our equity compensation plans, we withheld from such vested awards an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.49 423.25 Td (10,033) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.99 423.25 Td ( shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.25 Td (common stock to satisfy the tax liability of the award recipients.) Tj ET Q endstream endobj 143 0 obj <> endobj 144 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (71) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item 6. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 731.25 Td (Selected Financial Data.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (The information in the following table should be read in conjunction with our Consolidated Financial Statements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (Notes thereto included in Item8 and the information included in Item7, Management) Tj ET Q q 0 0 0 rg BT 399.95 702.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 469.12 702.25 Td (Analysis of Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (Condition and Results of Operations. ) Tj ET Q q 0 0 0 rg BT 204.49 690.25 Td (As a result of the December 22, 2014 Radian ) Tj ET Q q 0 0 0 rg BT 386.66 690.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 410.83 690.25 Td (Assurance Stock Purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (Agreement to sell Radian ) Tj ET Q q 0 0 0 rg BT 153.36 678.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 177.53 678.25 Td (Assurance, Radian) Tj ET Q q 0 0 0 rg BT 255.29 678.25 Td (s financial guaranty insurance subsidiary) Tj ET Q q 0 0 0 rg BT 417.92 678.25 Td (, we have reclassified the operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (results related to the pending disposition as discontinued operations for all periods presented in our consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (operations. See Note 3 of Notes to Consolidated Financial Statements for additional information.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 618.75 m 337.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 618.75 m 391.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 618.75 m 445.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 618.75 m 499.5 618.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 618.75 m 553.5 618.75 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 60 621.730078125 m 235.109375 621.730078125 l s q 0 0 0 rg BT 60.00 622.98 Td (\($ in millions, except per-share amounts and ratios\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.00 622.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.00 622.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.00 622.98 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.20 622.98 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 622.98 Td (2010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.00 609.48 Td (Consolidated Statements of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 594.32 Td (Net premiums earnedinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 594.32 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 593.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 593.42 Td (844.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 593.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 593.42 Td (781.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 593.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 593.42 Td (702.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 593.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 593.42 Td (680.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 593.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 593.42 Td (739.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 579.32 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.50 579.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 578.42 Td (65.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 578.42 Td (68.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 578.42 Td (72.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 578.42 Td (105.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 578.42 Td (109.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 564.32 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 564.32 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 563.42 Td (83.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.80 563.47 Td (\(98.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 563.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 563.42 Td (114.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 563.42 Td (147.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 563.42 Td (83.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 549.32 Td (Services revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.50 549.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 548.42 Td (76.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 548.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 548.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 548.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 548.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 534.32 Td (Total revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 534.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 533.42 Td (1,072.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 533.42 Td (749.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 533.42 Td (902.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 533.42 Td (943.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.60 533.42 Td (1,000.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 519.32 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.50 519.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 518.42 Td (246.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 518.42 Td (562.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 518.42 Td (921.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.60 518.42 Td (1,286.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.60 518.42 Td (1,716.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 504.32 Td (Other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.50 504.32 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 503.42 Td (252.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 503.42 Td (257.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 503.42 Td (167.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 503.42 Td (144.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 503.42 Td (157.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 489.32 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.50 489.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 488.42 Td (90.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 488.42 Td (74.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 488.42 Td (51.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 488.42 Td (61.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 488.42 Td (41.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 474.32 Td (Direct cost of services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 474.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 473.42 Td (43.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 473.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 459.32 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.50 459.32 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 458.42 Td (8.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 458.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 458.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 458.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 458.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 443.42 Td (Pretax income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.50 443.32 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 443.42 Td (407.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.80 443.47 Td (\(173.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.80 443.47 Td (\(272.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 443.47 Td (\(585.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.80 443.47 Td (\(936.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 443.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 428.42 Td (Income tax \(benefit\) provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.50 428.32 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.80 428.47 Td (\(852.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 428.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.80 428.47 Td (\(31.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 428.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.80 428.47 Td (\(48.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 428.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 428.47 Td (\(138.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 428.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 428.42 Td (481.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 414.32 Td (Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.50 414.32 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 413.42 Td (1,259.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.80 413.47 Td (\(141.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 413.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.80 413.47 Td (\(224.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 413.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 413.47 Td (\(446.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 413.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.30 413.47 Td (\(1,418.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 413.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 398.42 Td (\(Loss\) income from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.50 398.32 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.80 398.47 Td (\(300.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 398.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.80 398.47 Td (\(55.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 398.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.80 398.47 Td (\(227.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 398.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 398.42 Td (748.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.80 398.47 Td (\(387.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 398.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 384.32 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.50 384.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 383.42 Td (959.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.80 383.47 Td (\(197.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 383.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.80 383.47 Td (\(451.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 383.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 383.42 Td (302.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.30 383.47 Td (\(1,805.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 383.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 369.32 Td (Diluted net income \(loss\) per share from continuing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 359.32 Td (operations \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 359.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 358.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 358.42 Td (5.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 358.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.80 358.47 Td (\(0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 358.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 358.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.80 358.47 Td (\(1.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 358.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 358.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.80 358.47 Td (\(3.38) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 358.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 358.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.80 358.47 Td (\(12.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 358.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 344.32 Td (Diluted net income \(loss\) per share \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.50 344.32 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 343.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 343.42 Td (4.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 343.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.80 343.47 Td (\(1.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 343.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 343.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.80 343.47 Td (\(3.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 343.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 343.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 343.42 Td (2.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 343.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.80 343.47 Td (\(15.74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 343.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 329.32 Td (Cash dividends declared per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.50 329.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 328.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 328.42 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 328.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 328.42 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 328.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 328.42 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 328.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 328.42 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 328.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 328.42 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 314.32 Td (Average shares outstanding-diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.50 314.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 313.42 Td (233.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 313.42 Td (166.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 313.42 Td (132.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 313.42 Td (132.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 313.42 Td (114.7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.00 286.48 Td (Consolidated Balance Sheets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 271.32 Td (Total investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.50 271.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 270.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 270.42 Td (3,629.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 270.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.60 270.42 Td (3,361.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 270.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.60 270.42 Td (3,417.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 270.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.60 270.42 Td (3,678.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 270.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.60 270.42 Td (4,535.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 256.32 Td (Total assets held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.50 256.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 255.42 Td (1,736.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.60 255.42 Td (1,768.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.60 255.42 Td (1,965.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.60 255.42 Td (2,403.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.60 255.42 Td (2,394.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 241.32 Td (Total assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 241.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 240.42 Td (6,860.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.60 240.42 Td (5,621.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.60 240.42 Td (5,903.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.60 240.42 Td (6,656.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.60 240.42 Td (7,620.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 226.32 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.50 226.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 225.42 Td (644.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 225.42 Td (567.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 225.42 Td (382.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 225.42 Td (233.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 225.42 Td (197.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 211.32 Td (ReserveforlossesandLAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.50 211.32 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 210.42 Td (1,560.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.60 210.42 Td (2,164.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.60 210.42 Td (3,083.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.60 210.42 Td (3,247.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.60 210.42 Td (3,525.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 196.32 Td (Long-term debt and other borrowings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.50 196.32 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 195.42 Td (1,209.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 195.42 Td (930.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 195.42 Td (663.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 195.42 Td (818.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 195.42 Td (964.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 181.32 Td (Liabilities held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.50 181.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 180.42 Td (947.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 180.42 Td (642.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 180.42 Td (722.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 180.42 Td (851.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.60 180.42 Td (1,714.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 166.32 Td (Stockholders equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.50 166.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.60 165.42 Td (2,097.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 165.42 Td (939.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 165.42 Td (736.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.60 165.42 Td (1,182.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 165.42 Td (859.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 151.32 Td (Book value per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.50 151.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 150.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.15 150.42 Td (10.98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 150.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 150.42 Td (5.43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 150.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 150.42 Td (5.51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 150.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 150.42 Td (8.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 150.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 150.42 Td (6.46) Tj ET Q endstream endobj 145 0 obj <> endobj 146 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (72) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287.5 716.5 m 337.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 716.5 m 391.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 716.5 m 445.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449.5 716.5 m 499.5 716.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503.5 716.5 m 553.5 716.5 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 60 719.480078125 m 235.109375 719.480078125 l s q 0 0 0 rg BT 60.00 720.73 Td (\($ in millions, except per-share amounts and ratios\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 304.00 720.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.00 720.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 412.00 720.73 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.20 720.73 Td (2011) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 720.73 Td (2010) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.00 707.23 Td (Consolidated Statements of Operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.00 692.23 Td (Selected RatiosMortgage Insurance \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 677.07 Td (Loss ratio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 677.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 676.17 Td (29.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 676.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 676.17 Td (72.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 676.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 676.17 Td (131.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 676.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 676.17 Td (189.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 676.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.15 676.17 Td (232.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 676.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 662.07 Td (Expense ratio - NPE basis) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.50 662.07 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 661.17 Td (29.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 661.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 661.17 Td (36.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 661.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 661.17 Td (28.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 661.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 661.17 Td (26.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 661.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 661.17 Td (26.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 661.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 647.07 Td (Expense ratio - NPW basis) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.50 647.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 646.17 Td (27.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 646.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 646.17 Td (30.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 646.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 646.17 Td (25.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 646.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 646.17 Td (25.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 646.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 646.17 Td (27.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 646.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 631.17 Td (Risk-to-capital-Radian Guaranty only) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.50 631.07 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 631.17 Td (17.9:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.70 631.17 Td (19.5:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.70 631.17 Td (20.8:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.70 631.17 Td (21.5:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.70 631.17 Td (16.8:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 617.07 Td (Risk-to-capital-Mortgage Insurance combined) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.50 617.07 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 616.17 Td (20.3:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.70 616.17 Td (24.0:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.70 616.17 Td (29.9:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.70 616.17 Td (30.9:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.70 616.17 Td (19.7:1) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 60.00 602.23 Td (Other DataMortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 587.07 Td (Primary NIW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 587.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 586.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.10 586.17 Td (37,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.00 586.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.10 586.17 Td (47,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 586.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.10 586.17 Td (37,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.00 586.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.10 586.17 Td (15,510) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.00 586.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.10 586.17 Td (11,558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 572.07 Td (Direct primary insurance in force) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 572.07 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.10 571.17 Td (171,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.10 571.17 Td (161,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.10 571.17 Td (140,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.10 571.17 Td (126,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.10 571.17 Td (129,566) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 557.07 Td (Direct primary risk in force) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.50 557.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.10 556.17 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.10 556.17 Td (40,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.10 556.17 Td (34,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.10 556.17 Td (30,692) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.10 556.17 Td (31,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.00 542.07 Td (Persistency \(12 months ended\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.50 542.07 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.15 541.17 Td (83.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 541.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.15 541.17 Td (81.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 541.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 541.17 Td (81.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 541.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 541.17 Td (85.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 541.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.15 541.17 Td (81.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.65 541.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.00 Td (________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.00 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 513.00 Td (Diluted net \(loss\) income per share and average share information in accordance with the accounting standard regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 501.00 Td (earnings per share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.00 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 489.00 Td (Calculated using amounts determined under GAAP) Tj ET Q q 0 0 0 rg BT 276.68 489.00 Td (, using provision for losses to calculate the loss ratio and policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 477.00 Td (acquisition costs and other operating expenses to calculate the expense ratio as a percentage of net premiums earned and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 465.00 Td (net premiums written. Expense ratios include amounts that have been reallocated to the mortgage insurance segment that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 453.00 Td (were previously allocated to the financial guaranty segment, but were not reclassified to discontinued operations.) Tj ET Q endstream endobj 147 0 obj <> endobj 148 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (73) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item 7. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 731.25 Td (Management) Tj ET Q q 0 0 0 rg BT 162.56 731.25 Td (s Discussion and ) Tj ET Q q 0 0 0 rg BT 234.54 731.25 Td (Analysis of Financial Condition and Results of Operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (The following analysis of our financial condition and results of operations should be read in conjunction with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (Consolidated Financial Statements and Notes thereto included in Item8 and the Risk Factors detailed in Item1A) Tj ET Q q 0 0 0 rg BT 500.79 702.25 Td ( of this ) Tj ET Q q 0 0 0 rg BT 530.52 702.25 Td (Annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (Report on Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 640.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 640.25 Td (e provide mortgage insurance on First-liens and products and services to the mortgage and real estate industries. ) Tj ET Q q 0 0 0 rg BT 532.93 640.25 Td (W) Tj ET Q q 0 0 0 rg BT 541.57 640.25 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.25 Td (currently have two business segmentsmortgage insurance and MRES. Our mortgage insurance segment provides credit-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.25 Td (related insurance coverage, principally through private mortgage insurance, to mortgage lending institutions. ) Tj ET Q q 0 0 0 rg BT 486.68 616.25 Td (W) Tj ET Q q 0 0 0 rg BT 495.32 616.25 Td (e conduct our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (mortgage insurance business primarily through Radian Guaranty) Tj ET Q q 0 0 0 rg BT 307.67 604.25 Td (, our principal mortgage insurance subsidiary) Tj ET Q q 0 0 0 rg BT 488.08 604.25 Td (. Our MRES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.25 Td (segment provides services and solutions to the mortgage and real estate industries primarily through Clayton, which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (acquired on June 30, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.25 580.25 Td ( See Recent Developments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 279.16 580.25 Td (Acquisition of Clayton) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 580.25 Td ( below for more information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 563.25 Td (Operating Envir) Tj ET Q q 0 0 0 rg BT 138.95 563.25 Td (onment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.89 563.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.34 563.25 Td (As a seller of mortgage credit protection and mortgage and real estate products and services, our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (results are subject to macroeconomic conditions and specific events that impact the mortgage origination environment and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (credit performance of our underlying insured assets. ) Tj ET Q q 0 0 0 rg BT 260.36 539.25 Td (The financial crisis and the downturn in the housing and related credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (markets that began in 2007 had a significant negative impact on the operating environment and results of operations for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.25 Td (businesses. More recently) Tj ET Q q 0 0 0 rg BT 152.43 515.25 Td (, the operating environment has improved as the U.S. economy and housing market have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 503.25 Td (recovering, evidenced by a reduction in unemployment, a reduction in foreclosures, and appreciation in home prices. ) Tj ET Q q 0 0 0 rg BT 519.15 503.25 Td (W) Tj ET Q q 0 0 0 rg BT 527.79 503.25 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.25 Td (written a significant amount of NIW) Tj ET Q q 0 0 0 rg BT 195.11 491.25 Td ( in this improving environment, which has resulted in our Legacy Portfolio becoming a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.25 Td (smaller proportion of our total mortgage insurance portfolio. Further) Tj ET Q q 0 0 0 rg BT 323.20 479.25 Td (, the improving environment has contributed to a reduction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.25 Td (in our incurred losses and claims submitted and paid in our mortgage insurance business, with new primary mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.25 Td (defaults declining by 18% in 2014 compared to the number of new defaults in 2013.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 438.25 Td (The credit performance of post-crisis loan originations also has improved significantly) Tj ET Q q 0 0 0 rg BT 418.87 438.25 Td (. In response to the financial crisis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (including the adoption of new lending laws and regulations, credit for home financing has remained restrictive, and post-2008 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (loan originations have consisted primarily of high credit quality loans.) Tj ET Q q 0 0 0 rg BT 332.50 414.25 Td (At the same time, this restrictive credit environment has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.25 Td (limited the growth of the mortgage industry and made it more challenging for many first-time home buyers to finance a home.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 385.25 Td (The improvement in macroeconomic and credit trends has encouraged new entrants into the private mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.25 Td (industry) Tj ET Q q 0 0 0 rg BT 81.63 373.25 Td (, while improving the financial strength of existing private mortgage insurers.) Tj ET Q q 0 0 0 rg BT 394.43 373.25 Td (This has resulted in an increasingly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.25 Td (competitive environment for private mortgage insurers. See Part I. Item 1. BusinessCompetition. During the past several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.25 Td (years, we have been focused on managing our businesses through the negative ef) Tj ET Q q 0 0 0 rg BT 373.38 349.25 Td (fects of the financial crisis while at the same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.25 Td (time pursuing a number of strategic initiatives designed to strengthen and grow our mortgage insurance franchise to capitalize ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.25 Td (on improving trends. In particular) Tj ET Q q 0 0 0 rg BT 184.34 325.25 Td (, following the crisis, we expanded and diversified our customer base, wrote a significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.25 Td (amount of post-2008, high-quality NIW) Tj ET Q q 0 0 0 rg BT 209.02 313.25 Td ( and pursued a reduction of our Legacy Portfolio through loss mitigation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.25 Td (settlements. ) Tj ET Q q 0 0 0 rg BT 98.94 301.25 Td (As of December 31, 2014, our Legacy Portfolio had been reduced to approximately 31% of our total primary RIF) Tj ET Q q 0 0 0 rg BT 552.45 301.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.25 Td (while insurance on loans written after 2008 constituted approximately 69% of our total primary RIF) Tj ET Q q 0 0 0 rg BT 448.60 289.25 Td (. During this period of time, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.25 Td (as the negative impact from losses in our Legacy Portfolio has been reduced and we have continued to write a high volume of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.25 Td (insurance on high credit quality loans, our results of operations have improved. ) Tj ET Q q 0 0 0 rg BT 368.68 265.25 Td (This improvement continued in 2014 and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (returned to full year profitability for the first time since the financial crisis.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 236.25 Td (Business Strategy) Tj ET Q q 0 0 0 rg BT 143.77 236.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.27 236.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.77 236.25 Td (Currently) Tj ET Q q 0 0 0 rg BT 186.45 236.25 Td (, our business strategy is focused on: \(1\) growing our mortgage insurance business by writing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.25 Td (insurance on high-quality mortgages in the U.S.; \(2\) diversifying our revenue sources by pursuing other potential opportunities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (for providing credit-related and other services to the mortgage finance market; \(3\) growing our fee-based revenues as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.25 Td (percentage of Radian) Tj ET Q q 0 0 0 rg BT 137.23 200.25 Td (s total revenues, primarily by expanding Clayton) Tj ET Q q 0 0 0 rg BT 335.25 200.25 Td (s presence in the real estate and mortgage finance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (industries; \(4\) continuing to manage losses and reduce our legacy exposure; \(5\) continuing to ef) Tj ET Q q 0 0 0 rg BT 432.55 188.25 Td (fectively manage our capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (and liquidity positions, including ef) Tj ET Q q 0 0 0 rg BT 191.81 176.25 Td (forts to ensure compliance with the PMIERs Financial Requirements and with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (regulatory requirements, as well as strengthening our balance sheet with the objective of regaining investment grade credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (ratings in the future. See Note 1 of Notes to Consolidated Financial Statements for information regarding the new) Tj ET Q q 0 0 0 rg BT 503.19 152.25 Td (, proposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (GSE eligibility requirements that were issued in the form of proposed PMIERs for public comment on July 10, 2014.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 149 0 obj <> endobj 150 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (74) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Recent Developments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 714.25 Td (Acquisition of Clayton) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 697.25 Td (On June 30, 2014, we acquired Clayton, which is a leading provider of services and solutions to the mortgage and real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 685.25 Td (estate industries, providing outsourced services, information-based analytics and specialty consulting for buyers and sellers of, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 673.25 Td (and investors in, mortgage- and real estate-related loans and securities and other debt instruments. Clayton) Tj ET Q q 0 0 0 rg BT 478.26 673.25 Td (s primary services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 661.25 Td (include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 644.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 644.25 Td (Loan Review/Due DiligenceLoan-level due diligence for various asset classes and securitizations, with a primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 632.25 Td (focus on the mortgage and RMBS markets, utilizing skilled professionals and proprietary technology) Tj ET Q q 0 0 0 rg BT 488.94 632.25 Td (, with of) Tj ET Q q 0 0 0 rg BT 522.37 632.25 Td (ferings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 620.25 Td (focused on credit underwriting, regulatory compliance and collateral valuation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 603.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 603.25 Td (SurveillanceThird-party performance oversight, risk management and consulting services, with of) Tj ET Q q 0 0 0 rg BT 487.14 603.25 Td (ferings focused on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 591.25 Td (RMBS surveillance, loan servicer oversight, loan-level servicing compliance reviews and operational reviews of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 579.25 Td (mortgage servicers and originators;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 562.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 562.25 Td (Component ServicesOutsourced solutions of) Tj ET Q q 0 0 0 rg BT 273.91 562.25 Td (fered through Clayton) Tj ET Q q 0 0 0 rg BT 365.00 562.25 Td (s subsidiary) Tj ET Q q 0 0 0 rg BT 411.85 562.25 Td (, Green River Capital, focused on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 550.25 Td (single family rental market, including valuations, property inspections, title reviews, lease reviews, tax lien reviews ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 538.25 Td (and due diligence reviews for single family rental properties; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 521.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 521.25 Td (REO ManagementREO asset management services of) Tj ET Q q 0 0 0 rg BT 311.09 521.25 Td (fered through Clayton) Tj ET Q q 0 0 0 rg BT 402.17 521.25 Td (s subsidiary) Tj ET Q q 0 0 0 rg BT 449.03 521.25 Td (, Green River Capital, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 509.25 Td (which includes management of the entire REO disposition process for our clients; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 492.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 492.25 Td (EuroRiskOutsourced mortgage services in the United Kingdom and Europe, with of) Tj ET Q q 0 0 0 rg BT 431.08 492.25 Td (ferings that include due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 480.25 Td (diligence services, quality control reviews, valuation reviews and consulting services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 463.25 Td (Clayton) Tj ET Q q 0 0 0 rg BT 107.94 463.25 Td (s customers include a wide range of financial institutions, the GSEs, securitization trusts, investors, regulators ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.25 Td (and other mortgage-related service providers, including mortgage originators, mortgage purchasers, mortgage-backed securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.25 Td (issuers, mortgage-backed securities investors and mortgage servicers.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 422.25 Td (The results of Clayton) Tj ET Q q 0 0 0 rg BT 165.43 422.25 Td (s operations have been included in our financial statements in the MRES segment from the June ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (30, 2014 date of acquisition. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 393.25 Td (BofA) Tj ET Q q 0 0 0 rg BT 82.81 393.25 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 129.28 393.25 Td (Agr) Tj ET Q q 0 0 0 rg BT 143.91 393.25 Td (eement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 376.25 Td (On September 16, 2014, Radian Guaranty entered into the BofA) Tj ET Q q 0 0 0 rg BT 328.88 376.25 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 376.10 376.25 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 425.34 376.25 Td (The consent of the GSEs required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.25 Td (to implement the BofA) Tj ET Q q 0 0 0 rg BT 141.43 364.25 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 188.65 364.25 Td (Agreement was received in December 2014, and implementation of the agreement for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.25 Td (Subject Loans owned by the GSEs or held in portfolio by the Insureds commenced on February 1, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 335.25 Td (Approximately 12% of the Subject Loans were neither held in portfolio by the Insureds nor owned by the GSEs, and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.25 Td (require the consent of certain other investors for these loans to be included in the BofA) Tj ET Q q 0 0 0 rg BT 396.90 323.25 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 444.11 323.25 Td (Agreement except with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.25 Td (respect to certain limited rights of cancellation. See Note 10 of Notes to Consolidated Financial Statements for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.25 Td (information about the BofA) Tj ET Q q 0 0 0 rg BT 160.32 299.25 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 207.53 299.25 Td (Agreement.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 282.25 Td (Other Recent Developments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 265.25 Td (In light of the proposed PMIERs, which, in their current form, would not provide Radian Guaranty with any credit for its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.25 Td (investment in Radian ) Tj ET Q q 0 0 0 rg BT 136.43 253.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 160.60 253.25 Td (Assurance, we pursued alternatives to monetize Radian ) Tj ET Q q 0 0 0 rg BT 383.87 253.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 408.04 253.25 Td (Assurance. In July 2014, upon receipt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.25 Td (of approval from the NYSDFS, Radian ) Tj ET Q q 0 0 0 rg BT 208.09 241.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 232.26 241.25 Td (Assurance declared and paid an Extraordinary Dividend of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.95 241.25 Td ($150 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.34 241.25 Td ( to Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.25 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 86.06 229.25 Td (. See Note 14 of Notes to Consolidated Financial Statements for information regarding the impact of the Extraordinary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.25 Td (Dividend on Radian ) Tj ET Q q 0 0 0 rg BT 131.99 217.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 156.16 217.25 Td (Assurance) Tj ET Q q 0 0 0 rg BT 200.59 217.25 Td (s claims paying resources and statutory capital.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 200.25 Td (On December 22, 2014, Radian Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 337.31 200.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 361.48 200.25 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 468.95 200.25 Td (Agreement to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.25 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 188.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 188.25 Td (Assurance, our principal financial guaranty subsidiary) Tj ET Q q 0 0 0 rg BT 319.89 188.25 Td (, to ) Tj ET Q q 0 0 0 rg BT 334.62 188.25 Td (Assured, for a purchase price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.10 188.25 Td ($810 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 176.25 Td (, subject to certain adjustments. ) Tj ET Q q 0 0 0 rg BT 206.79 176.25 Td (The divestiture is part of Radian) Tj ET Q q 0 0 0 rg BT 338.70 176.25 Td (s strategy to focus its business toward the mortgage and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.25 Td (real estate markets and to accelerate its ability to comply with the proposed PMIERs. ) Tj ET Q q 0 0 0 rg BT 392.28 164.25 Td (The consummation of the transaction is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.25 Td (expected to increase Radian Guaranty) Tj ET Q q 0 0 0 rg BT 203.88 152.25 Td (s ) Tj ET Q q 0 0 0 rg BT 209.71 152.25 Td (A) Tj ET Q q 0 0 0 rg BT 216.19 152.25 Td (vailable ) Tj ET Q q 0 0 0 rg BT 249.79 152.25 Td (Assets by the net cash proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.73 152.25 Td ($790 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.13 152.25 Td (, after closing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (costs and other adjustments. ) Tj ET Q q 0 0 0 rg BT 164.58 140.25 Td (The purchase price is payable in cash on the closing date. Radian expects to complete the sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.25 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 128.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 128.25 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 157.82 128.25 Td (Assured in the first half of 2015, subject to satisfaction of customary closing conditions including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (regulatory approvals. For additional information related to discontinued operations, see Note 3 of Notes to Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.25 Td (Financial Statements.) Tj ET Q endstream endobj 151 0 obj <> endobj 152 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 731.10 Td (e continue to explore additional alternatives, including commutations and external reinsurance, in order to accelerate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (compliance with the final form of the PMIERs. See Note 1 of Notes to Consolidated Financial Statements for information on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (the PMIERs.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Key Factors ) Tj ET Q q 0 0 0 rg BT 103.37 686.10 Td (Affecting Our) Tj ET Q q 0 0 0 rg BT 162.90 686.10 Td ( Results) Tj ET Q BT /F4 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 72 663.53505859375 m 156.736328125 663.53505859375 l s q 0 0 0 rg BT 72.00 665.10 Td (Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 648.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 648.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 102.91 648.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.41 648.10 Td ( NIW) Tj ET Q q 0 0 0 rg BT 130.22 648.10 Td ( is af) Tj ET Q q 0 0 0 rg BT 149.48 648.10 Td (fected by the overall size of the mortgage origination market, the penetration percentage of private ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 636.10 Td (mortgage insurance into the overall mortgage origination market and our market share of the private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 624.10 Td (insurance market. ) Tj ET Q q 0 0 0 rg BT 158.90 624.10 Td (The overall mortgage origination market is influenced by macroeconomic factors such as household ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 612.10 Td (composition, home af) Tj ET Q q 0 0 0 rg BT 172.25 612.10 Td (fordability) Tj ET Q q 0 0 0 rg BT 213.81 612.10 Td (, interest rates, housing markets in general, credit availability and the impact of various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 600.10 Td (legislative and regulatory actions that may influence the housing and mortgage finance industries. ) Tj ET Q q 0 0 0 rg BT 479.09 600.10 Td (The penetration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 588.10 Td (percentage of private mortgage insurance is mainly influenced by the competitiveness of private mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 576.10 Td (on GSE conforming loans compared to FHA) Tj ET Q q 0 0 0 rg BT 263.81 576.10 Td ( insurance, and the relative percentage of mortgage originations that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 564.10 Td (for purchased homes versus refinances. ) Tj ET Q q 0 0 0 rg BT 245.26 564.10 Td (T) Tj ET Q q 0 0 0 rg BT 250.67 564.10 Td (ypically) Tj ET Q q 0 0 0 rg BT 282.23 564.10 Td (, private mortgage insurance penetration is significantly higher on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 552.10 Td (new mortgages for purchased homes than on the refinance of existing mortgages because average L) Tj ET Q q 0 0 0 rg BT 483.32 552.10 Td (TV) Tj ET Q q 0 0 0 rg BT 496.47 552.10 Td ( ratios are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 540.10 Td (higher on home purchases and therefore are more likely to require mortgage insurance. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 506.73 540.10 Td (s share of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 528.10 Td (private mortgage insurance market is influenced by competition in that market and our ability to maintain or grow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 516.10 Td (existing levels of new mortgage originations from our current customers and expand our customer base. ) Tj ET Q q 0 0 0 rg BT 503.54 516.10 Td (W) Tj ET Q q 0 0 0 rg BT 512.17 516.10 Td (e compete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 504.10 Td (with other private mortgage insurers on the basis of price, terms and conditions, customer relationships, reputation, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 492.10 Td (perceived ability to comply with applicable capital and other financial strength requirements and overall service. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 480.10 Td (Service-based competition includes ef) Tj ET Q q 0 0 0 rg BT 237.77 480.10 Td (fective and timely delivery of products, timeliness of claims payments, training, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 468.10 Td (loss mitigation ef) Tj ET Q q 0 0 0 rg BT 154.76 468.10 Td (forts and management and field service expertise.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 451.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 451.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 95.13 451.10 Td (emiums. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.68 451.10 Td ( ) Tj ET Q q 0 0 0 rg BT 133.00 451.10 Td (The premium rates we char) Tj ET Q q 0 0 0 rg BT 242.21 451.10 Td (ge for our insurance are based on a number of borrower) Tj ET Q q 0 0 0 rg BT 464.50 451.10 Td (, loan and property ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 439.10 Td (characteristics. Premiums on our mortgage insurance products are paid as a Monthly Premium, a Single Premium, as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 427.10 Td (combination of up-front premium at origination plus a monthly renewal, or in some cases, as an annual or multi-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 415.10 Td (premium.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 398.10 Td (NIW) Tj ET Q q 0 0 0 rg BT 105.31 398.10 Td ( increases our IIF and premiums written and earned. ) Tj ET Q q 0 0 0 rg BT 315.80 398.10 Td (An increase or decrease in IIF will generally have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 386.10 Td (corresponding impact on premiums earned. Cancellations of our insurance policies and other reductions of IIF) Tj ET Q q 0 0 0 rg BT 525.96 386.10 Td (, such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 374.10 Td (rescissions of coverage and claims paid, generally have a negative ef) Tj ET Q q 0 0 0 rg BT 360.48 374.10 Td (fect on premiums earned. ) Tj ET Q q 0 0 0 rg BT 464.43 374.10 Td (The measure for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 362.10 Td (assessing the impact of policy cancellations on our IIF is our Persistency Rate, defined as the percentage of IIF that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 350.10 Td (remains on our books after any 12-month period. Insurance premiums on our Monthly Premium insurance policies are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 338.10 Td (paid and earned over time; therefore, higher Persistency Rates on Monthly Premium insurance policies enable us to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 326.10 Td (earn more premiums and recover some or all of our policy acquisition costs, and generally result in increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 314.10 Td (profitability) Tj ET Q q 0 0 0 rg BT 132.62 314.10 Td (. ) Tj ET Q q 0 0 0 rg BT 137.44 314.10 Td (When Single Premium policies are cancelled by the insured because the loan has been paid of) Tj ET Q q 0 0 0 rg BT 512.40 314.10 Td (f or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 302.10 Td (otherwise, we accelerate the recognition of any remaining unearned premiums. ) Tj ET Q q 0 0 0 rg BT 403.52 302.10 Td (Therefore, assuming all other factors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 290.10 Td (remain constant, profitability increases on our Single Premium business when Persistency Rates are lower) Tj ET Q q 0 0 0 rg BT 509.29 290.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 278.10 Td (Rescissions, which are discussed in further detail below) Tj ET Q q 0 0 0 rg BT 308.13 278.10 Td (, result in a full refund of the inception-to-date premiums ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 266.10 Td (received, and therefore, premiums earned are af) Tj ET Q q 0 0 0 rg BT 276.32 266.10 Td (fected by any changes in our accrual for estimated rescission refunds. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 254.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 135.40 254.10 Td (, premiums ceded to third-party reinsurance counterparties decrease premiums written and earned.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 237.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 237.10 Td (Losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.17 237.10 Td (. Incurred losses represent the estimated future claim payments on newly defaulted insured loans as well as any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 225.10 Td (change in our claim estimates for previously existing defaults. Our mortgage insurance incurred losses are driven ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 213.10 Td (primarily by new defaults and changes in the estimates we use to determine our losses, including estimates with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 201.10 Td (respect to the likelihood, magnitude and timing of anticipated losses, and our estimate of the rate at which we expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 189.10 Td (defaults will ultimately result in paid claims. Other factors influencing incurred losses include:) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 11.00 103.50 170.69 cm /I24 Do Q q 0 0 0 rg BT 121.50 172.10 Td (The ) Tj ET Q q 0 0 0 rg BT 139.55 172.10 Td (product ) Tj ET Q q 0 0 0 rg BT 172.59 172.10 Td (mix ) Tj ET Q q 0 0 0 rg BT 190.65 172.10 Td (of ) Tj ET Q q 0 0 0 rg BT 201.48 172.10 Td (our ) Tj ET Q q 0 0 0 rg BT 217.31 172.10 Td (total ) Tj ET Q q 0 0 0 rg BT 237.58 172.10 Td (direct ) Tj ET Q q 0 0 0 rg BT 262.85 172.10 Td (RIF ) Tj ET Q q 0 0 0 rg BT 280.91 172.10 Td (\(loans ) Tj ET Q q 0 0 0 rg BT 307.85 172.10 Td (with ) Tj ET Q q 0 0 0 rg BT 328.13 172.10 Td (higher ) Tj ET Q q 0 0 0 rg BT 356.17 172.10 Td (risk ) Tj ET Q q 0 0 0 rg BT 373.67 172.10 Td (characteristics ) Tj ET Q q 0 0 0 rg BT 433.36 172.10 Td (generally ) Tj ET Q q 0 0 0 rg BT 473.06 172.10 Td (result ) Tj ET Q q 0 0 0 rg BT 497.78 172.10 Td (in ) Tj ET Q q 0 0 0 rg BT 508.06 172.10 Td (more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 160.10 Td (delinquencies and claims\);) Tj ET Q BT /F1 10.00 Tf ET /GS0 gs q 18.00 0 0 11.00 103.50 141.69 cm /I25 Do Q q 0 0 0 rg BT 121.50 143.10 Td (The ) Tj ET Q q 0 0 0 rg BT 139.55 143.10 Td (average ) Tj ET Q q 0 0 0 rg BT 173.13 143.10 Td (loan ) Tj ET Q q 0 0 0 rg BT 192.85 143.10 Td (size ) Tj ET Q q 0 0 0 rg BT 210.89 143.10 Td (\(higher ) Tj ET Q q 0 0 0 rg BT 242.27 143.10 Td (average ) Tj ET Q q 0 0 0 rg BT 275.86 143.10 Td (loan ) Tj ET Q q 0 0 0 rg BT 295.57 143.10 Td (amounts ) Tj ET Q q 0 0 0 rg BT 331.96 143.10 Td (generally ) Tj ET Q q 0 0 0 rg BT 371.66 143.10 Td (result ) Tj ET Q q 0 0 0 rg BT 396.38 143.10 Td (in ) Tj ET Q q 0 0 0 rg BT 406.66 143.10 Td (higher ) Tj ET Q q 0 0 0 rg BT 434.70 143.10 Td (incurred ) Tj ET Q q 0 0 0 rg BT 470.52 143.10 Td (losses\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 126.10 Td (- ) Tj ET Q q 0 0 0 rg BT 121.50 126.10 Td (The percentage of coverage on insured loans \(higher percentages of insurance coverage generally result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 114.10 Td (higher incurred losses\) and the presence of structural mitigants such as deductibles or stop losses;) Tj ET Q endstream endobj 153 0 obj <> endobj 154 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (76) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 731.10 Td (- ) Tj ET Q q 0 0 0 rg BT 121.50 731.10 Td (Changes in housing values \(declines in housing values negatively impact our ability to mitigate our losses by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 719.10 Td (either paying the full claim amount and acquiring the property for resale or facilitating a sale of the property) Tj ET Q q 0 0 0 rg BT 553.47 719.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 707.10 Td (and also may negatively af) Tj ET Q q 0 0 0 rg BT 228.50 707.10 Td (fect a borrower) Tj ET Q q 0 0 0 rg BT 289.95 707.10 Td () Tj ET Q q 0 0 0 rg BT 292.73 707.10 Td (s willingness to continue to make mortgage payments when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 695.10 Td (home value is less than the mortgage balance\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 678.10 Td (- ) Tj ET Q q 0 0 0 rg BT 121.50 678.10 Td (The distribution of claims over the life cycle of a portfolio \(historically) Tj ET Q q 0 0 0 rg BT 404.93 678.10 Td (, claims are relatively low during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 666.10 Td (first two years after a loan is originated and then increase substantially over a period of several years before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 654.10 Td (declining; however) Tj ET Q q 0 0 0 rg BT 198.02 654.10 Td (, as happened with much of our Legacy Portfolio, several factors can impact and change ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 642.10 Td (this cycle, including the economic environment, the quality of the underwriting of the loan, characteristics of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 630.10 Td (the mortgage loan, the credit profile of the borrower) Tj ET Q q 0 0 0 rg BT 329.63 630.10 Td (, housing prices and unemployment rates\);) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 613.10 Td (- ) Tj ET Q q 0 0 0 rg BT 121.50 613.10 Td (Our ability to mitigate potential losses through rescissions, denials, cancellations and the curtailment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 601.10 Td (claims submitted to us. Generally) Tj ET Q q 0 0 0 rg BT 254.99 601.10 Td (, we rescind insurance coverage when we conclude, through our review of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 589.10 Td (the underwriting of a loan, that the loan was not originated in accordance with our underwriting guidelines. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 577.10 Td (Generally) Tj ET Q q 0 0 0 rg BT 160.27 577.10 Td (, we deny claims when the documentation we receive is not suf) Tj ET Q q 0 0 0 rg BT 412.79 577.10 Td (ficient to perfect the claim in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 565.10 Td (accordance with our Master Policies. In addition, we may cancel coverage or curtail claim payments when we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 553.10 Td (identify servicer negligence, or we may curtail claims by making other adjustments to claims as permitted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 541.10 Td (our Master Policies. ) Tj ET Q q 0 0 0 rg BT 204.08 541.10 Td (These actions all reduce our incurred losses. Conversely) Tj ET Q q 0 0 0 rg BT 428.36 541.10 Td (, if our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 523.36 541.10 Td (Activities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 529.10 Td (are successfully challenged at rates that are higher than expected or we agree to settle disputes related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 517.10 Td (Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 187.06 517.10 Td (Activities at levels above our expected losses, our incurred losses will increase. In general, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 505.10 Td (our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 202.89 505.10 Td (Activities have been more frequent with respect to our insured loans underwritten during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 493.10 Td (the poor underwriting years of 2005 through 2008, but have recently declined as these defaults have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 481.10 Td (decreased and lenders have increased ef) Tj ET Q q 0 0 0 rg BT 280.95 481.10 Td (forts to satisfy documentation requirements; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 464.10 Td (- ) Tj ET Q q 0 0 0 rg BT 121.50 464.10 Td (The Freddie Mac ) Tj ET Q q 0 0 0 rg BT 192.31 464.10 Td (Agreement established certain terms for the treatment of the loans subject to that agreement, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 452.10 Td (including claim payments, Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 295.37 452.10 Td (Activity and insurance coverage, and capped Radian Guaranty) Tj ET Q q 0 0 0 rg BT 548.05 452.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 440.10 Td (claim exposure on such loans. See Note 10 of Notes to Consolidated Financial Statements for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 428.10 Td (information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 411.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 411.10 Td (Other Operating Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.15 411.10 Td (. Our other operating expenses are af) Tj ET Q q 0 0 0 rg BT 341.90 411.10 Td (fected by both the level of NIW) Tj ET Q q 0 0 0 rg BT 468.16 411.10 Td (, as well as the level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 399.10 Td (RIF) Tj ET Q q 0 0 0 rg BT 100.26 399.10 Td (. ) Tj ET Q q 0 0 0 rg BT 104.71 399.10 Td (Additionally) Tj ET Q q 0 0 0 rg BT 154.61 399.10 Td (, in recent periods, our operating expenses have been impacted significantly by compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 387.10 Td (expense associated with changes in the estimated fair value of certain of our long-term equity-based incentive awards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 375.10 Td (that are settled in cash. ) Tj ET Q q 0 0 0 rg BT 179.17 375.10 Td (The fair value of these awards, and associated compensation expense, is dependent, in lar) Tj ET Q q 0 0 0 rg BT 536.64 375.10 Td (ge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 363.10 Td (part, on our stock price at any given point in time. Certain corporate income and expenses that were previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 351.10 Td (allocated to the financial guaranty segment but were not reclassified to discontinued operations, such as investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 339.10 Td (income, interest expense and corporate overhead expenses, have been reallocated to the mortgage insurance segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 322.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 322.10 Td (Thir) Tj ET Q q 0 0 0 rg BT 102.36 322.10 Td (d-Party Reinsurance. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.89 322.10 Td (W) Tj ET Q q 0 0 0 rg BT 201.53 322.10 Td (e use third-party reinsurance in our mortgage insurance business to manage capital and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 310.10 Td (risk. ) Tj ET Q q 0 0 0 rg BT 105.32 310.10 Td (When we enter into a reinsurance agreement, the reinsurer receives a premium and, in exchange, agrees to insure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 298.10 Td (an agreed upon portion of incurred losses. ) Tj ET Q q 0 0 0 rg BT 255.83 298.10 Td (This arrangement has the impact of reducing our earned premiums but also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 286.10 Td (reduces our net RIF) Tj ET Q q 0 0 0 rg BT 163.84 286.10 Td (, which provides capital relief to the insurance subsidiary ceding the RIF and reduces our incurred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 274.10 Td (losses by any incurred losses ceded in accordance with the reinsurance agreement. In addition, we often receive ceding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 262.10 Td (commissions from the reinsurer as part of the transaction, which contributes to reducing our overall expenses. In the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 250.10 Td (past, we also had entered into capital markets-based reinsurance transactions designed to transfer all or a portion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 238.10 Td (risk associated with certain higher risk mortgage insurance products. See Note 8 of Notes to Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 226.10 Td (Statements for more information about our reinsurance arrangements.) Tj ET Q BT /F4 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 72 203.53505859375002 m 99.79296875 203.53505859375002 l s q 0 0 0 rg BT 72.00 205.10 Td (MRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 188.10 Td (Our MRES segment provides services and solutions to the mortgage and real estate industries. ) Tj ET Q q 0 0 0 rg BT 461.96 188.10 Td (The MRES segment) Tj ET Q q 0 0 0 rg BT 545.84 188.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 176.10 Td (results primarily reflect the operations and of) Tj ET Q q 0 0 0 rg BT 238.81 176.10 Td (ferings of Clayton from the acquisition date of June 30, 2014, along with other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 164.10 Td (services and activities we of) Tj ET Q q 0 0 0 rg BT 171.05 164.10 Td (fer that are complementary to our mortgage insurance business. In contrast to the mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 152.10 Td (insurance segment, the MRES segment is a fee-for) Tj ET Q q 0 0 0 rg BT 261.02 152.10 Td (-service business without significant balance sheet risk.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 135.10 Td (Key factors impacting results include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 118.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 118.10 Td (Services Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.18 118.10 Td (. Our services revenue is primarily derived from: \(i\) loan review and due diligence services; \(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 106.10 Td (surveillance services, including RMBS surveillance, loan servicer oversight, loan-level servicing compliance reviews ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 94.10 Td (and operational reviews of mortgage servicers and originators; \(iii\) component services providing outsourcing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 82.10 Td (solutions for the single family rental market; and \(iv\) REO asset management services.) Tj ET Q endstream endobj 155 0 obj <> endobj 156 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (77) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 731.10 Td (Potential sales volume in our MRES business depends in part on the overall activity in the mortgage finance market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 719.10 Td (and the health of related industries. ) Tj ET Q q 0 0 0 rg BT 228.33 719.10 Td (W) Tj ET Q q 0 0 0 rg BT 236.96 719.10 Td (e believe the diversity of the services of) Tj ET Q q 0 0 0 rg BT 395.89 719.10 Td (fered by MRES, which is intended to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 707.10 Td (cover all phases of the mortgage value chain, helps us to maintain a more stable fee income throughout various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 695.10 Td (mortgage finance environments. For example, the demand for due diligence services may decrease due to lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 683.10 Td (mortgage origination and securitization volumes in an unfavorable mortgage finance environment, whereas the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 671.10 Td (demand for REO management services may tend to increase in such an environment. In addition, while the size of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 659.10 Td (mortgage finance market may be adversely impacted by increased regulatory requirements, these increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 647.10 Td (requirements may increase the demand for certain of our services, including services related to compliance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 635.10 Td (CFPB mortgage servicing standards and the regulatory requirements for third-party review of loans in asset-backed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 623.10 Td (securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 606.10 Td (Our component services business provides service to the single family rental market, which is an emer) Tj ET Q q 0 0 0 rg BT 495.20 606.10 Td (ging market that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 594.10 Td (experienced rapid growth in 2014. In addition, we believe that the re-emer) Tj ET Q q 0 0 0 rg BT 382.71 594.10 Td (gence of the non-agency residential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 582.10 Td (mortgage-backed securitization market represents a potentially significant growth opportunity for loan review and due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 570.10 Td (diligence and surveillance services. However) Tj ET Q q 0 0 0 rg BT 265.86 570.10 Td (, the size and timing for the return of this market are uncertain and will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 558.10 Td (impacted by factors outside of our control, including market demand and regulation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 541.10 Td (Revenue for the MRES segment) Tj ET Q q 0 0 0 rg BT 217.70 541.10 Td (s products and services is dependent on a limited number of lar) Tj ET Q q 0 0 0 rg BT 469.95 541.10 Td (ge customers that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 529.10 Td (represented a significant portion of revenues. ) Tj ET Q q 0 0 0 rg BT 268.31 529.10 Td (The primary customers include buyers and sellers of, and investors in, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 517.10 Td (mortgage- and real estate-related loans, securities and other debt instruments. Specifically) Tj ET Q q 0 0 0 rg BT 444.16 517.10 Td (, customers include financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 505.10 Td (institutions, the GSEs, securitization trusts, investors, regulators and other mortgage-related service providers, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 493.10 Td (including mortgage originators, mortgage purchasers, mortgage-backed securities issuers, mortgage-backed securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 481.10 Td (investors and mortgage servicers. Revenue for the MRES segment also includes inter) Tj ET Q q 0 0 0 rg BT 426.33 481.10 Td (-segment revenues from services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 469.10 Td (performed for our mortgage insurance segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 452.10 Td (Access to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 197.41 452.10 Td (s mortgage insurance customer base may provide additional opportunities to expand the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 440.10 Td (segment) Tj ET Q q 0 0 0 rg BT 121.60 440.10 Td (s existing customers. However) Tj ET Q q 0 0 0 rg BT 243.96 440.10 Td (, an unexpected loss of a major customer could significantly impact the level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 428.10 Td (services revenue. Generally) Tj ET Q q 0 0 0 rg BT 195.63 428.10 Td (, our contracts do not contain volume commitments and may be terminated by clients at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 416.10 Td (any time.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 399.10 Td (In this segment, we generate revenue under three basic types of contracts:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 382.10 Td (- ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.50 382.10 Td (Fixed-Price Contracts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.70 382.10 Td (Under a fixed-price contract, we agree to perform the specified work for a pre-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 370.10 Td (determined per) Tj ET Q q 0 0 0 rg BT 181.55 370.10 Td (-unit or per) Tj ET Q q 0 0 0 rg BT 226.33 370.10 Td (-file price. ) Tj ET Q q 0 0 0 rg BT 270.29 370.10 Td (T) Tj ET Q q 0 0 0 rg BT 275.70 370.10 Td (o the extent our actual direct and allocated indirect costs decrease or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 358.10 Td (increase from the estimates upon which the price was negotiated, we will generate more or less profit, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 346.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 169.16 346.10 Td (, or could incur a loss. ) Tj ET Q q 0 0 0 rg BT 260.07 346.10 Td (W) Tj ET Q q 0 0 0 rg BT 268.71 346.10 Td (e use fixed-price contracts in our component services and our loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 334.10 Td (review and due diligence services. ) Tj ET Q q 0 0 0 rg BT 261.26 334.10 Td (These contracts are also used in our surveillance business for our servicer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 322.10 Td (oversight services and RMBS surveillance services, as well as in our REO management business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 305.10 Td (- ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.50 305.10 Td (T) Tj ET Q q 0 0 0 rg BT 126.51 305.10 Td (ime-and-Expense Contracts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.37 305.10 Td ( Under a time-and-expense contract, we are paid a fixed hourly rate for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 293.10 Td (direct labor hour expended, and we are reimbursed for billable out-of-pocket expenses as work is performed. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 281.10 Td (T) Tj ET Q q 0 0 0 rg BT 126.91 281.10 Td (o the extent our actual direct labor costs decrease or increase in relation to the fixed hourly billing rates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 269.10 Td (provided in the contract, we may generate more or less profit, respectively) Tj ET Q q 0 0 0 rg BT 418.24 269.10 Td (. However) Tj ET Q q 0 0 0 rg BT 459.49 269.10 Td (, since these contracts are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 257.10 Td (generally short-term in nature, the risk is limited to the periods covered by the contracts. ) Tj ET Q q 0 0 0 rg BT 477.05 257.10 Td (These contracts are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 245.10 Td (used in our loan review & due diligence and EuroRisk services of) Tj ET Q q 0 0 0 rg BT 384.30 245.10 Td (ferings, as well as in the consulting services ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 233.10 Td (that we of) Tj ET Q q 0 0 0 rg BT 161.30 233.10 Td (fer as part of our surveillance business.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 216.10 Td (- ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 121.50 216.10 Td (Per) Tj ET Q q 0 0 0 rg BT 135.57 216.10 Td (centage-of-Sale Contracts. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.26 216.10 Td ( ) Tj ET Q q 0 0 0 rg BT 247.21 216.10 Td (A) Tj ET Q q 0 0 0 rg BT 253.88 216.10 Td ( portion of REO management services are provided under percentage-of-sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 204.10 Td (contracts, in which we are paid a contractual percentage of the sale proceeds upon the sale of each property) Tj ET Q q 0 0 0 rg BT 549.82 204.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 192.10 Td (T) Tj ET Q q 0 0 0 rg BT 126.91 192.10 Td (o the extent the timing of the sale of a property is delayed or not consummated, or the sales proceeds are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 180.10 Td (significantly less than originally estimated, we may generate less profit than anticipated, or could incur a loss. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.50 168.10 Td (These contracts are only used for our REO management services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 151.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 151.10 Td (Dir) Tj ET Q q 0 0 0 rg BT 99.02 151.10 Td (ect Cost of Services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.11 151.10 Td (Our direct cost of services is primarily af) Tj ET Q q 0 0 0 rg BT 349.04 151.10 Td (fected by our level of services revenue. Our direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 139.10 Td (cost of services primarily consists of employee compensation and related payroll benefits, including the cost of billable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 127.10 Td (labor assigned to revenue-generating activities and, to a lesser extent, other direct costs of providing services such as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 115.10 Td (travel and related expenses incurred in providing client services and costs paid to outside vendors. ) Tj ET Q q 0 0 0 rg BT 480.20 115.10 Td (The level of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 103.10 Td (costs may fluctuate if market rates of compensation change, or if there is decreased availability or a loss of qualified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 91.10 Td (employees. ) Tj ET Q endstream endobj 157 0 obj <> endobj 158 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 731.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 731.10 Td (Operating Expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.82 731.10 Td (Our operating expenses primarily consist of salaries and benefits not classified as direct cost of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 719.10 Td (services because they are related to employees, such as sales and corporate employees, that are not directly involved in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 707.10 Td (providing client services. Operating expenses also include other selling, general and administrative expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 695.10 Td (depreciation, as well as allocations of corporate general and administrative expenses.) Tj ET Q BT /F4 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 72 672.53505859375 m 278.15234375 672.53505859375 l s q 0 0 0 rg BT 72.00 674.10 Td (Financial Guaranty and Discontinued Operations) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 657.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 657.10 Td (Radian ) Tj ET Q q 0 0 0 rg BT 116.71 657.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 140.13 657.10 Td (Assurance Stock Pur) Tj ET Q q 0 0 0 rg BT 223.08 657.10 Td (chase ) Tj ET Q q 0 0 0 rg BT 248.17 657.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 262.79 657.10 Td (eement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.11 657.10 Td (Radian expects to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 482.72 657.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 506.89 657.10 Td (Assurance to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 645.10 Td (Assured in the first half of 2015, subject to satisfaction of customary closing conditions including regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 633.10 Td (approvals. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 616.10 Td (Previously) Tj ET Q q 0 0 0 rg BT 127.63 616.10 Td (, Radian ) Tj ET Q q 0 0 0 rg BT 162.90 616.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 187.07 616.10 Td (Assurance had represented substantially all of the financial guaranty segment. Radian ) Tj ET Q q 0 0 0 rg BT 531.40 616.10 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 604.10 Td (Assurance provided direct insurance and reinsurance on credit-based risks. ) Tj ET Q q 0 0 0 rg BT 386.50 604.10 Td (As of December 31, 2014, Radian ) Tj ET Q q 0 0 0 rg BT 524.80 604.10 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 592.10 Td (Assurance had an aggregate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.72 592.10 Td ($10.0 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.83 592.10 Td ( of public finance statutory net par outstanding and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.17 592.10 Td ($8.1 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.28 592.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 580.10 Td (structured finance statutory net par outstanding. Since January 1, 2015, one counterparty has exercised its right to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 568.10 Td (terminate seven ) Tj ET Q q 0 0 0 rg BT 150.48 568.10 Td (AAA-rated corporate collateralized debt structured finance obligations on a walkaway basis \(meaning ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 556.10 Td (that our counterparty was not obligated to pay any unaccrued premium or other amount to terminate the transaction\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 544.10 Td (reducing Radian ) Tj ET Q q 0 0 0 rg BT 153.26 544.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 177.43 544.10 Td (Assurance) Tj ET Q q 0 0 0 rg BT 221.86 544.10 Td (s structured finance statutory net par outstanding by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 544.10 Td ($3.8 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.92 544.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 527.10 Td (As a result of the Radian ) Tj ET Q q 0 0 0 rg BT 186.59 527.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 210.76 527.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 318.23 527.10 Td (Agreement, we have reclassified the operating results related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 515.10 Td (to the pending disposition as discontinued operations, and we are no longer reporting a financial guaranty business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 503.10 Td (segment. ) Tj ET Q q 0 0 0 rg BT 123.64 503.10 Td (The assets and liabilities associated with the discontinued operations have historically been a source of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 491.10 Td (significant volatility to Radian) Tj ET Q q 0 0 0 rg BT 210.20 491.10 Td (s results of operations, due to various factors including fluctuations in fair value and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 479.10 Td (credit risk. ) Tj ET Q q 0 0 0 rg BT 130.21 479.10 Td (Although closing under the Radian ) Tj ET Q q 0 0 0 rg BT 272.14 479.10 Td (Asset Stock Purchase ) Tj ET Q q 0 0 0 rg BT 360.18 479.10 Td (Agreement is subject to conditions, the purchase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 467.10 Td (price is not subject to adjustment based on Radian ) Tj ET Q q 0 0 0 rg BT 287.96 467.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 312.13 467.10 Td (Assurance) Tj ET Q q 0 0 0 rg BT 356.56 467.10 Td (s results of operations, changes in valuation or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 455.10 Td (market conditions occurring after December 31, 2014 through the closing date. ) Tj ET Q q 0 0 0 rg BT 403.83 455.10 Td (Therefore, assuming satisfaction of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 443.10 Td (closing conditions, which we expect will be satisfied, the financial results of Radian ) Tj ET Q q 0 0 0 rg BT 423.47 443.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 447.64 443.10 Td (Assurance are not expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 431.10 Td (to have an impact on Radian) Tj ET Q q 0 0 0 rg BT 202.41 431.10 Td (s financial condition or results of operations after December 31, 2014. See Item 1A. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 419.10 Td (Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 135.78 419.10 Td (Failur) Tj ET Q q 0 0 0 rg BT 169.86 419.10 Td (e to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 300.48 419.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 323.90 419.10 Td (Assurance pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 462.33 419.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 485.75 419.10 Td (Assurance Stock ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 407.10 Td (Pur) Tj ET Q q 0 0 0 rg BT 100.13 407.10 Td (chase ) Tj ET Q q 0 0 0 rg BT 125.22 407.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 139.85 407.10 Td (eement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.16 407.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 170.66 407.10 Td (could negatively impact our business and our financial condition, and could adversely impact ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 395.10 Td (our ability to comply with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.54 395.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 206.04 395.10 Td (PMIERs Financial Requir) Tj ET Q q 0 0 0 rg BT 310.65 395.10 Td (ements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.92 395.10 Td ( For additional information related to discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 383.10 Td (operations, see Note 3 of Notes to Consolidated Financial Statements.) Tj ET Q BT /F4 10.00 Tf ET 0 0 0 RG /GS0 gs 0.95 w 0 i [] 0 d 1 J 1 j 3 M 72 360.53505859375 m 259.2412109375 360.53505859375 l s q 0 0 0 rg BT 72.00 362.10 Td (Other Factors ) Tj ET Q q 0 0 0 rg BT 132.19 362.10 Td (Af) Tj ET Q q 0 0 0 rg BT 142.01 362.10 Td (fecting Consolidated Results) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 345.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 345.10 Td (Investment Income. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.24 345.10 Td (Investment income is determined primarily by the investment balances held and the average yield ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 333.10 Td (on our overall investment portfolio.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 316.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 316.10 Td (Net Gains \(Losses\) on Investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.82 316.10 Td ( ) Tj ET Q q 0 0 0 rg BT 231.14 316.10 Td (The recognition of realized investment gains or losses can vary significantly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 304.10 Td (across periods as the activity is highly discretionary based on such factors as market opportunities, our tax and capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 292.10 Td (profile and overall market cycles that impact the timing of the sales of securities. Unrealized investment gains and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 280.10 Td (losses arise primarily from changes in the market value of our investments that are classified as trading and these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 268.10 Td (unrealized gains and losses are generally the result of interest rates or market credit spreads and may not necessarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 256.10 Td (result in economic gains or losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 239.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 239.10 Td (Amortization and Impairment of Intangible ) Tj ET Q q 0 0 0 rg BT 260.59 239.10 Td (Assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.59 239.10 Td ( ) Tj ET Q q 0 0 0 rg BT 292.54 239.10 Td (Amortization of intangible assets represents the periodic expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 227.10 Td (required to amortize the cost of intangible assets over their estimated useful lives. ) Tj ET Q q 0 0 0 rg BT 414.11 227.10 Td (The periodic review of intangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 215.10 Td (assets for potential impairment may also impact consolidated results. Our intangible assets primarily relate to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 203.10 Td (acquisition of Clayton, and their valuation is based on management) Tj ET Q q 0 0 0 rg BT 357.66 203.10 Td (s assumptions that are inherently subject to risks ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 191.10 Td (and uncertainties. See Note 7 of Notes to Consolidated Financial Statements for additional information.) Tj ET Q endstream endobj 159 0 obj <> endobj 160 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (79) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Results of OperationsConsolidated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 714.25 Td (Radian Group serves as the holding company for our operating subsidiaries and does not have any significant operations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (of its own. Our consolidated operating results for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.63 702.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.63 702.25 Td ( primarily reflect the financial results and performance of our two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (business segmentsmortgage insurance and MRES. See Results of OperationsMortgage Insurance, and Results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (OperationsMRES for the operating results of these business segments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 661.25 Td (In addition to the results of our operating segments, pretax income \(loss\) is also af) Tj ET Q q 0 0 0 rg BT 400.35 661.25 Td (fected by Other Factors ) Tj ET Q q 0 0 0 rg BT 500.87 661.25 Td (Af) Tj ET Q q 0 0 0 rg BT 511.24 661.25 Td (fecting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 649.25 Td (Consolidated Results described above. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 242.23 649.25 Td (Use of Non-GAAP) Tj ET Q q 0 0 0 rg BT 315.93 649.25 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 389.99 649.25 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.43 649.25 Td ( below for more information regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 637.25 Td (items that are excluded from the operating results of our operating segments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 620.25 Td (As a result of the pending disposition of Radian ) Tj ET Q q 0 0 0 rg BT 265.03 620.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 289.20 620.25 Td (Assurance, we have reclassified the operating results of Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 73.67 608.25 Td (Assurance as discontinued operations for all periods presented in our consolidated statements of operations and no longer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (present a financial guaranty segment. Certain corporate income and expenses that were previously allocated to the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (guaranty segment but were not reclassified to discontinued operations, such as investment income, interest expense and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (corporate overhead expenses, have been reallocated to the mortgage insurance segment. Prior periods have been revised to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (conform to the current period presentation for these changes. For additional information related to discontinued operations, see ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (Note 3 of Notes to Consolidated Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 531.25 Td (In addition to amounts previously allocated to the financial guaranty segment, we allocate corporate expenses to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.25 Td (mortgage insurance segment based on an allocated percentage of time spent on the mortgage insurance segment. In addition, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.25 Td (have allocated all corporate cash and investments to our mortgage insurance segment, as well as all interest expense other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.25 Td (the expense related to the Senior Notes due 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 478.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 478.25 Td (e allocate to our MRES segment: \(i\) corporate expenses based on an allocated percentage of time spent on the MRES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.25 Td (segment; and \(ii\) all interest expense related to the Senior Notes due 2019, the proceeds of which were used to fund our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.25 Td (acquisition of Clayton. No corporate cash or investments are allocated to the MRES segment. Because the Clayton acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (occurred on June 30, 2014, we have included its results of operations from the date of acquisition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 425.25 Td (Ef) Tj ET Q q 0 0 0 rg BT 81.26 425.25 Td (fective with the fourth quarter of 2014, the MRES business undertook the management responsibilities of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (additional loan servicer surveillance functions that were previously considered part of our mortgage insurance segment. ) Tj ET Q q 0 0 0 rg BT 529.90 413.25 Td (As a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (result, these services and activities are now reported in our MRES segment for all periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 384.25 Td (The following table highlights selected information related to our consolidated results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.61 384.25 Td (years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 372.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.08 372.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.08 372.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.52 372.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 372.25 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 344.75 m 500 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 344.75 m 504 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 344.75 m 562 344.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 331.75 m 314 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 331.75 m 318 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 331.75 m 376 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 376 331.75 m 380 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 331.75 m 438 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 331.75 m 500 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 331.75 m 504 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 331.75 m 562 331.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 257 319.75 m 314 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 319.75 m 376 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380 319.75 m 438 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 319.75 m 500 319.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 319.75 m 562 319.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 348.70 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 485.35 348.83 Td ($ Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 302.70 335.98 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.15 335.98 Td (Favorable \(Unfavorable\)) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 322.580078125 m 99.6171875 322.580078125 l s q 0 0 0 rg BT 52.50 323.83 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 277.00 323.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.50 323.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.50 323.83 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 447.90 323.83 Td (2014 vs. 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 509.90 323.83 Td (2013 vs. 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 310.37 Td (Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 310.37 Td (. . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.50 310.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.15 310.37 Td (1,259.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.50 310.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.30 310.37 Td (\(141.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 310.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.50 310.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 310.37 Td (\(224.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 310.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.50 310.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 310.37 Td (1,401.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 310.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 310.37 Td (82.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.37 Td (Loss from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 298.37 Td (. . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.30 298.37 Td (\(300.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 298.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.30 298.37 Td (\(55.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 298.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 298.37 Td (\(227.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 298.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 298.37 Td (\(245.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 298.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 298.37 Td (172.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 286.37 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 286.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.65 286.37 Td (959.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.30 286.37 Td (\(197.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 286.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 286.37 Td (\(451.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 286.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 286.37 Td (1,156.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 286.37 Td (254.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 274.37 Td (Net premiums earned-insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.00 274.37 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.65 274.37 Td (844.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.65 274.37 Td (781.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 274.37 Td (702.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 274.37 Td (63.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 274.37 Td (79.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 262.37 Td (Services revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.00 262.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 262.37 Td (76.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 262.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 262.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 262.37 Td (76.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 262.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 250.37 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.00 250.37 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 250.37 Td (65.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 250.37 Td (68.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 250.37 Td (72.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 250.37 Td (\(2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 250.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.30 250.37 Td (\(4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 250.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 238.37 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.00 238.37 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 238.37 Td (83.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.30 238.37 Td (\(98.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 238.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 238.37 Td (114.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 238.37 Td (182.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.30 238.37 Td (\(213.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 238.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 226.37 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.00 226.37 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.65 226.37 Td (246.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.65 226.37 Td (562.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 226.37 Td (921.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 226.37 Td (316.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 226.37 Td (358.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 214.37 Td (Policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.00 214.37 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 214.37 Td (24.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 214.37 Td (28.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 214.37 Td (34.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 214.37 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.65 214.37 Td (5.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 202.37 Td (Direct cost of services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.00 202.37 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 202.37 Td (43.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 202.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 202.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 202.37 Td (\(43.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 202.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 202.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 190.37 Td (Other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.00 190.37 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.65 190.37 Td (252.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.65 190.37 Td (257.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 190.37 Td (167.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 190.37 Td (5.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 190.37 Td (\(89.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 190.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 178.37 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.00 178.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.65 178.37 Td (90.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 178.37 Td (74.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 178.37 Td (51.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 178.37 Td (\(15.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 178.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 178.37 Td (\(22.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 178.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 166.37 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.00 166.37 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 166.37 Td (8.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 166.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 166.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.30 166.37 Td (\(8.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 166.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.15 166.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 154.37 Td (Income tax benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.00 154.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.30 154.37 Td (\(852.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 154.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.30 154.37 Td (\(31.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 154.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 154.37 Td (\(48.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 154.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 154.37 Td (820.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.30 154.37 Td (\(16.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.15 154.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 52.5 129.03339843749995 m 227.1728515625 129.03339843749995 l s q 0 0 0 rg BT 52.50 130.37 Td (Adjusted pretax operating income \(loss\) \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 130.37 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.65 130.37 Td (342.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.30 130.37 Td (\(67.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 130.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 130.37 Td (\(395.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 130.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 130.37 Td (409.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 130.37 Td (327.9) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 104.25 Td (See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.38 104.25 Td (Use of Non-GAAP) Tj ET Q q 0 0 0 rg BT 177.07 104.25 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 251.14 104.25 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.57 104.25 Td ( below) Tj ET Q q 0 0 0 rg BT 286.30 104.25 Td (.) Tj ET Q endstream endobj 161 0 obj <> endobj 162 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (80) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Net Income \(Loss\) fr) Tj ET Q q 0 0 0 rg BT 154.12 731.10 Td (om Continuing Operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.85 731.10 Td (As discussed in more detail below) Tj ET Q q 0 0 0 rg BT 405.12 731.10 Td (, our results for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.71 731.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.71 731.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 719.10 Td ( primarily reflect: \(i\) a reversal of substantially all of our deferred tax valuation allowance; \(ii\) a significant reduction in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (the provision for losses; \(iii\) net gains on investments as compared to net losses in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.84 707.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.84 707.10 Td (; and \(iv\) an increase in net premiums ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (earned. Our results for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.97 695.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.97 695.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.67 695.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.67 695.10 Td ( reflect: \(i\) a significant decrease in the provision for losses; and \(ii\) an increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (in net premiums earned, partially of) Tj ET Q q 0 0 0 rg BT 192.61 683.10 Td (fset by: \(iii\) net losses on investments as compared to net gains in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.83 683.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.83 683.10 Td (; and \(iv\) an increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (in other operating expenses and interest expense. See Results of OperationsMortgage Insurance for more information on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (our provision for losses, net premiums earned, operating expenses and interest expense.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 642.10 Td (Loss fr) Tj ET Q q 0 0 0 rg BT 99.14 642.10 Td (om Discontinued Operations, Net of T) Tj ET Q q 0 0 0 rg BT 251.00 642.10 Td (ax. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.44 642.10 Td (Based upon the Radian ) Tj ET Q q 0 0 0 rg BT 359.87 642.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 384.04 642.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 491.51 642.10 Td (Agreement, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 630.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 630.10 Td (Assurance met the criteria to be accounted for as held for sale and discontinued operations at December 31, 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (As a result, in the fourth quarter of 2014, we recognized a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.31 618.10 Td ($467.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.20 618.10 Td ( pre-tax impairment char) Tj ET Q q 0 0 0 rg BT 441.14 618.10 Td (ge reported as loss from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (discontinued operations. ) Tj ET Q q 0 0 0 rg BT 149.58 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 158.22 606.10 Td (e have also reclassified the related operating results as discontinued operations for all periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (presented in our consolidated statements of operations. No general corporate overhead or interest expense was allocated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (discontinued operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 565.10 Td (The loss from discontinued operations consists of three components: \(i\) loss on classification as held for sale for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (ended December 31, 2014; \(ii\) income or loss from operations of businesses held for sale; and \(iii\) income tax provision. ) Tj ET Q q 0 0 0 rg BT 535.31 553.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (divestiture of our financial guaranty business is part of Radian) Tj ET Q q 0 0 0 rg BT 301.38 541.10 Td (s strategy to focus its business toward the mortgage and real ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (estate markets and to accelerate its ability to comply with the proposed PMIERs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 512.10 Td (The assets and liabilities associated with the discontinued operations have historically been a source of significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (volatility to Radian) Tj ET Q q 0 0 0 rg BT 129.49 500.10 Td (s results of operations, due to various factors including fluctuations in fair value and credit risk. ) Tj ET Q q 0 0 0 rg BT 513.28 500.10 Td (Although ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (closing under the Radian ) Tj ET Q q 0 0 0 rg BT 151.15 488.10 Td (Asset Stock Purchase ) Tj ET Q q 0 0 0 rg BT 239.19 488.10 Td (Agreement is subject to conditions, the purchase price is not subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (adjustment based on Radian ) Tj ET Q q 0 0 0 rg BT 163.92 476.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 188.09 476.10 Td (Assurance) Tj ET Q q 0 0 0 rg BT 232.52 476.10 Td (s results of operations, changes in valuation or market conditions occurring after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (December 31, 2014 through the closing date. ) Tj ET Q q 0 0 0 rg BT 231.77 464.10 Td (Therefore, assuming satisfaction of the closing conditions, which we expect will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (be satisfied, the financial results of Radian ) Tj ET Q q 0 0 0 rg BT 221.67 452.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 245.84 452.10 Td (Assurance are not expected to have an impact on Radian) Tj ET Q q 0 0 0 rg BT 474.92 452.10 Td (s financial condition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (or results of operations after December 31, 2014. See Item 1A. Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 358.03 440.10 Td (Failur) Tj ET Q q 0 0 0 rg BT 392.10 440.10 Td (e to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 522.72 440.10 Td (Asset ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (Assurance pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 187.92 428.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 211.35 428.10 Td (Assurance Stock Pur) Tj ET Q q 0 0 0 rg BT 294.29 428.10 Td (chase ) Tj ET Q q 0 0 0 rg BT 319.38 428.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 334.01 428.10 Td (eement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.33 428.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 364.83 428.10 Td (could negatively impact our business and our ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (financial condition, and could adversely impact our ability to comply with the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.12 416.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 363.62 416.10 Td (PMIERs Financial Requir) Tj ET Q q 0 0 0 rg BT 468.22 416.10 Td (ements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.49 416.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 399.10 Td (For additional information related to discontinued operations, see Note 3 of Notes to Consolidated Financial Statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 382.10 Td (Services Revenue and Dir) Tj ET Q q 0 0 0 rg BT 175.20 382.10 Td (ect Cost of Services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.79 382.10 Td ( In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.12 382.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.12 382.10 Td (, services revenue and direct cost of services represent amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (related to our MRES segment as a result of our acquisition of Clayton. See Results of OperationsMRES below for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 341.10 Td (Net Gains \(Losses\) on Investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.82 341.10 Td () Tj ET Q q 0 0 0 rg BT 217.64 341.10 Td (The components of the net \(losses\) gains on investments for the periods indicated are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 300.6 m 401.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401.5 300.6 m 409.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 300.6 m 461.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 300.6 m 469.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 300.6 m 521.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 300.6 m 401.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 287.6 m 401.5 287.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 300.6 m 461.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 287.6 m 461.5 287.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461.5 300.6 m 469.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 300.6 m 521.5 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 287.6 m 521.5 287.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 287.6 m 401.5 287.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 287.6 m 461.5 287.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 287.6 m 521.5 287.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 247.60000000000002 m 401.5 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 247.60000000000002 m 461.5 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 247.60000000000002 m 521.5 247.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 233.60000000000002 m 401.5 233.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 349.5 231.60000000000002 m 401.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 233.60000000000002 m 461.5 233.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409.5 231.60000000000002 m 461.5 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 233.60000000000002 m 521.5 233.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469.5 231.60000000000002 m 521.5 231.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.70 304.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 92 290.580078125 m 134.0078125 290.580078125 l s q 0 0 0 rg BT 92.00 291.83 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.00 291.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 427.00 291.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 487.00 291.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 277.27 Td (Net unrealized gains \(losses\) related to change in fair value of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 267.27 Td (trading securities and other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.50 267.17 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.00 267.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 267.27 Td (92.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.00 267.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.80 267.32 Td (\(117.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 267.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.00 267.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.80 267.32 Td (\(36.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 267.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 252.27 Td (Net realized \(losses\) gains on sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.50 252.17 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.80 252.32 Td (\(8.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 252.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 252.27 Td (18.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 252.27 Td (150.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 237.27 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.50 237.17 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.00 237.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 237.27 Td (83.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.00 237.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.80 237.32 Td (\(98.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.65 237.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.00 237.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 237.27 Td (114.3) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 216.10 Td (Other Operating Expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.15 216.10 Td (Among other items, our other operating expenses include compensation expense associated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (with changes in the estimated fair value of certain cash-settled long-term incentive awards that are valued, in lar) Tj ET Q q 0 0 0 rg BT 497.47 204.10 Td (ge part, based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (on the stock price of Radian Group) Tj ET Q q 0 0 0 rg BT 192.80 192.10 Td (s common stock, which increased during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.59 192.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.59 192.10 Td ( and 2013. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.86 192.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.86 192.10 Td (, our expense related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (to these awards was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.96 180.10 Td ($43.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.85 180.10 Td ( compared to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.81 180.10 Td ($96.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.70 180.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.36 180.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.36 180.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.80 180.10 Td ($29.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.69 180.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 168.10 Td (. During 2014 and 2013, this expense increased as compared to 2012, primarily due to increases in the estimated fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (of cash-settled long-term incentive awards resulting from the significant increases in Radian) Tj ET Q q 0 0 0 rg BT 421.33 156.10 Td (s common stock price discussed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (above. Partially of) Tj ET Q q 0 0 0 rg BT 122.91 144.10 Td (fsetting the decrease in expenses related to cash-settled long-term incentive awards in 2014 as compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (2013 was an increase in other compensation costs, and contract underwriting expenses \(as discussed in Results of Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.10 Td (Mortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 139.74 120.10 Td (Other Operating Expenses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.72 120.10 Td (. ) Tj ET Q q 0 0 0 rg BT 254.17 120.10 Td (Also of) Tj ET Q q 0 0 0 rg BT 283.71 120.10 Td (fsetting operating expenses in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.34 120.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.34 120.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.78 120.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.78 120.10 Td ( were ceding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.10 Td (commissions earned related to the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 261.77 108.10 Td (T) Tj ET Q q 0 0 0 rg BT 267.52 108.10 Td (ransactions. See Results of OperationsMortgage Insurance) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 535.78 108.10 Td (Net ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 96.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 59.13 96.10 Td (emiums W) Tj ET Q q 0 0 0 rg BT 99.96 96.10 Td (ritten and Earned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.06 96.10 Td ( for information regarding the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 371.10 96.10 Td (T) Tj ET Q q 0 0 0 rg BT 376.86 96.10 Td (ransactions.) Tj ET Q endstream endobj 163 0 obj <> endobj 164 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (81) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 91.07 731.10 Td (est Expense. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.49 731.10 Td (These amounts reflect interest on our long-term debt. In May 2014, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.02 731.10 Td ($300 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.41 731.10 Td ( principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (amount of 5.500% Senior Notes due June 2019. In February 2013, we repaid the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.20 719.10 Td ($79.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.09 719.10 Td ( outstanding balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (of our 5.625% Senior Notes due February 2013. ) Tj ET Q q 0 0 0 rg BT 243.91 707.10 Td (Also in the first quarter of 2013, we exchanged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.97 707.10 Td ($195.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.86 707.10 Td ( of our 5.375% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (Senior Notes due June2015 for a new series of 9.000% Senior Notes due June2017 and issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.04 695.10 Td ($400 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.43 695.10 Td ( principal amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (of 2.250% Convertible Senior Notes due March 2019 \(the Convertible Senior Notes due 2019\) with an ef) Tj ET Q q 0 0 0 rg BT 479.50 683.10 Td (fective interest rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (of 6.250%. ) Tj ET Q q 0 0 0 rg BT 95.98 671.10 Td (The debt issuance in 2014 was the primary reason for the increase in interest expense in 2014. ) Tj ET Q q 0 0 0 rg BT 474.57 671.10 Td (The debt exchange ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (and the issuance of the Convertible Senior Notes due 2019 were the primary reasons for the increase in interest expense in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (2013. See Note 1) Tj ET Q q 0 0 0 rg BT 118.01 647.10 Td (1 of Notes to Consolidated Financial Statements for additional information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 630.10 Td (Amortization and Impairment of Intangible ) Tj ET Q q 0 0 0 rg BT 247.09 630.10 Td (Assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.59 630.10 Td (The amortization and impairment of intangible assets for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.52 630.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.52 630.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (primarily reflects the amortization of intangible assets acquired as part of the Clayton acquisition. ) Tj ET Q q 0 0 0 rg BT 442.25 618.10 Td (W) Tj ET Q q 0 0 0 rg BT 450.89 618.10 Td (e also recorded a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.85 618.10 Td ($2.1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 606.10 Td ( impairment of a portion of our goodwill related to a small subsidiary within our MRES segment, which had been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (acquired in 2013. See Note 7 of Notes to Consolidated Financial Statements for additional information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 577.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 110.07 577.10 Td (ax \(Benefit\) Pr) Tj ET Q q 0 0 0 rg BT 169.12 577.10 Td (ovision.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.51 577.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 231.14 577.10 Td (fective tax rate from continuing operations was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.46 577.10 Td (\(209.4\)%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.96 577.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.62 577.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.62 577.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (18.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 565.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.99 565.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.99 565.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.43 565.10 Td (17.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.26 565.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.92 565.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.92 565.10 Td (. ) Tj ET Q q 0 0 0 rg BT 198.74 565.10 Td (The change from our statutory tax rate of 35% for 2014 was primarily due to the reversal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (of substantially all of our valuation allowance. ) Tj ET Q q 0 0 0 rg BT 237.60 553.10 Td (The change from our statutory tax rate of 35% for 2013 and 2012 was primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (due to changes in our overall valuation allowance against our DT) Tj ET Q q 0 0 0 rg BT 309.72 541.10 Td (A) Tj ET Q q 0 0 0 rg BT 316.39 541.10 Td ( and the accounting for uncertainty of income taxes. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (Note 13 of Notes to Consolidated Financial Statements for more information regarding our valuation allowance and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (accounting for uncertainty of income taxes.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 500.10 Td (Use of Non-GAAP) Tj ET Q q 0 0 0 rg BT 145.70 500.10 Td ( Financial Measur) Tj ET Q q 0 0 0 rg BT 219.76 500.10 Td (e. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.70 500.10 Td (In addition to the traditional GAAP) Tj ET Q q 0 0 0 rg BT 373.25 500.10 Td ( financial measures, we have presented a non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.36 488.10 Td ( financial measure for the consolidated company) Tj ET Q q 0 0 0 rg BT 270.08 488.10 Td (, adjusted pretax operating income \(loss\), among our key performance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (indicators to evaluate our fundamental financial performance. ) Tj ET Q q 0 0 0 rg BT 298.66 476.10 Td (This non-GAAP) Tj ET Q q 0 0 0 rg BT 364.12 476.10 Td ( financial measure aligns with the way the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.10 Td (Company) Tj ET Q q 0 0 0 rg BT 91.17 464.10 Td (s business performance is evaluated by both management and the Board. ) Tj ET Q q 0 0 0 rg BT 384.23 464.10 Td (This measure has been established in order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (to increase transparency for the purposes of evaluating our core operating trends and enabling more meaningful comparisons ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (with our peers. ) Tj ET Q q 0 0 0 rg BT 111.16 440.10 Td (Although on a consolidated basis adjusted pretax operating income \(loss\) is a non-GAAP) Tj ET Q q 0 0 0 rg BT 476.81 440.10 Td ( financial measure, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (we believe this measure aids in understanding the underlying performance of our operations. Our senior management, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 142.90 416.10 Td (ficer \(the Company) Tj ET Q q 0 0 0 rg BT 223.43 416.10 Td (s chief operating decision maker\), uses adjusted pretax operating income \(loss\) as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (our primary measure to evaluate the fundamental financial performance of the Company) Tj ET Q q 0 0 0 rg BT 406.30 404.10 Td (s business segments and to allocate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (resources to the segments. Management) Tj ET Q q 0 0 0 rg BT 211.95 392.10 Td (s use of this measure as its primary measure to evaluate segment performance began ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (with the quarter ended March 31, 2014. ) Tj ET Q q 0 0 0 rg BT 209.73 380.10 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 259.07 380.10 Td (, for comparison purposes, we also present the applicable measures from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (the corresponding periods of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.69 368.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.69 368.10 Td ( and 2012 on a basis consistent with the current year presentation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 351.10 Td (Adjusted pretax operating income \(loss\) adjusts GAAP) Tj ET Q q 0 0 0 rg BT 292.15 351.10 Td ( pretax income \(loss\) from continuing operations to remove the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 339.10 Td (fects of net gains \(losses\) on investments and other financial instruments, acquisition-related expenses, amortization and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.10 Td (impairment of intangible assets and net impairment losses recognized in earnings. It also excludes gains and losses related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (changes in fair value estimates on insured credit derivatives and instead includes the impact of changes in the present value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (insurance claims and recoveries on insured credit derivatives, based on our ongoing insurance loss monitoring.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 286.10 Td (Although adjusted pretax operating income \(loss\) excludes certain items that have occurred in the past and are expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (occur in the future, the excluded items represent those that are: \(1\) not viewed as part of the operating performance of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (primary activities; or \(2\) not expected to result in an economic impact equal to the amount reflected in pretax income \(loss\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (from continuing operations. ) Tj ET Q q 0 0 0 rg BT 163.19 250.10 Td (These adjustments, along with the reasons for their treatment, are described below) Tj ET Q q 0 0 0 rg BT 491.59 250.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 233.10 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 233.10 Td (Change in fair value of derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.92 233.10 Td (. Gains and losses related to changes in the fair value of insured credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 221.10 Td (derivatives are subject to significant fluctuation based on changes in interest rates, credit spreads, credit ratings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 209.10 Td (other market, asset-class and transaction-specific conditions and factors that may be unrelated or only indirectly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 197.10 Td (related to our obligation to pay future claims. ) Tj ET Q q 0 0 0 rg BT 268.88 197.10 Td (W) Tj ET Q q 0 0 0 rg BT 277.92 197.10 Td (ith the exception of the estimated present value of net credit \(losses\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 185.10 Td (recoveries incurred discussed in item 2 below) Tj ET Q q 0 0 0 rg BT 267.57 185.10 Td (, we believe these gains and losses will reverse over time and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 173.10 Td (consequently these changes are not expected to result in economic gains or losses. ) Tj ET Q q 0 0 0 rg BT 416.33 173.10 Td (Therefore, these gains and losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 161.10 Td (are excluded from our calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 144.10 Td (\(2\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 144.10 Td (Estimated pr) Tj ET Q q 0 0 0 rg BT 136.52 144.10 Td (esent value of net cr) Tj ET Q q 0 0 0 rg BT 216.67 144.10 Td (edit \(losses\) r) Tj ET Q q 0 0 0 rg BT 270.74 144.10 Td (ecoveries incurr) Tj ET Q q 0 0 0 rg BT 335.62 144.10 Td (ed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.56 144.10 Td ( ) Tj ET Q q 0 0 0 rg BT 352.38 144.10 Td (The change in present value of insurance claims we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 132.10 Td (expect to pay or recover on insured credit derivatives represents the amount of the change in credit derivatives from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 120.10 Td (Item 1 above, that we expect to result in an economic loss or recovery based on our ongoing loss monitoring analytics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 108.10 Td (Therefore, this item is expected to have an economic impact and is included in our calculation of adjusted pretax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 96.10 Td (operating income \(loss\). ) Tj ET Q q 0 0 0 rg BT 184.37 96.10 Td (Also included in this item is the change in expected economic loss or recovery associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 84.10 Td (our consolidated ) Tj ET Q q 0 0 0 rg BT 154.19 84.10 Td (VIEs.) Tj ET Q endstream endobj 165 0 obj <> endobj 166 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (82) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 731.10 Td (\(3\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 731.10 Td (Net gains \(losses\) on investments and other financial instruments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.09 731.10 Td ( ) Tj ET Q q 0 0 0 rg BT 353.91 731.10 Td (The recognition of realized investment gains or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 719.10 Td (losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 707.10 Td (securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 695.10 Td (Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 683.10 Td (classified as trading. ) Tj ET Q q 0 0 0 rg BT 169.74 683.10 Td (These valuation adjustments may not necessarily result in economic gains or losses. ) Tj ET Q q 0 0 0 rg BT 507.54 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 516.17 683.10 Td (e do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 671.10 Td (view them to be indicative of our fundamental operating activities. ) Tj ET Q q 0 0 0 rg BT 354.40 671.10 Td (T) Tj ET Q q 0 0 0 rg BT 360.16 671.10 Td (rends in the profitability of our fundamental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 659.10 Td (operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 647.10 Td (losses. ) Tj ET Q q 0 0 0 rg BT 114.21 647.10 Td (Therefore, these items are excluded from our calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 630.10 Td (\(4\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 630.10 Td (Acquisition-r) Tj ET Q q 0 0 0 rg BT 137.90 630.10 Td (elated expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.87 630.10 Td (Acquisition-related expenses represent the costs incurred to ef) Tj ET Q q 0 0 0 rg BT 456.21 630.10 Td (fect an acquisition of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 618.10 Td (business \(i.e., a business combination\). Because we pursue acquisitions on a limited and selective basis and not in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 606.10 Td (ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 594.10 Td (activity) Tj ET Q q 0 0 0 rg BT 114.84 594.10 Td (. ) Tj ET Q q 0 0 0 rg BT 119.66 594.10 Td (Therefore, we do not consider these expenses to be part of our operating performance and they are excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 582.10 Td (from our calculation of adjusted pretax operating income \(loss\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 565.10 Td (\(5\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 565.10 Td (Amortization and impairment of intangible assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.56 565.10 Td ( ) Tj ET Q q 0 0 0 rg BT 290.50 565.10 Td (Amortization of intangible assets represents the periodic expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 553.10 Td (required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 541.10 Td (useful life are also periodically reviewed for potential impairment and impairment adjustments are made whenever ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 529.10 Td (appropriate. ) Tj ET Q q 0 0 0 rg BT 135.85 529.10 Td (These char) Tj ET Q q 0 0 0 rg BT 179.25 529.10 Td (ges are not viewed as part of the operating performance of our primary activities and therefore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 517.10 Td (are excluded from our calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 500.10 Td (\(6\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 500.10 Td (Net impairment losses r) Tj ET Q q 0 0 0 rg BT 180.41 500.10 Td (ecognized in earnings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.67 500.10 Td (The recognition of net impairment losses on investments can vary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 488.10 Td (significantly in both size and timing, depending on market credit cycles. ) Tj ET Q q 0 0 0 rg BT 376.63 488.10 Td (W) Tj ET Q q 0 0 0 rg BT 385.27 488.10 Td (e do not view these impairment losses to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 476.10 Td (indicative of our fundamental operating activities. ) Tj ET Q q 0 0 0 rg BT 287.75 476.10 Td (Therefore, whenever these losses occur) Tj ET Q q 0 0 0 rg BT 444.78 476.10 Td (, we exclude them from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 464.10 Td (calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 447.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 447.10 Td (otal adjusted pretax operating income \(loss\) is not a measure of total profitability) Tj ET Q q 0 0 0 rg BT 400.56 447.10 Td (, and therefore should not be viewed as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (a substitute for GAAP) Tj ET Q q 0 0 0 rg BT 138.29 435.10 Td ( pretax income \(loss\) from continuing operations. Our definition of adjusted pretax operating income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (\(loss\) may not be comparable to similarly-named measures reported by other companies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 406.10 Td (The following table provides a reconciliation of our non-GAAP) Tj ET Q q 0 0 0 rg BT 326.57 406.10 Td ( financial measure for the consolidated company) Tj ET Q q 0 0 0 rg BT 520.29 406.10 Td (, adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (pretax operating income \(loss\), to the most comparable GAAP) Tj ET Q q 0 0 0 rg BT 299.34 394.10 Td ( measure, pretax income \(loss\) from continuing operations:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 87 363.6 m 351 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 363.6 m 406 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 363.6 m 410 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 363.6 m 465 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 363.6 m 469 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 363.6 m 524 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 363.6 m 406 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 349.6 m 406 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 363.6 m 410 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 406 349.6 m 410 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 363.6 m 465 363.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 349.6 m 465 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 349.6 m 524 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 349.6 m 406 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 334.6 m 406 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 349.6 m 465 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 334.6 m 465 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 349.6 m 469 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 349.6 m 524 349.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 334.6 m 524 334.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 295.6 m 406 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 282.6 m 406 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 295.6 m 465 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 282.6 m 465 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 295.6 m 524 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 282.6 m 524 282.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 231.60000000000002 m 406 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 206.60000000000002 m 406 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 231.60000000000002 m 465 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 206.60000000000002 m 465 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 231.60000000000002 m 524 231.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 206.60000000000002 m 524 206.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 145.60000000000002 m 406 145.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 133.60000000000002 m 406 133.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 131.60000000000002 m 406 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 145.60000000000002 m 465 145.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 133.60000000000002 m 465 133.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 131.60000000000002 m 465 131.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 145.60000000000002 m 524 145.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 133.60000000000002 m 524 133.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 131.60000000000002 m 524 131.60000000000002 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 173.00 368.28 Td (Reconciliation of Consolidated Non-GAAP Financial Measure) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 387.15 354.05 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 89.5 337.580078125 m 139.078125 337.580078125 l s q 0 0 0 rg BT 89.50 338.83 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.00 338.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.00 338.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 488.00 338.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 325.17 Td (Adjusted pretax operating income \(loss\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 312.17 Td (Mortgage insurance \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.00 312.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.50 312.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 312.17 Td (336,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 312.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.30 312.22 Td (\(67,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 312.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 312.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 312.22 Td (\(395,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 312.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 299.17 Td (MRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.00 299.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 299.17 Td (5,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 299.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 299.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 286.17 Td (Total adjusted pretax operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.00 286.17 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 286.17 Td (342,382) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.30 286.22 Td (\(67,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 286.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 286.22 Td (\(395,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 286.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 260.17 Td (Change in fair value of derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.00 260.17 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.15 260.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 260.17 Td (635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.80 260.22 Td (\(192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 260.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 246.27 Td (Less: Estimated present value of net credit \(losses\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.50 236.27 Td (recoveries incurred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.00 236.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 236.32 Td (\(113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 236.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 236.27 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.80 236.32 Td (\(933) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 236.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 221.27 Td (Change in fair value of derivative instruments expected to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.50 211.27 Td (reverse over time) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.00 211.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 211.27 Td (113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.15 211.27 Td (614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 211.27 Td (741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 188.17 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.00 188.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 188.17 Td (83,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.30 188.22 Td (\(98,945) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 188.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 188.17 Td (114,282) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 175.17 Td (Net \(losses\) gains on other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.00 175.17 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.30 175.22 Td (\(3,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 175.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.30 175.22 Td (\(7,580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 175.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.65 175.17 Td (7,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 162.17 Td (Acquisition-related expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.00 162.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.30 162.22 Td (\(6,680) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 162.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 162.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 162.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 149.17 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.00 149.17 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.30 149.22 Td (\(8,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 149.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 149.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 149.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 136.17 Td (Consolidated pretax income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.00 136.17 Td (. .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.50 136.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 136.17 Td (407,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.50 136.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.30 136.22 Td (\(173,346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 136.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 136.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.30 136.22 Td (\(272,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 136.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 121.10 Td (________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 109.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 109.10 Td (Prior periods have been restated to reflect the reallocation of certain corporate income and expenses that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 97.10 Td (previously allocated to the financial guaranty segment, but were not reclassified to discontinued operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 85.10 Td (These items now have been reallocated to the mortgage insurance segment.) Tj ET Q endstream endobj 167 0 obj <> endobj 168 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (83) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Results of OperationsMortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 714.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.83 714.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 714.25 Td (, we continued our strategy of growing our mortgage insurance portfolio by writing insurance on mortgages ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (with strong credit characteristics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.18 702.25 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.26 702.25 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.62 702.25 Td ($172 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.23 702.25 Td ( in IIF compared to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td ($161 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.11 690.25 Td ( in IIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.61 690.25 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.91 690.25 Td (. ) Tj ET Q q 0 0 0 rg BT 218.73 690.25 Td (W) Tj ET Q q 0 0 0 rg BT 227.37 690.25 Td (e also continued to focus on managing losses in our Legacy Portfolio, reducing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (size of our Legacy Portfolio and ef) Tj ET Q q 0 0 0 rg BT 188.71 678.25 Td (fectively managing our capital and liquidity positions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 661.25 Td (The results of operations of our mortgage insurance segment have been restated for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.43 661.25 Td (years ended December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.99 661.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 649.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 649.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 649.25 Td ( due to the reallocation of certain corporate income and expenses that were previously allocated to the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 637.25 Td (guaranty segment, but were not reclassified to discontinued operations. ) Tj ET Q q 0 0 0 rg BT 336.18 637.25 Td (These items now have been reallocated to the mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.25 Td (insurance segment for all periods presented.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 608.25 Td (The following table summarizes our mortgage insurance segment) Tj ET Q q 0 0 0 rg BT 336.64 608.25 Td (s results of operations for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.51 608.25 Td (years ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 596.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 596.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 596.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 596.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 596.25 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 568.75 m 490 568.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 568.75 m 494 568.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 568.75 m 553 568.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 556.75 m 301 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 556.75 m 305 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 556.75 m 364 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 556.75 m 368 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 556.75 m 427 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 568.75 m 490 568.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 556.75 m 490 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 556.75 m 494 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 568.75 m 553 568.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 556.75 m 553 556.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 544.75 m 301 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 544.75 m 364 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 544.75 m 427 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 544.75 m 490 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 544.75 m 553 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 242 544.75 m 301 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 544.75 m 364 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 544.75 m 427 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 544.75 m 490 544.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 544.75 m 553 544.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 475.35 572.83 Td ($ Change) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.70 560.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 449.15 560.83 Td (Favorable \(Unfavorable\)) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 547.580078125 m 99.6171875 547.580078125 l s q 0 0 0 rg BT 52.50 548.83 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 263.00 548.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.00 548.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.00 548.83 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.40 548.83 Td (2014 vs. 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.40 548.83 Td (2013 vs. 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 533.42 Td (Adjusted pretax operating income \(loss\) \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 533.32 Td (. .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.50 533.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.65 533.42 Td (336.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.50 533.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.30 533.47 Td (\(67.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 533.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 533.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.30 533.47 Td (\(395.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 533.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.50 533.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 533.42 Td (404.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 533.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.25 533.42 Td (327.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 519.32 Td (Net premiums writteninsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.00 519.32 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.65 519.32 Td (925.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 519.32 Td (951.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 519.32 Td (806.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 519.37 Td (\(25.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 519.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.25 519.32 Td (144.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 506.32 Td (Net premiums earnedinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.00 506.32 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.65 506.32 Td (844.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 506.32 Td (781.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 506.32 Td (702.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 506.32 Td (63.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.25 506.32 Td (79.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 493.32 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.00 493.32 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 493.32 Td (65.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.65 493.32 Td (68.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 493.32 Td (72.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 493.37 Td (\(2.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 493.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.95 493.32 Td (\(4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 493.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 480.32 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.00 480.32 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.65 480.32 Td (246.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 480.32 Td (562.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 480.32 Td (921.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 480.32 Td (315.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.25 480.32 Td (358.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 467.32 Td (Policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.00 467.32 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 467.32 Td (24.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.65 467.32 Td (28.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 467.32 Td (34.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 467.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 467.32 Td (5.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 454.32 Td (Other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.00 454.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.65 454.32 Td (225.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 454.32 Td (257.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 454.32 Td (167.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 454.32 Td (31.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.95 454.32 Td (\(89.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 454.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 441.32 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.00 441.32 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.65 441.32 Td (81.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.65 441.32 Td (74.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.65 441.32 Td (51.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 441.37 Td (\(7.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 441.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.95 441.32 Td (\(22.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.80 441.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 414.25 Td (Our senior management uses adjusted pretax operating income \(loss\) as our primary measure to evaluate the fundamental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 402.25 Td (financial performance of the Company) Tj ET Q q 0 0 0 rg BT 229.71 402.25 Td (s business segments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 385.25 Td (Adjusted Pr) Tj ET Q q 0 0 0 rg BT 120.62 385.25 Td (etax Operating Income \(Loss\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.82 385.25 Td (Our mortgage insurance segment) Tj ET Q q 0 0 0 rg BT 383.06 385.25 Td (s adjusted pretax operating income for 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.25 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.55 373.25 Td ($336.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.44 373.25 Td (, compared to an adjusted pretax operating loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.05 373.25 Td ($67.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.94 373.25 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.60 373.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.60 373.25 Td (. Our results for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.42 373.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.42 373.25 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 361.25 Td ( primarily reflect: \(i\) an increase in net premiums earned; \(ii\) a significant reduction in the provision for losses; and \(iii\) a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 349.25 Td (reduction in other operating expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 332.25 Td (The improvement in the results for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.13 332.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.13 332.25 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.83 332.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.83 332.25 Td ( primarily reflects an increase in net premiums earned and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (significant decrease in the provision for losses, partially of) Tj ET Q q 0 0 0 rg BT 283.42 320.25 Td (fset by an increase in other operating expenses and interest expense.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.50 303.25 Td (NIW) Tj ET Q q 0 0 0 rg BT 89.91 303.25 Td (, IIF) Tj ET Q q 0 0 0 rg BT 106.39 303.25 Td (, RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 286.25 Td (A) Tj ET Q q 0 0 0 rg BT 79.17 286.25 Td ( key component of our current business strategy is to grow our mortgage insurance business by writing insurance on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.25 Td (high-quality mortgages in the U.S. Consistent with this objective, we wrote ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.35 274.25 Td ($37.3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.46 274.25 Td ( of primary new mortgage insurance in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 262.25 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.20 262.25 Td ($47.3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.32 262.25 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 262.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.09 262.25 Td (. ) Tj ET Q q 0 0 0 rg BT 212.91 262.25 Td (The decrease in NIW) Tj ET Q q 0 0 0 rg BT 297.96 262.25 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.62 262.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.62 262.25 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.32 262.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.32 262.25 Td ( is attributable to a decrease in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.25 Td (total mortgage origination market and increased competition in the private mortgage insurance industry) Tj ET Q q 0 0 0 rg BT 462.61 250.25 Td (, which resulted in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.25 Td (decrease in our market share. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 221.25 Td (In response to the recent increase in mortgage interest rates, which impacted home sales, the volume of mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 209.25 Td (refinance business significantly declined in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.72 209.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.72 209.25 Td (. ) Tj ET Q q 0 0 0 rg BT 249.54 209.25 Td (These challenges have been partially of) Tj ET Q q 0 0 0 rg BT 407.35 209.25 Td (fset by improvement in the housing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.25 Td (market, in particular increased origination volume from home purchases as compared to refinances, and continued increases in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.25 Td (the penetration rate of private mortgage insurance in the overall insured mortgage market. In January 2015, the FHA) Tj ET Q q 0 0 0 rg BT 515.18 185.25 Td ( reduced its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (annual mortgage insurance premium by 50 basis points to roughly 85 basis points per year) Tj ET Q q 0 0 0 rg BT 410.54 173.25 Td (. ) Tj ET Q q 0 0 0 rg BT 415.36 173.25 Td (The FHA) Tj ET Q q 0 0 0 rg BT 452.31 173.25 Td () Tj ET Q q 0 0 0 rg BT 455.09 173.25 Td (s upfront mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.25 Td (insurance premium was not changed. ) Tj ET Q q 0 0 0 rg BT 200.38 161.25 Td (While the FHA) Tj ET Q q 0 0 0 rg BT 261.49 161.25 Td ( reduction on annual premiums may impact our competitiveness on certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.25 Td (high L) Tj ET Q q 0 0 0 rg BT 74.97 149.25 Td (TV) Tj ET Q q 0 0 0 rg BT 88.12 149.25 Td ( loans to borrowers with FICO scores below 720, we do not believe this impact will be significant. ) Tj ET Q q 0 0 0 rg BT 484.53 149.25 Td (While it remains ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.25 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 137.25 Td (ficult to project future NIW) Tj ET Q q 0 0 0 rg BT 170.02 137.25 Td (, based on current mortgage origination projections from Mortgage Bankers ) Tj ET Q q 0 0 0 rg BT 475.22 137.25 Td (Association and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.25 Td (sources, we currently estimate that our new business volume for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.60 125.25 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.60 125.25 Td ( will exceed the 2014 level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.39 125.25 Td ($37.3 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.50 125.25 Td (.) Tj ET Q endstream endobj 169 0 obj <> endobj 170 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Since 2009, virtually all of our new mortgage insurance business production has been prime business. In addition, FICO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (scores for the borrowers of these insured mortgages have increased, and the average L) Tj ET Q q 0 0 0 rg BT 393.44 719.10 Td (TV) Tj ET Q q 0 0 0 rg BT 406.59 719.10 Td ( on these mortgages has decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (compared to mortgages in our Legacy Portfolio. Our portfolio of business written since 2009 has been steadily increasing in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (proportion to our total portfolio of RIF) Tj ET Q q 0 0 0 rg BT 203.68 695.10 Td (. ) Tj ET Q q 0 0 0 rg BT 208.13 695.10 Td (As shown in the chart below) Tj ET Q q 0 0 0 rg BT 321.63 695.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.63 695.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.87 695.10 Td (, our 2009 through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.81 695.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.81 695.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (portfolios accounted for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.34 683.10 Td (69%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.67 683.10 Td ( of our total mortgage insurance portfolio compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.88 683.10 Td (60%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.21 683.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.71 683.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.01 683.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (The loans from our 2009 and later origination years possess significantly improved credit characteristics compared to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Legacy Portfolio. ) Tj ET Q q 0 0 0 rg BT 121.80 659.10 Td (The growth of our portfolio written beginning in 2009, together with continued improvement in the portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (as a result of HARP) Tj ET Q q 0 0 0 rg BT 129.12 647.10 Td ( refinancings \(further described below\), has resulted in significant improvement in the credit quality of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (overall mortgage insurance portfolio. Because our expected future losses on our mortgage insurance portfolios written since ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (2009 are significantly lower than those experienced on our Legacy Portfolio, the changing composition of our overall mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (insurance portfolio should lead to improvements in our mortgage insurance segment) Tj ET Q q 0 0 0 rg BT 389.42 611.10 Td (s operating profitability) Tj ET Q q 0 0 0 rg BT 483.19 611.10 Td (.) Tj ET Q /GS0 gs q 513.00 0 0 287.55 49.50 318.55 cm /I26 Do Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 306.55 Td (In 2009, the GSEs began of) Tj ET Q q 0 0 0 rg BT 183.86 306.55 Td (fering HARP) Tj ET Q q 0 0 0 rg BT 235.80 306.55 Td (, which allows a borrower who is not delinquent to refinance a mortgage if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.55 Td (borrower has been unable to take advantage of lower interest rates because the borrower) Tj ET Q q 0 0 0 rg BT 402.77 294.55 Td () Tj ET Q q 0 0 0 rg BT 405.55 294.55 Td (s home has decreased in value. Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.55 Td (Guaranty and other private mortgage insurers have agreed with the FHF) Tj ET Q q 0 0 0 rg BT 337.00 282.55 Td (A) Tj ET Q q 0 0 0 rg BT 343.67 282.55 Td ( to facilitate the transfer of mortgage insurance on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.55 Td (loans to be refinanced through HARP) Tj ET Q q 0 0 0 rg BT 199.93 270.55 Td ( without regard to L) Tj ET Q q 0 0 0 rg BT 278.99 270.55 Td (TV) Tj ET Q q 0 0 0 rg BT 291.03 270.55 Td (. HARP) Tj ET Q q 0 0 0 rg BT 322.34 270.55 Td ( 2 expanded the number of borrowers who can qualify for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.55 Td (refinancing. ) Tj ET Q q 0 0 0 rg BT 99.85 258.55 Td (The changes implemented by the enhanced HARP) Tj ET Q q 0 0 0 rg BT 301.09 258.55 Td ( 2 program have increased the number of borrowers who are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.55 Td (eligible to benefit from the program and, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 246.55 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.25 246.55 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.51 246.55 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.84 246.55 Td ( of our total primary RIF had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.55 Td (successfully completed a HARP) Tj ET Q q 0 0 0 rg BT 178.27 234.55 Td ( refinance. ) Tj ET Q q 0 0 0 rg BT 222.78 234.55 Td (The HARP) Tj ET Q q 0 0 0 rg BT 267.13 234.55 Td ( 2 program has been extended until December 31, 2015. ) Tj ET Q q 0 0 0 rg BT 493.55 234.55 Td (The HARP) Tj ET Q q 0 0 0 rg BT 537.90 234.55 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.55 Td (programs have had a positive impact on the overall credit quality and composition of our mortgage insurance portfolio given ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.55 Td (that the refinancing generally results in terms under which a borrower has a greater ability to pay and more financial flexibility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.55 Td (to cover the loan obligations. ) Tj ET Q q 0 0 0 rg BT 168.18 198.55 Td (W) Tj ET Q q 0 0 0 rg BT 176.82 198.55 Td (e exclude HARP) Tj ET Q q 0 0 0 rg BT 243.66 198.55 Td ( loans from our NIW) Tj ET Q q 0 0 0 rg BT 327.34 198.55 Td ( for the period in which the refinance occurs. During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.55 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 186.55 Td (, new HARP) Tj ET Q q 0 0 0 rg BT 119.96 186.55 Td ( loans accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.26 186.55 Td ($1.7 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.38 186.55 Td ( of newly refinanced loans that were not included in Radian Guaranty) Tj ET Q q 0 0 0 rg BT 530.67 186.55 Td (s NIW) Tj ET Q q 0 0 0 rg BT 556.87 186.55 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.55 Td (for that period, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.90 174.55 Td ($7.6 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.02 174.55 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.68 174.55 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.68 174.55 Td (.) Tj ET Q endstream endobj 171 0 obj <> endobj 172 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The following tables provide selected information as of and for the periods indicated related to mortgage insurance NIW) Tj ET Q q 0 0 0 rg BT 554.92 731.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (RIF and IIF) Tj ET Q q 0 0 0 rg BT 95.92 719.10 Td (. Primary RIF and IIF amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.75 719.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.05 719.10 Td ( include ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.48 719.10 Td ($423 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.87 719.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.31 719.10 Td ($1.68 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.42 719.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 519.08 719.10 Td (, related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (the loans in default that are subject to the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 269.15 707.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 318.03 707.10 Td (Although we no longer have future claim liability on these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (loans, we continue to receive premiums on the related loans and the insurance remains in force; therefore, these loans are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (included in our primary RIF and IIF) Tj ET Q q 0 0 0 rg BT 193.12 683.10 Td (.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 655.6 m 297 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 655.6 m 301 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 655.6 m 350 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 655.6 m 354 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 655.6 m 403 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 655.6 m 407 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 655.6 m 456 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 655.6 m 460 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 655.6 m 509 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 655.6 m 513 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 655.6 m 562 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 655.6 m 297 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 643.6 m 297 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 643.6 m 301 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 643.6 m 350 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 655.6 m 403 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 643.6 m 403 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 643.6 m 407 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 643.6 m 456 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 655.6 m 509 655.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 643.6 m 509 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 643.6 m 513 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 643.6 m 562 643.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 601.6 m 297 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 601.6 m 350 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 601.6 m 403 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 601.6 m 456 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 601.6 m 509 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 601.6 m 562 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 588.6 m 297 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 586.6 m 297 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 601.6 m 350 601.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 588.6 m 350 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 586.6 m 350 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 588.6 m 403 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 586.6 m 403 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 588.6 m 456 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 586.6 m 456 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 588.6 m 509 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 586.6 m 509 586.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 588.6 m 562 588.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 586.6 m 562 586.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.20 659.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 646.430078125 m 99.6171875 646.430078125 l s q 0 0 0 rg BT 52.50 647.68 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.50 647.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.50 647.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.50 647.68 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 634.33 Td (Primary NIW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 621.17 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 621.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 621.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 621.17 Td (37,346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.65 621.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 621.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.50 621.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 621.17 Td (47,251) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 621.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 621.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 621.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 621.17 Td (37,041) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 621.17 Td (99.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 621.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 607.17 Td (Alt-A and A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.00 607.17 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.15 606.27 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.15 606.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 606.27 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 606.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 606.27 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 606.27 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 592.17 Td (Total Primary NIW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 592.17 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 592.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 592.17 Td (37,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.65 592.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 592.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.50 592.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 592.17 Td (47,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 592.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 592.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 592.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 592.17 Td (37,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 592.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 592.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 567.10 Td (The level of our refinance originations has declined and the purchase origination volume as a percentage of our total NIW) Tj ET Q q 0 0 0 rg BT 559.19 567.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.10 Td (has increased during 2014. Because purchase borrowers tend to have lower FICO scores and higher L) Tj ET Q q 0 0 0 rg BT 455.68 555.10 Td (TV) Tj ET Q q 0 0 0 rg BT 468.83 555.10 Td ( ratios than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.10 Td (refinancings, the FICO score distribution of our NIW) Tj ET Q q 0 0 0 rg BT 262.61 543.10 Td ( has generally become more heavily concentrated in higher level FICO ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.10 Td (scores and the L) Tj ET Q q 0 0 0 rg BT 113.84 531.10 Td (TV) Tj ET Q q 0 0 0 rg BT 126.99 531.10 Td ( distribution of our NIW) Tj ET Q q 0 0 0 rg BT 224.57 531.10 Td ( is generally more concentrated in lower L) Tj ET Q q 0 0 0 rg BT 393.30 531.10 Td (TV) Tj ET Q q 0 0 0 rg BT 406.45 531.10 Td ( categories.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 503.6 m 297 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 503.6 m 301 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 503.6 m 350 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 503.6 m 354 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 503.6 m 403 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 503.6 m 407 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 503.6 m 456 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 503.6 m 460 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 503.6 m 509 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 503.6 m 513 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 503.6 m 562 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 503.6 m 297 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 491.6 m 297 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 503.6 m 301 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 297 491.6 m 301 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 503.6 m 350 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 491.6 m 350 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 503.6 m 403 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 491.6 m 403 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 491.6 m 407 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 491.6 m 456 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 503.6 m 509 503.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 491.6 m 509 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 509 491.6 m 513 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 491.6 m 562 491.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 422.6 m 297 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 422.6 m 350 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 422.6 m 403 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 422.6 m 456 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 422.6 m 509 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 409.6 m 297 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 407.6 m 297 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 409.6 m 350 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 301 407.6 m 350 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 409.6 m 403 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 354 407.6 m 403 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 409.6 m 456 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 407.6 m 456 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 409.6 m 509 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 407.6 m 509 407.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 422.6 m 562 422.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 409.6 m 562 409.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 407.6 m 562 407.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 360.20 507.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 494.430078125 m 99.6171875 494.430078125 l s q 0 0 0 rg BT 52.50 495.68 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.50 495.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.50 495.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 502.50 495.68 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 482.33 Td (Total primary NIW by FICOScore) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 469.17 Td (>=740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 469.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 469.17 Td (23,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.65 469.17 Td (61.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 469.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 469.17 Td (33,466) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 469.17 Td (70.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 469.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 469.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 469.17 Td (28,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 469.17 Td (75.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 469.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 455.17 Td (680-739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 455.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 455.17 Td (11,737) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.65 455.17 Td (31.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 455.17 Td (11,971) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 455.17 Td (25.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 455.17 Td (7,994) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 455.17 Td (21.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 441.17 Td (620-679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 441.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.65 441.17 Td (2,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 441.17 Td (6.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 441.17 Td (1,818) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 441.17 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.15 441.17 Td (916) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 441.17 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 427.17 Td (<=619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 427.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.15 427.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.15 427.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 427.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 427.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 427.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.15 427.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.17 Td (Total Primary NIW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 413.17 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 413.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.65 413.17 Td (37,349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.65 413.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.15 413.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.50 413.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 413.17 Td (47,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 413.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 413.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 413.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 413.17 Td (37,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 413.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 413.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 377.6 m 428.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 377.6 m 432.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 377.6 m 487.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 377.6 m 491.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 377.6 m 546.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 377.6 m 428.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.5 365.6 m 428.5 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 377.6 m 487.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.5 365.6 m 487.5 365.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 377.6 m 546.5 377.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 365.6 m 546.5 365.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.20 381.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 67 368.430078125 m 114.1171875 368.430078125 l s q 0 0 0 rg BT 67.00 369.68 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.50 369.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 369.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.50 369.68 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 356.33 Td (Percentage of primary NIW) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 343.17 Td (Refinances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.50 343.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 343.17 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 343.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 343.17 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 343.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 343.17 Td (40) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 343.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 315.17 Td (LTV) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 301.17 Td (95.01% and above) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 301.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 301.17 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 301.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 301.17 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 301.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 301.17 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 301.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 287.17 Td (90.01% to 95.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 287.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 287.17 Td (52.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 287.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 287.17 Td (45.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 287.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 287.17 Td (41.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 287.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 273.17 Td (85.01% to 90.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 273.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 273.17 Td (33.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 273.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 273.17 Td (37.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 273.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 273.17 Td (41.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 273.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 259.17 Td (80.01% to 85.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 259.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.15 259.17 Td (12.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 259.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 259.17 Td (14.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 259.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 259.17 Td (16.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 259.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.00 245.17 Td (ARMs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 231.17 Td (Less than five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.50 231.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.00 231.17 Td (<1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.00 231.17 Td (<1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.00 231.17 Td (<1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 217.17 Td (Five years and longer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 217.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 217.17 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 217.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 217.17 Td (2.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 217.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 217.17 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.65 217.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.00 190.33 Td (Primary risk written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.50 190.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.00 190.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 190.17 Td (9,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.00 190.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 190.17 Td (11,737) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 190.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 190.17 Td (8,959) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 173 0 obj <> endobj 174 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (86) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 724.5 m 266.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 724.5 m 270.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 724.5 m 325.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325.5 724.5 m 329.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 724.5 m 384.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 724.5 m 388.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 724.5 m 443.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 724.5 m 447.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 724.5 m 502.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 724.5 m 506.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 724.5 m 561.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 724.5 m 266.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 711.5 m 266.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 266.5 711.5 m 270.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 711.5 m 325.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 724.5 m 384.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 711.5 m 384.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.5 711.5 m 388.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 711.5 m 443.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 724.5 m 502.5 724.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 711.5 m 502.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 711.5 m 506.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 711.5 m 561.5 711.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 667.5 m 266.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 667.5 m 325.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 667.5 m 384.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 667.5 m 443.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 667.5 m 502.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 667.5 m 561.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 653.5 m 266.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 651.5 m 266.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 667.5 m 325.5 667.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 653.5 m 325.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 651.5 m 325.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 653.5 m 384.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 651.5 m 384.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 653.5 m 443.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 651.5 m 443.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 653.5 m 502.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 651.5 m 502.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 653.5 m 561.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 651.5 m 561.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 651.5 m 266.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 653.5 m 266.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 651.5 m 384.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 653.5 m 384.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 651.5 m 443.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 653.5 m 443.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 651.5 m 502.5 651.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 653.5 m 502.5 653.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 594.5 m 266.5 594.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 594.5 m 325.5 594.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 594.5 m 384.5 594.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 594.5 m 443.5 594.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 594.5 m 502.5 594.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 594.5 m 561.5 594.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 580.5 m 266.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 211.5 578.5 m 266.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 580.5 m 325.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 270.5 578.5 m 325.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 580.5 m 384.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 329.5 578.5 m 384.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 580.5 m 443.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 578.5 m 443.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 580.5 m 502.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 578.5 m 502.5 578.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 580.5 m 561.5 580.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 578.5 m 561.5 578.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.75 728.73 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 714.480078125 m 99.1171875 714.480078125 l s q 0 0 0 rg BT 52.00 715.73 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.00 715.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.00 715.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.00 715.73 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 702.23 Td (Primary IIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 688.07 Td (Flow) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 688.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 687.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.15 687.17 Td (162,302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 687.17 Td (94.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 687.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 687.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 687.17 Td (151,383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.15 687.17 Td (93.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 687.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 687.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 687.17 Td (129,079) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 687.17 Td (92.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 687.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 673.07 Td (Structured) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 673.07 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.15 672.17 Td (9,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 672.17 Td (5.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 672.17 Td (9,857) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 672.17 Td (6.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 672.17 Td (11,284) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 672.17 Td (8.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 658.07 Td (Total Primary IIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.50 658.07 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 657.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.15 657.17 Td (171,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 657.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 657.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 657.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 657.17 Td (161,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 657.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 657.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 657.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 657.17 Td (140,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 657.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 657.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 630.07 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 630.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 629.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.15 629.17 Td (159,647) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 629.17 Td (92.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 629.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 629.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 629.17 Td (147,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.15 629.17 Td (91.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 629.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 629.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 629.17 Td (123,437) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 629.17 Td (87.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 629.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 615.07 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 615.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.15 614.17 Td (7,412) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 614.17 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 614.17 Td (8,634) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 614.17 Td (5.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 614.17 Td (10,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 614.17 Td (7.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 600.07 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.50 600.07 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.15 599.17 Td (4,751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 599.17 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 599.17 Td (5,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 599.17 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 599.17 Td (6,479) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 599.17 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 585.07 Td (Total Primary IIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.50 585.07 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 584.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.15 584.17 Td (171,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 584.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 584.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 584.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 584.17 Td (161,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 584.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 584.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 584.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 584.17 Td (140,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 584.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 584.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 557.23 Td (Persistency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.32 557.23 Td ( \(12 months ended\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.50 557.07 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 556.17 Td (83.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 556.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.15 556.17 Td (81.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 556.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 556.17 Td (81.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 556.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 512.7 m 267 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 512.7 m 271 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 512.7 m 326 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 512.7 m 330 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 512.7 m 385 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 512.7 m 389 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 512.7 m 444 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 512.7 m 448 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 512.7 m 503 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 512.7 m 507 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 512.7 m 562 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 512.7 m 267 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 499.7 m 267 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 267 499.7 m 271 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 499.7 m 326 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 512.7 m 385 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 499.7 m 385 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 499.7 m 389 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 499.7 m 444 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 512.7 m 503 512.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 499.7 m 503 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 499.7 m 507 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 499.7 m 562 499.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 455.7 m 267 455.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 441.7 m 267 441.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 439.7 m 267 439.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 455.7 m 326 455.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 441.7 m 326 441.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 439.7 m 326 439.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 455.7 m 385 455.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 441.7 m 385 441.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 439.7 m 385 439.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 455.7 m 444 455.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 441.7 m 444 441.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 439.7 m 444 439.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 455.7 m 503 455.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 441.7 m 503 441.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 439.7 m 503 439.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 455.7 m 562 455.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 441.7 m 562 441.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 439.7 m 562 439.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 382.7 m 267 382.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 382.7 m 326 382.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 382.7 m 385 382.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 382.7 m 444 382.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 382.7 m 503 382.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 382.7 m 562 382.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 368.7 m 267 368.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 212 366.7 m 267 366.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 368.7 m 326 368.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 271 366.7 m 326 366.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 368.7 m 385 368.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 366.7 m 385 366.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 382.7 m 444 382.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 368.7 m 444 368.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 366.7 m 444 366.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 368.7 m 503 368.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 366.7 m 503 366.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 368.7 m 562 368.7 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 366.7 m 562 366.7 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.25 516.93 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 502.68007812499997 m 99.6171875 502.68007812499997 l s q 0 0 0 rg BT 52.50 503.93 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.50 503.93 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.50 503.93 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.50 503.93 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 490.43 Td (Primary RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 476.27 Td (Flow) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 476.27 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.50 475.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 475.37 Td (41,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 475.37 Td (95.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 475.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.50 475.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 475.37 Td (37,792) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 475.37 Td (94.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 475.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 475.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 475.37 Td (31,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 475.37 Td (92.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 475.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 461.27 Td (Structured) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 461.27 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.65 460.37 Td (2,168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.65 460.37 Td (5.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 460.37 Td (2,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 460.37 Td (5.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 460.37 Td (2,481) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 460.37 Td (7.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 446.27 Td (Total Primary RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 446.27 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.50 445.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 445.37 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 445.37 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 445.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.50 445.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 445.37 Td (40,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 445.37 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 445.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 445.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 445.37 Td (34,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 445.37 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 445.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 418.27 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 418.27 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.50 417.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 417.37 Td (40,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.65 417.37 Td (93.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 417.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.50 417.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 417.37 Td (36,613) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 417.37 Td (91.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 417.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 417.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 417.37 Td (30,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 417.37 Td (88.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 417.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 403.27 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 403.27 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.65 402.37 Td (1,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.65 402.37 Td (4.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 402.37 Td (2,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 402.37 Td (5.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 402.37 Td (2,404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 402.37 Td (7.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 388.27 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.00 388.27 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.65 387.37 Td (1,193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.65 387.37 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.65 387.37 Td (1,387) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 387.37 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 387.37 Td (1,620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.65 387.37 Td (4.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 373.27 Td (Total Primary RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 373.27 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.50 372.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.65 372.37 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.65 372.37 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 372.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.50 372.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.65 372.37 Td (40,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 372.37 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 372.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 372.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 372.37 Td (34,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 372.37 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.15 372.37 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 175 0 obj <> endobj 176 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (87) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 722.5 m 286 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 722.5 m 290 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 722.5 m 335 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 722.5 m 343 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 722.5 m 388 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 722.5 m 392 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 722.5 m 437 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 722.5 m 445 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 722.5 m 490 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 722.5 m 494 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 722.5 m 539 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 722.5 m 286 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 707.5 m 286 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 707.5 m 290 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 707.5 m 335 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 722.5 m 388 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 707.5 m 388 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 707.5 m 392 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 707.5 m 437 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 722.5 m 490 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 707.5 m 490 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490 707.5 m 494 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 707.5 m 539 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 621.5 m 286 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 621.5 m 335 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 621.5 m 388 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 621.5 m 437 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 621.5 m 490 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 621.5 m 539 621.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 608.5 m 286 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 606.5 m 286 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 608.5 m 335 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 606.5 m 335 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 608.5 m 388 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 606.5 m 388 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 608.5 m 437 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 606.5 m 437 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 608.5 m 490 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 606.5 m 490 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 608.5 m 539 608.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 606.5 m 539 606.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 532.5 m 286 532.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 532.5 m 335 532.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 532.5 m 388 532.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 532.5 m 437 532.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 532.5 m 490 532.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 532.5 m 539 532.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 518.5 m 286 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 516.5 m 286 516.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 518.5 m 335 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 516.5 m 335 516.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 518.5 m 388 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 516.5 m 388 516.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 518.5 m 437 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 516.5 m 437 516.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 518.5 m 490 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 516.5 m 490 516.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 518.5 m 539 518.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 516.5 m 539 516.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 442.5 m 286 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 442.5 m 335 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 442.5 m 388 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 442.5 m 437 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 442.5 m 490 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 442.5 m 539 442.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 428.5 m 286 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 426.5 m 286 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 428.5 m 335 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 426.5 m 335 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 428.5 m 388 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 426.5 m 388 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 428.5 m 437 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 426.5 m 437 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 428.5 m 490 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 426.5 m 490 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 428.5 m 539 428.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 426.5 m 539 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 398.5 m 286 398.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 241 396.5 m 286 396.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 398.5 m 388 398.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 396.5 m 388 396.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 398.5 m 490 398.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 396.5 m 490 396.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.25 726.73 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 710.480078125 m 99.6171875 710.480078125 l s q 0 0 0 rg BT 52.50 711.73 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.50 711.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.50 711.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.50 711.73 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 698.23 Td (Total primary RIF by FICO score) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 683.07 Td (Flow) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 668.07 Td (>=740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 668.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.50 668.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.60 668.07 Td (23,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 668.07 Td (58.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 668.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 668.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.60 668.07 Td (21,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 668.07 Td (57.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 668.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 668.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 668.07 Td (16,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 668.07 Td (51.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 668.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 654.07 Td (680-739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 654.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.60 654.07 Td (12,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 654.07 Td (29.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.60 654.07 Td (11,019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 654.07 Td (29.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 654.07 Td (9,686) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 654.07 Td (30.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 640.07 Td (620-679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 640.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.65 640.07 Td (4,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 640.07 Td (10.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 640.07 Td (4,555) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 640.07 Td (12.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 640.07 Td (4,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 640.07 Td (15.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 626.07 Td (<=619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 626.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 626.07 Td (571) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.65 626.07 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 626.07 Td (693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 626.07 Td (1.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 626.07 Td (839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 626.07 Td (2.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 612.07 Td (Total Flow) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 612.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.50 612.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.60 612.07 Td (41,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.60 612.07 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 612.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 612.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.60 612.07 Td (37,792) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.60 612.07 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 612.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 612.07 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 612.07 Td (31,891) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.60 612.07 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 612.07 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 598.07 Td (Structured) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 583.07 Td (>=740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 583.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.50 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 582.17 Td (656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 582.17 Td (30.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 582.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 582.17 Td (602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 582.17 Td (27.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 582.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 582.17 Td (661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 582.17 Td (26.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 582.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 568.07 Td (680-739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 568.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 567.17 Td (618) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 567.17 Td (28.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 567.17 Td (640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 567.17 Td (28.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 567.17 Td (716) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 567.17 Td (28.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 553.07 Td (620-679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 553.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 552.17 Td (527) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 552.17 Td (24.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 552.17 Td (585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 552.17 Td (26.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 552.17 Td (661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 552.17 Td (26.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 538.07 Td (<=619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 538.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 537.17 Td (367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 537.17 Td (16.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.15 537.17 Td (398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 537.17 Td (17.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 537.17 Td (443) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 537.17 Td (17.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 523.07 Td (Total Structured) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.00 523.07 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.50 522.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.65 522.17 Td (2,168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.60 522.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 522.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 522.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 522.17 Td (2,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.60 522.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 522.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 522.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 522.17 Td (2,481) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.60 522.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 522.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 508.07 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 493.07 Td (>=740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 493.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.50 492.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.60 492.17 Td (24,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 492.17 Td (56.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 492.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 492.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.60 492.17 Td (22,127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 492.17 Td (55.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 492.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 492.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 492.17 Td (17,109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 492.17 Td (49.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 492.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 478.07 Td (680-739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 478.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.60 477.17 Td (12,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 477.17 Td (29.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.60 477.17 Td (11,659) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 477.17 Td (29.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 477.17 Td (10,402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 477.17 Td (30.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 463.07 Td (620-679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 463.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.65 462.17 Td (4,973) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 462.17 Td (11.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 462.17 Td (5,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 462.17 Td (12.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 462.17 Td (5,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 462.17 Td (16.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 448.07 Td (<=619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 448.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.15 447.17 Td (938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.65 447.17 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 447.17 Td (1,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 447.17 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 447.17 Td (1,282) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 447.17 Td (3.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 433.07 Td (Total Primary RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.00 433.07 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.50 432.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.60 432.17 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.60 432.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 432.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 432.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.60 432.17 Td (40,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.60 432.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 432.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 432.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 432.17 Td (34,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.60 432.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 432.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 403.23 Td (Primary RIF on defaulted loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.00 403.07 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.50 402.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.65 402.17 Td (2,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 402.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 402.17 Td (2,786) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 402.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 402.17 Td (4,320) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 177 0 obj <> endobj 178 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (88) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 722.5 m 310 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 722.5 m 314 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 722.5 m 359 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 722.5 m 367 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 722.5 m 412 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 722.5 m 416 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 722.5 m 461 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 722.5 m 469 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 722.5 m 514 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 722.5 m 518 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 722.5 m 563 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 722.5 m 310 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 707.5 m 310 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 722.5 m 314 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 707.5 m 314 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 722.5 m 359 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 707.5 m 359 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 722.5 m 367 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 722.5 m 412 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 707.5 m 412 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 722.5 m 416 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 707.5 m 416 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 722.5 m 461 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 707.5 m 461 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 722.5 m 469 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 722.5 m 514 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 707.5 m 514 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 722.5 m 518 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 514 707.5 m 518 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 722.5 m 563 722.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 707.5 m 563 707.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 557.5 m 310 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 557.5 m 412 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 557.5 m 310 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 543.5 m 310 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 541.5 m 310 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 557.5 m 412 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 543.5 m 412 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 541.5 m 412 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 557.5 m 514 557.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 543.5 m 514 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 541.5 m 514 541.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 452.5 m 310 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 452.5 m 412 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 452.5 m 310 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 438.5 m 310 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 436.5 m 310 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 452.5 m 359 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 438.5 m 359 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 436.5 m 359 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 452.5 m 412 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 438.5 m 412 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 436.5 m 412 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 452.5 m 461 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 438.5 m 461 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 436.5 m 461 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 452.5 m 514 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 438.5 m 514 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 436.5 m 514 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 452.5 m 563 452.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 438.5 m 563 438.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 436.5 m 563 436.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 257.5 m 514 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 257.5 m 563 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 257.5 m 310 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 243.5 m 310 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 265 241.5 m 310 241.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 257.5 m 359 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 243.5 m 359 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 241.5 m 359 241.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 257.5 m 412 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 243.5 m 412 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 241.5 m 412 241.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 257.5 m 461 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 243.5 m 461 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416 241.5 m 461 241.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 257.5 m 514 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 243.5 m 514 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 241.5 m 514 241.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 257.5 m 563 257.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 243.5 m 563 243.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 518 241.5 m 563 241.5 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.25 726.73 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 710.480078125 m 99.6171875 710.480078125 l s q 0 0 0 rg BT 52.50 711.73 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 303.50 711.73 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.50 711.73 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.50 711.73 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 698.23 Td (Percentage of primary RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 683.07 Td (Refinances) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 683.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.15 682.17 Td (26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 682.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 682.17 Td (29) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 682.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 682.17 Td (32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 682.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 668.07 Td (Loan Type:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 653.07 Td (Fixed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 653.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.65 652.17 Td (95.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 652.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.65 652.17 Td (94.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 652.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.65 652.17 Td (91.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 652.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 638.07 Td (ARMs \(fully indexed\) \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 623.07 Td (Less than five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 623.07 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.65 622.17 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 622.17 Td (1.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 622.17 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 608.07 Td (Five years and longer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.00 608.07 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.65 607.17 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 607.17 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 607.17 Td (4.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 593.07 Td (ARMs \(potential negative amortization\) \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 578.07 Td (Less than five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 578.07 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.65 577.17 Td (0.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 577.17 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 577.17 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 563.07 Td (Five years and longer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.00 563.07 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.65 562.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 562.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 562.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 548.07 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.00 548.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 547.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.15 547.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 547.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 547.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 547.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 547.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 518.23 Td (Total primary RIF by LTV) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 503.07 Td ( 95.01% and above) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 503.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.50 502.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 502.17 Td (3,547) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 502.17 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 502.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.50 502.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 502.17 Td (4,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 502.17 Td (10.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 502.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 502.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 502.17 Td (4,643) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 502.17 Td (13.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 502.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 488.07 Td ( 90.01% to 95.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 488.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.60 487.17 Td (20,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 487.17 Td (47.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.60 487.17 Td (17,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 487.17 Td (43.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.60 487.17 Td (13,303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 487.17 Td (38.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 472.17 Td ( 85.01% to 90.00%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 472.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.60 472.17 Td (15,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 472.17 Td (35.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.60 472.17 Td (14,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 472.17 Td (36.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.60 472.17 Td (13,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 472.17 Td (38.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 457.17 Td ( 85.00% and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 457.07 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 457.17 Td (3,864) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 457.17 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 457.17 Td (3,857) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 457.17 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 457.17 Td (3,292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 457.17 Td (9.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 442.17 Td (Total Primary RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.00 442.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.50 442.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.60 442.17 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.60 442.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 442.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.50 442.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.60 442.17 Td (40,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.60 442.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 442.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 442.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.60 442.17 Td (34,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 442.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 442.17 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 413.23 Td (Total primary RIF by policy year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 398.07 Td (2005 and prior) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.00 398.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.50 397.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 397.17 Td (3,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 397.17 Td (8.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.50 397.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 397.17 Td (4,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 397.17 Td (11.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 397.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 397.17 Td (5,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 397.17 Td (16.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 397.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 383.07 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 383.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 382.17 Td (2,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 382.17 Td (4.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 382.17 Td (2,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 382.17 Td (5.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 382.17 Td (2,735) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 382.17 Td (8.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 368.07 Td (2007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 368.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 367.17 Td (4,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 367.17 Td (10.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 367.17 Td (5,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 367.17 Td (13.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 367.17 Td (6,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 367.17 Td (17.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 353.07 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 353.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 352.17 Td (3,394) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 352.17 Td (7.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 352.17 Td (3,950) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 352.17 Td (9.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 352.17 Td (4,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 352.17 Td (13.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 338.07 Td (2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 338.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 337.17 Td (1,081) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 337.17 Td (2.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 337.17 Td (1,448) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 337.17 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 337.17 Td (2,021) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 337.17 Td (5.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 323.07 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 323.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.15 322.17 Td (925) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 322.17 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 322.17 Td (1,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 322.17 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 322.17 Td (1,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 322.17 Td (5.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 308.07 Td (2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 308.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 307.17 Td (1,809) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.65 307.17 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 307.17 Td (2,263) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.65 307.17 Td (5.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 307.17 Td (2,956) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 307.17 Td (8.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 293.07 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 293.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 292.17 Td (6,534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 292.17 Td (15.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.60 292.17 Td (7,710) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 292.17 Td (19.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.60 292.17 Td (8,636) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 292.17 Td (25.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 278.07 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 278.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.60 277.17 Td (10,265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 277.17 Td (23.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.60 277.17 Td (11,406) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 277.17 Td (28.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 277.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 277.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 263.07 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 263.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 262.17 Td (9,098) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 262.17 Td (21.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 262.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 262.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 262.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 262.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 248.07 Td (Total Primary RIF) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.00 248.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.50 247.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.60 247.17 Td (43,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.60 247.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.15 247.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.50 247.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.60 247.17 Td (40,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.60 247.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.15 247.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 247.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.60 247.17 Td (34,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.60 247.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 247.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 231.00 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 48.50 219.00 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 219.00 Td (Fully Indexed refers to loans where payment adjustments are equal to mortgage interest-rate adjustments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 48.50 207.00 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 71.50 207.00 Td (Loans with potential negative amortization will have increased principal balances only if interest rates increase, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 195.00 Td (compared to loans with scheduled negative amortization, for which an increase in loan balance will occur even if interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 183.00 Td (rates do not change.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 166.00 Td (Net Pr) Tj ET Q q 0 0 0 rg BT 99.52 166.00 Td (emiums W) Tj ET Q q 0 0 0 rg BT 140.35 166.00 Td (ritten and Earned.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.95 166.00 Td ( Net premiums written decreased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.40 166.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.40 166.00 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.10 166.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.10 166.00 Td (, primarily due to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.00 Td (reduction in NIW) Tj ET Q q 0 0 0 rg BT 119.85 154.00 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.63 154.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.63 154.00 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.33 154.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.33 154.00 Td (. ) Tj ET Q q 0 0 0 rg BT 232.15 154.00 Td (There was a decrease in ceded premiums written in 2014 as a result of the run-of) Tj ET Q q 0 0 0 rg BT 554.91 154.00 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.00 Td (of captive business and a decrease in ceded premiums written related to the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 426.69 142.00 Td (T) Tj ET Q q 0 0 0 rg BT 432.45 142.00 Td (ransactions. Net premiums ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.00 Td (written increased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.86 130.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.86 130.00 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.56 130.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.56 130.00 Td ( primarily due to a significant increase in NIW) Tj ET Q q 0 0 0 rg BT 411.98 130.00 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.76 130.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.76 130.00 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.46 130.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.46 130.00 Td (. ) Tj ET Q q 0 0 0 rg BT 524.28 130.00 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.00 Td (overall increase in net premiums written in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.61 118.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.61 118.00 Td ( was partially of) Tj ET Q q 0 0 0 rg BT 308.13 118.00 Td (fset by an increase in ceded premiums written, primarily as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.00 Td (result of the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 173.46 106.00 Td (T) Tj ET Q q 0 0 0 rg BT 179.22 106.00 Td (ransactions. ) Tj ET Q q 0 0 0 rg BT 229.02 106.00 Td (While the volume of Single Premium policies written in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.93 106.00 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.93 106.00 Td ( decreased with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.00 Td (lower level of NIW) Tj ET Q q 0 0 0 rg BT 126.60 94.00 Td (, the percentage of our total NIW) Tj ET Q q 0 0 0 rg BT 258.87 94.00 Td ( as Single Premium policies was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.33 94.00 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.66 94.00 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.36 94.00 Td (32%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.69 94.00 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.00 Td (for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.66 82.00 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.66 82.00 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.10 82.00 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.43 82.00 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.09 82.00 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.09 82.00 Td (. ) Tj ET Q endstream endobj 179 0 obj <> endobj 180 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Net premiums earned increased for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.49 731.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.49 731.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.20 731.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.20 731.10 Td (, primarily due to higher direct premiums earned in 2014 as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (result of NIW) Tj ET Q q 0 0 0 rg BT 104.12 719.10 Td (, as well as an increase in Persistency Rates in 2014 that resulted in a significant increase in IIF) Tj ET Q q 0 0 0 rg BT 484.04 719.10 Td (. In addition, net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (premiums earned in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.42 707.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.42 707.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.12 707.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.12 707.10 Td ( were impacted by an experience-related profit commission for the Initial QSR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 695.10 Td (ransaction, a decrease in estimated premium refunds resulting from a lower level of rescissions, including lower rescission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (refunds under the BofA) Tj ET Q q 0 0 0 rg BT 143.65 683.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 190.86 683.10 Td (Agreement. Net premiums earned increased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.40 683.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 683.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.10 683.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.10 683.10 Td (, primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (increases in direct premiums earned as a result of an increase in NIW) Tj ET Q q 0 0 0 rg BT 326.42 671.10 Td ( and a decrease in premiums refunded in connection with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (lower rescissions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.88 659.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.88 659.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.58 659.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.58 659.10 Td (. ) Tj ET Q q 0 0 0 rg BT 230.40 659.10 Td (The increase in net premiums earned in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.61 659.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.61 659.10 Td ( was partially of) Tj ET Q q 0 0 0 rg BT 475.13 659.10 Td (fset by an increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (ceded premiums earned related to the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 275.35 647.10 Td (T) Tj ET Q q 0 0 0 rg BT 281.11 647.10 Td (ransactions. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 630.10 Td (Our expected rate of return on our Single Premium business is lower than on our Monthly Premium business. ) Tj ET Q q 0 0 0 rg BT 513.16 630.10 Td (Assuming ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (all other factors remain constant, if loans prepay earlier than expected, then our profitability on these Single Premium policies is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (likely to be higher than anticipated. If loans are repaid later than expected, however) Tj ET Q q 0 0 0 rg BT 383.12 606.10 Td (, our profitability on these Single Premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (policies is likely to be lower than anticipated. Prepayment speeds, which are impacted by changes in interest rates, among other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (factors, impact the expected profitability of our Monthly Premium business in the opposite direction. For our Monthly Premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (business, earlier than anticipated prepayments reduce profitability) Tj ET Q q 0 0 0 rg BT 312.37 570.10 Td (. ) Tj ET Q q 0 0 0 rg BT 316.81 570.10 Td (As a result, the ultimate profitability of our business is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 558.10 Td (fected by the impact of mortgage prepayment speeds on the mix of business we write.Because prepayment speeds are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 546.10 Td (ficult to project, our strategy has been to write a mix of Single Premium and Monthly Premium business, which we believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (balances the overall impact on our results if actual prepayment speeds are significantly dif) Tj ET Q q 0 0 0 rg BT 410.02 534.10 Td (ferent from expectations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.54 522.10 Td (72%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.87 522.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.31 522.10 Td (28%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 522.10 Td ( of our NIW) Tj ET Q q 0 0 0 rg BT 217.61 522.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.27 522.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.27 522.10 Td ( was written with Monthly and Single Premiums, respectively) Tj ET Q q 0 0 0 rg BT 501.09 522.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (68% and 32%, respectively) Tj ET Q q 0 0 0 rg BT 158.26 510.10 Td (, for 2013. ) Tj ET Q q 0 0 0 rg BT 202.24 510.10 Td (The percentage of Single Premium NIW) Tj ET Q q 0 0 0 rg BT 363.95 510.10 Td ( could increase modestly during 2015 based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (the level of refinanced mortgages, competitive factors and the mix of business that our mortgage originator clients generate. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 481.10 Td (The following table provides additional information related to mortgage insurance premiums written and earned for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (years indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 441.6 m 347 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347 441.6 m 357 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 441.6 m 417 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417 441.6 m 427 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 441.6 m 487 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 441.6 m 347 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 428.6 m 347 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 441.6 m 417 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 428.6 m 417 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 441.6 m 487 441.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 428.6 m 487 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 370.6 m 347 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 370.6 m 417 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 370.6 m 487 370.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 355.6 m 347 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 353.6 m 347 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 355.6 m 417 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 353.6 m 417 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 355.6 m 487 355.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 353.6 m 487 353.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 295.6 m 347 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 295.6 m 417 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 295.6 m 487 295.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 281.6 m 347 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 287 279.6 m 347 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 281.6 m 417 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 357 279.6 m 417 279.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 281.6 m 487 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 279.6 m 487 279.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.20 445.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 431.580078125 m 102.078125 431.580078125 l s q 0 0 0 rg BT 52.50 432.83 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.50 432.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.50 432.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.50 432.83 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 417.28 Td (Net premiums written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 401.27 Td (Primary and pool insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.00 401.17 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.50 401.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 401.27 Td (923,965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.50 401.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 401.27 Td (949,457) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 401.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 401.27 Td (804,371) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 387.17 Td (Second-liens) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 387.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 387.17 Td (1,189) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 387.17 Td (1,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 387.17 Td (1,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 374.17 Td (International) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 374.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.15 374.17 Td (27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 374.17 Td (49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 374.17 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 359.27 Td (Net premiums written-insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.00 359.17 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.50 359.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 359.27 Td (925,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.50 359.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 359.27 Td (950,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 359.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 359.27 Td (806,305) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 341.28 Td (Net premiums earned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 326.27 Td (Primary and pool insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.00 326.17 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.50 326.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 326.27 Td (843,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.50 326.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 326.27 Td (779,415) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 326.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 326.27 Td (699,079) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 312.17 Td (Second-liens) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 312.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 312.17 Td (1,189) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 312.17 Td (1,492) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 312.17 Td (1,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 299.17 Td (International) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 299.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.15 299.17 Td (103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 299.17 Td (513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 299.17 Td (1,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 285.27 Td (Net premiums earned-insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.00 285.17 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.50 285.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 285.27 Td (844,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.50 285.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 285.27 Td (781,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 285.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 285.27 Td (702,385) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 260.10 Td (In our mortgage insurance business, we have used reinsurance as a risk management tool to manage Radian Guaranty) Tj ET Q q 0 0 0 rg BT 545.68 260.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.10 Td (regulatory Risk-to-capital. See Note 8 of Notes to Consolidated Financial Statements for more information about our captive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.10 Td (reinsurance arrangements and our QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 260.91 236.10 Td (T) Tj ET Q q 0 0 0 rg BT 266.67 236.10 Td (ransactions.) Tj ET Q endstream endobj 181 0 obj <> endobj 182 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 731.10 Td (Throughout this report, unless otherwise noted, RIF includes the amount ceded through reinsurance.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 703.6 m 389.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 703.6 m 399.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 703.6 m 468.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 703.6 m 478.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 703.6 m 547.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 703.6 m 389.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 320.5 691.6 m 389.5 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 703.6 m 468.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 691.6 m 468.5 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 703.6 m 547.5 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 478.5 691.6 m 547.5 691.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 365.95 707.68 Td (AtorFortheYearEndedDecember31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 66 694.430078125 m 120.6875 694.430078125 l s q 0 0 0 rg BT 66.00 695.68 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.50 695.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.50 695.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.50 695.68 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.00 682.28 Td (Initial QSR Transaction) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 668.17 Td (Ceded premiums written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 668.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 668.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 668.17 Td (10,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 668.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.15 668.17 Td (23,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 668.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 668.17 Td (52,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 654.17 Td (% of premiums written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 654.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 654.17 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 654.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 654.17 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 654.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 654.17 Td (5.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 654.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 640.17 Td (Ceded premiums earned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 640.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 640.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 640.17 Td (17,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 640.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.15 640.17 Td (29,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 640.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 640.17 Td (16,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 626.17 Td (% of total premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.50 626.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 626.17 Td (1.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 626.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 626.17 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 626.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 626.17 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 626.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 612.17 Td (Ceding commissions written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.50 612.17 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 612.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 612.17 Td (4,862) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 612.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 612.17 Td (5,762) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 612.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 612.17 Td (13,038) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 598.17 Td (RIF included in Initial QSR Transaction \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.50 598.17 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 598.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 598.17 Td (1,105,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 598.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 598.17 Td (1,329,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 598.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.65 598.17 Td (1,525,840) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.00 574.28 Td (Second QSR Transaction) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 560.17 Td (Ceded premiums written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 560.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 560.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 560.17 Td (33,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 560.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.15 560.17 Td (40,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 560.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.15 560.17 Td (9,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 546.17 Td (% of premiums written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 546.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 546.17 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 546.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 546.17 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 546.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 546.17 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 546.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 532.17 Td (Ceded premiums earned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 532.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 532.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 532.17 Td (29,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 532.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.15 532.17 Td (18,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 532.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.65 532.17 Td (504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 518.17 Td (% of total premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.50 518.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 518.17 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 518.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 518.17 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 518.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 518.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 518.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 504.17 Td (Ceding commissions written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.50 504.17 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 504.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 504.17 Td (11,813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 504.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.15 504.17 Td (14,079) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 504.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.15 504.17 Td (3,377) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 490.17 Td (RIF included in Second QSR Transaction \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.50 490.17 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 490.17 Td (1,615,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 490.17 Td (1,298,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 490.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.15 490.17 Td (368,429) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 66.00 466.33 Td (First-Lien Captives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 452.17 Td (Premiums ceded to captives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.50 452.17 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.00 452.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 452.17 Td (12,996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 452.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.15 452.17 Td (17,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.00 452.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 452.17 Td (23,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 438.17 Td (% of total premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.50 438.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 438.17 Td (1.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 438.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 438.17 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 438.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 438.17 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 438.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 424.17 Td (IIF \(1\)subject to captives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.50 424.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 424.17 Td (2.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 424.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 424.17 Td (4.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 424.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 424.17 Td (6.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 424.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 410.17 Td (RIF \(2\)subject to captives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.50 410.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.15 410.17 Td (2.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.65 410.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 410.17 Td (3.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.65 410.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 410.17 Td (6.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 410.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.10 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 382.10 Td (IIF on captives as a percentage of total IIF) Tj ET Q q 0 0 0 rg BT 240.58 382.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.10 Td (RIF on captives as a percentage of total RIF) Tj ET Q q 0 0 0 rg BT 247.26 370.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 358.10 Td (RIF ceded under QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 214.84 358.10 Td (T) Tj ET Q q 0 0 0 rg BT 220.60 358.10 Td (ransactions and included in primary RIF) Tj ET Q q 0 0 0 rg BT 381.15 358.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 341.10 Td (Net Investment Income.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.63 341.10 Td ( Our mortgage insurance net investment income decreased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.99 341.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.99 341.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.69 341.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.69 341.10 Td (, and in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 329.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.20 329.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.20 329.10 Td (, primarily due to the continuation of the lower interest rate environment, which resulted in lower ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.10 Td (market yields for our investments, combined with lower investment balances. Sales of certain securities, in addition to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (subsequent reinvestment of longer duration securities in the low interest rate environment, have resulted in a lower yield profile ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (for the portfolio. ) Tj ET Q q 0 0 0 rg BT 117.82 293.10 Td (All periods include an allocation to the mortgage insurance segment of net investment income from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (investments held at Radian Group.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 264.10 Td (Pr) Tj ET Q q 0 0 0 rg BT 83.13 264.10 Td (ovision for Losses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.86 264.10 Td ( Our mortgage insurance provision for losses decreased significantly in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 264.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 264.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.21 264.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.21 264.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.10 Td (in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 252.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.78 252.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.48 252.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.48 252.10 Td (. ) Tj ET Q q 0 0 0 rg BT 159.30 252.10 Td (The following table details the financial impact of the significant components of our provision for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.10 Td (losses for the periods indicated \(including amounts related to change in PDR on Second-liens\):) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 211.60000000000002 m 417.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 211.60000000000002 m 425.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 211.60000000000002 m 477.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 211.60000000000002 m 485.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 211.60000000000002 m 537.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 211.60000000000002 m 417.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 197.60000000000002 m 417.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 211.60000000000002 m 477.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 197.60000000000002 m 477.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 211.60000000000002 m 537.5 211.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 197.60000000000002 m 537.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 197.60000000000002 m 417.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 197.60000000000002 m 477.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 197.60000000000002 m 537.5 197.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 171.60000000000002 m 417.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 171.60000000000002 m 477.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 171.60000000000002 m 537.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 171.60000000000002 m 417.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 160.60000000000002 m 417.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 365.5 158.60000000000002 m 417.5 158.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 171.60000000000002 m 477.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 160.60000000000002 m 477.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425.5 158.60000000000002 m 477.5 158.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 171.60000000000002 m 537.5 171.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 160.60000000000002 m 537.5 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485.5 158.60000000000002 m 537.5 158.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.70 215.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 100 200.580078125 m 142.0078125 200.580078125 l s q 0 0 0 rg BT 100.00 201.83 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.30 201.83 Td (2014 \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.30 201.83 Td (2013 \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 497.30 201.83 Td (2012 \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 188.22 Td (New defaults) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.50 188.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.00 188.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 188.22 Td (243.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 188.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 188.22 Td (372.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 188.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 188.22 Td (647.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 176.27 Td (Existing defaults, Second-liens, LAE and other \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.50 176.17 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 176.27 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 176.27 Td (190.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 176.27 Td (273.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 162.22 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.50 162.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.00 162.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 162.22 Td (246.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.00 162.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 162.22 Td (562.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.00 162.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 162.22 Td (921.5) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 48.50 148.10 Td (_____________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 136.10 Td (The financial impact for each component has been recalculated on a full year basis, such that the sum of the individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 124.10 Td (quarterly impacts within each respective year do not equal the recalculated impacts. For example, the impact from a loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 112.10 Td (that defaults in one quarter and cures in the next quarter of the same year is not reflected within the full year provision for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 100.10 Td (losses, as the net impact is zero for the full year period.) Tj ET Q endstream endobj 183 0 obj <> endobj 184 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 731.10 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 731.10 Td (Represents the provision for losses attributable to loans that were in default as of the beginning of each period indicated, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 719.10 Td (including: \(a\) the change in reserves for loans that were in default status \(including pending claims\) as of both the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 707.10 Td (beginning and end of each period indicated; \(b\) the net impact to provision for losses from loans that were in default as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 695.10 Td (the beginning of each period indicated but were either cured, prepaid, or resulted in a paid claim or a rescission or denial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 683.10 Td (during the period indicated; \(c\) the impact to our IBNR reserve during the period related to changes in actual and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 671.10 Td (estimated reinstatements of previously rescinded policies and denied claims, including those subject to the BAC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 659.10 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 116.72 659.10 Td (Agreement; \(d\) Second-lien loss reserves and premium deficiency reserves; and \(e\) LAE and other loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 647.10 Td (reserves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 630.10 Td (Our mortgage insurance provision for losses for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.62 630.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.62 630.10 Td ( decreased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.54 630.10 Td ($315.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.43 630.10 Td ( as compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.96 630.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.96 630.10 Td (. ) Tj ET Q q 0 0 0 rg BT 493.78 630.10 Td (This decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (was driven primarily by a continued decline in new defaults and favorable development in our estimate of losses on existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (defaults, as a result of higher cures and lower Claim Severity rates in 2014 than were previously estimated, partially of) Tj ET Q q 0 0 0 rg BT 523.90 606.10 Td (fset by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (our provision for LAE. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 577.10 Td (Our mortgage insurance provision for losses also improved for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.05 577.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.05 577.10 Td ( relative to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.31 577.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.31 577.10 Td (. ) Tj ET Q q 0 0 0 rg BT 417.13 577.10 Td (This decrease was driven primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (by a continued decline in new defaults and less adverse development in our estimate of future losses on existing defaults, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (mainly due to the higher rates of claim curtailments and cures that we experienced in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.87 553.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.87 553.10 Td (. ) Tj ET Q q 0 0 0 rg BT 416.32 553.10 Td (Additionally in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 553.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 553.10 Td (, the adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (development on existing defaults in the provision for losses includes an incurred loss of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.03 541.10 Td ($22 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.42 541.10 Td ( related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 116.98 529.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 166.22 529.10 Td (This loss is expected to be of) Tj ET Q q 0 0 0 rg BT 282.13 529.10 Td (fset by a reduction of incurred losses in future periods, as a portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (currently performing loans covered by the transaction \(and for which we no longer have claim exposure\) re-default in the future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (and ultimately become claims. In 2012, we experienced an increase in other losses related to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 505.10 Td ($44 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.19 505.10 Td ( write-down in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (estimated reinsurance recoverable from our remaining Smart Home reinsurance transactions. Our final Smart Home reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (transaction matured in May 2013. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 464.10 Td (Our primary default rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.96 464.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.26 464.10 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.81 464.10 Td (5.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.64 464.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.34 464.10 Td (7.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.17 464.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.67 464.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.97 464.10 Td (. Our primary defaulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.10 Td (inventory comprised ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.48 452.10 Td (45,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.98 452.10 Td ( loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.09 452.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.39 452.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.59 452.10 Td (60,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.09 452.10 Td ( loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.20 452.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 452.10 Td (, representing a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.10 Td (25.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 440.10 Td ( decrease. ) Tj ET Q q 0 0 0 rg BT 117.06 440.10 Td (The reduction in our primary defaulted inventory is the result of the total number of defaulted loans: \(1\) that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.10 Td (have cured; \(2\) for which claim payments have been made; and \(3\) that have resulted in net insurance rescissions and claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (denials, collectively exceeding the total number of new defaults on insured loans. New primary defaults in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.70 416.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.70 416.10 Td ( decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.12 416.10 Td (18%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.45 416.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (compared to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.64 404.10 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.97 404.10 Td ( decrease in new primary defaults in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.41 404.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.41 404.10 Td ( and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.79 404.10 Td (22%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.12 404.10 Td ( decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.81 404.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.81 404.10 Td (. ) Tj ET Q q 0 0 0 rg BT 413.26 404.10 Td (Although significant uncertainty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (remains, we currently expect total new defaults for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.25 392.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.25 392.10 Td ( to decrease as compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.98 392.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.98 392.10 Td (.) Tj ET Q endstream endobj 185 0 obj <> endobj 186 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The following table shows the number of primary and pool loans that we have insured, the number of loans in default and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (the percentage of loans in default as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 691.6 m 425 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 691.6 m 441 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 691.6 m 494 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 691.6 m 510 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 691.6 m 563 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 691.6 m 425 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 679.6 m 425 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 691.6 m 494 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 679.6 m 494 679.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 691.6 m 563 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 679.6 m 563 679.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 443.75 695.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.00 683.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 683.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.00 683.68 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 79.50 670.28 Td (Default StatisticsPrimary Insurance:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 656.17 Td (Total Primary Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 642.17 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 628.17 Td (Number of insured loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 628.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 628.17 Td (790,056) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.60 628.17 Td (741,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.60 628.17 Td (667,622) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 614.17 Td (Number of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 614.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.60 614.17 Td (28,246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 614.17 Td (37,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 614.17 Td (60,854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 600.17 Td (Percentage of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 600.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 600.17 Td (3.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 600.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 600.17 Td (5.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 600.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 600.17 Td (9.12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 600.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 586.17 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 572.17 Td (Number of insured loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 572.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.60 572.17 Td (38,553) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 572.17 Td (44,905) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 572.17 Td (54,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 558.17 Td (Number of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 558.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 558.17 Td (8,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 558.17 Td (11,209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 558.17 Td (16,005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 544.17 Td (Percentage of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 544.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 544.17 Td (21.10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 544.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 544.17 Td (24.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 544.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 544.17 Td (29.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 544.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 530.17 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 516.17 Td (Number of insured loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 516.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.60 516.17 Td (35,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 516.17 Td (40,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 516.17 Td (49,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 502.17 Td (Number of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 502.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 502.17 Td (8,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 502.17 Td (11,768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 502.17 Td (16,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 488.17 Td (Percentage of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 488.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 488.17 Td (25.27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 488.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 488.17 Td (28.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 488.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 488.17 Td (33.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 488.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 474.17 Td (Total Primary Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 460.17 Td (Number of insured loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.00 460.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.60 460.17 Td (873,077) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 459.85 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.60 460.17 Td (839,249) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 459.85 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.60 460.17 Td (770,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 446.17 Td (Number of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 446.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.60 446.17 Td (45,319) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 427.50 445.85 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 446.17 Td (60,909) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 496.50 445.85 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 446.17 Td (93,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 432.17 Td (Percentage of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 432.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 432.17 Td (5.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.15 432.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.65 432.17 Td (7.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.15 432.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 432.17 Td (12.08) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 432.17 Td (%) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 79.50 418.33 Td (Default StatisticsPool Insurance:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 405.17 Td (Number of loans in default) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 405.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 405.17 Td (8,297) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.60 405.17 Td (11,921) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 405.17 Td (18,147) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (______________________ ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 377.10 Td (Includes 9,101 and 1) Tj ET Q q 0 0 0 rg BT 154.94 377.10 Td (1,860 insured loans subject to the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 344.08 377.10 Td (Agreement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 377.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.30 377.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.74 377.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.74 377.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 365.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 119.66 365.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 353.10 Td (Excludes 4,467 and 7,221 loans that are in default ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.45 353.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.75 353.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.19 353.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.19 353.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 454.85 353.10 Td (, that are subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 341.10 Td (Freddie Mac ) Tj ET Q q 0 0 0 rg BT 124.76 341.10 Td (Agreement, and for which we no longer have claims exposure.) Tj ET Q endstream endobj 187 0 obj <> endobj 188 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The following table shows a rollforward of the number of our primary loans in default:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 576.10 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 701.6 m 416.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.25 701.6 m 420.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 701.6 m 475.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.25 701.6 m 479.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 701.6 m 534.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 701.6 m 416.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 687.6 m 416.25 687.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 701.6 m 475.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 687.6 m 475.25 687.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 701.6 m 534.25 701.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 687.6 m 534.25 687.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 687.6 m 416.25 687.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 687.6 m 475.25 687.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 687.6 m 534.25 687.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 589.6 m 416.25 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 576.6 m 416.25 576.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 574.6 m 416.25 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 589.6 m 475.25 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 576.6 m 475.25 576.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 574.6 m 475.25 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 589.6 m 534.25 589.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 576.6 m 534.25 576.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 574.6 m 534.25 574.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.95 705.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.25 691.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.25 691.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.25 691.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 678.17 Td (Beginning default inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.25 678.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 678.17 Td (60,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 678.17 Td (93,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.90 678.17 Td (110,861) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 664.17 Td (Less: Freddie Mac Agreement Loans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.25 664.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.40 664.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.90 664.17 Td (9,756) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.40 664.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 650.17 Td (Plus: New defaults \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.25 650.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 650.17 Td (47,976) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 650.17 Td (58,577) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 650.17 Td (73,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 636.17 Td (Less: Cures \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.25 636.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 636.17 Td (46,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 636.17 Td (56,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 636.17 Td (61,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 622.17 Td (Less: Claims paid \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.25 622.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 622.17 Td (16,049) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 622.17 Td (22,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 622.17 Td (18,933) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 608.17 Td (Less: Rescissions \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.25 608.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.40 608.17 Td (593) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.40 608.17 Td (967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 608.17 Td (3,433) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 594.17 Td (Less: Denials \(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.25 594.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.40 594.17 Td (833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.90 594.17 Td (1,053) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 594.17 Td (6,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 580.17 Td (Ending default inventory) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.25 580.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 580.17 Td (45,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.90 580.17 Td (60,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 580.17 Td (93,169) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.10 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 552.10 Td (Amounts reflected are compiled monthly based on reports received from loan servicers. ) Tj ET Q q 0 0 0 rg BT 425.31 552.10 Td (The number of new defaults and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 540.10 Td (cures presented includes the following monthly defaults that both defaulted and cured within the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 515.6 m 377 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 377 515.6 m 385 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 515.6 m 440 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 515.6 m 450 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 515.6 m 505 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 515.6 m 377 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 501.6 m 377 501.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 515.6 m 440 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 501.6 m 440 501.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 515.6 m 505 515.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 501.6 m 505 501.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 501.6 m 377 501.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385 501.6 m 440 501.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 501.6 m 505 501.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.70 519.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.00 505.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.00 505.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.00 505.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 492.17 Td (Intra-period new defaults) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.00 492.17 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.65 492.17 Td (32,489) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 492.17 Td (39,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 492.17 Td (42,159) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.10 Td (Includes those char) Tj ET Q q 0 0 0 rg BT 149.01 470.10 Td (ged to a deductible or captive. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 458.10 Td (Net of any previously rescinded policies or denied claims that were reinstated during the period. Such reinstated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 446.10 Td (rescissions may ultimately result in a paid claim.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.10 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.10 Td (Net of any denied claims that were reinstated during the period. Such previously denied but reinstated claims are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.10 Td (generally reviewed for possible rescission prior to any claim payment. ) Tj ET Q q 0 0 0 rg BT 354.97 422.10 Td (A) Tj ET Q q 0 0 0 rg BT 361.64 422.10 Td ( significant number of denials in 2012 relate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.10 Td (one servicer) Tj ET Q q 0 0 0 rg BT 120.03 410.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 393.10 Td (Our aggregate weighted average net Default to Claim Rate assumption for our primary loans used in estimating our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (reserve for losses, which is net of estimated denials and rescissions, was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.80 381.10 Td (52%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.13 381.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.63 381.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.93 381.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.87 381.10 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.20 381.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (both December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.36 369.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.36 369.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.80 369.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.80 369.10 Td (. Contributing to this increase was a change in the gross Default to Claim Rate assumption ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.10 Td (for certain segments of our default inventory during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.44 357.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.44 357.10 Td (. ) Tj ET Q q 0 0 0 rg BT 284.26 357.10 Td (W) Tj ET Q q 0 0 0 rg BT 292.89 357.10 Td (e develop our Default to Claim Rate estimates on defaulted loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.10 Td (based on models that use a variety of loan characteristics to determine the likelihood that a default will reach claim status. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.10 Td (During the third quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.08 333.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.08 333.10 Td (, we continued to refine our approach to estimating loss reserves and developed additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.10 Td (portfolio segmentations, primarily based on a loan) Tj ET Q q 0 0 0 rg BT 253.62 321.10 Td (s ) Tj ET Q q 0 0 0 rg BT 259.83 321.10 Td (T) Tj ET Q q 0 0 0 rg BT 265.59 321.10 Td (ime in Default and its current Stage of Default, in assessing the likelihood ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.10 Td (that a default will become a claim. Previously) Tj ET Q q 0 0 0 rg BT 232.13 309.10 Td (, we gave greater weight to other loan characteristics, including the status of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.10 Td (loan as reported by its servicer) Tj ET Q q 0 0 0 rg BT 171.56 297.10 Td (, as defined by the number of missed payments, and the type of loan product. In addition, based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.10 Td (on observed trends, we lowered our estimated Claim Severity rate during 2014, which contributed to the favorable development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.10 Td (in our estimate of future losses on existing defaults.) Tj ET Q endstream endobj 189 0 obj <> endobj 190 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (The following tables show additional information about our primary loans in default as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200.5 707.6 m 245.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 245.5 707.6 m 253.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 707.6 m 298.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 298.5 707.6 m 306.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 707.6 m 368.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368.5 707.6 m 375.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 707.6 m 430.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 430.5 707.6 m 438.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 707.6 m 490.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 490.5 707.6 m 498.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 707.6 m 543.5 707.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200.5 678.6 m 245.5 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 245.5 678.6 m 253.5 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 678.6 m 298.5 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 678.6 m 368.5 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 678.6 m 490.5 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 678.6 m 543.5 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200.5 665.6 m 245.5 665.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 665.6 m 298.5 665.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 665.6 m 368.5 665.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 678.6 m 430.5 678.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 375.5 665.6 m 430.5 665.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 665.6 m 490.5 665.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 665.6 m 543.5 665.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200.5 665.6 m 245.5 665.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200.5 595.6 m 245.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 595.6 m 490.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200.5 582.6 m 245.5 582.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 200.5 580.6 m 245.5 580.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 595.6 m 298.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 582.6 m 298.5 582.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 253.5 580.6 m 298.5 580.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 595.6 m 368.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 582.6 m 368.5 582.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306.5 580.6 m 368.5 580.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 595.6 m 490.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 595.6 m 543.5 595.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 582.6 m 543.5 582.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498.5 580.6 m 543.5 580.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 553.6 m 490.5 553.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 540.6 m 490.5 540.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438.5 538.6 m 490.5 538.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.25 711.83 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 240.25 682.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 316.90 698.83 Td (Foreclosure) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 310.00 690.83 Td (Stage Defaulted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.55 682.83 Td (Loans) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.90 698.83 Td (Cure %) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.90 690.83 Td (During the) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.00 682.83 Td (4th Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.40 690.83 Td (Reserve for) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.85 682.83 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.15 690.83 Td (% of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.95 682.83 Td (Reserve) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 70 668.580078125 m 124.6875 668.580078125 l s q 0 0 0 rg BT 70.00 669.83 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 220.50 669.83 Td (#) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.50 669.83 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.00 669.83 Td (#) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.50 669.83 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 462.00 669.83 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 516.50 669.83 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 70.00 656.28 Td (Missed payments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 642.17 Td (Three payments or less) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 642.17 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.10 642.17 Td (11,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.15 642.17 Td (24.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 642.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.65 642.17 Td (174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 642.17 Td (30.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 642.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.00 642.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.10 642.17 Td (142,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 642.17 Td (11.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 642.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 628.17 Td (Four to eleven payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.50 628.17 Td (. .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.10 628.17 Td (10,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.15 628.17 Td (23.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.65 628.17 Td (695) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 628.17 Td (15.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.10 628.17 Td (195,440) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 628.17 Td (16.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 614.17 Td (Twelve payments or more) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.50 614.17 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.10 614.17 Td (18,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.15 614.17 Td (39.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.15 614.17 Td (3,984) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 614.17 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.10 614.17 Td (593,466) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 614.17 Td (49.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 600.17 Td (Pending claims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.50 600.17 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.15 600.17 Td (5,643) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.15 600.17 Td (12.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.30 600.17 Td (N/A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 600.17 Td (0.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.10 600.17 Td (266,826) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 600.17 Td (22.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 586.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.50 586.17 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.10 586.17 Td (45,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.10 586.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.65 586.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.15 586.17 Td (4,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.60 586.17 Td (1,198,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.10 586.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 586.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 572.17 Td (IBNR and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.50 572.17 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.10 572.17 Td (223,114) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 558.17 Td (LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 558.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 558.17 Td (56,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 544.17 Td (Total primary reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 544.17 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.00 544.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.60 544.17 Td (1,477,513) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 505.6 m 272 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 505.6 m 280 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 505.6 m 331 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 505.6 m 339 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 505.6 m 390 505.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 490.6 m 272 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 490.6 m 280 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 490.6 m 331 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 490.6 m 339 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 490.6 m 390 490.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 455.6 m 272 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 455.6 m 331 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 455.6 m 390 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 455.6 m 272 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 455.6 m 331 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 455.6 m 390 455.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.75 509.83 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.75 494.83 Td (Key Reserve Assumptions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 236.05 482.68 Td (Gross) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.00 474.68 Td (Default to) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 226.55 466.68 Td (Claim Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.00 458.68 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.30 475.83 Td (Net Default) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.20 467.83 Td (to Claim) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.00 459.83 Td (Rate %) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.00 459.83 Td (Severity %) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.80 445.27 Td (57%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.80 445.27 Td (52%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.30 445.27 Td (104%) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 408.6 m 256.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 256.5 408.6 m 264.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 408.6 m 302.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 302.5 408.6 m 310.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 408.6 m 371.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 408.6 m 378.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 408.6 m 426.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 408.6 m 434.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 408.6 m 486.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 408.6 m 494.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 408.6 m 535.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 379.6 m 256.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 379.6 m 302.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 408.6 m 371.5 408.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 379.6 m 371.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 379.6 m 426.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 379.6 m 486.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 379.6 m 535.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 366.6 m 256.5 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 366.6 m 302.5 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 379.6 m 371.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 366.6 m 371.5 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 379.6 m 426.5 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378.5 366.6 m 426.5 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 366.6 m 486.5 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 366.6 m 535.5 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 366.6 m 256.5 366.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 296.6 m 256.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 296.6 m 486.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 283.6 m 256.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 216.5 281.6 m 256.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 296.6 m 302.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 283.6 m 302.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 264.5 281.6 m 302.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 296.6 m 371.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 283.6 m 371.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 281.6 m 371.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 296.6 m 486.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 296.6 m 535.5 296.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 283.6 m 535.5 283.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494.5 281.6 m 535.5 281.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 254.60000000000002 m 486.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 254.60000000000002 m 486.5 254.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 241.60000000000002 m 486.5 241.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434.5 239.60000000000002 m 486.5 239.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.25 412.83 Td (December 31, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 250.25 383.83 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.40 399.83 Td (Foreclosure) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 313.50 391.83 Td (Stage Defaulted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.05 383.83 Td (Loans) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.40 399.83 Td (Cure %) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.40 391.83 Td (During the) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.50 383.83 Td (4th Quarter) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 440.40 391.83 Td (Reserve for) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.85 383.83 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.15 391.83 Td (% of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 500.95 383.83 Td (Reserve) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 78 369.580078125 m 132.6875 369.580078125 l s q 0 0 0 rg BT 78.00 370.83 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 234.00 370.83 Td (#) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.00 370.83 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 338.50 370.83 Td (#) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 398.00 370.83 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.00 370.83 Td ($) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.50 370.83 Td (%) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 78.00 357.28 Td (Missed payments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 343.17 Td (Three payments or less) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.50 343.17 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.10 343.17 Td (13,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.10 343.17 Td (21.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.65 343.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.65 343.17 Td (308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 343.17 Td (30.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 343.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 343.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.10 343.17 Td (133,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 343.17 Td (8.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 343.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 329.17 Td (Four to eleven payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.50 329.17 Td (. . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.10 329.17 Td (12,939) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.10 329.17 Td (21.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 329.17 Td (1,278) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.15 329.17 Td (17.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.10 329.17 Td (267,279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.10 329.17 Td (17.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 315.17 Td (Twelve payments or more) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.50 315.17 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.10 315.17 Td (23,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.10 315.17 Td (39.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 315.17 Td (5,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.15 315.17 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.10 315.17 Td (686,198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.10 315.17 Td (43.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 301.17 Td (Pending claims) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 301.17 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.10 301.17 Td (10,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.10 301.17 Td (17.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.30 301.17 Td (N/A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.15 301.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.10 301.17 Td (489,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.10 301.17 Td (31.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 287.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.50 287.17 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.10 287.17 Td (60,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.10 287.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.65 287.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 287.17 Td (6,670) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.60 287.17 Td (1,576,056) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.10 287.17 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 287.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 273.17 Td (IBNR and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.50 273.17 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.10 273.17 Td (347,698) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 259.17 Td (LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 259.17 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 259.17 Td (51,245) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 245.17 Td (Total primary reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.50 245.17 Td (. . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.00 245.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.60 245.17 Td (1,974,999) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 210.60000000000002 m 272 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 210.60000000000002 m 280 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 210.60000000000002 m 331 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 210.60000000000002 m 339 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 210.60000000000002 m 390 210.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 195.60000000000002 m 272 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 272 195.60000000000002 m 280 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 195.60000000000002 m 331 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 195.60000000000002 m 339 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 195.60000000000002 m 390 195.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 160.60000000000002 m 272 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 160.60000000000002 m 331 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 160.60000000000002 m 390 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 221 160.60000000000002 m 272 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 160.60000000000002 m 331 160.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 160.60000000000002 m 390 160.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 272.75 214.83 Td (December 31, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.75 199.83 Td (Key Reserve Assumptions) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 236.05 187.68 Td (Gross) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 229.00 179.68 Td (Default to) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 226.55 171.68 Td (Claim Rate) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.00 163.68 Td (%) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.30 180.83 Td (Net Default) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 290.20 172.83 Td (to Claim) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.00 164.83 Td (Rate %) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.00 164.83 Td (Severity %) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.80 150.27 Td (57%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.80 150.27 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.30 150.27 Td (107%) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 125.10 Td (_________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.10 Td (N/A) Tj ET Q q 0 0 0 rg BT 66.17 113.10 Td ( Not applicable) Tj ET Q endstream endobj 191 0 obj <> endobj 192 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Our net Default to Claim Rate and loss reserve estimate incorporates our future expectations with respect to future claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (denials and insurance rescissions. ) Tj ET Q q 0 0 0 rg BT 186.23 719.10 Td (These expectations are based on our recent experience with respect to the number of claims ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (that have been denied due to the policyholder) Tj ET Q q 0 0 0 rg BT 231.75 707.10 Td () Tj ET Q q 0 0 0 rg BT 234.53 707.10 Td (s failure to submit suf) Tj ET Q q 0 0 0 rg BT 321.56 707.10 Td (ficient documentation to perfect a claim within the time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (period permitted under our Master Policies and also our recent experience with respect to the number of insurance certificates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (that have been rescinded due to fraud, underwriter negligence or other factors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.37 683.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.40 683.10 Td (, we have adjusted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (these estimates to reflect the expected impact of the BofA) Tj ET Q q 0 0 0 rg BT 280.25 671.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 327.46 671.10 Td (Agreement. See Note 10 of Notes to Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Financial Statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 642.10 Td (The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (net of any reinstatements of previously rescinded policies or denied claims for the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 605.6 m 401 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 605.6 m 405 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 605.6 m 455 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 605.6 m 459 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 605.6 m 510 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 605.6 m 401 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 591.6 m 401 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 605.6 m 455 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 591.6 m 455 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 605.6 m 510 605.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 591.6 m 510 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 591.6 m 401 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 591.6 m 455 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 591.6 m 510 591.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 563.6 m 401 563.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 539.6 m 401 539.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 537.6 m 401 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 563.6 m 455 563.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 539.6 m 455 539.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 537.6 m 455 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 563.6 m 510 563.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 539.6 m 510 539.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 537.6 m 510 537.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.20 609.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 594.580078125 m 94.5078125 594.580078125 l s q 0 0 0 rg BT 52.50 595.83 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.00 595.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.50 595.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.00 595.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 582.17 Td (Rescissions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 582.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.50 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 582.17 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 582.17 Td (81) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.50 582.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 582.17 Td (279) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 568.17 Td (Denials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 568.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 568.17 Td (88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 568.17 Td (172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 568.17 Td (539) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 553.27 Td (Total First-lien claims submitted for payment that were rescinded or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 543.27 Td (denied\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 543.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.50 543.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 543.27 Td (145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 543.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 543.27 Td (253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.50 543.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.15 543.27 Td (818) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 527.10 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 515.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 515.10 Td (Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 494.10 Td (The following table illustrates the impact of estimated future insurance rescissions and claim denials \(net of estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.10 Td (reinstatements\) on our loss reserve estimates as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 457.6 m 401 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 457.6 m 405 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 457.6 m 456 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 457.6 m 460 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 457.6 m 511 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 457.6 m 401 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 443.6 m 401 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 457.6 m 456 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 443.6 m 456 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 457.6 m 511 457.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 443.6 m 511 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 350 443.6 m 401 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 443.6 m 456 443.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 443.6 m 511 443.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.75 461.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 446.580078125 m 94.5078125 446.580078125 l s q 0 0 0 rg BT 52.50 447.83 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.00 447.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.00 447.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.00 447.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 434.17 Td (Decrease to our loss reserve due to estimated future rescissions and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 424.22 Td (denials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 424.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.50 426.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 426.27 Td (125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 426.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 426.27 Td (247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 426.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 426.27 Td (455) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 401.10 Td (The impact to our mortgage insurance reserves due to estimated future rescissions and denials incorporates our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.10 Td (expectations regarding the number of policies that we expect to reinstate as a result of our claims rebuttal process \(see below for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.10 Td (more information\). ) Tj ET Q q 0 0 0 rg BT 127.91 377.10 Td (While the level of rescissions and denials has been declining in recent periods as our defaulted Legacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.10 Td (Portfolio continues to decline, our current level of rescissions and denials remains elevated compared to historical levels.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 348.10 Td (The ) Tj ET Q q 0 0 0 rg BT 90.05 348.10 Td (table ) Tj ET Q q 0 0 0 rg BT 111.98 348.10 Td (below ) Tj ET Q q 0 0 0 rg BT 138.92 348.10 Td (shows ) Tj ET Q q 0 0 0 rg BT 166.42 348.10 Td (the ) Tj ET Q q 0 0 0 rg BT 181.14 348.10 Td (details ) Tj ET Q q 0 0 0 rg BT 209.74 348.10 Td (related ) Tj ET Q q 0 0 0 rg BT 239.45 348.10 Td (to ) Tj ET Q q 0 0 0 rg BT 249.72 348.10 Td (the ) Tj ET Q q 0 0 0 rg BT 264.44 348.10 Td (number ) Tj ET Q q 0 0 0 rg BT 297.49 348.10 Td (of ) Tj ET Q q 0 0 0 rg BT 308.32 348.10 Td (rescinded ) Tj ET Q q 0 0 0 rg BT 349.13 348.10 Td (policies ) Tj ET Q q 0 0 0 rg BT 382.74 348.10 Td (and ) Tj ET Q q 0 0 0 rg BT 399.68 348.10 Td (denied ) Tj ET Q q 0 0 0 rg BT 428.83 348.10 Td (claims ) Tj ET Q q 0 0 0 rg BT 457.43 348.10 Td (for ) Tj ET Q q 0 0 0 rg BT 471.59 348.10 Td (the ) Tj ET Q q 0 0 0 rg BT 486.31 348.10 Td (periods ) Tj ET Q q 0 0 0 rg BT 518.25 348.10 Td (indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 322.6 m 385.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 385.5 322.6 m 389.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 322.6 m 433.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433.5 322.6 m 437.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 322.6 m 481.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 322.6 m 385.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 307.6 m 385.5 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 322.6 m 433.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 307.6 m 433.5 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 322.6 m 481.5 322.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 307.6 m 481.5 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 307.6 m 385.5 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 307.6 m 433.5 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 307.6 m 481.5 307.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 217.60000000000002 m 385.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 217.60000000000002 m 433.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 217.60000000000002 m 481.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 217.60000000000002 m 385.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 203.60000000000002 m 385.5 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 341.5 201.60000000000002 m 385.5 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 217.60000000000002 m 433.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 203.60000000000002 m 433.5 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 201.60000000000002 m 433.5 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 217.60000000000002 m 481.5 217.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 203.60000000000002 m 481.5 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437.5 201.60000000000002 m 481.5 201.60000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.70 326.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 355.00 311.83 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.00 311.83 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.00 311.83 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 297.27 Td (Rescinded policies:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.00 282.27 Td (Rescinded) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.50 282.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.30 282.27 Td (\(702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 282.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.80 282.32 Td (\(1,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 282.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.80 282.32 Td (\(4,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 282.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.00 267.27 Td (Reinstated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.50 267.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.65 267.27 Td (109) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.65 267.27 Td (774) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.65 267.27 Td (934) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 252.27 Td (Denied claims:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.00 237.27 Td (Denied) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 237.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 237.27 Td (\(4,089) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 237.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.80 237.32 Td (\(8,141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 237.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 237.32 Td (\(12,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 237.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.00 222.27 Td (Reinstated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.50 222.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 222.27 Td (3,256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 222.27 Td (7,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 222.27 Td (5,875) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.00 207.27 Td (Total net rescissions and denials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.50 207.17 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 207.27 Td (\(1,426) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 207.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.80 207.32 Td (\(2,020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 207.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 207.32 Td (\(10,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 207.27 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 182.10 Td (Our reported rescission and denial activity in any given period is subject to challenge by our lender and servicer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (customers through our claims rebuttal process. In addition, we are at times engaged in discussions with our lender and servicer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (customers regarding these Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 221.97 158.10 Td (Activities. Unless a liability associated with such activities or discussions become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (probable and can be reasonably estimated, we consider our claim payments and our rescissions, denials and curtailments to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (resolved for financial reporting purposes. In accordance with the accounting standard regarding contingencies, we accrue for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (estimated loss when we determine that the loss is probable and can be reasonably estimated.) Tj ET Q endstream endobj 193 0 obj <> endobj 194 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (On September 16, 2014, Radian Guaranty entered into the BofA) Tj ET Q q 0 0 0 rg BT 330.38 731.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 377.60 731.10 Td (Agreement in order to resolve various actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (and potential claims or disputes related to the parties) Tj ET Q q 0 0 0 rg BT 262.58 719.10 Td ( respective rights and duties as to mortgage insurance coverage on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (Subject Loans. ) Tj ET Q q 0 0 0 rg BT 111.25 707.10 Td (The consent of the GSEs required to implement the BofA) Tj ET Q q 0 0 0 rg BT 340.93 707.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 388.14 707.10 Td (Agreement was received in December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (2014, and implementation of the agreement for Subject Loans owned by the GSEs or held in portfolio by the Insureds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (commenced on February 1, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 666.10 Td (Approximately 12% of the Subject Loans were neither held in portfolio by the Insureds nor owned by the GSEs, and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (require the consent of certain other investors for these loans to be included in the BofA) Tj ET Q q 0 0 0 rg BT 396.90 654.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 444.11 654.10 Td (Agreement except with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (respect to certain limited rights of cancellation. See Note 10 of Notes to Consolidated Financial Statements for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (information about the BofA) Tj ET Q q 0 0 0 rg BT 160.32 630.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 207.53 630.10 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 613.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 613.10 Td (e expect that a portion of previously rescinded policies will be reinstated and previously denied claims will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.10 Td (resubmitted with the required documentation and ultimately paid; therefore, we have incorporated this expectation into our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.10 Td (IBNR reserve estimate. Our IBNR reserve estimate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.26 589.10 Td ($163.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 589.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.15 589.10 Td ($281.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.04 589.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.48 589.10 Td ($323.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.38 589.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.59 589.10 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 577.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 577.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 577.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 577.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 577.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 186.60 577.10 Td (. ) Tj ET Q q 0 0 0 rg BT 191.42 577.10 Td (The significant decrease in our IBNR reserve estimate in 2014 reflects the terms of the BofA) Tj ET Q q 0 0 0 rg BT 562.13 577.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 94.22 565.10 Td (Agreement. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.03 565.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.03 565.10 Td (, the IBNR reserve estimate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.16 565.10 Td ($163.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.05 565.10 Td ( included approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.74 565.10 Td ($133.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.63 565.10 Td ( for loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (subject to the BofA) Tj ET Q q 0 0 0 rg BT 126.99 553.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 174.21 553.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 223.45 553.10 Td (The remaining IBNR reserve included an estimate of future reinstatements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (previously denied claims, rescinded policies and claim curtailments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.30 541.10 Td ($18.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.20 541.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.20 541.10 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.09 541.10 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.03 541.10 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.92 541.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 529.10 Td (. ) Tj ET Q q 0 0 0 rg BT 101.98 529.10 Td (These reserves relate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.60 529.10 Td ($1) Tj ET Q q 0 0 0 rg BT 208.23 529.10 Td (13.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.12 529.10 Td ( of claims that were denied within the preceding 12 months, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.28 529.10 Td ($90.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.17 529.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (of policies rescinded within the preceding 24 months, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.33 517.10 Td ($34.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.22 517.10 Td ( of claim curtailments within the preceding 24 months ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (excluding those claims subject to the BofA) Tj ET Q q 0 0 0 rg BT 221.14 505.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 268.35 505.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 317.60 505.10 Td (The decrease in our IBNR reserve estimate as a result of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (BofA) Tj ET Q q 0 0 0 rg BT 71.17 493.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 118.39 493.10 Td (Agreement was partially of) Tj ET Q q 0 0 0 rg BT 227.33 493.10 Td (fset by an increase in our mortgage insurance case reserves to incorporate the fact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (that we have agreed not to take further action to ef) Tj ET Q q 0 0 0 rg BT 250.90 481.10 Td (fect rescissions and claims denials on a population of loans subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (BofA) Tj ET Q q 0 0 0 rg BT 71.17 469.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 118.39 469.10 Td (Agreement that are referred to as Future Legacy Loans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 452.10 Td (The following table shows information regarding our reserve for losses as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 424.6 m 414 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 424.6 m 418 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 424.6 m 473 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 424.6 m 477 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 424.6 m 532 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 424.6 m 414 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 412.6 m 414 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 424.6 m 473 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 412.6 m 473 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 424.6 m 532 424.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 412.6 m 532 412.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 314.6 m 414 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 314.6 m 473 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 314.6 m 532 314.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 300.6 m 414 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 300.6 m 473 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 300.6 m 532 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 300.6 m 414 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 300.6 m 473 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 300.6 m 532 300.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 258.6 m 414 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 258.6 m 473 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 258.6 m 532 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 258.6 m 414 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 244.60000000000002 m 414 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 258.6 m 473 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 244.60000000000002 m 473 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 258.6 m 532 258.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 244.60000000000002 m 532 244.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 216.60000000000002 m 414 216.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 203.60000000000002 m 414 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 201.60000000000002 m 414 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 216.60000000000002 m 473 216.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 203.60000000000002 m 473 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 418 201.60000000000002 m 473 201.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 216.60000000000002 m 532 216.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 203.60000000000002 m 532 203.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 201.60000000000002 m 532 201.60000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 428.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.75 428.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 415.430078125 m 102.078125 415.430078125 l s q 0 0 0 rg BT 52.50 416.68 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 378.00 416.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 437.00 416.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.00 416.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 403.17 Td (Reserves for losses by category:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 389.17 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 389.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.65 389.17 Td (700,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 389.17 Td (937,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 389.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.10 389.17 Td (1,508,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 375.17 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.00 375.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.65 375.17 Td (292,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 375.17 Td (384,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 375.17 Td (490,728) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 361.17 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.00 361.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.65 361.17 Td (179,103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 361.17 Td (215,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 361.17 Td (314,068) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 347.17 Td (IBNR and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 347.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.65 347.17 Td (223,114) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 347.17 Td (347,698) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 347.17 Td (289,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 333.17 Td (LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.00 333.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 333.17 Td (56,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 333.17 Td (51,245) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 333.17 Td (64,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 319.17 Td (Reinsurance recoverable \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.00 319.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 319.17 Td (26,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 319.17 Td (38,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 319.17 Td (83,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 305.17 Td (Total primary reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.00 305.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.10 305.17 Td (1,477,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.10 305.17 Td (1,974,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.10 305.17 Td (2,749,458) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 291.17 Td (Pool) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.00 291.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 291.17 Td (75,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 291.17 Td (169,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 291.17 Td (281,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 277.17 Td (IBNR and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 277.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.65 277.17 Td (1,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 277.17 Td (8,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 277.17 Td (34,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 263.17 Td (LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.00 263.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.65 263.17 Td (3,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 263.17 Td (5,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.65 263.17 Td (7,466) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 249.17 Td (Total pool reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 249.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.65 249.17 Td (81,102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 249.17 Td (184,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 249.17 Td (323,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 235.17 Td (Total First-lien reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.00 235.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.10 235.17 Td (1,558,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.10 235.17 Td (2,159,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.10 235.17 Td (3,072,861) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 221.17 Td (Second-lien and other \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 221.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.65 221.17 Td (1,417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 221.17 Td (5,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.65 221.17 Td (10,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 207.17 Td (Total reserve for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.00 207.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.50 207.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.10 207.17 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.50 207.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.10 207.17 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.50 207.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.10 207.17 Td (3,083,608) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.10 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 179.10 Td (Primarily represents ceded losses on captive transactions, Smart Home \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.81 179.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.81 179.10 Td ( only\) and the QSR Reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 167.10 Td (T) Tj ET Q q 0 0 0 rg BT 77.76 167.10 Td (ransactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 155.10 Td (Does not include Second-lien PDR.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 138.10 Td (Our mortgage insurance total loss reserve as a percentage of our mortgage insurance total RIF was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.03 138.10 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.86 138.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.36 138.10 Td (at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 126.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.70 126.10 Td (5.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.53 126.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.03 126.10 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.33 126.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.77 126.10 Td (8.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.60 126.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.10 126.10 Td (at December 31, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.40 126.10 Td (.) Tj ET Q endstream endobj 195 0 obj <> endobj 196 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The following table reconciles our mortgage insurance segment) Tj ET Q q 0 0 0 rg BT 330.91 731.10 Td (s beginning and ending reserves for losses and LAE for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (the years indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 688.6 m 443.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443.5 688.6 m 447.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 688.6 m 502.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.5 688.6 m 506.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 688.6 m 561.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 688.6 m 443.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 676.6 m 443.5 676.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 688.6 m 502.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 676.6 m 502.5 676.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 688.6 m 561.5 688.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 676.6 m 561.5 676.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 640.6 m 443.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 640.6 m 502.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 640.6 m 561.5 640.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 594.6 m 443.5 594.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 594.6 m 502.5 594.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 594.6 m 561.5 594.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 570.6 m 443.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 570.6 m 502.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 570.6 m 561.5 570.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 559.6 m 443.5 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.5 557.6 m 443.5 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 559.6 m 502.5 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447.5 557.6 m 502.5 557.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 559.6 m 561.5 559.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506.5 557.6 m 561.5 557.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 692.85 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.20 692.83 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 679.430078125 m 101.578125 679.430078125 l s q 0 0 0 rg BT 52.00 680.68 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.50 680.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.50 680.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 680.68 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 667.33 Td (Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 655.22 Td (Balance at January1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.50 655.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 655.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.60 655.22 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 655.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 655.22 Td (3,083,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 655.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.60 655.22 Td (3,247,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 643.22 Td (Less reinsurance recoverables \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.50 643.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 643.22 Td (38,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 643.22 Td (83,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 643.22 Td (151,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 631.22 Td (Balance at January1, net of reinsurance recoverables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 631.22 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.60 631.22 Td (2,125,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 631.22 Td (3,000,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.60 631.22 Td (3,096,331) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 619.17 Td (Add total losses and LAE incurred in respect of default notices reported and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 609.22 Td (unreported) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.50 609.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 611.27 Td (245,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 611.27 Td (564,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 611.27 Td (921,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 597.22 Td (Deduct paid claims and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.50 597.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.15 597.22 Td (838,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 597.22 Td (1,439,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.60 597.22 Td (1,017,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 585.22 Td (Balance at December31, net of reinsurance recoverables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.50 585.22 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.60 585.22 Td (1,533,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 585.22 Td (2,125,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.60 585.22 Td (3,000,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 573.22 Td (Add reinsurance recoverables \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.50 573.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 573.22 Td (26,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.15 573.22 Td (38,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 573.22 Td (83,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 561.22 Td (Balance at December31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.50 561.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.00 561.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.60 561.22 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 561.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.60 561.22 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.00 561.22 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.60 561.22 Td (3,083,608) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.10 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 535.10 Td (Primarily related to ceded losses on captive transactions, Smart Home \(for 2012\) and QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 488.38 535.10 Td (T) Tj ET Q q 0 0 0 rg BT 494.13 535.10 Td (ransactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 518.10 Td (The following table shows information regarding our average loss reserves per default:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 495.6 m 444 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 444 495.6 m 448 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 495.6 m 503 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 495.6 m 507 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 495.6 m 562 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 495.6 m 444 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 483.6 m 444 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 495.6 m 503 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 483.6 m 503 483.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 495.6 m 562 495.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 483.6 m 562 483.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.75 499.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.00 487.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.00 487.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.00 487.68 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 474.33 Td (First-lien reserve per default \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 461.17 Td (Primary reserve per default excluding IBNR and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.00 461.17 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 461.17 Td (27,683) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 461.17 Td (26,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.50 461.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 461.17 Td (26,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 447.17 Td (Pool reserve per pool default excluding IBNR and other \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 447.17 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 447.17 Td (9,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.65 447.17 Td (14,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.65 447.17 Td (15,948) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (_________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 419.10 Td (Calculated as total reserves divided by total defaults.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 407.10 Td (If calculated before giving ef) Tj ET Q q 0 0 0 rg BT 187.87 407.10 Td (fect to deductibles and stop losses in pool transactions, the pool reserve per default ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.39 407.10 Td (at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 395.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.58 395.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.58 395.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.58 395.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.02 395.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.02 395.10 Td ( would be $15,881, $24,640 and $27,545, respectively) Tj ET Q q 0 0 0 rg BT 431.56 395.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 378.10 Td (T) Tj ET Q q 0 0 0 rg BT 78.91 378.10 Td (otal mortgage insurance claims paid in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.08 378.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.08 378.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.41 378.10 Td ($838.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.30 378.10 Td ( have decreased from claims paid of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.18 378.10 Td ($1.4 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.30 378.10 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.08 378.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.08 378.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (The decrease in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.74 366.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.74 366.10 Td ( is due in part to the claim payment of $255 million in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.31 366.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.31 366.10 Td ( relating to the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 486.61 366.10 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 535.86 366.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (additional decrease in paid claims in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.78 354.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.78 354.10 Td ( compared to prior year periods is consistent with the overall decline in defaulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (loans. ) Tj ET Q q 0 0 0 rg BT 75.43 342.10 Td (W) Tj ET Q q 0 0 0 rg BT 84.07 342.10 Td (e have reduced our pending claim inventory significantly in 2013 and 2014, due in part to greater ef) Tj ET Q q 0 0 0 rg BT 483.20 342.10 Td (ficiencies in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (claims review process, which have allowed us to pay valid claim more quickly than in previous periods. ) Tj ET Q q 0 0 0 rg BT 467.82 330.10 Td (W) Tj ET Q q 0 0 0 rg BT 476.46 330.10 Td (e currently expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (claims paid to be between ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.85 318.10 Td ($600 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.24 318.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.68 318.10 Td ($700 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.07 318.10 Td ( in 2015, including approximately $250 million of claims we expect to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (pay related to the BofA) Tj ET Q q 0 0 0 rg BT 142.81 306.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 190.02 306.10 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 289.10 Td (In addition, as part of our claims review process, we assess whether defaulted loans were serviced appropriately in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (accordance with our insurance policies and servicing guidelines. ) Tj ET Q q 0 0 0 rg BT 309.50 277.10 Td (T) Tj ET Q q 0 0 0 rg BT 314.92 277.10 Td (o the extent a servicer has failed to satisfy its servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (obligations, our policies provide that we may curtail the claim payment for such default, and in some circumstances, cancel ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (coverage or deny the claim. Since 201) Tj ET Q q 0 0 0 rg BT 202.13 253.10 Td (1, claim curtailments due to servicer noncompliance with our insurance policies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (servicing guidelines have increased both in frequency and in size, which has contributed to a reduction in the severity of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (claim payments during this period. Claim curtailments due to servicer noncompliance with our insurance policies and servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (guidelines decreased to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.55 217.10 Td ($40 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.95 217.10 Td ( in 2014, compared to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.19 217.10 Td ($60 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.58 217.10 Td ( for 2013. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.06 217.10 Td (While we cannot ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (give assurance regarding the extent or level at which such claim curtailments will continue, we expect the level of claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (curtailments to remain elevated compared to historical levels \(excluding claims processed in accordance with the BofA) Tj ET Q q 0 0 0 rg BT 525.72 193.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 94.22 181.10 Td (Agreement\), in light of well publicized issues in the servicing industry and our existing Legacy Portfolio of aged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (defaults.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 152.10 Td (Claim activity on our primary loans generally begins approximately two years after the year of policy origination. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.54 140.10 Td (44.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.37 140.10 Td ( of our primary RIF was originated in the last two years. Given the strong credit characteristics of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.10 Td (loans, we expect this portfolio to result in significantly fewer claims than recently has been the case. ) Tj ET Q q 0 0 0 rg BT 452.43 128.10 Td (All of our pool RIF at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 116.10 Td ( had reached its highest expected claim frequency years. Notwithstanding historical trends, the insurance we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (wrote from 2005 through 2008 has experienced default and claim activity sooner and to a significantly greater extent than has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (been the case historically for our books of business.) Tj ET Q endstream endobj 197 0 obj <> endobj 198 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (98) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The following table shows net claims paid by product and average claims paid by product for the periods indicated:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 703.6 m 416.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 416.25 703.6 m 420.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 703.6 m 475.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475.25 703.6 m 479.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 703.6 m 534.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 703.6 m 416.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 691.6 m 416.25 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 703.6 m 475.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 691.6 m 475.25 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 703.6 m 534.25 703.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 691.6 m 534.25 691.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 635.6 m 416.25 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 635.6 m 475.25 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 635.6 m 534.25 635.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 593.6 m 416.25 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 593.6 m 475.25 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 593.6 m 534.25 593.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 537.6 m 416.25 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 537.6 m 475.25 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 537.6 m 534.25 537.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 524.6 m 416.25 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 361.25 522.6 m 416.25 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 524.6 m 475.25 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 420.25 522.6 m 475.25 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 524.6 m 534.25 524.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 479.25 522.6 m 534.25 522.6 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 54.75 707.55 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.95 707.68 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 54.75 694.430078125 m 104.328125 694.430078125 l s q 0 0 0 rg BT 54.75 695.68 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 380.25 695.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.25 695.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.25 695.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 682.17 Td (Net claims paid \(1\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 668.17 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.25 668.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.75 668.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.90 668.17 Td (533,563) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.75 668.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 668.17 Td (760,601) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.75 668.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.90 668.17 Td (638,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 654.17 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.25 654.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.90 654.17 Td (132,752) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 654.17 Td (183,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.90 654.17 Td (165,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 640.17 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.25 640.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 640.17 Td (92,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 640.17 Td (111,828) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.90 640.17 Td (112,216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.75 626.17 Td (Total primary claims paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.25 626.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.90 626.17 Td (758,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.35 626.17 Td (1,056,275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.90 626.17 Td (916,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 612.17 Td (Pool) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.25 612.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 612.17 Td (64,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 612.17 Td (115,192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.90 612.17 Td (92,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 598.17 Td (Second-lien and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.25 598.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.90 598.17 Td (2,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.90 598.17 Td (2,995) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.90 598.17 Td (8,598) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.75 584.17 Td (Subtotal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.25 584.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.90 584.17 Td (825,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.35 584.17 Td (1,174,462) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.35 584.17 Td (1,017,616) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 570.17 Td (Impact of Freddie Mac Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.25 570.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.40 570.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.90 570.17 Td (254,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.40 570.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 556.17 Td (Impact of captive terminations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.25 556.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.55 556.22 Td (\(1,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.40 556.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.40 556.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.05 556.22 Td (\(148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.40 556.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 542.17 Td (Impact of settlements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.25 542.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.90 542.17 Td (14,375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.90 542.17 Td (9,899) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.40 542.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.75 528.17 Td (Total net claims paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.25 528.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.75 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.90 528.17 Td (838,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.75 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.35 528.17 Td (1,439,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.75 528.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.35 528.17 Td (1,017,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 514.17 Td (Average net claim paid \(2\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 500.17 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.25 500.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.75 500.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 500.17 Td (46.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.75 500.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 500.17 Td (46.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.75 500.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 500.17 Td (48.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 486.17 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.25 486.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 486.17 Td (56.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 486.17 Td (56.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 486.17 Td (57.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 472.17 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.25 472.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 472.17 Td (38.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 472.17 Td (37.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 472.17 Td (37.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.75 458.17 Td (Total average net primary claim paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.25 458.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 458.17 Td (46.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 458.17 Td (46.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 458.17 Td (47.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 444.17 Td (Pool) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.25 444.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 444.17 Td (56.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 444.17 Td (65.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 444.17 Td (67.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.75 430.17 Td (Second-lien and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.25 430.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 430.17 Td (15.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 430.17 Td (15.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 430.17 Td (25.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.75 416.17 Td (Total average net claim paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.25 416.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.75 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 416.17 Td (47.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.75 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 416.17 Td (48.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.75 416.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 416.17 Td (48.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 393.17 Td (Average direct primary claim paid \(2\)\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.25 393.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.75 393.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 393.17 Td (47.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.75 393.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 393.17 Td (49.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.75 393.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 393.17 Td (50.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 379.17 Td (Average total direct claim paid \(2\)\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.25 379.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.75 379.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.90 379.17 Td (48.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.75 379.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.90 379.17 Td (50.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.75 379.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.90 379.17 Td (51.1) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 351.10 Td (Net of reinsurance recoveries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 339.10 Td (Calculated without giving ef) Tj ET Q q 0 0 0 rg BT 185.96 339.10 Td (fect to the impact of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 336.46 339.10 Td (Agreement and the termination of captive transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 327.10 Td (and settlements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 315.10 Td (Before reinsurance recoveries.) Tj ET Q endstream endobj 199 0 obj <> endobj 200 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.00 39.60 Td (99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (The following tables shows cumulative direct claims paid by us on our primary insured book of business at the end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (each successive year after origination, expressed as a percentage of the cumulative premiums written by us in each year of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (origination and direct claims paid by policy origination year for the periods indicated. Direct claims paid represent First-lien ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (claims paid prior to reinsurance recoveries and captive termination payments, and exclude LAE expenses and settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (payments.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 171.80 666.10 Td (Dir) Tj ET Q q 0 0 0 rg BT 186.06 666.10 Td (ect Claims Paid vs. Pr) Tj ET Q q 0 0 0 rg BT 279.47 666.10 Td (emiums ) Tj ET Q q 0 0 0 rg BT 315.12 666.10 Td (W) Tj ET Q q 0 0 0 rg BT 324.94 666.10 Td (rittenPrimary Insurance) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 81 621.6 m 128 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 132 621.6 m 166 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 170 621.6 m 206 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 210 621.6 m 246 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 250 621.6 m 286 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 290 621.6 m 326 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 621.6 m 366 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370 621.6 m 406 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 621.6 m 447 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 621.6 m 487 621.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 621.6 m 530 621.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 91.70 633.83 Td (Y) Tj ET Q q 0 0 0 rg BT 96.59 633.83 Td (ear) Tj ET Q q 0 0 0 rg BT 107.55 633.83 Td ( of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 83.95 625.83 Td (Origination) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 137.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 135.10 625.83 Td (1st year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 176.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 172.55 625.83 Td (2ndyear) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 216.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 213.00 625.83 Td (3rdyear) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 256.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.45 625.83 Td (4th year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.45 625.83 Td (5th year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 333.45 625.83 Td (6th year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 376.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.45 625.83 Td (7th year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.55 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.95 625.83 Td (8th year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 457.05 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 454.45 625.83 Td (9thyear) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.55 633.83 Td (Endof) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 493.95 625.83 Td (10thyear) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 612.17 Td (2005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.60 611.27 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 611.27 Td (6.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.60 611.27 Td (24.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.60 611.27 Td (58.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.60 611.27 Td (74.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.60 611.27 Td (92.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.60 611.27 Td (100.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 611.27 Td (105.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 611.27 Td (111.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.60 611.27 Td (114.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 611.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 597.17 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.60 596.27 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.60 596.27 Td (13.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.60 596.27 Td (45.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.60 596.27 Td (63.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.60 596.27 Td (94.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.60 596.27 Td (117.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.60 596.27 Td (128.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 596.27 Td (139.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.60 596.27 Td (144.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.15 596.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 596.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 582.17 Td (2007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.60 581.27 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 581.27 Td (9.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.60 581.27 Td (33.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.60 581.27 Td (81.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.60 581.27 Td (124.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.60 581.27 Td (142.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.60 581.27 Td (162.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 581.27 Td (171.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 581.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 581.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 581.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 567.17 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.60 566.27 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.15 566.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 566.27 Td (5.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 566.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.60 566.27 Td (29.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 566.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.60 566.27 Td (61.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 566.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.60 566.27 Td (78.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 566.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.60 566.27 Td (97.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 566.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.60 566.27 Td (106.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 566.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 566.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 566.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 566.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 552.17 Td (2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.10 551.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 551.27 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 551.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.60 551.27 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 551.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.60 551.27 Td (7.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 551.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.60 551.27 Td (11.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 551.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.60 551.27 Td (14.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 551.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.10 551.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 551.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 551.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 551.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 537.17 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.10 536.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 536.27 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 536.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.60 536.27 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 536.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.60 536.27 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 536.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.60 536.27 Td (4.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.15 536.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 536.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.10 536.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 536.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 536.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 536.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 522.17 Td (2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.10 521.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 521.27 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 521.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.60 521.27 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 521.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.60 521.27 Td (2.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 521.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.10 521.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 521.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.10 521.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 521.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 521.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 521.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 507.17 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.10 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 506.27 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 506.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.60 506.27 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.15 506.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.10 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.10 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.10 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 506.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 492.17 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.10 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.60 491.27 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.15 491.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.10 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.10 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.10 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.10 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 491.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 477.17 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.10 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 476.27 Td () Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 440.6 m 309 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 440.6 m 313 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313 440.6 m 358 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 440.6 m 362 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 440.6 m 410 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 440.6 m 414 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 440.6 m 459 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 440.6 m 463 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 440.6 m 511 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 440.6 m 515 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 440.6 m 560 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 440.6 m 309 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 428.6 m 309 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 440.6 m 313 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 309 428.6 m 313 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313 440.6 m 358 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313 428.6 m 358 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 358 440.6 m 362 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 440.6 m 410 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 428.6 m 410 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 440.6 m 414 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 410 428.6 m 414 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 440.6 m 459 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 428.6 m 459 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 440.6 m 511 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 428.6 m 511 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 440.6 m 515 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 428.6 m 515 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 440.6 m 560 440.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 428.6 m 560 428.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 286.6 m 309 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 272.6 m 309 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 262 270.6 m 309 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313 286.6 m 358 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313 272.6 m 358 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 313 270.6 m 358 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 286.6 m 410 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 272.6 m 410 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 270.6 m 410 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 286.6 m 459 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 272.6 m 459 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 414 270.6 m 459 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 286.6 m 511 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 272.6 m 511 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 270.6 m 511 270.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 286.6 m 560 286.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 272.6 m 560 272.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 515 270.6 m 560 270.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.25 444.68 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 431.430078125 m 99.6171875 431.430078125 l s q 0 0 0 rg BT 52.50 432.68 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.50 432.68 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.00 432.68 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.00 432.68 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 418.27 Td (Direct claims paid by origination year \(First-lien\):) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 264.50 417.85 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 404.17 Td (2005 and prior) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 404.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.15 404.17 Td (219) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 404.17 Td (27.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.15 404.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 404.17 Td (303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 404.17 Td (25.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 404.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.50 404.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 404.17 Td (268) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 404.17 Td (26.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 404.17 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 390.17 Td (2006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 390.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.15 390.17 Td (163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 390.17 Td (20.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 390.17 Td (239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 390.17 Td (20.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 390.17 Td (194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 390.17 Td (19.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 376.17 Td (2007) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 376.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.15 376.17 Td (302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 376.17 Td (37.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 376.17 Td (446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 376.17 Td (37.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 376.17 Td (403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 376.17 Td (39.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 362.17 Td (2008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 362.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.15 362.17 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.65 362.17 Td (13.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.15 362.17 Td (169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 362.17 Td (14.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 362.17 Td (137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.65 362.17 Td (13.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 348.17 Td (2009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 348.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.15 348.17 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 348.17 Td (1.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 348.17 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 348.17 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 348.17 Td (11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 348.17 Td (1.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 334.17 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 334.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.15 334.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 334.17 Td (0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 334.17 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 334.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 334.17 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.65 334.17 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 320.17 Td (2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 320.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.15 320.17 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 320.17 Td (0.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 320.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 320.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 320.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 320.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 306.17 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 306.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.15 306.17 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 306.17 Td (0.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 306.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 306.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 306.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 306.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 292.17 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 292.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.15 291.27 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.65 291.27 Td (0.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.15 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 291.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 276.27 Td (Total direct claims paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.00 276.17 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.50 276.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.15 276.27 Td (813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.60 276.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.15 276.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.50 276.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.65 276.27 Td (1,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.60 276.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 276.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.50 276.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 276.27 Td (1,014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.60 276.27 Td (100.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.15 276.27 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 251.10 Td (Policy ) Tj ET Q q 0 0 0 rg BT 101.36 251.10 Td (Acquisition Costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.64 251.10 Td ( Policy acquisition costs for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.24 251.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.24 251.10 Td ( decreased compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.86 251.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.86 251.10 Td ( due to an increase in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.10 Td (Persistency Rate, which reflects the increase in the expected life of our insurance policies and therefore reduces the annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.10 Td (amortization of our policy acquisition costs. In comparison, policy acquisition costs for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.10 227.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.10 227.10 Td (, although down from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.25 227.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.25 227.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.10 Td (reflected higher amortization as a result of a lower Persistency Rate, more than of) Tj ET Q q 0 0 0 rg BT 375.86 215.10 Td (fset by higher ceding commissions received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.10 Td (related to the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 177.89 203.10 Td (T) Tj ET Q q 0 0 0 rg BT 183.65 203.10 Td (ransactions.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 186.10 Td (Other Operating Expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.65 186.10 Td (Our other operating expenses in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.88 186.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.88 186.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.59 186.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.59 186.10 Td ( reflect a significant reduction as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.10 Td (result of the reduced impact from increases in the estimated fair value of cash-settled long-term incentive awards that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.10 Td (valued, in lar) Tj ET Q q 0 0 0 rg BT 101.80 162.10 Td (ge part, relative to the price of Radian Group) Tj ET Q q 0 0 0 rg BT 284.23 162.10 Td (s common stock. Operating expenses for 2014, 2013 and 2012 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.10 Td (include $13.4 million, $20.4 million and $15.2 million, respectively) Tj ET Q q 0 0 0 rg BT 320.21 150.10 Td (, as a result of the reallocation of financial guaranty segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.10 Td (expenses that were not allocated to discontinued operations.) Tj ET Q endstream endobj 201 0 obj <> endobj 202 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Other operating expenses increased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.66 731.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.66 731.10 Td ( as compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.20 731.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.20 731.10 Td (, primarily due to an increase in the estimated fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (of certain cash-settled long-term incentive awards that are valued, in lar) Tj ET Q q 0 0 0 rg BT 336.14 719.10 Td (ge part, based on the stock price of Radian Group) Tj ET Q q 0 0 0 rg BT 537.19 719.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (common stock, which increased significantly during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.39 707.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.39 707.10 Td (. Both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.34 707.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.34 707.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.78 707.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.78 707.10 Td ( reflect a reduction of expenses due to ceding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (commissions earned related to the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 261.77 695.10 Td (T) Tj ET Q q 0 0 0 rg BT 267.52 695.10 Td (ransactions, which increased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.98 695.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.98 695.10 Td (. Results in 2012 also reflect a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (reduction in the amount of acquisition costs that were deferred in accordance with the update to the accounting standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (regarding accounting for costs associated with acquiring or renewing insurance contracts.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 654.10 Td (Contract underwriting expenses for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.35 654.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.35 654.10 Td (, including the impact of reserves for contract underwriting remedies, were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.18 654.10 Td ($14.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 642.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.59 642.10 Td ($6.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.49 642.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.15 642.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.15 642.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.58 642.10 Td ($12.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.48 642.10 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.14 642.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.14 642.10 Td (. In 2014, losses related to contract underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (remedies included approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.29 630.10 Td ($1) Tj ET Q q 0 0 0 rg BT 194.92 630.10 Td (1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.81 630.10 Td ( related to settlement of remedies for services provided on legacy business. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.33 618.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.33 618.10 Td (, loans underwritten via contract underwriting accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.30 618.10 Td (2.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.13 618.10 Td ( of applications, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.78 618.10 Td (2.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.61 618.10 Td ( of commitments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (insurance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.25 606.10 Td (2.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 606.10 Td ( of insurance certificates issued, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.79 606.10 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.62 606.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.62 606.10 Td (3.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.45 606.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.89 606.10 Td (3.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.72 606.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 450.38 606.10 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.54 606.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.54 606.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.98 606.10 Td (5.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.81 606.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.81 606.10 Td (4.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.64 606.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 594.10 Td (5.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.27 594.10 Td (, respectively) Tj ET Q q 0 0 0 rg BT 139.93 594.10 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.09 594.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.09 594.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 577.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 92.57 577.10 Td (est Expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.99 577.10 Td (These amounts reflect the allocated portion of interest on Radian Group) Tj ET Q q 0 0 0 rg BT 436.90 577.10 Td (s long-term debt to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (mortgage insurance segment. ) Tj ET Q q 0 0 0 rg BT 168.72 565.10 Td (The increase in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.30 565.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.30 565.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.00 565.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 565.10 Td ( is primarily related to the Convertible Senior Notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (2017 and 2019. Interest expense for 2014, 2013 and 2012 include $53.3 million, $56.6 million and $44.4 million, respectively) Tj ET Q q 0 0 0 rg BT 552.94 553.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (as a result of the reallocation of financial guaranty segment interest expense that was not allocated to discontinued operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 524.10 Td (The increase in interest expense in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.00 524.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.00 524.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.70 524.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 524.10 Td ( is primarily related to the issuance of $400 million of debt in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (March 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (Results of OperationsMRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 462.10 Td (The following table summarizes our MRES segment) Tj ET Q q 0 0 0 rg BT 285.30 462.10 Td (s results of operations for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.24 462.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.83 462.10 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 425.6 m 455.5 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 425.6 m 455.5 425.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 412.6 m 455.5 412.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.45 437.83 Td (Year Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.25 429.83 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 158 415.580078125 m 205.1171875 415.580078125 l s q 0 0 0 rg BT 158.00 416.83 Td (\($ in millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 417.50 416.83 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 403.17 Td (Adjusted pretax operating income \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.50 403.17 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.00 403.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 403.17 Td (5.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 390.17 Td (Services revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.50 390.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 390.17 Td (76.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 377.17 Td (Direct cost of services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 377.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 377.17 Td (43.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 364.17 Td (Gross profit on services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.50 364.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 364.17 Td (33.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 351.17 Td (Other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.50 351.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.15 351.17 Td (20.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 338.17 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.50 338.17 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 338.17 Td (8.9) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 311.10 Td (Our senior management uses adjusted pretax operating income \(loss\) as our primary measure to evaluate the fundamental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 299.10 Td (financial performance of the Company) Tj ET Q q 0 0 0 rg BT 229.71 299.10 Td (s business segments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 282.10 Td (The MRES segment) Tj ET Q q 0 0 0 rg BT 157.38 282.10 Td (s results primarily comprise the operations of Clayton from the acquisition date of June 30, 2014.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 265.10 Td (Services Revenue. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.18 265.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.37 265.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.95 265.10 Td (, services revenue includes a significant loan review and due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (diligence project for a single client which represented approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.89 253.10 Td (13%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.22 253.10 Td ( of services revenue. ) Tj ET Q q 0 0 0 rg BT 429.72 253.10 Td (The project is expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (continue in 2015, but the level of 2015 volume for the project is not known. Revenue from component services was also at an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (elevated level during 2014. Component services revenue for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.83 229.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.42 229.10 Td ( includes revenue from single ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (family rental securitizations as well as revenue from financial institutions that extend loans to institutional investors to fund ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.10 Td (purchases of homes. ) Tj ET Q q 0 0 0 rg BT 132.82 205.10 Td (Approximately 20% of services revenue in 2014 related to the single family rental market, which is an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (emer) Tj ET Q q 0 0 0 rg BT 69.30 193.10 Td (ging market that experienced rapid growth in 2014.) Tj ET Q q 0 0 0 rg BT 277.12 193.10 Td (The Company provides component services in connection with single ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.10 Td (family rental securitizations and to financial institutions that extend loans to institutional investors to fund purchases of homes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 169.10 Td (, there has been a decline in the pace of home purchases by the institutional investors and, as a result, we do not expect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 157.10 Td (that revenue from lenders will continue at a similar level in 2015. ) Tj ET Q q 0 0 0 rg BT 313.41 157.10 Td (The top 10 customers of the MRES segment generated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 145.10 Td (64%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.09 145.10 Td ( of the services revenues for the period. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 128.10 Td (Gr) Tj ET Q q 0 0 0 rg BT 82.74 128.10 Td (oss Pr) Tj ET Q q 0 0 0 rg BT 107.65 128.10 Td (ofit on Services. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.80 128.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.00 128.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.58 128.10 Td (, our gross profit on services represented approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.10 Td (42.5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.33 116.10 Td ( of total revenues.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 99.10 Td (Other Operating Expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.15 99.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.34 99.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.92 99.10 Td (, compensation-related costs represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 87.10 Td (42.9%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.59 87.10 Td ( of the segment) Tj ET Q q 0 0 0 rg BT 199.74 87.10 Td (s operating expenses.) Tj ET Q endstream endobj 203 0 obj <> endobj 204 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (101) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Inter) Tj ET Q q 0 0 0 rg BT 91.07 731.10 Td (est Expense. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.49 731.10 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.68 731.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.27 731.10 Td (, interest expense represents all of the interest expense related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (our Senior Notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.71 719.10 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.71 719.10 Td (, the proceeds of which were used to fund Radian Group) Tj ET Q q 0 0 0 rg BT 385.25 719.10 Td (s acquisition of Clayton.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 686.10 Td (Contractual Obligations and Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 669.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 669.10 Td (e have various contractual obligations that are recorded as liabilities in our consolidated financial statements. Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.10 Td (items, including payments under operating lease agreements, are not recorded on our consolidated balance sheets as liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.10 Td (but represent a contractual commitment to pay) Tj ET Q q 0 0 0 rg BT 234.90 645.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 628.10 Td (The following table summarizes certain of our contractual obligations and commitments, including our expected claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.10 Td (payments on insurance policies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.74 616.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.99 616.10 Td (, and the future periods in which such obligations are expected to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.10 Td (settled in cash. ) Tj ET Q q 0 0 0 rg BT 110.60 604.10 Td (Additional details regarding these obligations are provided in the narrative following the table and in the Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 592.10 Td (to Consolidated Financial Statements that are referenced in the table.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 548.6 m 291 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 548.6 m 295 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 548.6 m 353 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353 548.6 m 373 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 548.6 m 434 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 548.6 m 454 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 548.6 m 500 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 548.6 m 504 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 548.6 m 555 548.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 522.6 m 232 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 522.6 m 291 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 522.6 m 353 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 522.6 m 434 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 522.6 m 500 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 522.6 m 555 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 522.6 m 232 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 522.6 m 291 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 522.6 m 353 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 522.6 m 434 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 522.6 m 500 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 522.6 m 555 522.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 399.6 m 232 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 399.6 m 291 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 399.6 m 353 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 399.6 m 434 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 399.6 m 500 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 399.6 m 555 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 387.6 m 232 387.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 177 385.6 m 232 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 399.6 m 291 399.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 387.6 m 291 387.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 236 385.6 m 291 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 387.6 m 353 387.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 295 385.6 m 353 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 387.6 m 434 387.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 385.6 m 434 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 387.6 m 500 387.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 385.6 m 500 385.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 387.6 m 555 387.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 385.6 m 555 385.6 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.85 552.83 Td (Payments Due by Period) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 246.65 539.83 Td (Less than) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.45 539.83 Td (More than) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 526.430078125 m 102.078125 526.430078125 l s q 0 0 0 rg BT 52.50 527.68 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 195.25 527.68 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 252.20 527.68 Td (1 Year) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.05 527.68 Td (1-3 years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.55 527.68 Td (3-5 years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.35 527.68 Td (5 years) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.85 527.68 Td (Uncertain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 512.27 Td (Long-term debt obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 502.27 Td (\(principal and interest\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 492.27 Td (\(Note 11\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 492.17 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 492.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.10 492.27 Td (1,544,739) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.50 492.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.65 492.27 Td (56,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.50 492.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 492.27 Td (749,894) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 355.50 491.85 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 492.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 492.27 Td (738,250) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 436.50 491.85 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.50 492.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 492.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 492.27 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 492.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 478.17 Td (Operating lease obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 468.17 Td (\(Note17\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 468.17 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.65 467.27 Td (24,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.65 467.27 Td (10,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 467.27 Td (9,117) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.65 467.27 Td (1,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 467.27 Td (3,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 467.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 453.17 Td (Reserve for losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 443.17 Td (\(Note10\)\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 443.17 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.10 442.27 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.65 442.27 Td (659,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.65 442.27 Td (900,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.15 442.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 442.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 442.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 428.17 Td (Purchase obligations \(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.00 428.17 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.65 428.17 Td (11,001) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.65 428.17 Td (9,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.65 428.17 Td (1,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.15 428.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 428.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 428.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 415.17 Td (Unrecognized tax benefits) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 405.17 Td (\(Note13\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 405.17 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.65 404.27 Td (181,092) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.15 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.15 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.15 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 404.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.60 404.27 Td (181,092) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 557.50 403.85 Td (\(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 390.17 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.00 390.17 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 390.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.10 390.17 Td (3,321,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.50 390.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.65 390.17 Td (736,302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.50 390.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.10 390.17 Td (1,661,186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 390.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 390.17 Td (739,562) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.50 390.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 390.17 Td (3,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 390.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.60 390.17 Td (181,092) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.10 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 363.10 Td (For our Convertible Senior Notes due 2017, excludes the conversion premium amount that may be settled in cash, shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 351.10 Td (of our common stock or a combination thereof, at our election.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 339.10 Td (Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.38 339.10 Td ($400 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.77 339.10 Td ( of convertible senior notes that may be settled in cash, shares of our common stock or a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 327.10 Td (combination thereof, at our election, as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.38 327.10 Td ($300 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.77 327.10 Td ( of senior notes that may be redeemed, in whole or part at any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 315.10 Td (time prior to maturity) Tj ET Q q 0 0 0 rg BT 157.72 315.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 303.10 Td (Our reserve for losses and LAE reflects the application of accounting policies described below in Critical ) Tj ET Q q 0 0 0 rg BT 499.63 303.10 Td (Accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 291.10 Td (PoliciesReserve for Losses and LAE. ) Tj ET Q q 0 0 0 rg BT 237.89 291.10 Td (The payments due by period are based on management) Tj ET Q q 0 0 0 rg BT 460.59 291.10 Td (s estimates and assume ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 279.10 Td (that all of the loss reserves included in the table will result in claim payments, net of expected recoveries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 267.10 Td (Includes one annual payment, totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.96 267.10 Td ($2.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.85 267.10 Td (, on a seven year software contract that we expect to terminate at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 255.10 Td (end of 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 243.10 Td (The timing of these potential payments is uncertain given the nature of the obligations. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (Other Contractual Obligations and Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 205.10 Td (In addition to the contractual obligations set forth in the table above, we have the following material contractual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 193.10 Td (obligations and commitments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 176.10 Td (Investment Commitments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.32 176.10 Td (. ) Tj ET Q q 0 0 0 rg BT 181.26 176.10 Td (As part of the non-investment grade component of our investment portfolio, we had unfunded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (commitments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.27 164.10 Td ($7.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.16 164.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.66 164.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.96 164.10 Td (, related to alternative investments that are primarily private equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.10 Td (structures. ) Tj ET Q q 0 0 0 rg BT 93.20 152.10 Td (These commitments have capital calls expected through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.50 152.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.50 152.10 Td (, with the possibility of additional calls through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.43 152.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.43 152.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.10 Td (and certain fixed expiration dates or other termination clauses.) Tj ET Q endstream endobj 205 0 obj <> endobj 206 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (102) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Affiliate Guaranty/Indemnification ) Tj ET Q q 0 0 0 rg BT 214.96 731.10 Td (Agr) Tj ET Q q 0 0 0 rg BT 229.59 731.10 Td (eements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.80 731.10 Td (. ) Tj ET Q q 0 0 0 rg BT 269.12 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 277.76 731.10 Td (e and certain of our subsidiaries have entered into the following ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (intercompany guarantees:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 702.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 702.10 Td (Radian Guaranty and RMAI are parties to a cross-guaranty agreement. ) Tj ET Q q 0 0 0 rg BT 388.49 702.10 Td (This agreement provides that if either party ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 690.10 Td (fails to make a payment to a policyholder) Tj ET Q q 0 0 0 rg BT 268.88 690.10 Td (, then the other party will step in and make the payment. ) Tj ET Q q 0 0 0 rg BT 496.42 690.10 Td (The obligations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 678.10 Td (of both parties are unconditional and irrevocable; however) Tj ET Q q 0 0 0 rg BT 337.18 678.10 Td (, no payments may be made without prior approval by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 666.10 Td (the Pennsylvania Insurance Department. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 649.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 649.10 Td (Radian Group and RMAI are parties to a guaranty agreement, which provides that Radian Group will make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 637.10 Td (suf) Tj ET Q q 0 0 0 rg BT 115.54 637.10 Td (ficient funds available to RMAI to ensure that RMAI has a minimum of $5 million of statutory surplus every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 625.10 Td (calendar quarter) Tj ET Q q 0 0 0 rg BT 167.63 625.10 Td (. RMAI had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.18 625.10 Td ($17.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.07 625.10 Td ( of statutory capital and no RIF exposure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.14 625.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.39 625.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 608.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 608.10 Td (Radian Guaranty has agreed to maintain Radian Insurance) Tj ET Q q 0 0 0 rg BT 339.25 608.10 Td (s tangible net worth at a minimum of $30 million and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 596.10 Td (to cause Radian Insurance to at all times have suf) Tj ET Q q 0 0 0 rg BT 300.75 596.10 Td (ficient liquidity to meet its current obligations, pursuant to a Net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 584.10 Td (W) Tj ET Q q 0 0 0 rg BT 112.14 584.10 Td (orth and Liquidity Maintenance ) Tj ET Q q 0 0 0 rg BT 241.00 584.10 Td (Agreement \(NWLMA\) between the two companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 567.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 567.10 Td (Radian Group has agreed to guarantee, up to a maximum amount of $300 million, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 504.79 567.10 Td (s obligations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 555.10 Td (to Radian Insurance under the NWLMA) Tj ET Q q 0 0 0 rg BT 264.29 555.10 Td ( in the event that Radian Guaranty is not able to or permitted by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 543.10 Td (Pennsylvania Insurance Department to perform under the agreement. Radian Insurance had $256.3 million of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 531.10 Td (statutory policyholders) Tj ET Q q 0 0 0 rg BT 198.02 531.10 Td ( surplus at December 31, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 514.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 514.10 Td (Radian Group and Radian Mortgage Insurance, a subsidiary of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 424.14 514.10 Td (, are parties to a guaranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 502.10 Td (agreement in which Radian Group has agreed for the benefit of Radian Mortgage Insurance) Tj ET Q q 0 0 0 rg BT 472.53 502.10 Td (s creditors to make ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 490.10 Td (funds available on demand for the full and complete payment of all due but unpaid liabilities. Radian Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 478.10 Td (Insurance had $121.1 million of statutory policyholders) Tj ET Q q 0 0 0 rg BT 328.54 478.10 Td ( surplus at December 31, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 461.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 461.10 Td (T) Tj ET Q q 0 0 0 rg BT 108.91 461.10 Td (o allow our mortgage insurance customers to comply with applicable securities regulations for issuers of ) Tj ET Q q 0 0 0 rg BT 529.08 461.10 Td (ABS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 449.10 Td (\(including MBS\), we have been required, depending on the amount of credit enhancement we were providing, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 437.10 Td (provide: \(1\)audited financial statements for the insurance subsidiary participating in these transactions; or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 425.10 Td (\(2\)afull and unconditional holding-company level guarantee for our insurance subsidiaries) Tj ET Q q 0 0 0 rg BT 472.36 425.10 Td ( obligations insuch ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 413.10 Td (transactions. Radian Group has guaranteed two Structured ) Tj ET Q q 0 0 0 rg BT 338.81 413.10 Td (T) Tj ET Q q 0 0 0 rg BT 344.56 413.10 Td (ransactions for Radian Guaranty with approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 401.10 Td ($128.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.39 401.10 Td ( of remaining credit exposure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 384.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 384.10 Td (Radian Group and RGRI are parties to an ) Tj ET Q q 0 0 0 rg BT 271.23 384.10 Td (Assumption and Indemnification ) Tj ET Q q 0 0 0 rg BT 404.83 384.10 Td (Agreement with regard to RGRI) Tj ET Q q 0 0 0 rg BT 537.02 384.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 372.10 Td (portion of the Deficiency ) Tj ET Q q 0 0 0 rg BT 206.24 372.10 Td (Amounts relating to the IRS litigation. ) Tj ET Q q 0 0 0 rg BT 362.07 372.10 Td (As of December 31, 2014, approximately $163 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 360.10 Td (million would be indemnified under this agreement if the Deficiency ) Tj ET Q q 0 0 0 rg BT 380.64 360.10 Td (Amounts are ultimately sustained. ) Tj ET Q q 0 0 0 rg BT 519.60 360.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 348.10 Td (indemnification agreement was made in lieu of an immediate capital contribution to RGRI that otherwise would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 336.10 Td (have been required for RGRI to maintain its minimum statutory policyholders) Tj ET Q q 0 0 0 rg BT 418.25 336.10 Td ( surplus requirements in light of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 324.10 Td (remeasurement as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.74 324.10 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 261.95 324.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.95 324.10 Td ( of uncertain tax positions related to the portfolio of REMIC residual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 312.10 Td (interests. See Note 13 of Notes to Consolidated Financial Statements for additional information regarding the IRS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 300.10 Td (matter) Tj ET Q q 0 0 0 rg BT 128.49 300.10 Td (. ) Tj ET Q q 0 0 0 rg BT 133.31 300.10 Td (W) Tj ET Q q 0 0 0 rg BT 141.95 300.10 Td (e can provide no assurance regarding the outcome of this IRS matter) Tj ET Q q 0 0 0 rg BT 415.62 300.10 Td (, which may take several years to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 288.10 Td (resolve. ) Tj ET Q q 0 0 0 rg BT 136.83 288.10 Td (As such, there remains significant uncertainty with regard to the amount and timing of any potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 276.10 Td (payments under the indemnity agreement described above. See Item 1A. Risk Factors) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 460.90 276.10 Td (Resolution of our dispute ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 103.50 264.10 Td (with the IRS could adversely affect us.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.52 264.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 247.10 Td (In addition to the foregoing, we use reinsurance from af) Tj ET Q q 0 0 0 rg BT 296.58 247.10 Td (filiated companies to allow Radian Guaranty to remain in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (compliance with insurance regulations that limit the amount of risk that a mortgage insurance company may retain on a single ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (loan to 25% of the indebtedness of the insured. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.84 223.10 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.84 223.10 Td (, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 343.23 223.10 Td (, to improve its capital position, entered into an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.10 Td (excess-of-loss reinsurance transaction with Radian Mortgage Insurance under which Radian Guaranty initially transferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.10 Td (approximately $2.5 billion of RIF to Radian Mortgage Insurance. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.44 199.10 Td (201) Tj ET Q q 0 0 0 rg BT 339.07 199.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.07 199.10 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.51 199.10 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.51 199.10 Td (, Radian Guaranty entered into similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.10 Td (excess-of-loss reinsurance agreements with Radian Insurance under which Radian Guaranty initially transferred a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.10 Td (approximately $6.1 billion of RIF to Radian Insurance. ) Tj ET Q q 0 0 0 rg BT 272.05 175.10 Td (The pools of loans that have been reinsured by Radian Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.10 Td (Insurance and Radian Insurance under the excess-of-loss reinsurance agreements generally consist of high-quality loans from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.10 Td (recent vintages. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.20 151.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.22 151.10 Td (, the remaining RIF under these excess-of-loss reinsurance agreements was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.18 151.10 Td ($3.6 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.10 Td (billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.61 139.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 122.10 Td (In the ordinary course of business, our MRES business enters into agreements pursuant to which we may be obligated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (under specified circumstances or upon the occurrence of certain eventsto indemnify the counterparties with respect to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.10 Td (matters. ) Tj ET Q q 0 0 0 rg BT 83.75 98.10 Td (The terms and amount of indemnification are negotiated on a transaction by transaction basis, but generally the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 86.10 Td (circumstances of the transaction and/or the contract provisions are such that we believe the exposure to material liability is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 74.10 Td (remote.) Tj ET Q endstream endobj 207 0 obj <> endobj 208 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (103) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 710.10 Td (Off-Balance Sheet ) Tj ET Q q 0 0 0 rg BT 128.93 710.10 Td (Arrangements) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 689.10 Td (Smart Home) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 672.10 Td (In 2004, we developed a program, referred to as Smart Home, for reinsuring risk associated with non-prime mortgages. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.10 Td (From 2004 through 2007, we entered into four Smart Home transactions. ) Tj ET Q q 0 0 0 rg BT 343.62 660.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.06 660.10 Td (December31, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.64 660.10 Td (, we had terminated three of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.10 Td (these transactions. ) Tj ET Q q 0 0 0 rg BT 125.13 648.10 Td (The final Smart Home transaction matured in May 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 615.10 Td (Liquidity and Capital Resour) Tj ET Q q 0 0 0 rg BT 175.18 615.10 Td (ces) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (Radian GroupShort-T) Tj ET Q q 0 0 0 rg BT 150.00 594.10 Td (erm Liquidity Needs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 577.10 Td (Radian Group serves as the holding company for our insurance and other subsidiaries and does not have any significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.10 Td (operations of its own. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.10 565.10 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.19 565.10 Td (, Radian Group had immediately available, either directly or through an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (unregulated subsidiary) Tj ET Q q 0 0 0 rg BT 139.66 553.10 Td (, unrestricted cash and liquid investments of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.77 553.10 Td ($670 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.16 553.10 Td (, after giving ef) Tj ET Q q 0 0 0 rg BT 491.62 553.10 Td (fect to the $100 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (million capital contribution to Radian Guaranty in February 2015.) Tj ET Q q 0 0 0 rg BT 315.93 541.10 Td (This amount excludes certain additional cash and liquid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (investments that have been advanced from our subsidiaries for corporate expenses and interest payments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 512.10 Td (Radian Group) Tj ET Q q 0 0 0 rg BT 131.16 512.10 Td (s principal liquidity demands for the next 12 months are expected to include: \(i\)additional capital support ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (for Radian Guaranty; \(ii\) the payment of corporate expenses; \(iii\)interest payments on our outstanding long-term debt ; \(iv\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.10 Td (potential investments to support our long-term strategy of growing our fee-based businesses and diversifying our sources of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.10 Td (revenues; and \(v\) the payment of dividends on our common stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 459.10 Td (On a quarterly basis, we evaluate whether the conversion threshold requirements for our Convertible Senior Notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.10 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 447.10 Td ( and our Convertible Senior Notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.86 447.10 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.86 447.10 Td ( have been met. ) Tj ET Q q 0 0 0 rg BT 310.55 447.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.00 447.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.58 447.10 Td (, the holders of our Convertible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.10 Td (Senior Notes due 2017 and of our Convertible Senior Notes due 2019 are able to exercise their conversion rights during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.10 Td (three-month period ending March 31, 2015. ) Tj ET Q q 0 0 0 rg BT 227.05 423.10 Td (W) Tj ET Q q 0 0 0 rg BT 235.69 423.10 Td (e may elect, in our sole discretion, to settle any such converted notes in the form ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.10 Td (of cash, and in the case of the Convertible Senior Notes due 2017, a portion of the conversion amount must be settled in cash. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.10 Td (Notwithstanding these conversion rights, we do not expect the holders to convert prior to maturity) Tj ET Q q 0 0 0 rg BT 441.27 399.10 Td (. See Note 1) Tj ET Q q 0 0 0 rg BT 489.77 399.10 Td (1 of Notes to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.10 Td (Consolidated Financial Statements for further information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.10 Td (In addition to existing available cash and marketable securities, Radian Group) Tj ET Q q 0 0 0 rg BT 387.18 370.10 Td (s principal sources of cash to fund short-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.10 Td (term liquidity needs include: \(i\) payments made to Radian Group under tax- and expense-sharing arrangements with our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.10 Td (subsidiaries, as further discussed below; and \(ii\) dividend payments from Clayton. Radian Group expects to receive a modest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.10 Td (amount of dividend payments over the next 12 months from positive cash flows expected to be generated by Clayton.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 317.10 Td (In May 2014, we issued $300 million principal amount of Senior Notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.46 317.10 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.46 317.10 Td ( and 17.825 million shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.10 Td (common stock at a public of) Tj ET Q q 0 0 0 rg BT 162.90 305.10 Td (fering price of $14.50 per share. ) Tj ET Q q 0 0 0 rg BT 293.78 305.10 Td (W) Tj ET Q q 0 0 0 rg BT 302.42 305.10 Td (e received aggregate net proceeds from these of) Tj ET Q q 0 0 0 rg BT 492.97 305.10 Td (ferings of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 293.10 Td ($541 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.15 293.10 Td ( after deducting underwriting discounts, commissions and of) Tj ET Q q 0 0 0 rg BT 403.15 293.10 Td (fering expenses. ) Tj ET Q q 0 0 0 rg BT 470.07 293.10 Td (Approximately $312 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.10 Td (million of the proceeds from these of) Tj ET Q q 0 0 0 rg BT 197.61 281.10 Td (ferings was used to fully fund the acquisition of Clayton. In addition, in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.10 Td (the optional redemption provisions of our Senior Notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.74 269.10 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.74 269.10 Td (, we used a portion of the proceeds to redeem all $57.2 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.10 Td (of the remaining outstanding principal amount of these notes. See Note 1) Tj ET Q q 0 0 0 rg BT 341.28 257.10 Td (1 of Notes to Consolidated Financial Statements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.10 Td (further information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 228.10 Td (Corporate Expenses and Inter) Tj ET Q q 0 0 0 rg BT 193.94 228.10 Td (est Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.87 228.10 Td (. Radian Group has expense-sharing arrangements in place with its principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.10 Td (operating subsidiaries that require those subsidiaries to pay their allocated share of certain holding-company-level expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.10 Td (including interest payments on most of our outstanding long-term debt. Payments of such corporate expenses for the next 12 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.10 Td (months, excluding interest payments on our long-term debt, are expected to be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.34 192.10 Td ($50.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.23 192.10 Td (, all of which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.10 Td (expected to be reimbursed by our subsidiaries under our existing expense-sharing arrangements. For the same period, payments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.10 Td (of interest on our long-term debt are expected to be approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.46 168.10 Td ($56.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.35 168.10 Td (, a significant portion of which is expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.10 Td (be reimbursed by our subsidiaries under our existing expense-sharing arrangements. ) Tj ET Q q 0 0 0 rg BT 388.39 156.10 Td (These expense-sharing arrangements, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.10 Td (amended, have been approved by applicable state insurance departments, but such approval may be modified or revoked at any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.10 Td (time.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 115.10 Td (Capital Support for Subsidiaries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.29 115.10 Td (. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 280.60 115.10 Td (s Risk-to-capital as of December 31, 2014, after giving ef) Tj ET Q q 0 0 0 rg BT 510.63 115.10 Td (fect to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.10 Td ($100 million capital contribution from Radian Group in February 2015, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.67 103.10 Td (17.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.17 103.10 Td ( to 1. Given our financial projections for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 91.10 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 116.88 91.10 Td (, which are subject to risks and uncertainties, we expect Radian Guaranty) Tj ET Q q 0 0 0 rg BT 412.62 91.10 Td (s Risk-to-capital to decrease over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 79.10 Td (time without the need for any additional capital contributions from Radian Group to satisfy current applicable state insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 67.10 Td (regulatory requirements.) Tj ET Q endstream endobj 209 0 obj <> endobj 210 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (The GSEs are in the process of revising their eligibility requirements for private mortgage insurers. ) Tj ET Q q 0 0 0 rg BT 470.78 731.10 Td (As part of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (process, the FHF) Tj ET Q q 0 0 0 rg BT 116.81 719.10 Td (A) Tj ET Q q 0 0 0 rg BT 123.48 719.10 Td ( released proposed PMIERs for public comment on July 10, 2014. ) Tj ET Q q 0 0 0 rg BT 390.20 719.10 Td (The PMIERs, when finalized and adopted, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (will establish the revised requirements that the GSEs will impose on private mortgage insurers, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 540.13 707.10 Td (, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (remain eligible insurers of mortgage loans purchased by the GSEs. ) Tj ET Q q 0 0 0 rg BT 318.97 695.10 Td (The proposed PMIERs include the PMIERs Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (Requirements which are expected to replace the capital adequacy standards under the current GSE eligibility requirements.) Tj ET Q q 0 0 0 rg BT 543.85 683.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (proposed PMIERs Financial Requirements require a mortgage insurer) Tj ET Q q 0 0 0 rg BT 329.52 671.10 Td () Tj ET Q q 0 0 0 rg BT 332.30 671.10 Td (s ) Tj ET Q q 0 0 0 rg BT 338.14 671.10 Td (A) Tj ET Q q 0 0 0 rg BT 344.62 671.10 Td (vailable ) Tj ET Q q 0 0 0 rg BT 378.22 671.10 Td (Assets to meet or exceed Minimum Required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (Assets that are calculated based on RIF and a variety of measures designed to evaluate credit quality) Tj ET Q q 0 0 0 rg BT 450.37 659.10 Td (. ) Tj ET Q q 0 0 0 rg BT 454.82 659.10 Td (Among other things, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (proposed PMIERs exclude from ) Tj ET Q q 0 0 0 rg BT 180.59 647.10 Td (A) Tj ET Q q 0 0 0 rg BT 187.07 647.10 Td (vailable ) Tj ET Q q 0 0 0 rg BT 220.67 647.10 Td (Assets: \(i\) an amount equal to Unearned Premium Reserves; and \(ii\) certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (subsidiary capital, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 235.84 635.10 Td (s capital that is attributable to its ownership of Radian ) Tj ET Q q 0 0 0 rg BT 453.58 635.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 477.75 635.10 Td (Assurance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 618.10 Td (The public comment period for the proposed PMIERs ended on September 8, 2014. ) Tj ET Q q 0 0 0 rg BT 408.75 618.10 Td (The FHF) Tj ET Q q 0 0 0 rg BT 444.40 618.10 Td (A) Tj ET Q q 0 0 0 rg BT 451.07 618.10 Td ( is currently reviewing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (considering input before adopting the final PMIERs. ) Tj ET Q q 0 0 0 rg BT 261.69 606.10 Td (All aspects of the final PMIERs are expected to become ef) Tj ET Q q 0 0 0 rg BT 495.87 606.10 Td (fective 180 days ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (after their final publication. It is anticipated that approved insurers who fail to meet the PMIERs Financial Requirements when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (they become ef) Tj ET Q q 0 0 0 rg BT 110.40 582.10 Td (fective would, at the discretion of the GSEs, be permitted to operate under a transition plan during an extended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (transition period of up to two years from the final publication date, and would continue to be eligible insurers during that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (period. ) Tj ET Q q 0 0 0 rg BT 79.87 558.10 Td (W) Tj ET Q q 0 0 0 rg BT 88.50 558.10 Td (e expect the final PMIERs to be published during the first half of 2015 and to be ef) Tj ET Q q 0 0 0 rg BT 420.19 558.10 Td (fective by December 31, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (Based on an assumed final publication date of June 30, 2015, with an ef) Tj ET Q q 0 0 0 rg BT 336.75 546.10 Td (fective date of December 31, 2015, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 550.83 546.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (estimated net shortfall in ) Tj ET Q q 0 0 0 rg BT 150.59 534.10 Td (A) Tj ET Q q 0 0 0 rg BT 157.07 534.10 Td (vailable ) Tj ET Q q 0 0 0 rg BT 190.67 534.10 Td (Assets would be approximately $350 million as of December31, 2015 and no shortfall as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (June 30, 2017 \(the projected end of the two-year transition period\), in each case after giving consideration to existing holding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (company cash balances of $670 million and approximately $790 million in anticipated proceeds from the pending sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 498.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 498.10 Td (Assurance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 481.10 Td (In order for Radian Guaranty to comply with the PMIERs Financial Requirements as proposed, we expect to contribute a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (substantial portion of our holding company cash and investments to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 390.17 469.10 Td (, while maintaining a suf) Tj ET Q q 0 0 0 rg BT 489.14 469.10 Td (ficient level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (holding company cash and investments to carry out our business strategy) Tj ET Q q 0 0 0 rg BT 341.01 457.10 Td (, and also that we will be successful in: \(1\) completing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (the pending sale of Radian ) Tj ET Q q 0 0 0 rg BT 158.08 445.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 182.25 445.10 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 236.13 445.10 Td (Assured pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 363.61 445.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 387.78 445.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 495.26 445.10 Td (Agreement; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (\(2\) leveraging other options such as commutations of existing risk or external reinsurance for a portion of our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (insurance RIF in a manner that provides capital relief and is compliant with the PMIERs. In the event we are unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (successfully execute these or similar transactions or strategies, or such transactions are not available on terms that are attractive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (to us, we may seek additional capital by incurring additional debt, by issuing additional equity) Tj ET Q q 0 0 0 rg BT 425.99 397.10 Td (, or by selling assets, which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (may not be able to do on favorable terms, if at all.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 368.10 Td (Radian Group also could be required to provide capital support for Radian Guaranty and our other mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (subsidiaries if additional capital is required pursuant to insurance laws and regulations. ) Tj ET Q q 0 0 0 rg BT 399.50 356.10 Td (The NAIC is in the process of reviewing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (the minimum capital and surplus requirements for mortgage insurers and considering changes to the Mortgage Guaranty ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (Insurers Model ) Tj ET Q q 0 0 0 rg BT 112.27 332.10 Td (Act that could include more stringent capital requirements for Radian Guaranty) Tj ET Q q 0 0 0 rg BT 429.29 332.10 Td (, which, if adopted, could ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (increase the capital requirements for Radian Guaranty in states that adopt the new Mortgage Guaranty Insurers Model ) Tj ET Q q 0 0 0 rg BT 522.95 320.10 Td (Act. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (addition, certain of our mortgage insurance subsidiaries that provide reinsurance to Radian Guaranty have required, and in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (future may again require, additional capital contributions from Radian Group. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 279.10 Td (Dividends) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.55 279.10 Td (.Our quarterly common stock dividend is currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.05 279.10 Td ($0.0025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.55 279.10 Td ( per share and, based on our current outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (shares of common stock, we would require approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.16 267.10 Td ($1.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.05 267.10 Td ( in the aggregate to pay our quarterly dividends for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (next 12 months. Radian Group is not subject to any limitations on its ability to pay dividends except those generally applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (to corporations, such as Radian Group, that are incorporated in Delaware. Delaware corporation law provides that dividends are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (only payable out of a corporation) Tj ET Q q 0 0 0 rg BT 185.29 231.10 Td (s capital surplus or \(subject to certain limitations\) recent net profits. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.00 231.10 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 219.10 Td (, our capital surplus was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.92 219.10 Td ($2.2 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.04 219.10 Td (, representing our dividend limitation under Delaware law) Tj ET Q q 0 0 0 rg BT 446.54 219.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 202.10 Td (T) Tj ET Q q 0 0 0 rg BT 76.64 202.10 Td (ax Payments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.96 202.10 Td ( Under our current tax-sharing agreement between Radian Group and its subsidiaries, our subsidiaries are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (required to pay to Radian Group, on a quarterly basis, amounts representing their estimated separate company federal tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (liability for the current tax year) Tj ET Q q 0 0 0 rg BT 174.17 178.10 Td (. ) Tj ET Q q 0 0 0 rg BT 178.62 178.10 Td (Annually) Tj ET Q q 0 0 0 rg BT 215.19 178.10 Td (, Radian Group is required to refund to each subsidiary any amount that such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (subsidiary overpaid to Radian Group for a taxable year) Tj ET Q q 0 0 0 rg BT 269.03 166.10 Td (, as well as any amount that the subsidiary could utilize through existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (carryback provisions of the Internal Revenue Code had such subsidiary filed its federal tax return on a separate company basis. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (Any payments that Radian Group is expected to make during the next 12 months under the tax-sharing agreement are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (expected to have a material impact on Radian Group) Tj ET Q q 0 0 0 rg BT 262.75 130.10 Td (s available liquidity) Tj ET Q q 0 0 0 rg BT 340.97 130.10 Td (. Our tax-sharing agreement may not be changed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (without the pre-approval of Fannie Mae and the applicable state insurance departments for the insurance subsidiaries that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (parties to the agreement.) Tj ET Q endstream endobj 211 0 obj <> endobj 212 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (105) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Strategic Investments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.81 731.10 Td (A) Tj ET Q q 0 0 0 rg BT 169.48 731.10 Td ( primary component of our long-term strategic plan for the Company is to grow the fee-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (services we are providing and to further diversify our sources of revenues, including through the introduction of new products. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 707.10 Td (e may choose to pursue these objectives by growing our businesses internally or through potential transactions, and we may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (use holding company resources to pursue these investments. In July 2014, we invested $20 million to capitalize a newly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (formed, wholly-owned insurance subsidiary of Radian Group. ) Tj ET Q q 0 0 0 rg BT 300.10 683.10 Td (The strategic objective of this investment is to of) Tj ET Q q 0 0 0 rg BT 495.42 683.10 Td (fer various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (mortgage insurance-related products, which are currently in a developmental stage. In light of other potential cash and liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (requirements discussed above, we do not expect that our strategic investments will be material during the next twelve months. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 642.10 Td (If Radian Group) Tj ET Q q 0 0 0 rg BT 140.32 642.10 Td (s current sources of liquidity are insuf) Tj ET Q q 0 0 0 rg BT 291.76 642.10 Td (ficient for Radian Group to fund its obligations during the next ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (twelve months, or if we otherwise decide to increase our liquidity position, Radian Group may seek additional capital by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (incurring additional debt, by issuing additional equity) Tj ET Q q 0 0 0 rg BT 263.54 618.10 Td (, or by selling assets, which we may not be able to do on favorable terms, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (if at all) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.82 606.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (Radian GroupLong-T) Tj ET Q q 0 0 0 rg BT 148.88 585.10 Td (erm Liquidity Needs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 568.10 Td (Our most significant needs for liquidity beyond the next 12 months are: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 551.10 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 94.50 551.10 Td (the repayment of our outstanding long-term debt, including:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 534.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 534.10 Td ($195.5 million principal amount of outstanding debt due in June 2017; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 517.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 517.10 Td ($450 million principal amount of convertible debt due in November 2017, plus, at our option, any related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 505.10 Td (conversion premium that we elect to settle in cash; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 488.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 488.10 Td ($400 million of convertible debt due in March 2019 for which the principal amount and any conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 476.10 Td (premium may) Tj ET Q q 0 0 0 rg BT 167.67 476.10 Td (, at our option, be settled in cash or shares; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 459.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 459.10 Td ($300 million principal amount of outstanding debt due in June 2019; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 442.10 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 94.50 442.10 Td (potential additional capital contributions to our subsidiaries; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 425.10 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 94.50 425.10 Td (potential payments to the U.S. ) Tj ET Q q 0 0 0 rg BT 217.91 425.10 Td (T) Tj ET Q q 0 0 0 rg BT 223.67 425.10 Td (reasury resulting from our dispute with the IRS relating to the examination of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 413.10 Td (2000 through 2007 consolidated federal income tax returns by the IRS.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 396.10 Td (On September 4, 2014, we received Notices of Deficiency from the IRS covering our 2000 through 2007 federal income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.10 Td (tax returns.) Tj ET Q q 0 0 0 rg BT 96.80 384.10 Td (The Notices of Deficiency assert unpaid taxes and penalties of approximately $157 million related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.10 Td (recognition of certain tax losses and deductions that were generated through our investment in a portfolio of non-economic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.10 Td (REMIC residual interests currently held by RGRI. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.80 360.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.83 360.10 Td (, there would also be interest related to these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.10 Td (matters of approximately $1) Tj ET Q q 0 0 0 rg BT 162.15 348.10 Td (15 million. Depending on the outcome, additional state income taxes, penalties and interest \(in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.10 Td (aggregate, estimated to be approximately $30 million as of December 31, 2014\) also may be due when a final resolution is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.10 Td (reached. ) Tj ET Q q 0 0 0 rg BT 85.40 324.10 Td (The Notices of Deficiency also reflected additional amounts due of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.67 324.10 Td ($105 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.06 324.10 Td (, which are primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.10 Td (associated with the disallowance of the previously filed carryback of the 2008 NOL) Tj ET Q q 0 0 0 rg BT 384.02 312.10 Td ( to the 2006 and 2007 tax years. ) Tj ET Q q 0 0 0 rg BT 514.09 312.10 Td (W) Tj ET Q q 0 0 0 rg BT 522.73 312.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.10 Td (currently believe that the disallowance of our 2008 NOL) Tj ET Q q 0 0 0 rg BT 275.72 300.10 Td ( carryback is a precautionary position by the IRS and that we will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.10 Td (ultimately maintain the benefit of this NOL) Tj ET Q q 0 0 0 rg BT 222.98 288.10 Td ( carryback claim.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 271.10 Td (Radian Group and RGRI are parties to an ) Tj ET Q q 0 0 0 rg BT 239.73 271.10 Td (Assumption and Indemnification ) Tj ET Q q 0 0 0 rg BT 373.33 271.10 Td (Agreement with regard to a portion of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.10 Td (Deficiency ) Tj ET Q q 0 0 0 rg BT 95.31 259.10 Td (Amounts. ) Tj ET Q q 0 0 0 rg BT 136.80 259.10 Td (This indemnification agreement was made in lieu of an immediate capital contribution to RGRI that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.10 Td (otherwise would have been required for RGRI to maintain its minimum statutory policyholders) Tj ET Q q 0 0 0 rg BT 433.12 247.10 Td ( surplus requirements in light of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.10 Td (the remeasurement as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.46 235.10 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 222.67 235.10 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.67 235.10 Td ( of uncertain tax positions related to the portfolio of REMIC residual interests. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.10 Td (Note 13 of Notes to Consolidated Financial Statements for additional information regarding the IRS matter) Tj ET Q q 0 0 0 rg BT 477.19 223.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 206.10 Td (On December 3, 2014, we petitioned the U.S. ) Tj ET Q q 0 0 0 rg BT 256.78 206.10 Td (T) Tj ET Q q 0 0 0 rg BT 262.19 206.10 Td (ax Court to litigate the Deficiency ) Tj ET Q q 0 0 0 rg BT 400.48 206.10 Td (Amount. ) Tj ET Q q 0 0 0 rg BT 438.07 206.10 Td (W) Tj ET Q q 0 0 0 rg BT 446.71 206.10 Td (e can provide no assurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (regarding the outcome of this IRS litigation, which may take several years to resolve, or whether a compromised settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (with the IRS will ultimately be reached. ) Tj ET Q q 0 0 0 rg BT 211.13 182.10 Td (As such, there remains significant uncertainty with regard to the amount and timing of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (any potential payments under the indemnity agreement described above.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 153.10 Td (As of the balance sheet date, certain of our insurance subsidiaries, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 445.95 153.10 Td (, have incurred NOLs that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.10 Td (could not be carried-back and utilized on a separate company tax return basis. ) Tj ET Q q 0 0 0 rg BT 362.71 141.10 Td (As a result, we are not currently obligated under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.10 Td (our tax-sharing agreement to reimburse these subsidiaries for their separate company NOL) Tj ET Q q 0 0 0 rg BT 412.06 129.10 Td ( Carryforward. However) Tj ET Q q 0 0 0 rg BT 510.23 129.10 Td (, if in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.10 Td (future period our consolidated NOL) Tj ET Q q 0 0 0 rg BT 192.98 117.10 Td ( is fully utilized before a subsidiary has utilized its share of NOLs on a separate entity basis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.10 Td (then Radian Group may be obligated to fund such subsidiary) Tj ET Q q 0 0 0 rg BT 295.29 105.10 Td (s share of our consolidated tax liability to the IRS. Currently) Tj ET Q q 0 0 0 rg BT 536.54 105.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.10 Td (do not expect to fund material obligations under the provisions described in this paragraph with regard to subsidiary NOLs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.10 Td (incurred to date.) Tj ET Q endstream endobj 213 0 obj <> endobj 214 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (106) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 731.10 Td (e expect to meet the long-term liquidity needs of Radian Group with a combination of: \(i\)available cash and marketable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (securities; \(ii\) private or public issuances of debt or equity securities, which we may not be able to do on favorable terms, if at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (all; \(iii\)cash received under expense-sharing arrangements with our subsidiaries; and \(iv\)dividends from our subsidiaries, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (including Clayton, to the extent available. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 678.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 678.10 Td (e regularly evaluate opportunities, based on market conditions, to finance our operations by accessing the capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.10 Td (markets or other types of indebtedness with institutional lenders, and consider various measures to improve our capital and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (liquidity position, as well as to strengthen our balance sheet and improve our debt maturity profile. In the past, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (repurchased and exchanged, prior to maturity) Tj ET Q q 0 0 0 rg BT 230.45 642.10 Td (, some of our outstanding debt, and in the future, we may) Tj ET Q q 0 0 0 rg BT 458.64 642.10 Td (, from time to time, seek ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (to redeem, repurchase or exchange for other securities, some or all of our outstanding debt, prior to maturity) Tj ET Q q 0 0 0 rg BT 481.49 630.10 Td (, in the open ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (market, through other public or private transactions, including pursuant to one or more tender of) Tj ET Q q 0 0 0 rg BT 434.21 618.10 Td (fers, or through any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (combination of the foregoing, as circumstances may allow) Tj ET Q q 0 0 0 rg BT 282.67 606.10 Td (. ) Tj ET Q q 0 0 0 rg BT 287.49 606.10 Td (W) Tj ET Q q 0 0 0 rg BT 296.13 606.10 Td (e may seek to refinance all or a portion of our long-term debt, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (we may not be able to do so on favorable terms, if at all. ) Tj ET Q q 0 0 0 rg BT 277.03 594.10 Td (The timing or amount of any potential transactions, which may or may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (not occur) Tj ET Q q 0 0 0 rg BT 86.58 582.10 Td (, will depend on a number of factors, including market opportunities and our capital and liquidity needs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 561.10 Td (Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 544.10 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.03 544.10 Td (, our mortgage insurance segment maintained claims paying resources of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.10 544.10 Td ($2.9 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.21 544.10 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (consists of contingency reserves, statutory policyholders) Tj ET Q q 0 0 0 rg BT 278.15 532.10 Td ( surplus \(excluding the statutory surplus of Radian ) Tj ET Q q 0 0 0 rg BT 482.01 532.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 506.18 532.10 Td (Assurance\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (Unearned Premium Reserves and loss reserves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 503.10 Td (The principal demands for liquidity in our mortgage insurance business include the payment of claims and potential claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 491.10 Td (settlement transactions, operating expenses \(including those allocated from Radian Group\) and taxes. ) Tj ET Q q 0 0 0 rg BT 456.98 491.10 Td (The principal sources of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (liquidity in our mortgage insurance business currently include insurance premiums, net investment income, and capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 467.10 Td (contributions from Radian Group. ) Tj ET Q q 0 0 0 rg BT 187.91 467.10 Td (W) Tj ET Q q 0 0 0 rg BT 196.55 467.10 Td (e believe that the operating cash flows generated by each of our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (subsidiaries will provide these subsidiaries with a substantial portion of the funds necessary to satisfy their claim payments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (operating expenses and taxes for the foreseeable future. ) Tj ET Q q 0 0 0 rg BT 273.94 443.10 Td (W) Tj ET Q q 0 0 0 rg BT 282.58 443.10 Td (e believe that we have the ability to fund any operating cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (shortfall from sales and maturities of marketable securities in our investment portfolio maintained at our operating companies. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (In the event that we are unable to fund excess claim payments and operating expenses through the sale of these marketable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (securities and from maturing fixed-income investments, we may be required to incur unanticipated capital losses or delays in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (connection with the sale of less liquid marketable securities held by our operating companies.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 378.10 Td (Historically) Tj ET Q q 0 0 0 rg BT 118.56 378.10 Td (, dividends from Radian ) Tj ET Q q 0 0 0 rg BT 217.16 378.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 241.33 378.10 Td (Assurance were also one of the principal sources of liquidity in our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (insurance business. In July 2014, following approval from the NYSDFS, Radian ) Tj ET Q q 0 0 0 rg BT 373.36 366.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 397.53 366.10 Td (Assurance paid a $150 million ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (Extraordinary Dividend to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 224.91 354.10 Td (. In addition, in light of the proposed PMIERs, which in their current form would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (not provide Radian Guaranty with any credit for its investment in Radian ) Tj ET Q q 0 0 0 rg BT 343.88 342.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 368.05 342.10 Td (Assurance, on December 22, 2014, Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 184.18 330.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 208.35 330.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 315.82 330.10 Td (Agreement to sell Radian ) Tj ET Q q 0 0 0 rg BT 419.69 330.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 443.86 330.10 Td (Assurance, our principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (financial guaranty subsidiary) Tj ET Q q 0 0 0 rg BT 164.92 318.10 Td (, to ) Tj ET Q q 0 0 0 rg BT 179.65 318.10 Td (Assured for a purchase price of approximately $810 million, subject to certain adjustments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (After closing costs and other adjustments, we expect net cash proceeds of approximately $790 million. Radian expects to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 162.52 294.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 186.69 294.10 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 240.56 294.10 Td (Assured in the first half of 2015, subject to satisfaction of customary closing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (conditions, including regulatory approvals. See Note 1 and Note 3 of Notes to Consolidated Financial Statements for more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (information regarding PMIERs and the Radian ) Tj ET Q q 0 0 0 rg BT 238.91 270.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 263.08 270.10 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 370.55 270.10 Td (Agreement, respectively) Tj ET Q q 0 0 0 rg BT 467.64 270.10 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 62.50 247.70 Td (Fr) Tj ET Q q 0 0 0 rg BT 72.13 247.70 Td (eddie Mac ) Tj ET Q q 0 0 0 rg BT 116.37 247.70 Td (Agr) Tj ET Q q 0 0 0 rg BT 131.00 247.70 Td (eement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 230.70 Td (In connection with the closing under the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 288.33 230.70 Td (Agreement, Radian Guaranty deposited $205 million of investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.70 Td (securities into a collateral account. ) Tj ET Q q 0 0 0 rg BT 190.37 218.70 Td (This account remains on our consolidated balance sheets due to the rights that Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.70 Td (Guaranty has with respect to those funds. From the time the collateral account was established through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.00 206.70 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.58 206.70 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.70 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 194.70 Td ($48 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.15 194.70 Td ( of additional Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 277.53 194.70 Td (Activity had become final in accordance with the Freddie Mac ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.70 Td (Agreement and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.62 182.70 Td ($1) Tj ET Q q 0 0 0 rg BT 183.25 182.70 Td (13 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.64 182.70 Td ( of submitted claims had been rescinded, denied, curtailed or cancelled, but were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.70 Td (not yet considered final in accordance with the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 291.63 170.70 Td (Agreement. If the BofA) Tj ET Q q 0 0 0 rg BT 386.60 170.70 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 433.82 170.70 Td (Agreement had been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.70 Td (implemented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.21 158.70 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.45 158.70 Td (, these amounts would have been approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 158.70 Td ($1) Tj ET Q q 0 0 0 rg BT 409.03 158.70 Td (16 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.42 158.70 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.86 158.70 Td ($23 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.25 158.70 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.70 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 146.70 Td (. Subject to certain conditions in the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 296.56 146.70 Td (Agreement, amounts in the collateral account may be released to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.70 Td (Radian Guaranty from Freddie Mac over time to the extent that Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 370.81 134.70 Td (Activity becomes final in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.70 Td (terms of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 152.53 122.70 Td (Agreement. If the amount of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 334.71 122.70 Td (Activity that becomes final in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.70 Td (Freddie Mac ) Tj ET Q q 0 0 0 rg BT 102.26 110.70 Td (Agreement after the collateral account was established is less than $205 million prior to the termination of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.70 Td (Freddie Mac ) Tj ET Q q 0 0 0 rg BT 102.26 98.70 Td (Agreement, then any shortfall will be paid to Freddie Mac from the funds in the collateral account.) Tj ET Q endstream endobj 215 0 obj <> endobj 216 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (107) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (MRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 714.25 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.03 714.25 Td (, our MRES segment maintained cash and cash equivalents totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.91 714.25 Td ($12.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.80 714.25 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (included restricted cash of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.23 702.25 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.13 702.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 685.25 Td (The principal demands for liquidity in our MRES business include the payment of employee compensation and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 673.25 Td (operating expenses \(including those allocated from Radian Group\), interest payments related to the Senior Notes due 2019, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 661.25 Td (taxes, and dividends to Radian Group. ) Tj ET Q q 0 0 0 rg BT 204.85 661.25 Td (The principal sources of liquidity in our MRES business are cash generated by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 649.25 Td (operations and, to the extent necessary) Tj ET Q q 0 0 0 rg BT 203.24 649.25 Td (, capital contributions from Radian Group.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 632.25 Td (Liquidity levels may fluctuate depending on the levels and contractual timing of our invoicing and the payment practices ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.25 Td (of the MRES clients, in combination with the timing of MRES payments for employee compensation and to external vendors. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.25 Td (The amount, if any) Tj ET Q q 0 0 0 rg BT 124.94 608.25 Td (, and timing of the MRES segment) Tj ET Q q 0 0 0 rg BT 266.87 608.25 Td (s dividend paying capacity will depend primarily on the amount of excess ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (cash flow generated by the segment. In the fourth quarter of 2014, the MRES segment reimbursed Radian Group for corporate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (interest expense allocations of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.79 584.25 Td ($7.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.68 584.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 567.25 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 567.25 Td (e believe that the cash flows generated by the MRES operations will provide the funds necessary to satisfy the MRES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 555.25 Td (segment) Tj ET Q q 0 0 0 rg BT 85.60 555.25 Td (s needs for the foreseeable future. However) Tj ET Q q 0 0 0 rg BT 259.29 555.25 Td (, the segment) Tj ET Q q 0 0 0 rg BT 315.11 555.25 Td (s activities are primarily af) Tj ET Q q 0 0 0 rg BT 422.11 555.25 Td (fected by transaction volume, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 543.25 Td (which is subject to fluctuation due to market conditions and depends on maintaining successful client relationships. Dividend ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 531.25 Td (payments to Radian Group would be adversely impacted and funding support may be required for the MRES segment if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.25 Td (unanticipated events and circumstances were to result in lower earnings or cash flow than expected. In the event the cash flow ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.25 Td (from operations of the MRES business is not adequate to fund all of its needs, Radian Group may be required to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.25 Td (additional funds to the MRES segment in the form of a capital contribution or an intercompany note.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (Reconciliation of Consolidated Net Income \(Loss\) to Cash Used in Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 457.25 Td (The following table reconciles consolidated net income \(loss\) to cash flows used in operations for the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 428.75 m 451 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451 428.75 m 455 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 428.75 m 507 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 428.75 m 511 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 428.75 m 563 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 428.75 m 451 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 415.75 m 451 415.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 428.75 m 507 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 415.75 m 507 415.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 428.75 m 563 428.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 415.75 m 563 415.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 415.75 m 451 415.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 415.75 m 507 415.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 415.75 m 563 415.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 155.75 m 451 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 140.75 m 451 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 155.75 m 507 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 140.75 m 507 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 155.75 m 563 155.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 140.75 m 563 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 140.75 m 451 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 125.75 m 451 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 140.75 m 507 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 125.75 m 507 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 140.75 m 563 140.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 125.75 m 563 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 125.75 m 451 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 111.75 m 451 111.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 109.75 m 451 109.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 125.75 m 507 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 111.75 m 507 111.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 109.75 m 507 109.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 125.75 m 563 125.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 111.75 m 563 111.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 109.75 m 563 109.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.20 432.98 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 418.730078125 m 102.078125 418.730078125 l s q 0 0 0 rg BT 52.50 419.98 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.50 419.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.50 419.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.50 419.98 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 405.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.00 405.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 405.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 405.42 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 405.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 405.47 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 405.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 405.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 405.47 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 405.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 390.42 Td (Loss from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 390.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.60 390.42 Td (300,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 390.42 Td (55,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 390.42 Td (227,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 375.42 Td (Adjustments to reconcile net income \(loss\) to net cash used in operating) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 365.42 Td (activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 350.42 Td (Net \(gains\) losses on investments and other financial instruments recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 340.42 Td (in earnings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.00 340.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.30 340.47 Td (\(79,989) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 340.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 340.42 Td (105,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 340.47 Td (\(121,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 340.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 325.42 Td (Net payments related to derivative contracts and VIEs \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 325.47 Td (\(125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 325.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.30 325.47 Td (\(8,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 325.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 325.47 Td (\(4,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 325.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 310.42 Td (Net cash received \(paid\) for commutations, terminations and recaptures \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.00 310.32 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 310.42 Td (1,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 310.47 Td (\(254,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 310.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 310.42 Td (3,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 295.42 Td (Deferred income tax \(benefit\) provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.00 295.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.30 295.47 Td (\(825,843) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 295.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 295.47 Td (\(31,847) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 295.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 295.42 Td (7,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 280.42 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.00 280.32 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 280.42 Td (8,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 280.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 280.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 265.42 Td (Depreciation and other amortization, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 265.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 265.42 Td (57,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 265.42 Td (69,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 265.42 Td (53,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 250.42 Td (Change in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 235.42 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 235.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 235.42 Td (77,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 235.42 Td (184,659) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 235.42 Td (148,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 220.42 Td (Deferred policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 220.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 220.42 Td (17,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 220.42 Td (8,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 220.42 Td (13,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 205.42 Td (Reinsurance recoverables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 205.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 205.42 Td (18,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 205.42 Td (42,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 205.42 Td (66,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 190.42 Td (Reserve for losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.00 190.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.30 190.47 Td (\(604,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 190.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 190.47 Td (\(664,588) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 190.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 190.47 Td (\(164,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 190.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 175.42 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 175.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.30 175.47 Td (\(26,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 175.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 175.42 Td (16,764) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 175.47 Td (\(50,080) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 175.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 160.42 Td (Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 160.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.30 160.47 Td (\(55,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 160.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 160.42 Td (54,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 160.42 Td (24,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 145.42 Td (Net cash used in operating activities, continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.00 145.32 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.30 145.47 Td (\(153,245) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 145.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 145.47 Td (\(619,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 145.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 145.47 Td (\(247,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 145.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 130.42 Td (Net cash provided by \(used in\) operating activities, discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.00 130.32 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 130.42 Td (17,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 130.47 Td (\(45,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 130.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 130.47 Td (\(263,337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 130.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.50 115.42 Td (Net cash used in operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 115.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 115.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.30 115.47 Td (\(136,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.15 115.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 115.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 115.47 Td (\(664,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 115.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 115.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 115.47 Td (\(510,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 115.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.25 Td (_____________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 87.25 Td (Cash item.) Tj ET Q endstream endobj 217 0 obj <> endobj 218 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Cash flows used in operating activities decreased for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.27 731.10 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.27 731.10 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.97 731.10 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.97 731.10 Td (, due to an increase in operating cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (generated by our mortgage insurance business and a decrease in cash paid for commutations, terminations and recaptures. ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 714.03 478.75 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 707.10 Td (During 2013, cash flows used in operating activities increased compared to 2012, primarily as a result of an increase in ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 702.03 507.64 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 695.10 Td (mortgage insurance claims paid, including those paid in conjunction with the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 412.75 695.10 Td (Agreement, and payments for other ) Tj ET Q BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 49.50 690.03 207.45 -9.09 re f /GS0 gs q 0 0 0 rg BT 49.50 683.10 Td (commutations, terminations and recaptures in 2013.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 662.10 Td (Stockholders) Tj ET Q q 0 0 0 rg BT 105.43 662.10 Td ( Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 645.10 Td (Stockholders) Tj ET Q q 0 0 0 rg BT 128.30 645.10 Td ( equity was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.35 645.10 Td ($2.1 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.46 645.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.96 645.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.27 645.10 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.47 645.10 Td ($0.9 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.58 645.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.80 645.10 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.38 645.10 Td (. ) Tj ET Q q 0 0 0 rg BT 512.20 645.10 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.10 Td (increase in stockholders) Tj ET Q q 0 0 0 rg BT 148.17 633.10 Td ( equity resulted primarily from our net income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.28 633.10 Td ($959.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.17 633.10 Td ( for 2014 and an increase in additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (paid-in capital that resulted from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.78 621.10 Td ($247.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.67 621.10 Td ( in net proceeds received in connection with our issuance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.53 621.10 Td (17.825 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.42 621.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (shares of our common stock in May 2014, partially of) Tj ET Q q 0 0 0 rg BT 264.83 609.10 Td (fset by the reclassification of the equity component of currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.10 Td (redeemable convertible senior notes of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.94 597.10 Td ($74.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.83 597.10 Td ( to mezzanine equity) Tj ET Q q 0 0 0 rg BT 343.20 597.10 Td (. See Note 1) Tj ET Q q 0 0 0 rg BT 391.71 597.10 Td (1 of Notes to Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.10 Td (Statements for additional information.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 564.10 Td (Ratings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 547.10 Td (Radian Group and our principal operating subsidiaries have been assigned the ratings set forth in the chart below) Tj ET Q q 0 0 0 rg BT 524.11 547.10 Td (. ) Tj ET Q q 0 0 0 rg BT 528.93 547.10 Td (W) Tj ET Q q 0 0 0 rg BT 537.57 547.10 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.10 Td (believe that ratings often are considered by others in assessing our credit strength and the financial strength of our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.10 Td (subsidiaries. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 118.66 523.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.22 523.10 Td (Item 1A.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 159.76 523.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.26 523.10 Td (Risk Factors ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 227.54 523.10 Td (Radian Guaranty may be unable to comply with applicable GSE eligibility ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 511.10 Td (r) Tj ET Q q 0 0 0 rg BT 53.02 511.10 Td (equir) Tj ET Q q 0 0 0 rg BT 73.76 511.10 Td (ements, including the final PMIERs, which if adopted in their curr) Tj ET Q q 0 0 0 rg BT 338.90 511.10 Td (ent pr) Tj ET Q q 0 0 0 rg BT 362.14 511.10 Td (oposed form, could negatively impact Radian ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 499.10 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 89.87 499.10 Td (s expected r) Tj ET Q q 0 0 0 rg BT 137.25 499.10 Td (eturn on equity) Tj ET Q q 0 0 0 rg BT 197.24 499.10 Td (, decr) Tj ET Q q 0 0 0 rg BT 219.64 499.10 Td (ease Radian Guaranty) Tj ET Q q 0 0 0 rg BT 311.67 499.10 Td (s NIW) Tj ET Q q 0 0 0 rg BT 335.47 499.10 Td (, and subject Radian Guaranty to extensive and mor) Tj ET Q q 0 0 0 rg BT 543.67 499.10 Td (e ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 487.10 Td (stringent operational r) Tj ET Q q 0 0 0 rg BT 140.24 487.10 Td (equir) Tj ET Q q 0 0 0 rg BT 160.98 487.10 Td (ements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 191.25 487.10 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 459.6 m 370 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 459.6 m 436 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 459.6 m 370 459.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374 459.6 m 436 459.6 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 310.15 462.33 Td (Moody) Tj ET Q q 0 0 0 rg BT 343.11 462.33 Td (s) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 349.50 462.33 Td (\(1\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 388.85 462.33 Td (S&P) Tj ET Q q 0 0 0 rg BT 408.30 462.33 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.80 462.33 Td (\(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 450.22 Td (Radian Group) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 450.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.65 450.22 Td (B3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 450.22 Td (B-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 438.22 Td (Radian Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.00 438.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.40 438.22 Td (Ba2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 438.22 Td (BB-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 426.22 Td (Radian Insurance Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.00 426.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 329.80 427.55 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 399.80 427.55 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 414.22 Td (RMAI \(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 414.22 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.40 414.22 Td (Ba2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 414.22 Td (BB-) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.10 Td (___________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.10 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 388.10 Td (Moody) Tj ET Q q 0 0 0 rg BT 103.67 388.10 Td (s outlook for Radian Group and all our rated mortgage insurance subsidiaries is currently Positive.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.10 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 376.10 Td (S&P) Tj ET Q q 0 0 0 rg BT 93.68 376.10 Td (s outlook for Radian Group and Radian Guaranty is currently Positive. ) Tj ET Q q 0 0 0 rg BT 378.45 376.10 Td (The outlook for all other subsidiaries is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 364.10 Td (currently Stable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.10 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 352.10 Td (Not currently rated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.10 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 340.10 Td (Currently) Tj ET Q q 0 0 0 rg BT 109.68 340.10 Td (, RMAI is not writing new business and has no RIF) Tj ET Q q 0 0 0 rg BT 314.71 340.10 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (Critical ) Tj ET Q q 0 0 0 rg BT 84.21 307.10 Td (Accounting Policies) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 286.10 Td (SEC guidance defines Critical ) Tj ET Q q 0 0 0 rg BT 196.25 286.10 Td (Accounting Policies as those that require the application of management) Tj ET Q q 0 0 0 rg BT 488.66 286.10 Td (s most dif) Tj ET Q q 0 0 0 rg BT 527.93 286.10 Td (ficult, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 274.10 Td (subjective or complex judgments, often because of the need to make estimates about the ef) Tj ET Q q 0 0 0 rg BT 412.25 274.10 Td (fect of matters that are inherently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 262.10 Td (uncertain and that may change in subsequent periods. In preparing our consolidated financial statements in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 250.10 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 250.10 Td (, management has made estimates, assumptions and judgments that af) Tj ET Q q 0 0 0 rg BT 354.54 250.10 Td (fect the reported amounts of assets and liabilities at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 238.10 Td (the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 226.10 Td (preparing these financial statements, management has utilized available information, including our past history) Tj ET Q q 0 0 0 rg BT 492.61 226.10 Td (, industry ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.10 Td (standards and the current and projected economic and housing environment, among other factors, in forming its estimates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.10 Td (assumptions and judgments, giving due consideration to materiality) Tj ET Q q 0 0 0 rg BT 319.36 202.10 Td (. Because the use of estimates is inherent in GAAP) Tj ET Q q 0 0 0 rg BT 522.10 202.10 Td (, actual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (results could dif) Tj ET Q q 0 0 0 rg BT 113.75 190.10 Td (fer from those estimates. In addition, other companies may utilize dif) Tj ET Q q 0 0 0 rg BT 390.16 190.10 Td (ferent estimates, which may impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (comparability of our results of operations to those of companies in similar businesses. ) Tj ET Q q 0 0 0 rg BT 394.99 178.10 Td (A) Tj ET Q q 0 0 0 rg BT 401.66 178.10 Td ( summary of the accounting policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (that management believes are critical to the preparation of our consolidated financial statements is set forth below) Tj ET Q q 0 0 0 rg BT 504.24 166.10 Td (.) Tj ET Q endstream endobj 219 0 obj <> endobj 220 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (109) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Held-For-Sale Classification) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 714.25 Td (e report a business as held for sale when management is committed to a formal plan to sell the assets, the business is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (available for immediate sale and is being actively marketed at a price that is reasonable in relation to its fair value, an active ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, the sale is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (probable and expected to be completed within one year) Tj ET Q q 0 0 0 rg BT 270.13 678.25 Td (, and it is deemed unlikely that significant changes to the plan will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (made or that the plan will be withdrawn. ) Tj ET Q q 0 0 0 rg BT 213.63 666.25 Td (A) Tj ET Q q 0 0 0 rg BT 220.30 666.25 Td ( business classified as held for sale is reflected at the lower of its carrying amount or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Balance Sheets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.25 Td (period in which the business is classified as held for sale. ) Tj ET Q q 0 0 0 rg BT 280.01 630.25 Td (After a business is classified as held for sale, depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.25 Td (amortization expense is not recognized on its assets.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 597.25 Td (Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 580.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 580.25 Td (e report the results of operations of a business as discontinued operations if the business is classified as held for sale, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.25 Td (the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.25 Td (disposal transaction and we will not have any significant continuing involvement in the operations of the business after the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.25 Td (disposal transaction. In the period in which the business meets the criteria of a discontinued operation, its results are reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.25 Td (income or loss from discontinued operations in the Consolidated Statements of Operations for current and prior periods, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.25 Td (include any required adjustment of the carrying amount to its fair value less cost to sell. In addition, tax is allocated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.25 Td (continuing operations and discontinued operations. ) Tj ET Q q 0 0 0 rg BT 255.95 508.25 Td (The amount of tax allocated to discontinued operations is the dif) Tj ET Q q 0 0 0 rg BT 513.47 508.25 Td (ference ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.25 Td (between the tax originally allocated to continuing operations and the tax allocated to the restated amount of income from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.25 Td (continuing operations in each period.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (Reserve for Losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 446.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 446.25 Td (e establish reserves to provide for losses and LAE and the estimated costs of settling claims in our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.25 Td (segment in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. ) Tj ET Q q 0 0 0 rg BT 505.17 434.25 Td (Although this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.25 Td (standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, we establish reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.25 Td (mortgage insurance as described below) Tj ET Q q 0 0 0 rg BT 206.01 410.25 Td (, using the guidance contained in this standard supplemented with other accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.25 Td (guidance, due to the lack of specific guidance for mortgage insurance.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 381.25 Td (Estimating our mortgage insurance loss reserves involves significant reliance upon assumptions and estimates with regard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.25 Td (to the likelihood, magnitude and timing of each potential loss, including an estimate of the number of defaulted loans that will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.25 Td (be successfully rescinded or denied. ) Tj ET Q q 0 0 0 rg BT 195.94 357.25 Td (The models, assumptions and estimates we use to establish loss reserves may prove to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.25 Td (inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty) Tj ET Q q 0 0 0 rg BT 520.89 345.25 Td (. ) Tj ET Q q 0 0 0 rg BT 525.34 345.25 Td (As such, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.25 Td (we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 316.25 Td (Commutations and other negotiated terminations of our insured risks in our mortgage insurance segment provide us with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.25 Td (an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.25 Td (estimated ultimate liability) Tj ET Q q 0 0 0 rg BT 156.05 292.25 Td (. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.25 Td (other balances relating to the insured policies are generally reversed, with any remaining net gain or loss typically recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.25 Td (through provision for losses. ) Tj ET Q q 0 0 0 rg BT 166.26 268.25 Td (W) Tj ET Q q 0 0 0 rg BT 174.90 268.25 Td (e take into consideration the specific contractual and economic terms for each individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.25 Td (agreement when accounting for our commutations or other negotiated terminations, which may result in dif) Tj ET Q q 0 0 0 rg BT 478.92 256.25 Td (ferences in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.25 Td (accounting for these transactions.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 221 0 obj <> endobj 222 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (10) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 731.10 Td (Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.10 Td (In the mortgage insurance segment, the default and claim cycle begins with the receipt of a default notice from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.10 Td (servicer) Tj ET Q q 0 0 0 rg BT 80.59 702.10 Td (. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.10 Td (payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. ) Tj ET Q q 0 0 0 rg BT 511.12 690.10 Td (W) Tj ET Q q 0 0 0 rg BT 519.76 690.10 Td (e also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.10 Td (establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.10 Td (other fees and expenses associated with administering the claims process. ) Tj ET Q q 0 0 0 rg BT 346.17 666.10 Td (W) Tj ET Q q 0 0 0 rg BT 354.81 666.10 Td (e maintain an extensive database of claim payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (history and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.10 Td (status. During 2014, we continued to refine our loss reserving techniques and developed additional segmentations, primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 630.10 Td (based on a loan) Tj ET Q q 0 0 0 rg BT 114.20 630.10 Td (s ) Tj ET Q q 0 0 0 rg BT 120.41 630.10 Td (T) Tj ET Q q 0 0 0 rg BT 126.17 630.10 Td (ime in Default and its current Stage of Default, in assessing the likelihood that a default will result in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (claim. Previously) Tj ET Q q 0 0 0 rg BT 118.84 618.10 Td (, we gave greater weight to other loan characteristics, including the status of the loan as reported by its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (servicer) Tj ET Q q 0 0 0 rg BT 80.75 606.10 Td (, as defined by the number of missed payments, and the type of loan product. Our process includes forecasting the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (impact of our loss mitigation ef) Tj ET Q q 0 0 0 rg BT 175.13 594.10 Td (forts in protecting us against fraud, underwriting negligence, breach of representation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (warranties, inadequate documentation of submitted claims and other items that may give rise to insurance rescissions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (cancellations and claim denials, to help determine the Default to Claim Rate. Lastly) Tj ET Q q 0 0 0 rg BT 383.74 570.10 Td (, we project the Claim Severity) Tj ET Q q 0 0 0 rg BT 507.50 570.10 Td (, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (also impacted by Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 185.32 558.10 Td (Activity associated with claim curtailments due to servicer noncompliance with our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (policies and servicing guidelines. ) Tj ET Q q 0 0 0 rg BT 185.12 546.10 Td (When there is a claim under primary mortgage insurance, the coverage percentage is applied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (to the claim amount, which consists of the unpaid loan principal, plus past due interest \(for which our liability is contractually ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (capped in accordance with the terms of our Master Policies\) and certain expenses associated with the default, to determine our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (maximum liability) Tj ET Q q 0 0 0 rg BT 123.01 510.10 Td (. Based on these estimates, we arrive at our estimate of loss reserves as of that time) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.13 510.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 493.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 493.10 Td (ith respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (reserves are generally increased as defaulted loans age, because historically) Tj ET Q q 0 0 0 rg BT 350.93 481.10 Td (, as defaulted loans age, they have been more likely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (to result in foreclosure, and therefore, have been more likely to result in a claim payment. In the past, as the number of missed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (payments increased, there was generally more certainty regarding these estimates. However) Tj ET Q q 0 0 0 rg BT 416.17 457.10 Td (, following the financial crisis we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (experienced significant delays in foreclosures. ) Tj ET Q q 0 0 0 rg BT 236.65 445.10 Td (As a result, significant uncertainty remains with respect to the ultimate resolution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.10 Td (of aged defaults. ) Tj ET Q q 0 0 0 rg BT 118.18 433.10 Td (This uncertainty requires management to use considerable judgment in estimating the rate at which these loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.10 Td (will result in claims. Once a default is considered to have reached Foreclosure Stage, the likelihood that the default will reach ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.10 Td (claim status increases. Once a claim is submitted, reserves are further increased to reflect the fact that the default has moved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.10 Td (closer to resulting in a claim payment. If a default cures, the reserve for that loan is removed from the reserve for losses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.10 Td (LAE.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 368.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 368.10 Td (e also establish reserves for defaults that we estimate have been incurred but have not been reported) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.42 368.10 Td ( \(IBNR\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.85 368.10 Td (to us on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (a timely basis by the servicer) Tj ET Q q 0 0 0 rg BT 165.45 356.10 Td (, as well as for previously rescinded policies and denied claims that we estimate will be reinstated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (and subsequently paid. ) Tj ET Q q 0 0 0 rg BT 143.19 344.10 Td (W) Tj ET Q q 0 0 0 rg BT 151.83 344.10 Td (e generally give the policyholder up to 90 days to challenge our decision to rescind coverage before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (percentage of policies that were rescinded to be reinstated. ) Tj ET Q q 0 0 0 rg BT 285.88 320.10 Td (W) Tj ET Q q 0 0 0 rg BT 294.52 320.10 Td (e currently expect a significant percentage of claims that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.10 Td (denied to be resubmitted as a perfected claim and ultimately paid. Most often, a claim denial is the result of a servicer) Tj ET Q q 0 0 0 rg BT 520.54 308.10 Td () Tj ET Q q 0 0 0 rg BT 523.32 308.10 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.10 Td (inability to provide the loan origination file or other servicing documents for review) Tj ET Q q 0 0 0 rg BT 384.87 296.10 Td (. Under the terms of our Master Policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.10 Td (with our lending customers, our policyholders have up to one year after the acquisition of borrower) Tj ET Q q 0 0 0 rg BT 446.98 284.10 Td () Tj ET Q q 0 0 0 rg BT 449.76 284.10 Td (s title to provide to us the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.10 Td (necessary documents to perfect a claim. ) Tj ET Q q 0 0 0 rg BT 210.82 272.10 Td (All estimates are periodically reviewed and adjustments are made as they become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.10 Td (necessary) Tj ET Q q 0 0 0 rg BT 87.72 260.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 243.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 243.10 Td (e do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (with respect to that default. For example, for those defaults in which we are in a second loss position \(i.e., we are not required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (to make a payment until a certain aggregate amount of losses have already been recognized on a given group of loans\), we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.10 Td (initially calculate the reserve for defaulted loans in the transaction as if there were no deductible. If the existing deductible for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.10 Td (given Structured ) Tj ET Q q 0 0 0 rg BT 118.19 195.10 Td (T) Tj ET Q q 0 0 0 rg BT 123.95 195.10 Td (ransaction is greater than the aggregate reserve amount for the defaults contained within the transaction, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.10 Td (do not establish a reserve for the defaults, or if appropriate, we record a partial reserve. ) Tj ET Q q 0 0 0 rg BT 399.45 183.10 Td (W) Tj ET Q q 0 0 0 rg BT 408.08 183.10 Td (e do not establish loss reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.10 Td (expected future claims on insured mortgages that are not in default. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 353.01 171.10 Td (Reserve for Pr) Tj ET Q q 0 0 0 rg BT 410.95 171.10 Td (emium Deficiency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.86 171.10 Td ( below for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 159.10 Td (exception to this general principle.) Tj ET Q endstream endobj 223 0 obj <> endobj 224 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.85 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.48 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 308.11 39.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. ) Tj ET Q q 0 0 0 rg BT 449.60 731.10 Td (The attributes currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (the ) Tj ET Q q 0 0 0 rg BT 64.04 707.10 Td (T) Tj ET Q q 0 0 0 rg BT 69.79 707.10 Td (ime in Default, product type \(i.e., Prime, ) Tj ET Q q 0 0 0 rg BT 234.20 707.10 Td (Alt-A) Tj ET Q q 0 0 0 rg BT 256.98 707.10 Td ( or Subprime\), type of insurance \(i.e., primary or pool\), loss position \(i.e., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (with or without a deductible\) and the state where the property is located \(segregated into three state groups in order to adjust for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 683.10 Td (ferences in foreclosure timing\). ) Tj ET Q q 0 0 0 rg BT 188.25 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 196.89 683.10 Td (e use an actuarial projection methodology referred to as a roll rate analysis that uses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (and ) Tj ET Q q 0 0 0 rg BT 66.26 659.10 Td (T) Tj ET Q q 0 0 0 rg BT 72.01 659.10 Td (ime in Default. ) Tj ET Q q 0 0 0 rg BT 134.59 659.10 Td (The Default to Claim Rate also includes our estimates with respect to expected insurance rescissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (claim denials, which have the ef) Tj ET Q q 0 0 0 rg BT 178.16 647.10 Td (fect of reducing our Default to Claim Rates.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 630.10 Td (Since 2009, we have experienced an elevated level of insurance rescissions and claim denials for various reasons, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (warranties and inadequate documentation, primarily related to our Legacy Portfolio. ) Tj ET Q q 0 0 0 rg BT 388.27 606.10 Td (Although we expect the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (estimated rescissions and denials embedded within our reserve analysis to remain elevated as compared to levels before 2009, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (we expect them to continue to decrease over time, as the defaults related to our Legacy Portfolio decline as a proportion of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (total default portfolio and as we realize the results through actual rescissions and denials, or the commutations of insured loans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (In addition, with respect to claims decisions on the population of Future Legacy Loans covered under the BofA) Tj ET Q q 0 0 0 rg BT 494.39 558.10 Td ( Settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (Agreement, Radian Guaranty has agreed, subject to certain limited exceptions and conditions, that it will not ef) Tj ET Q q 0 0 0 rg BT 493.91 546.10 Td (fect any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (coverage rescissions, claim denials or curtailments. See Note 10 of Notes to Consolidated Financial Statements for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (information about the BofA) Tj ET Q q 0 0 0 rg BT 160.32 522.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 207.53 522.10 Td (Agreement. ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 505.10 Td (After estimating the Default to Claim Rate, we estimate the severity of each product type, type of insurance and state ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (grouping based on the average of recently observed severity rates. ) Tj ET Q q 0 0 0 rg BT 316.16 493.10 Td (These average severity estimates are then applied to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 481.10 Td (individual loan coverage amounts to determine reserves. Senior management regularly reviews the modeled frequency) Tj ET Q q 0 0 0 rg BT 523.12 481.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 469.10 Td (rescission, denial and severity estimates, which are based on historical trends as described above. If recent emer) Tj ET Q q 0 0 0 rg BT 496.65 469.10 Td (ging or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 457.10 Td (projected trends dif) Tj ET Q q 0 0 0 rg BT 127.07 457.10 Td (fer significantly from the historical trends used to develop the modeled estimates, management evaluates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 445.10 Td (these trends in determining how they should be considered in its reserve estimates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.25 445.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 428.10 Td (Our aggregate weighted average Default to Claim Rate assumption \(net of denials and rescissions\) used in estimating our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.10 Td (primary reserve for losses was) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.13 416.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.63 416.10 Td (52%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.96 416.10 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.17 416.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.76 416.10 Td ( and 50% ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.03 416.10 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.61 416.10 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.61 416.10 Td (Our Default to Claim Rate estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.10 Td (on defaulted loans are mainly developed based on the Stage of Default and ) Tj ET Q q 0 0 0 rg BT 351.16 404.10 Td (T) Tj ET Q q 0 0 0 rg BT 356.92 404.10 Td (ime in Default of the underlying defaulted loans, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.10 Td (as measured by the progress toward foreclosure sale and the number of months in default.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.56 392.10 Td ( ) Tj ET Q q 0 0 0 rg BT 410.51 392.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.95 392.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.53 392.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.53 392.10 Td (our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.10 Td (aggregate weighted average Default to Claim Rate estimate on our primary portfolio, net of estimated future denials and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.10 Td (rescissions and excluding pending claims, was) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.57 368.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.07 368.10 Td (47%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.40 368.10 Td (. Our estimates of gross Default to Claim Rates on our primary portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.10 Td (ranged from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.15 356.10 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.48 356.10 Td ( for new defaults to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.73 356.10 Td (65%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.06 356.10 Td ( for Foreclosure Stage Defaults. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.02 356.10 Td (Our estimate of expected insurance rescissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.10 Td (claim denials \(net of expected reinstatements\) embedded in our Default to Claim Rate is generally based on our experience over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.10 Td (the past year) Tj ET Q q 0 0 0 rg BT 99.63 332.10 Td (, with consideration given for dif) Tj ET Q q 0 0 0 rg BT 231.09 332.10 Td (ferences in characteristics between those rescinded policies and denied claims and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.10 Td (the loans remaining in our defaulted inventory) Tj ET Q q 0 0 0 rg BT 234.35 320.10 Td (, and also incorporates the estimated impact of the BofA) Tj ET Q q 0 0 0 rg BT 459.29 320.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 506.51 320.10 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 303.10 Td (In addition, as part of our claims review process, we assess whether defaulted loans were serviced appropriately in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.10 Td (accordance with our insurance policies and servicing guidelines. ) Tj ET Q q 0 0 0 rg BT 309.50 291.10 Td (T) Tj ET Q q 0 0 0 rg BT 314.92 291.10 Td (o the extent a servicer has failed to satisfy its servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.10 Td (obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.10 Td (cancel coverage or deny the claim. Since 201) Tj ET Q q 0 0 0 rg BT 230.16 267.10 Td (1, claim curtailments have increased both in frequency and in size, which has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.10 Td (contributed to a reduction in the severity of our claim payments during this period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.29 255.10 Td (While we cannot give assurance regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.10 Td (the extent or level at which such claim curtailments will continue, we expect the level of claim curtailments to remain elevated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.10 Td (compared to historical levels \(excluding claims processed in accordance with the BofA) Tj ET Q q 0 0 0 rg BT 397.44 231.10 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 444.66 231.10 Td (Agreement\), in light of well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.10 Td (publicized issues in the servicing industry and our existing Legacy Portfolio of aged defaults.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 202.10 Td (The elevated levels of our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 245.40 202.10 Td (Activities have led to an increased risk of litigation. Our Master Policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.10 Td (specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.10 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 178.10 Td (e continue to face a significant number of challenges from certain lender customers regarding our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 516.04 178.10 Td (Activities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.10 Td (which have resulted in some reversals of our decisions regarding rescissions, denials and curtailments. ) Tj ET Q q 0 0 0 rg BT 461.06 166.10 Td (Although we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.10 Td (our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 130.89 154.10 Td (Activities are justified under our policies, if we are not successful in defending these actions in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.10 Td (potential legal or other proceedings, including negotiated settlements, we may need to reassume the risk on, and increase loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.10 Td (reserves for) Tj ET Q q 0 0 0 rg BT 96.02 130.10 Td (, those policies or pay additional claims. ) Tj ET Q q 0 0 0 rg BT 259.41 130.10 Td (The assumptions embedded in our estimated Default to Claim Rate on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.10 Td (in-force default inventory include an adjustment to our estimated rescission and denial rate, to account for the fact that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.10 Td (expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.10 Td (holders. ) Tj ET Q q 0 0 0 rg BT 83.39 94.10 Td (As discussed above, we also establish reserves for IBNR defaults related to previously rescinded policies and denied or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.10 Td (curtailed claims, which we believe are likely to be reinstated \(in the case of previously rescinded policies\) or resubmitted and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.10 Td (paid \(in the case of previously denied claims\).) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 225 0 obj <> endobj 226 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 731.10 Td (Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (consider our claim payments and our rescissions, denials and curtailments to be resolved for financial reporting purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (probable and can be reasonably estimated. For populations of disputed rescissions, denials and curtailments where we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.39 647.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 630.10 Td (Included in our loss reserves is an estimate related to a potential additional payment to Freddie Mac under the Freddie ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (Mac ) Tj ET Q q 0 0 0 rg BT 69.22 618.10 Td (Agreement, which is dependent upon the Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 301.12 618.10 Td (Activity on the population of loans subject to that agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (Our reserve related to this potential additional payment is based on the estimated rescissions, denials, curtailments, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (overall loss reserves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.08 582.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 565.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 565.10 Td (e considered the sensitivity of our loss reserve estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.02 565.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.32 565.10 Td ( by assessing the potential changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.10 Td (resulting from a parallel shift in Claim Severity and Default to Claim Rate for primary loans. For example, assuming all other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.10 Td (factors remain constant, for every one percentage point change in primary Claim Severity \(which we estimate to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.94 541.10 Td (103.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.77 541.10 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (risk exposure ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.60 529.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.90 529.10 Td (\), we estimated that our loss reserves would change by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.93 529.10 Td ($12 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.32 529.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.82 529.10 Td (at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 517.10 Td (. For every one percentage point change in our primary net Default to Claim Rate \(which we estimate to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.10 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 505.10 Td (52%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.09 505.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.59 505.10 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.89 505.10 Td (\), we estimate our loss reserves would change by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.42 505.10 Td ($23 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.82 505.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.32 505.10 Td (at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 493.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 493.10 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 472.10 Td (Reserve for Premium Deficiency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 455.10 Td (Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (line. ) Tj ET Q q 0 0 0 rg BT 69.31 431.10 Td (W) Tj ET Q q 0 0 0 rg BT 77.95 431.10 Td (e reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (update our premium deficiency analyses accordingly) Tj ET Q q 0 0 0 rg BT 260.16 419.10 Td (. Expected future expenses include consideration of maintenance costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (associated with maintaining records relating to insurance contracts and with the processing of premium collections. ) Tj ET Q q 0 0 0 rg BT 513.07 407.10 Td (W) Tj ET Q q 0 0 0 rg BT 521.71 407.10 Td (e also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (consider investment income in the premium deficiency calculation through the use of our pre-tax investment yield to discount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (certain cash flows for this analysis.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 366.10 Td (For our mortgage insurance business, we group our mortgage insurance products into two categories: First-lien and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (Second-lien. ) Tj ET Q q 0 0 0 rg BT 102.08 354.10 Td (T) Tj ET Q q 0 0 0 rg BT 107.49 354.10 Td (o assess the need for a PDR on our First-lien insurance portfolio, we develop loss projections based on modeled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 342.10 Td (loan defaults related to our current RIF) Tj ET Q q 0 0 0 rg BT 204.76 342.10 Td (. ) Tj ET Q q 0 0 0 rg BT 209.58 342.10 Td (This projection is based on recent trends in default experience, severity and rates of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 330.10 Td (defaulted loans moving to claim \(such Default to Claim Rates are net of our estimates of rescissions and denials\), as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 318.10 Td (recent trends in the rate at which loans are prepaid.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.30 318.10 Td ( ) Tj ET Q q 0 0 0 rg BT 255.25 318.10 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.69 318.10 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.27 318.10 Td (, our modeled loan default projections for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.10 Td (First-lien insured portfolio assume that the rate at which current loans will default has improved and will gradually return to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.10 Td (normal historical levels over approximately the next year) Tj ET Q q 0 0 0 rg BT 277.48 294.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 277.10 Td (For our First-lien insurance business, because the combination of the net present value of expected premiums and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (previously established reserves \(net of reinsurance recoverables\) exceeds the net present value of expected losses and expenses, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (a First-lien PDR was not required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.70 253.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.95 253.10 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.28 253.10 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.86 253.10 Td (. ) Tj ET Q q 0 0 0 rg BT 383.31 253.10 Td (Assuming all other factors remained ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (constant, if our assumed paid claim rate increased from approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.57 241.10 Td (6.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.40 241.10 Td ( to approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.43 241.10 Td (1) Tj ET Q q 0 0 0 rg BT 432.06 241.10 Td (1.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.89 241.10 Td (, we would be required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (establish a PDR.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 212.10 Td (For our Second-lien insurance business, we project future premiums and losses for this business using historical results to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 200.10 Td (help determine future performance for both prepayments and claims. ) Tj ET Q q 0 0 0 rg BT 326.62 200.10 Td (An estimated expense factor is then applied, and the result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 188.10 Td (is discounted using a rate of return that approximates our pre-tax investment yield. ) Tj ET Q q 0 0 0 rg BT 382.00 188.10 Td (This net present value, less any existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.10 Td (reserves, is recorded as a premium deficiency and the reserve is updated at least quarterly based on actual results for that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 164.10 Td (quarter) Tj ET Q q 0 0 0 rg BT 77.42 164.10 Td (, along with updated transaction level projections.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 147.10 Td (Evaluating the expected profitability of our existing mortgage insurance business and the need for a PDR for our First-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 135.10 Td (lien business involves significant reliance upon assumptions and estimates with regard to the likelihood, magnitude and timing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 123.10 Td (of potential losses and premium revenues. ) Tj ET Q q 0 0 0 rg BT 220.11 123.10 Td (The models, assumptions and estimates we use to evaluate the need for a PDR may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 111.10 Td (prove to be inaccurate, especially during any extended economic downturn or period of extreme market volatility and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 99.10 Td (uncertainty) Tj ET Q q 0 0 0 rg BT 93.83 99.10 Td (. ) Tj ET Q q 0 0 0 rg BT 98.65 99.10 Td (W) Tj ET Q q 0 0 0 rg BT 107.29 99.10 Td (e cannot be certain that we have correctly estimated the expected profitability of our existing First-lien mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 87.10 Td (portfolio or that the Second-lien PDR established will be adequate to cover the ultimate losses on our Second-lien business.) Tj ET Q endstream endobj 227 0 obj <> endobj 228 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (13) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 731.25 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 714.25 Td (Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (an asset or liability based on the best information available. ) Tj ET Q q 0 0 0 rg BT 289.16 702.25 Td (Assumptions include the risks inherent in a particular valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (technique \(such as a pricing model\) and the risks inherent in the inputs to the model. Changes in economic conditions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (and changes in the value of underlying collateral or of any third-party guaranty or insurance, could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 547.75 666.25 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.25 Td (materially from our estimated fair value measurements. ) Tj ET Q q 0 0 0 rg BT 273.68 654.25 Td (W) Tj ET Q q 0 0 0 rg BT 282.32 654.25 Td (e define fair value as the current amount that would be received to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 642.25 Td (sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 625.25 Td (In accordance with GAAP) Tj ET Q q 0 0 0 rg BT 178.19 625.25 Td (, we established a three-level valuation hierarchy for disclosure of fair value measurements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.25 Td (based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. ) Tj ET Q q 0 0 0 rg BT 460.86 613.25 Td (The hierarchy gives the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 601.25 Td (highest priority to unadjusted quoted prices in active markets for identical assets or liabilities \(Level I measurements\) and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.25 Td (lowest priority to unobservable inputs \(Level III measurements\). ) Tj ET Q q 0 0 0 rg BT 310.08 589.25 Td (The level in the fair value hierarchy within which the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.25 Td (value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety) Tj ET Q q 0 0 0 rg BT 536.22 577.25 Td (. ) Tj ET Q q 0 0 0 rg BT 541.04 577.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.25 Td (three levels of the fair value hierarchy are defined below:) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.25 Td (Level I ) Tj ET Q q 0 0 0 rg BT 112.50 548.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 548.25 Td (Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 536.25 Td (measurement date for identical, unrestricted assets or liabilities;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.41 536.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 519.25 Td (Level II ) Tj ET Q q 0 0 0 rg BT 112.50 519.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 519.25 Td (Prices or valuations based on observable inputs other than quoted prices in active markets for identical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 507.25 Td (assets and liabilities; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.20 507.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 490.25 Td (Level III ) Tj ET Q q 0 0 0 rg BT 112.50 490.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 490.25 Td (Prices or valuations that require inputs that are both significant to the fair value measurement and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 478.25 Td (unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 466.25 Td (not available.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 449.25 Td (For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.25 Td (market participant would use to evaluate the market price of an asset or liability) Tj ET Q q 0 0 0 rg BT 367.90 437.25 Td (. Given the level of judgment necessary) Tj ET Q q 0 0 0 rg BT 525.81 437.25 Td (, another ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.25 Td (market participant may derive a materially dif) Tj ET Q q 0 0 0 rg BT 233.13 425.25 Td (ferent estimate of fair value. ) Tj ET Q q 0 0 0 rg BT 348.45 425.25 Td (These assets and liabilities are classified in Level III ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (of our fair value hierarchy) Tj ET Q q 0 0 0 rg BT 153.80 413.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 396.25 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.58 396.25 Td (, there were no Level III assets, and total Level III liabilities accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.46 396.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.79 396.25 Td ( of total liabilities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.25 Td (measured at fair value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 367.25 Td (A) Tj ET Q q 0 0 0 rg BT 79.98 367.25 Td (vailable for sale securities, trading securities, and certain other assets are recorded at fair value as described in Note 5 of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.25 Td (Notes to Consolidated Financial Statements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.92 355.25 Td (All changes in fair value of trading securities and certain other assets are included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.25 Td (in our consolidated statements of operations. ) Tj ET Q q 0 0 0 rg BT 230.30 343.25 Td (All changes in the fair value of available for sale securities are recorded in ) Tj ET Q q 0 0 0 rg BT 529.61 343.25 Td (AOCI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.05 343.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 326.25 Td (The following are descriptions of our valuation methodologies for financial assets and liabilities measured at fair value.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 309.25 Td (Investments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 292.25 Td (U.S. government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.57 292.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.57 292.25 Td (The fair value of U.S. government and agency securities is estimated using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.25 Td (observed market transactions, including broker) Tj ET Q q 0 0 0 rg BT 237.30 280.25 Td (-dealer quotes and actual trade activity as a basis for valuation. U.S. government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.25 Td (and agency securities are categorized in either Level I or Level II of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 415.88 268.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 251.25 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.00 251.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.00 251.25 Td (The fair value of state and municipal obligations is estimated using recent transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.25 Td (activity) Tj ET Q q 0 0 0 rg BT 78.84 239.25 Td (, including market observations. Evaluation models are used, which incorporate bond structure, yield curve, credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.25 Td (spreads and other factors. ) Tj ET Q q 0 0 0 rg BT 154.00 227.25 Td (These securities are generally categorized in Level II of the fair value hierarchy or in Level III when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.25 Td (market-based transaction activity is unavailable.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 198.25 Td (Money market instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.15 198.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.15 198.25 Td (The fair value of money market instruments is based on daily prices, which are published ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.25 Td (and available to all potential investors and market participants. ) Tj ET Q q 0 0 0 rg BT 302.20 186.25 Td (As such, these securities are categorized in Level I of the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.25 Td (value hierarchy) Tj ET Q q 0 0 0 rg BT 110.76 174.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 157.25 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.67 157.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.67 157.25 Td (The fair value of corporate bonds and notes is estimated using recent transaction activity) Tj ET Q q 0 0 0 rg BT 546.07 157.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.25 Td (including market observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.25 Td (and early redemption features, where applicable. ) Tj ET Q q 0 0 0 rg BT 246.45 133.25 Td (These securities are generally categorized in Level II of the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.25 Td (hierarchy or in Level III when market-based transaction activity is unavailable.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 104.25 Td (RMBS, CMBS and Other ) Tj ET Q q 0 0 0 rg BT 175.80 104.25 Td (ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.02 104.25 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.02 104.25 Td (The fair value of these instruments is estimated based on prices of comparable securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.25 Td (and spreads and observable prepayment speeds. ) Tj ET Q q 0 0 0 rg BT 242.86 92.25 Td (These securities are generally categorized in Level II of the fair value hierarchy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.25 Td (or in Level III when market-based transaction activity is unavailable. ) Tj ET Q q 0 0 0 rg BT 327.83 80.25 Td (The fair value of any Level III securities is generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.25 Td (estimated by discounting estimated future cash flows.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 229 0 obj <> endobj 230 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (14) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (For) Tj ET Q q 0 0 0 rg BT 88.13 731.10 Td (eign government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.19 731.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.19 731.10 Td (The fair value of foreign government and agency securities is estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker) Tj ET Q q 0 0 0 rg BT 534.12 719.10 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (dealers. ) Tj ET Q q 0 0 0 rg BT 82.63 707.10 Td (These securities are categorized in Level II of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 360.45 707.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 690.10 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.43 690.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.43 690.10 Td (The fair value of these securities is generally estimated using observable market data in active markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.10 Td (or bid prices from market makers and broker) Tj ET Q q 0 0 0 rg BT 228.40 678.10 Td (-dealers. Generally) Tj ET Q q 0 0 0 rg BT 303.82 678.10 Td (, these securities are categorized in Level I or II of the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.10 Td (hierarchy) Tj ET Q q 0 0 0 rg BT 86.60 666.10 Td (, as observable market data are readily available. ) Tj ET Q q 0 0 0 rg BT 283.18 666.10 Td (A) Tj ET Q q 0 0 0 rg BT 289.85 666.10 Td ( small number of our equity securities, however) Tj ET Q q 0 0 0 rg BT 480.51 666.10 Td (, are categorized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 654.10 Td (Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based evaluations.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 637.10 Td (Other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.99 637.10 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.99 637.10 Td (These securities primarily consist of short-term) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.10 637.10 Td ( certificates of deposit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.68 637.10 Td (, which are categorized in Level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.10 Td (II of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 161.84 625.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 608.10 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 608.10 Td (e are responsible for the determination of the value of all investments carried at fair value and the supporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.10 Td (methodologies and assumptions. ) Tj ET Q q 0 0 0 rg BT 182.09 596.10 Td (T) Tj ET Q q 0 0 0 rg BT 187.50 596.10 Td (o assist us in this responsibility) Tj ET Q q 0 0 0 rg BT 311.58 596.10 Td (, we utilize independent third-party valuation service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.10 Td (providers to gather) Tj ET Q q 0 0 0 rg BT 124.63 584.10 Td (, analyze and interpret market information and estimate fair values based upon relevant methodologies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.10 Td (assumptions for various asset classes and individual securities. ) Tj ET Q q 0 0 0 rg BT 302.33 572.10 Td (W) Tj ET Q q 0 0 0 rg BT 310.96 572.10 Td (e perform monthly quantitative and qualitative analyses on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.10 Td (prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.10 Td (\(i\) a review of the methodology used by third-party pricing services; \(ii\) a comparison of pricing services) Tj ET Q q 0 0 0 rg BT 473.07 548.10 Td ( valuations to other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.10 Td (independent sources; \(iii\) a review of month-to-month price fluctuations; and \(iv\) a comparison of actual purchase and sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.10 Td (transactions with valuations received from third parties.) Tj ET Q q 0 0 0 rg BT 274.81 524.10 Td (These processes are designed to ensure that our investment values are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.10 Td (accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.10 Td (assumptions are reasonable and consistent with the objective of determining fair value.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 479.10 Td (Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 462.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 462.10 Td (e group assets in our investment portfolio into one of three main categories: held to maturity) Tj ET Q q 0 0 0 rg BT 450.57 462.10 Td (, available for sale or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.10 Td (trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity are classified as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.10 Td (held to maturity and are reported at amortized cost. Investments in securities not classified as held to maturity or trading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.10 Td (securities are classified as available for sale and are reported at fair value, with unrealized gains and losses \(net of tax\) reported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.10 Td (as a separate component of stockholders) Tj ET Q q 0 0 0 rg BT 213.42 414.10 Td ( equity as ) Tj ET Q q 0 0 0 rg BT 253.69 414.10 Td (AOCI. Investments classified as trading securities are reported at fair value, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.10 Td (with unrealized gains and losses reported as a separate component of income. Short-term investments consist of money market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.10 Td (instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of three months or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.10 Td (less at the time of purchase. ) Tj ET Q q 0 0 0 rg BT 162.52 378.10 Td (Amortization of premium and accretion of discount are calculated principally using the interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.10 Td (method over the term of the investment. Realized gains and losses on investments are recognized using the specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 354.10 Td (identification method.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 337.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 337.10 Td (e record an other) Tj ET Q q 0 0 0 rg BT 149.40 337.10 Td (-than-temporary impairment adjustment on a security if we intend to sell the impaired security) Tj ET Q q 0 0 0 rg BT 526.14 337.10 Td (, if it is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 325.10 Td (more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.10 Td (present value of cash flows we expect to collect is less than the amortized cost basis of the security) Tj ET Q q 0 0 0 rg BT 444.28 313.10 Td (. If a sale is likely) Tj ET Q q 0 0 0 rg BT 514.72 313.10 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.10 Td (security is classified as other) Tj ET Q q 0 0 0 rg BT 164.27 301.10 Td (-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 289.10 Td (statement of operations. Otherwise, losses on securities that are other) Tj ET Q q 0 0 0 rg BT 325.61 289.10 Td (-than-temporarily impaired are separated into: \(i\)the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 277.10 Td (portion of loss that represents the credit loss; and \(ii\)the portion that is due to other factors. ) Tj ET Q q 0 0 0 rg BT 417.84 277.10 Td (The credit loss portion is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 265.10 Td (recognized as a loss in the statement of operations, while the loss due to other factors is recognized in ) Tj ET Q q 0 0 0 rg BT 457.72 265.10 Td (AOCI, net of taxes. ) Tj ET Q q 0 0 0 rg BT 537.70 265.10 Td (A) Tj ET Q q 0 0 0 rg BT 544.37 265.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 253.10 Td (credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 241.10 Td (than the cost basis of the security) Tj ET Q q 0 0 0 rg BT 181.59 241.10 Td (. ) Tj ET Q q 0 0 0 rg BT 186.41 241.10 Td (The present value of discounted cash flows is determined using the original yield of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 229.10 Td (security) Tj ET Q q 0 0 0 rg BT 80.51 229.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.01 229.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.51 229.10 Td (In evaluating whether a decline in value is other) Tj ET Q q 0 0 0 rg BT 277.45 229.10 Td (-than-temporary) Tj ET Q q 0 0 0 rg BT 341.78 229.10 Td (, we consider several factors in addition to the above, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 217.10 Td (including, but not limited to, the following:) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 200.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 200.10 Td (the extent and the duration of the decline in value;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.26 200.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 183.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 183.10 Td (the reasons for the decline in value \(e.g., credit event, interest related or market fluctuations\); and) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 166.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 166.10 Td (the financial position, access to capital and near term prospects of the issuer) Tj ET Q q 0 0 0 rg BT 388.61 166.10 Td (, including the current and future impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 154.10 Td (any specific events.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 133.10 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.30 133.10 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 116.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 116.10 Td (e provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.10 Td (income taxes. ) Tj ET Q q 0 0 0 rg BT 106.43 104.10 Td (As required under this standard, our DT) Tj ET Q q 0 0 0 rg BT 265.31 104.10 Td (As and DTLs are recognized under the balance sheet method, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.10 Td (recognizes the future tax ef) Tj ET Q q 0 0 0 rg BT 158.15 92.10 Td (fect of temporary dif) Tj ET Q q 0 0 0 rg BT 240.99 92.10 Td (ferences between the amounts recorded in our consolidated financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 80.10 Td (and the tax bases of these amounts. DT) Tj ET Q q 0 0 0 rg BT 205.33 80.10 Td (As and DTLs are measured using the enacted tax rates expected to apply to taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 68.10 Td (income in the periods in which the DT) Tj ET Q q 0 0 0 rg BT 202.83 68.10 Td (A) Tj ET Q q 0 0 0 rg BT 209.50 68.10 Td ( or DTL) Tj ET Q q 0 0 0 rg BT 241.90 68.10 Td ( is expected to be realized or settled.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 231 0 obj <> endobj 232 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 731.10 Td (e are required to establish a valuation allowance against our DT) Tj ET Q q 0 0 0 rg BT 336.24 731.10 Td (A) Tj ET Q q 0 0 0 rg BT 342.91 731.10 Td ( when it is more likely than not that all or some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (portion of our DT) Tj ET Q q 0 0 0 rg BT 120.08 719.10 Td (A) Tj ET Q q 0 0 0 rg BT 126.75 719.10 Td ( will not be realized. ) Tj ET Q q 0 0 0 rg BT 210.61 719.10 Td (At each balance sheet date, we assess our need for a valuation allowance. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (assessment is based on all available evidence, both positive and negative. ) Tj ET Q q 0 0 0 rg BT 345.07 707.10 Td (This requires management to exercise judgment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (make assumptions regarding whether our DT) Tj ET Q q 0 0 0 rg BT 229.49 695.10 Td (A) Tj ET Q q 0 0 0 rg BT 236.16 695.10 Td ( will be realized in future periods. ) Tj ET Q q 0 0 0 rg BT 373.70 695.10 Td (The primary negative evidence that we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (considered has been our cumulative losses in recent years. ) Tj ET Q q 0 0 0 rg BT 284.79 683.10 Td (W) Tj ET Q q 0 0 0 rg BT 293.43 683.10 Td (e also consider positive evidence when assessing the need for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (valuation allowance, such as future reversals of existing taxable temporary dif) Tj ET Q q 0 0 0 rg BT 361.71 671.10 Td (ferences, future projections of taxable income, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (taxable income within the applicable carryback and carryforward periods, and potential tax planning strategies. ) Tj ET Q q 0 0 0 rg BT 496.37 659.10 Td (The recognition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (of our DT) Tj ET Q q 0 0 0 rg BT 88.69 647.10 Td (A) Tj ET Q q 0 0 0 rg BT 95.36 647.10 Td ( ultimately depends on the existence of suf) Tj ET Q q 0 0 0 rg BT 265.96 647.10 Td (ficient taxable income of the appropriate character \(ordinary income or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.10 Td (capital gains\) within the applicable carryback and carryforward periods provided under the tax law) Tj ET Q q 0 0 0 rg BT 443.97 635.10 Td (. In assessing our need for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.10 Td (valuation allowance, the weight assigned to the ef) Tj ET Q q 0 0 0 rg BT 248.70 623.10 Td (fect of both negative and positive evidence is commensurate with the extent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.10 Td (which such evidence can be objectively verified. ) Tj ET Q q 0 0 0 rg BT 246.09 611.10 Td (As of December 31, 2014, after analyzing all positive and negative evidence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.10 Td (available, we believe there is significant positive, objectively verifiable evidence that outweighs all negative evidence and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.10 Td (supports a conclusion that it is more-likely-than-not that substantially all of the Company) Tj ET Q q 0 0 0 rg BT 409.44 587.10 Td (s DT) Tj ET Q q 0 0 0 rg BT 428.36 587.10 Td (As will be realized. ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 570.10 Td (In July 2013, the F) Tj ET Q q 0 0 0 rg BT 146.54 570.10 Td (ASB issued an update to the accounting standard regarding income taxes. ) Tj ET Q q 0 0 0 rg BT 442.94 570.10 Td (This update provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (guidance concerning the balance sheet presentation of an unrecognized tax benefit when a Carryforward is available. ) Tj ET Q q 0 0 0 rg BT 519.39 558.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 546.10 Td (accounting standard requires an entity to present its DT) Tj ET Q q 0 0 0 rg BT 270.30 546.10 Td (As for the Carryforwards net of its liability related to unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 534.10 Td (benefits. ) Tj ET Q q 0 0 0 rg BT 85.60 534.10 Td (A) Tj ET Q q 0 0 0 rg BT 92.27 534.10 Td ( gross presentation will be required when the Carryforwards are not available under the tax law of the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.10 Td (jurisdiction or when the Carryforwards would not be used by the entity to settle any additional income taxes resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.10 Td (disallowance of the uncertain tax position. ) Tj ET Q q 0 0 0 rg BT 221.21 510.10 Td (This update is ef) Tj ET Q q 0 0 0 rg BT 287.41 510.10 Td (fective for fiscal years and interim periods within such years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.10 Td (beginning after December 15, 2013. ) Tj ET Q q 0 0 0 rg BT 196.21 498.10 Td (W) Tj ET Q q 0 0 0 rg BT 204.85 498.10 Td (e adopted this update in the first quarter of 2014. ) Tj ET Q q 0 0 0 rg BT 402.12 498.10 Td (The adoption of this update did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.10 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 486.10 Td (fect the recognition or measurement of uncertain tax positions and did not have a significant impact on our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.10 Td (financial statements or disclosures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.46 474.10 Td ( See Note 13 of Notes to Consolidated Financial Statements for additional information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 453.10 Td (Our provision for income taxes for interim financial periods is based on an estimate of our annual ef) Tj ET Q q 0 0 0 rg BT 472.53 453.10 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.10 Td (full year of 2014. ) Tj ET Q q 0 0 0 rg BT 121.24 441.10 Td (When estimating our full year 2014 ef) Tj ET Q q 0 0 0 rg BT 273.79 441.10 Td (fective tax rate, we adjust our forecasted pre-tax income for gains and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.10 Td (losses on our derivative transactions and investments, changes in the accounting for uncertainty in income taxes, changes in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.10 Td (beginning of year valuation allowance, and other adjustments. ) Tj ET Q q 0 0 0 rg BT 300.35 417.10 Td (The impact of these items is accounted for discretely at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.10 Td (federal applicable tax rate. During 2012 and 2013, given the impact on our pre-tax results of net gains or losses resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.10 Td (our derivative transactions and our investment portfolio, and the continued uncertainty regarding our ability to rely on certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.10 Td (short-term financial projections, which directly af) Tj ET Q q 0 0 0 rg BT 248.14 381.10 Td (fected our ability to estimate an ef) Tj ET Q q 0 0 0 rg BT 384.57 381.10 Td (fective tax rate for the full year) Tj ET Q q 0 0 0 rg BT 508.54 381.10 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.10 Td (recorded our interim period income tax provision \(benefit\) based on actual results of operations.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 348.10 Td (Goodwill and Other Intangible ) Tj ET Q q 0 0 0 rg BT 178.60 348.10 Td (Assets, Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 331.10 Td (Goodwill and other intangible assets were established primarily in connection with our acquisition of Clayton. Goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.10 Td (represents the estimated future economic benefits arising from the assets we have acquired that did not qualify to be identified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 307.10 Td (and recognized individually) Tj ET Q q 0 0 0 rg BT 160.48 307.10 Td (, and includes the value of discounted expected future cash flows of Clayton, Clayton) Tj ET Q q 0 0 0 rg BT 505.11 307.10 Td (s workforce, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 295.10 Td (expected syner) Tj ET Q q 0 0 0 rg BT 109.01 295.10 Td (gies with our other af) Tj ET Q q 0 0 0 rg BT 194.36 295.10 Td (filiates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.10 Td (useful life and is subject to review for impairment annually) Tj ET Q q 0 0 0 rg BT 285.73 283.10 Td (, or more frequently) Tj ET Q q 0 0 0 rg BT 365.05 283.10 Td (, whenever circumstances indicate potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.10 Td (impairment. ) Tj ET Q q 0 0 0 rg BT 100.42 271.10 Td (The value of goodwill is supported by revenue, which is driven primarily by transaction volume. Lower earnings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.10 Td (over sustained periods can lead to impairment of goodwill, which could result in a char) Tj ET Q q 0 0 0 rg BT 397.83 259.10 Td (ge to earnings.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 242.10 Td (Intangible assets, other than goodwill, primarily consist of Clayton) Tj ET Q q 0 0 0 rg BT 341.46 242.10 Td (s client relationships, technology) Tj ET Q q 0 0 0 rg BT 472.45 242.10 Td (, trade name and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.10 Td (trademarks, client backlog and non-competition agreements. Client relationships represent the value of the specifically acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.10 Td (customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.10 Td (implied royalty rates and discount rates. ) Tj ET Q q 0 0 0 rg BT 211.78 206.10 Td (The excess earnings approach estimates the present value of expected earnings in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.10 Td (excess of a traditional return on business assets. ) Tj ET Q q 0 0 0 rg BT 242.88 194.10 Td (T) Tj ET Q q 0 0 0 rg BT 248.29 194.10 Td (echnology represents proprietary software used for loan review and due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.10 Td (diligence, managing the REO disposition process and performing surveillance of mortgage loan servicers. ) Tj ET Q q 0 0 0 rg BT 475.59 182.10 Td (T) Tj ET Q q 0 0 0 rg BT 481.35 182.10 Td (rade name and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.10 Td (trademarks reflect the value inherent in the recognition of the Clayton name and its reputation. For purposes of our intangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.10 Td (assets, we use the term client backlog to refer to the estimated present value of fees to be earned for services performed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.10 Td (loans currently under surveillance or REO assets under management. ) Tj ET Q q 0 0 0 rg BT 328.12 146.10 Td (The value of a non-competition agreement is an appraisal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.10 Td (of potential lost revenues that would arise from an individual leaving to work for a competitor or initiating a competing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.10 Td (enterprise. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.10 Td (useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 233 0 obj <> endobj 234 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 731.10 Td (The calculation of the estimated fair value of goodwill and other intangibles requires the use of significant estimates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (assumptions that are highly subjective in nature, such as attrition rates, discount rates, future expected cash flows and market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (conditions. ) Tj ET Q q 0 0 0 rg BT 95.98 707.10 Td (The most significant assumptions relate to the valuation of goodwill and client relationships. Our estimates are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 674.10 Td (Recent ) Tj ET Q q 0 0 0 rg BT 79.95 674.10 Td (Accounting Pronouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 657.10 Td (In July 2012, the F) Tj ET Q q 0 0 0 rg BT 146.54 657.10 Td (ASB issued a new accounting standard update that simplifies the impairment test for indefinite-lived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.10 Td (intangible assets other than goodwill. ) Tj ET Q q 0 0 0 rg BT 200.96 645.10 Td (The update gives the option to first assess qualitative factors to determine if it is more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.10 Td (likely than not that the carrying amount of an indefinite-lived intangible asset exceeds its fair value, in order to determine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.10 Td (whether it is necessary to perform a quantitative valuation test. ) Tj ET Q q 0 0 0 rg BT 302.85 621.10 Td (This update was ef) Tj ET Q q 0 0 0 rg BT 377.92 621.10 Td (fective for interim and annual reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.10 Td (periods beginning on or after September 15, 2012. ) Tj ET Q q 0 0 0 rg BT 253.16 609.10 Td (The adoption of this update did not have a significant impact on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.10 Td (position, results of operations or cash flows.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 580.10 Td (In February 2013, the F) Tj ET Q q 0 0 0 rg BT 165.96 580.10 Td (ASB issued an update to the accounting standard regarding comprehensive income, requiring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.10 Td (additional information to be presented on the face of the financial statements or as separate disclosures. ) Tj ET Q q 0 0 0 rg BT 465.01 568.10 Td (This update requires an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.10 Td (entity to present the changes in each component of accumulated other comprehensive income.) Tj ET Q q 0 0 0 rg BT 427.70 556.10 Td (An entity is required to present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.10 Td (certain amounts reclassified out of accumulated other comprehensive income to their respective line items in net income, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.10 Td (component. Other reclassifications out of accumulated other comprehensive income are required to be cross-referenced to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.10 Td (existing disclosures. ) Tj ET Q q 0 0 0 rg BT 132.92 520.10 Td (W) Tj ET Q q 0 0 0 rg BT 141.56 520.10 Td (e adopted this update ef) Tj ET Q q 0 0 0 rg BT 236.35 520.10 Td (fective January 1, 2013. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 520.10 Td (In Note 12 of Notes to Consolidated Financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.10 Td (Statements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.38 508.10 Td ( we have presented the changes in the balances for each component of accumulated other comprehensive income as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.10 Td (well as current period reclassifications out of accumulated other comprehensive income. ) Tj ET Q q 0 0 0 rg BT 405.30 496.10 Td (This update impacted disclosures only ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.10 Td (and did not af) Tj ET Q q 0 0 0 rg BT 104.58 484.10 Td (fect our consolidated financial position, earnings or cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.84 484.10 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 467.10 Td (In ) Tj ET Q q 0 0 0 rg BT 82.28 467.10 Td (April 2014, the F) Tj ET Q q 0 0 0 rg BT 150.42 467.10 Td (ASB issued an update to the accounting standard for reporting discontinued operations and disclosures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.10 Td (of disposals of components of an entity) Tj ET Q q 0 0 0 rg BT 206.05 455.10 Td (. ) Tj ET Q q 0 0 0 rg BT 210.87 455.10 Td (This update changes the requirements for reporting discontinued operations. ) Tj ET Q q 0 0 0 rg BT 517.45 455.10 Td (A) Tj ET Q q 0 0 0 rg BT 524.12 455.10 Td ( disposal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.10 Td (of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.10 Td (disposal represents \(or would represent\) a strategic shift that has \(or will have\) a major ef) Tj ET Q q 0 0 0 rg BT 406.14 431.10 Td (fect on an entity) Tj ET Q q 0 0 0 rg BT 473.62 431.10 Td (s operations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.10 Td (financial results when any of the following occurs: \(a\) the component of an entity or group of components of an entity meets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 407.10 Td (the criteria to be classified as held for sale; \(b\) the component of an entity or group of components of an entity is disposed of by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 395.10 Td (sale; or) Tj ET Q q 0 0 0 rg BT 78.25 395.10 Td (, \(c\) the component of an entity or group of components of an entity is disposed of other than by sale \(for example, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 383.10 Td (abandonment or in a distribution to owners in a spin-of) Tj ET Q q 0 0 0 rg BT 269.56 383.10 Td (f\). ) Tj ET Q q 0 0 0 rg BT 281.04 383.10 Td (The amendments in this update require expanded disclosures about ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.10 Td (discontinued operations. ) Tj ET Q q 0 0 0 rg BT 149.58 371.10 Td (The provisions of this update are ef) Tj ET Q q 0 0 0 rg BT 291.02 371.10 Td (fective for all disposals \(or classifications as held for sale\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.10 Td (components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.10 Td (those years. Early adoption is permitted, but only for disposals \(or classifications as held for sale\) that have not been reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.10 Td (financial statements previously issued or available for issuance. ) Tj ET Q q 0 0 0 rg BT 306.18 335.10 Td (W) Tj ET Q q 0 0 0 rg BT 314.82 335.10 Td (e did not elect early adoption of this update for the pending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.10 Td (disposition of Radian ) Tj ET Q q 0 0 0 rg BT 137.00 323.10 Td (Asset ) Tj ET Q q 0 0 0 rg BT 161.17 323.10 Td (Assurance. ) Tj ET Q q 0 0 0 rg BT 207.64 323.10 Td (The significance of this guidance for the Company is dependent on any future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.10 Td (dispositions or disposals.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 294.10 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 148.20 294.10 Td (ASB issued an update to the accounting standard regarding revenue recognition. ) Tj ET Q q 0 0 0 rg BT 471.81 294.10 Td (This update is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.10 Td (intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.10 Td (occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.10 Td (entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.10 Td (companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.10 Td (customers.) Tj ET Q q 0 0 0 rg BT 94.87 234.10 Td (While this update is not expected to change revenue recognition principles related to our insurance products, this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.10 Td (update may be applicable to revenues from our new MRES segment, which has been included in our consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.10 Td (operations beginning with the third quarter of 2014. ) Tj ET Q q 0 0 0 rg BT 259.00 210.10 Td (The provisions of this update are ef) Tj ET Q q 0 0 0 rg BT 400.44 210.10 Td (fective for interim and annual periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.10 Td (beginning after December 15, 2016. ) Tj ET Q q 0 0 0 rg BT 196.21 198.10 Td (W) Tj ET Q q 0 0 0 rg BT 204.85 198.10 Td (e are currently evaluating the impact of this update, if any) Tj ET Q q 0 0 0 rg BT 435.50 198.10 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 181.10 Td (As of the filing date of this report, there were no additional accounting pronouncements issued but not yet ef) Tj ET Q q 0 0 0 rg BT 505.87 181.10 Td (fective that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 169.10 Td (are expected to have an impact on the Company) Tj ET Q q 0 0 0 rg BT 244.43 169.10 Td (s consolidated financial statements.) Tj ET Q endstream endobj 235 0 obj <> endobj 236 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (17) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item7A. ) Tj ET Q q 0 0 0 rg BT 103.50 731.25 Td (Quantitative and Qualitative Disclosur) Tj ET Q q 0 0 0 rg BT 268.60 731.25 Td (es ) Tj ET Q q 0 0 0 rg BT 278.88 731.25 Td (About Market Risk.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (Market risk represents the potential for loss due to adverse changes in the value of financial instruments as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (changes in market conditions. Examples of market risk include changes in interest rates, foreign currency exchange rates, credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (spreads and equity prices. ) Tj ET Q q 0 0 0 rg BT 155.12 686.25 Td (W) Tj ET Q q 0 0 0 rg BT 163.76 686.25 Td (e perform a sensitivity analysis to determine the ef) Tj ET Q q 0 0 0 rg BT 365.74 686.25 Td (fects of market risk exposures on our investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (securities. Our sensitivity analysis for interest rates and credit spreads is generally calculated as a parallel shift in yield curve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (with all other factors remaining constant. ) Tj ET Q q 0 0 0 rg BT 216.21 662.25 Td (This analysis is performed by determining the potential loss in future earnings, fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.25 Td (values or cash flows of market-risk-sensitive instruments resulting from one or more selected hypothetical changes in interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.25 Td (rates, foreign currency exchange rates and equity prices.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 617.25 Td (Interest-Rate Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 600.25 Td (The primary market risk in our investment portfolio is interest-rate risk, namely the fair value sensitivity of a fixed-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.25 Td (income security to changes in interest rates.) Tj ET Q q 0 0 0 rg BT 226.48 588.25 Td (W) Tj ET Q q 0 0 0 rg BT 235.12 588.25 Td (e regularly analyze our exposure to interest-rate risk and have determined that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.25 Td (fair value of our interest-rate-sensitive investment assets is materially exposed to changes in interest rates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 559.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 559.25 Td (e estimate the changes in fair value of our fixed-income securities by projecting an instantaneous increase and decrease ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.25 Td (in interest rates. Excluding investments classified as assets held for sale as a result of the Radian ) Tj ET Q q 0 0 0 rg BT 436.62 547.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 460.79 547.25 Td (Assurance Stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (Purchase ) Tj ET Q q 0 0 0 rg BT 87.55 535.25 Td (Agreement, the carrying value of our investment portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.20 535.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.50 535.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.93 535.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.93 535.25 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.49 535.25 Td ($3.6 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.60 535.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.04 535.25 Td ($3.4 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.61 523.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 128.27 523.25 Td (, of which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.04 523.25 Td (95%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.37 523.25 Td ( at each year was invested in fixed-income securities. ) Tj ET Q q 0 0 0 rg BT 404.66 523.25 Td (W) Tj ET Q q 0 0 0 rg BT 413.30 523.25 Td (e calculate duration of our fixed-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.25 Td (income securities, expressed in years, in order to estimate interest rate sensitivity of these securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.60 511.25 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.68 511.25 Td (, a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.25 Td (100 basis point increase in interest rates would reduce the market value of our fixed-income securities by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.42 499.25 Td ($1) Tj ET Q q 0 0 0 rg BT 482.04 499.25 Td (16.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.94 499.25 Td (, while ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.25 Td (a 100 basis point decrease in interest rates would increase the market value of our fixed-income securities by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.12 487.25 Td ($124.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.01 487.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.46 487.25 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.25 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 475.25 Td (, the average duration of the fixed-income portfolio was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.11 475.25 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.61 475.25 Td ( years compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.92 475.25 Td (3.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.42 475.25 Td ( years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.51 475.25 Td (at December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 463.25 Td (, reflecting an increase in the percentage of short-term securities in the portfolio.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 442.25 Td (Foreign Exchange Rate Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 425.25 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 425.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.97 425.25 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.55 425.25 Td ( we did not hold any foreign currency denominated securities in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.25 Td (investment portfolio. Exchange gains and losses on foreign currency transactions from our foreign operations have not been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.25 Td (material due to the limited amount of business performed in those locations. Currency risk is further limited because, in general, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.25 Td (both the revenues and expenses of our foreign operations are denominated in the same functional currency) Tj ET Q q 0 0 0 rg BT 474.53 389.25 Td (, based on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.25 Td (country in which the operations occur) Tj ET Q q 0 0 0 rg BT 200.29 377.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 356.25 Td (Equity Market Price) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 339.25 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.58 339.25 Td (, the market value and cost of the equity securities in our investment portfolio were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.49 339.25 Td ($215.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.38 339.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 327.25 Td ($143.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.33 327.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 177.99 327.25 Td (. Included in the market value and cost of our equity securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.86 327.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.16 327.25 Td ( is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.83 327.25 Td ($72.3 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 315.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 315.25 Td ($67.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.72 315.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 204.38 315.25 Td (, of securities classified as trading securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.61 315.25 Td (At December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.69 315.25 Td (, the market value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.25 Td (and cost of the equity securities in our investment portfolio were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.27 303.25 Td ($204.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.16 303.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.60 303.25 Td ($147.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.49 303.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 500.15 303.25 Td (. Included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.25 Td (the market value and cost of our equity securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.60 291.25 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.90 291.25 Td ( is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.57 291.25 Td ($75.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.46 291.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.90 291.25 Td ($70.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.79 291.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 528.46 291.25 Td (, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.25 Td (securities classified as trading securities. Exposure to changes in equity market prices can be estimated by assessing potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.25 Td (changes in market values on our equity investments resulting from a hypothetical broad-based decline in equity market prices ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.25 Td (of 10%. ) Tj ET Q q 0 0 0 rg BT 83.48 255.25 Td (W) Tj ET Q q 0 0 0 rg BT 92.52 255.25 Td (ith all other factors remaining constant, we estimated that such a decrease would reduce our investment portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (held in equity investments by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.76 243.25 Td ($21.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.66 243.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.16 243.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.40 243.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 226.25 Td (Our results of operations include compensation expenses associated with cash-settled equity-based long-term incentive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (awards, primarily all of which were issued in 201) Tj ET Q q 0 0 0 rg BT 247.13 214.25 Td (1 and 2012 in the form of performance-based RSU awards that vest at the end ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (of three-year performance periods. ) Tj ET Q q 0 0 0 rg BT 190.63 202.25 Td (The awards granted in 201) Tj ET Q q 0 0 0 rg BT 296.89 202.25 Td (1 vested and were paid to grantees in June 2014. ) Tj ET Q q 0 0 0 rg BT 493.04 202.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 190.25 Td (compensation expense related to all of these awards is based on the estimated fair value of the liability) Tj ET Q q 0 0 0 rg BT 458.44 190.25 Td (, and is impacted by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 178.25 Td (changes in our stock price and, to a lesser extent, other factors. ) Tj ET Q q 0 0 0 rg BT 302.84 178.25 Td (The related liability is adjusted quarterly based on changes in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 166.25 Td (our current stock price during the period and other factors that we utilize to estimate the ultimate payout of each award. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 154.25 Td (years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.48 154.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 154.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.50 154.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.50 154.25 Td (, changes in the estimated fair value of the liability for these equity-based long-term ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.25 Td (incentive awards were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.40 142.25 Td ($16.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.29 142.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.73 142.25 Td ($56.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.62 142.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 321.28 142.25 Td (, primarily due to changes in our stock price, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.25 Td (increased by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.25 130.25 Td ($2.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.75 130.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.19 130.25 Td ($8.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.69 130.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 219.35 130.25 Td (, during the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.65 130.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.24 130.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.68 130.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.68 130.25 Td (. ) Tj ET Q q 0 0 0 rg BT 440.50 130.25 Td (The year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.63 130.25 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 118.25 Td ( was also impacted by the payment of the 201) Tj ET Q q 0 0 0 rg BT 252.14 118.25 Td (1 awards in June 2014, at a stock price that was in excess of the price at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.25 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 106.25 Td (. ) Tj ET Q q 0 0 0 rg BT 132.90 106.25 Td (The remaining variable cash-settled equity-based long-term incentive awards will vest in June 2015.) Tj ET Q endstream endobj 237 0 obj <> endobj 238 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (18) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item 8. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 731.25 Td (Financial Statements and Supplementary Data.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 212.90 710.25 Td (Index to Consolidated Financial Statements) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 513 675.95 m 562 675.95 l s BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 680.35 Td (Annual Financial Statements:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 526.15 680.18 Td (PAGE) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 633.40 Td (Financial Statements as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012:) Tj ET Q BT /F2 9.00 Tf ET q 0 0 0 rg BT 52.50 528.40 Td (Notes to Consolidated Financial Statements:) Tj ET Q BT /F1 10.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 664.41 Td (Report on Management) Tj ET Q q 0 0 0 rg BT 139.98 664.41 Td (s Responsibility) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 201.25 664.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.30 664.41 Td (1) Tj ET Q q 0 0 0 rg BT 549.47 664.41 Td (19) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 648.41 Td (Report of Independent Registered Public ) Tj ET Q q 0 0 0 rg BT 201.22 648.41 Td (Accounting FirmPricewaterhouseCoopers LLP) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 381.25 648.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 648.41 Td (120) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 615.41 Td (Consolidated Balance Sheets) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 169.75 615.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 615.41 Td (121) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 597.41 Td (Consolidated Statements of Operations) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.75 597.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 597.41 Td (122) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 579.41 Td (Consolidated Statements of Comprehensive Income \(Loss\) ) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.75 579.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 579.41 Td (123) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 561.41 Td (Consolidated Statements of Changes in Common Stockholders) Tj ET Q q 0 0 0 rg BT 290.31 561.41 Td ( Equity) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 318.25 561.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 561.41 Td (124) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 543.41 Td (Consolidated Statements of Cash Flows) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.75 543.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 543.41 Td (125) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 510.41 Td (Note 1 - Description of Business and Recent Developments) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 277.75 510.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 510.41 Td (127) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 492.41 Td (Note 2 - Significant ) Tj ET Q q 0 0 0 rg BT 134.49 492.41 Td (Accounting Policies) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 210.25 492.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 492.41 Td (130) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 474.41 Td (Note 3 - Discontinued Operations) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 183.25 474.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 474.41 Td (139) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 456.41 Td (Note 4 - Segment Reporting) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 165.25 456.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 456.41 Td (142) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 438.41 Td (Note 5 - Fair ) Tj ET Q q 0 0 0 rg BT 109.83 438.41 Td (V) Tj ET Q q 0 0 0 rg BT 115.33 438.41 Td (alue of Financial Instruments) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 223.75 438.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 438.41 Td (147) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 420.41 Td (Note 6 - Investments) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 138.25 420.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 420.41 Td (150) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 402.41 Td (Note 7 - Goodwill and Other Intangible ) Tj ET Q q 0 0 0 rg BT 205.72 402.41 Td (Assets, Net) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 250.75 402.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 402.41 Td (155) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 384.41 Td (Note 8 - Reinsurance) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 138.25 384.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 384.41 Td (156) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 366.41 Td (Note 9 - Other ) Tj ET Q q 0 0 0 rg BT 115.49 366.41 Td (Assets) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 142.75 366.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 366.41 Td (159) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 348.41 Td (Note 10 - Losses and Loss ) Tj ET Q q 0 0 0 rg BT 158.49 348.41 Td (Adjustment Expenses) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.25 348.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 348.41 Td (159) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 330.41 Td (Note 1) Tj ET Q q 0 0 0 rg BT 85.41 330.41 Td (1 - Long-T) Tj ET Q q 0 0 0 rg BT 124.27 330.41 Td (erm Debt) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 160.75 330.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 330.41 Td (163) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 312.41 Td (Note 12 - ) Tj ET Q q 0 0 0 rg BT 97.25 312.41 Td (Accumulated Other Comprehensive Income \(Loss\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 282.25 312.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 312.41 Td (168) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 294.41 Td (Note 13 - Income ) Tj ET Q q 0 0 0 rg BT 126.82 294.41 Td (T) Tj ET Q q 0 0 0 rg BT 131.69 294.41 Td (axes) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 151.75 294.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 294.41 Td (169) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 276.41 Td (Note 14 - Statutory Information) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 178.75 276.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 276.41 Td (173) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 258.41 Td (Note 15 - Share-Based and Other Compensation Programs) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 273.25 258.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 258.41 Td (179) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 240.41 Td (Note 16 - Benefit Plans) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 147.25 240.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 240.41 Td (185) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 222.41 Td (Note 17 - Commitments and Contingencies) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 219.25 222.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 222.41 Td (186) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 204.41 Td (Note 18 - Net Income \(Loss\) Per Share) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 205.75 204.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 204.41 Td (189) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 186.41 Td (Note 19 - Quarterly Financial Data \(Unaudited\)) Tj ET Q BT /F1 9.00 Tf ET BT /F1 9.00 Tf ET q 0 0 0 rg BT 237.25 186.21 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 545.00 186.41 Td (191) Tj ET Q BT /F1 9.00 Tf ET endstream endobj 239 0 obj <> endobj 240 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 39.60 Td (1) Tj ET Q q 0 0 0 rg BT 303.28 39.60 Td (19) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.60 731.25 Td (REPOR) Tj ET Q q 0 0 0 rg BT 224.25 731.25 Td (T) Tj ET Q q 0 0 0 rg BT 230.74 731.25 Td ( ON MANAGEMENTS RESPONSIBILITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (Management is responsible for the preparation, integrity and objectivity of the Consolidated Financial Statements and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (other financial information presented in this annual report. ) Tj ET Q q 0 0 0 rg BT 285.63 698.25 Td (The accompanying Consolidated Financial Statements were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (prepared in accordance with accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 421.85 686.25 Td (America, applying certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (estimations and judgments as required.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 657.25 Td (Our board of directors exercises its responsibility for the financial statements through its ) Tj ET Q q 0 0 0 rg BT 429.25 657.25 Td (Audit Committee, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (consists entirely of independent non-management board members. ) Tj ET Q q 0 0 0 rg BT 317.58 645.25 Td (The ) Tj ET Q q 0 0 0 rg BT 335.07 645.25 Td (Audit Committee meets periodically with management ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (and with PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 205.30 633.25 Td (, the independent registered public accounting firm retained to audit our Consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.25 Td (Financial Statements, both privately and with management present, to review accounting, auditing, internal control and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.25 Td (financial reporting matters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 592.25 Td (The accompanying report of PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 308.89 592.25 Td ( is based on its audit, which it is required to conduct in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 580.25 Td (accordance with the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 266.66 580.25 Td (Accounting Oversight Board \(U.S.\), and which includes the consideration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.25 Td (of our internal control over financial reporting to establish a basis for reliance thereon in determining the nature, timing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.25 Td (extent of audit tests to be applied.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.25 Td (Sanford ) Tj ET Q q 0 0 0 rg BT 83.11 535.25 Td (A. Ibrahim) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.25 Td (Chief Executive Of) Tj ET Q q 0 0 0 rg BT 127.07 523.25 Td (ficer) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.25 Td (J. Franklin Hall) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.25 Td (Executive ) Tj ET Q q 0 0 0 rg BT 91.80 490.25 Td (V) Tj ET Q q 0 0 0 rg BT 98.42 490.25 Td (ice President and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 244.03 490.25 Td (ficer) Tj ET Q endstream endobj 241 0 obj <> endobj 242 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (120) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 135.40 731.25 Td (REPOR) Tj ET Q q 0 0 0 rg BT 170.05 731.25 Td (T) Tj ET Q q 0 0 0 rg BT 176.54 731.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 192.55 731.25 Td ( INDEPENDENT) Tj ET Q q 0 0 0 rg BT 267.66 731.25 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 377.97 731.25 Td (ACCOUNTING FIRM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td (T) Tj ET Q q 0 0 0 rg BT 54.91 710.25 Td (o: ) Tj ET Q q 0 0 0 rg BT 65.01 710.25 Td (The Board of Directors and Stockholders of Radian Group Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 693.25 Td (In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 681.25 Td (comprehensive income \(loss\), changes in common stockholders) Tj ET Q q 0 0 0 rg BT 307.30 681.25 Td ( equity) Tj ET Q q 0 0 0 rg BT 334.15 681.25 Td (, and cash flows present fairly) Tj ET Q q 0 0 0 rg BT 453.46 681.25 Td (, in all material respects, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (the financial position of Radian Group Inc. and its subsidiaries at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.22 669.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.80 669.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.24 669.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.24 669.25 Td (, and the results of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 657.25 Td (operations and their cash flows for each of the three years in the period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.43 657.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.02 657.25 Td ( in conformity with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 645.25 Td (accounting principles generally accepted in the United States of ) Tj ET Q q 0 0 0 rg BT 306.36 645.25 Td (America. In addition, in our opinion, the financial statement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 633.25 Td (schedules listed in Item 15\(a\)\(2\) present fairly) Tj ET Q q 0 0 0 rg BT 236.29 633.25 Td (, in all material respects, the information set forth therein when read in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.25 Td (conjunction with the related consolidated financial statements. ) Tj ET Q q 0 0 0 rg BT 303.59 621.25 Td (Also in our opinion, the Company maintained, in all material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.25 Td (respects, ef) Tj ET Q q 0 0 0 rg BT 94.29 609.25 Td (fective internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.43 609.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.01 609.25 Td (, based on criteria established in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 515.80 609.25 Td (Internal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 597.25 Td (Contr) Tj ET Q q 0 0 0 rg BT 72.47 597.25 Td (ol - Integrated Framework \(2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.55 597.25 Td ( issued by the Committee of Sponsoring Or) Tj ET Q q 0 0 0 rg BT 381.97 597.25 Td (ganizations of the ) Tj ET Q q 0 0 0 rg BT 455.38 597.25 Td (T) Tj ET Q q 0 0 0 rg BT 461.14 597.25 Td (readway Commission ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 585.25 Td (\(COSO\). ) Tj ET Q q 0 0 0 rg BT 90.15 585.25 Td (The Company's management is responsible for these financial statements and financial statement schedules, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.25 Td (maintaining ef) Tj ET Q q 0 0 0 rg BT 107.36 573.25 Td (fective internal control over financial reporting and for its assessment of the ef) Tj ET Q q 0 0 0 rg BT 420.95 573.25 Td (fectiveness of internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.25 Td (financial reporting, included in Management) Tj ET Q q 0 0 0 rg BT 230.83 561.25 Td (s Report on Internal Control over Financial Reporting appearing under Item 9A. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.25 Td (Our responsibility is to express opinions on these financial statements, on the financial statement schedules, and on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.25 Td (Company's internal control over financial reporting based on our integrated audits. ) Tj ET Q q 0 0 0 rg BT 384.64 537.25 Td (W) Tj ET Q q 0 0 0 rg BT 393.27 537.25 Td (e conducted our audits in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.25 Td (the standards of the Public Company ) Tj ET Q q 0 0 0 rg BT 198.92 525.25 Td (Accounting Oversight Board \(United States\). ) Tj ET Q q 0 0 0 rg BT 384.54 525.25 Td (Those standards require that we plan and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.25 Td (perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.25 Td (whether ef) Tj ET Q q 0 0 0 rg BT 91.79 501.25 Td (fective internal control over financial reporting was maintained in all material respects. Our audits of the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.25 Td (statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.25 Td (assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.25 Td (statement presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.25 Td (control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 441.25 Td (operating ef) Tj ET Q q 0 0 0 rg BT 97.35 441.25 Td (fectiveness of internal control based on the assessed risk. Our audits also included performing such other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.25 Td (procedures as we considered necessary in the circumstances. ) Tj ET Q q 0 0 0 rg BT 294.50 429.25 Td (W) Tj ET Q q 0 0 0 rg BT 303.13 429.25 Td (e believe that our audits provide a reasonable basis for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.25 Td (opinions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 400.25 Td (A) Tj ET Q q 0 0 0 rg BT 78.67 400.25 Td ( company) Tj ET Q q 0 0 0 rg BT 120.60 400.25 Td (s internal control over financial reporting is a process designed to provide reasonable assurance regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.25 Td (reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.25 Td (accepted accounting principles. ) Tj ET Q q 0 0 0 rg BT 179.72 376.25 Td (A) Tj ET Q q 0 0 0 rg BT 186.39 376.25 Td ( company) Tj ET Q q 0 0 0 rg BT 228.33 376.25 Td (s internal control over financial reporting includes those policies and procedures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.25 Td (that \(i\) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.25 Td (dispositions of the assets of the company; \(ii\) provide reasonable assurance that transactions are recorded as necessary to permit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.25 Td (preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.25 Td (expenditures of the company are being made only in accordance with authorizations of management and directors of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.25 Td (company; and \(iii\) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.25 Td (disposition of the company) Tj ET Q q 0 0 0 rg BT 160.88 304.25 Td (s assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 306.47 304.25 Td (fect on the financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 287.25 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.25 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 210.66 275.25 Td (fectiveness to future periods are subject to the risk that controls may become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.25 Td (inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 246.25 Td (As described in Management) Tj ET Q q 0 0 0 rg BT 191.69 246.25 Td (s Report on Internal Control over Financial Reporting, management has excluded Clayton ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.25 Td (Holdings LLC from its assessment of internal control over financial reporting as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.14 234.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.73 234.25 Td ( because it was acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.25 Td (by the Company in a purchase business combination during 2014. ) Tj ET Q q 0 0 0 rg BT 315.67 222.25 Td (W) Tj ET Q q 0 0 0 rg BT 324.30 222.25 Td (e have also excluded Clayton Holdings LLC from our audit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.25 Td (of internal control over financial reporting. Clayton Holdings LLC is a wholly-owned subsidiary whose total assets and total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 198.25 Td (revenues represent 4.9% and 7.2%, respectively) Tj ET Q q 0 0 0 rg BT 240.44 198.25 Td (, of the related consolidated financial statement amounts as of and for the year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.25 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 186.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 186.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.25 Td (/s/PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 178.27 140.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 116.25 Td (Philadelphia, P) Tj ET Q q 0 0 0 rg BT 109.13 116.25 Td (A) Tj ET Q q 0 0 0 rg BT 115.80 116.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 104.25 Td (March2, 2015) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 243 0 obj <> endobj 244 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (121) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 219.40 714.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 279.22 714.25 Td (TED BALANCE SHEETS) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 676.75 m 492.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 676.75 m 561.5 676.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 558.75 m 492.5 558.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 558.75 m 561.5 558.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 457.75 m 492.5 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 457.75 m 561.5 457.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 446.75 m 492.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 444.75 m 492.5 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 446.75 m 561.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 444.75 m 561.5 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 444.75 m 492.5 444.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 446.75 m 492.5 446.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 370.75 m 492.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 370.75 m 561.5 370.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 358.75 m 492.5 358.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 358.75 m 561.5 358.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 358.75 m 492.5 358.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 358.75 m 561.5 358.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 334.75 m 492.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 334.75 m 561.5 334.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 219.75 m 492.5 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 219.75 m 561.5 219.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 207.75 m 492.5 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 207.75 m 561.5 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 207.75 m 492.5 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 196.75 m 492.5 196.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427.5 194.75 m 492.5 194.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 207.75 m 561.5 207.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 196.75 m 561.5 196.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.5 194.75 m 561.5 194.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.25 688.98 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.50 680.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.25 688.98 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 680.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 667.580078125 m 233.6484375 667.580078125 l s q 0 0 0 rg BT 52.00 668.83 Td (\($ in thousands, except share and per-share amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 655.37 Td (ASSETS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 644.37 Td (Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 632.37 Td (Fixed-maturities held to maturityat amortized cost \(fair value $0 and $351\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 632.37 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 632.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 632.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 632.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 632.37 Td (358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 620.32 Td (Fixed-maturities available for saleat fair value \(amortized cost $528,660 and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 610.37 Td ($35,511\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.50 610.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 612.42 Td (536,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 612.42 Td (35,145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 598.37 Td (Equity securities available for saleat fair value \(cost $76,900 and $76,900\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.50 598.37 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 598.37 Td (143,368) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 598.37 Td (129,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 586.37 Td (Trading securitiesat fair value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.50 586.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 586.37 Td (1,633,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 586.37 Td (2,238,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 574.37 Td (Short-term investmentsat fair value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.50 574.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 574.37 Td (1,300,872) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 574.37 Td (935,852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 562.32 Td (Other invested assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.50 562.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 562.32 Td (14,585) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 562.32 Td (22,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.00 549.37 Td (Total investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.50 549.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 549.37 Td (3,629,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 549.37 Td (3,361,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 537.37 Td (Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.50 537.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 537.37 Td (30,465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 537.37 Td (22,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 525.37 Td (Restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.50 525.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 525.37 Td (14,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 525.37 Td (22,527) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 512.42 Td (Accounts and notes receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 512.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 512.42 Td (85,792) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 512.42 Td (46,440) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 498.37 Td (Deferred income taxes, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.50 498.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 498.37 Td (700,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 498.37 Td (17,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 486.37 Td (Goodwill and other intangible assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.50 486.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 486.37 Td (288,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 486.37 Td (2,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 474.32 Td (Other assets \(Note 9\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.50 474.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 474.32 Td (375,491) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 474.32 Td (379,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 460.37 Td (Assets held for sale \(Note 3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.50 460.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 460.37 Td (1,736,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 460.37 Td (1,768,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 448.37 Td (Total assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.50 448.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 448.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 448.37 Td (6,859,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 448.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 448.37 Td (5,621,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.37 Td (LIABILITIES AND STOCKHOLDERS EQUITY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 424.37 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 424.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 424.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 424.37 Td (644,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 424.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 424.37 Td (567,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 412.37 Td (Reserve for losses and loss adjustment expenses \(LAE\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.50 412.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 412.37 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 412.37 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 400.37 Td (Long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.50 400.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 400.37 Td (1,209,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 400.37 Td (930,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 387.42 Td (Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.50 387.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 387.42 Td (326,743) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 387.42 Td (377,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 373.37 Td (Liabilities held for sale \(Note 3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.50 373.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 373.37 Td (947,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 373.37 Td (642,619) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 361.37 Td (Total liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 361.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 361.37 Td (4,688,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 361.37 Td (4,682,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 349.37 Td (Commitments and Contingencies \(Note 17\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 337.37 Td (Equity component of currently redeemable convertible senior notes \(Note 11\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 337.37 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 337.37 Td (74,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 337.37 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 325.37 Td (Stockholders equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 312.42 Td (Common stock: par value $.001 per share; 485,000,000 shares authorized at December) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 302.42 Td (31, 2014 and 2013; 208,601,020 and 190,636,972 shares issued at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 292.42 Td (and 2013, respectively; 191,053,530 and 173,099,515 shares outstanding at) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 282.42 Td (December31, 2014 and 2013, respectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 282.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 282.42 Td (209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 282.42 Td (191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 268.32 Td (Treasury stock, at cost: 17,547,490 and 17,537,457 shares at December31, 2014 and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 258.37 Td (2013, respectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.50 258.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 260.47 Td (\(892,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 260.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 260.47 Td (\(892,807) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 260.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 246.37 Td (Additional paid-in capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.50 246.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 246.37 Td (2,531,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 246.37 Td (2,347,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 234.37 Td (Retained earnings \(deficit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.50 234.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 234.37 Td (406,814) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 234.37 Td (\(552,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 234.37 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 222.37 Td (Accumulated other comprehensive income \(AOCI\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.50 222.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 222.37 Td (51,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 222.37 Td (37,383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 210.37 Td (Total stockholders equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 210.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 210.37 Td (2,097,060) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 210.37 Td (939,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.00 198.37 Td (Total liabilities and stockholders equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.50 198.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.00 198.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 198.37 Td (6,859,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.00 198.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 198.37 Td (5,621,691) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.75 94.25 Td (See Notes to Consolidated Financial Statements.) Tj ET Q endstream endobj 245 0 obj <> endobj 246 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (122) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 189.15 714.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 248.97 714.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 283.52 714.25 Td (A) Tj ET Q q 0 0 0 rg BT 290.00 714.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 354.92 714.25 Td ( OPERA) Tj ET Q q 0 0 0 rg BT 391.68 714.25 Td (TIONS) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 690.75 m 378 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 690.75 m 384 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 690.75 m 440 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 690.75 m 446 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 690.75 m 506 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 690.75 m 378 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 677.75 m 378 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 690.75 m 440 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 677.75 m 440 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 690.75 m 506 690.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 677.75 m 506 677.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 603.75 m 378 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 603.75 m 440 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 603.75 m 506 603.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 573.75 m 378 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 573.75 m 440 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 573.75 m 506 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 573.75 m 378 573.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 489.75 m 378 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 489.75 m 440 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 489.75 m 506 489.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 475.75 m 378 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 475.75 m 440 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 475.75 m 506 475.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 377.75 m 378 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 377.75 m 440 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 377.75 m 506 377.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 363.75 m 378 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 363.75 m 440 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 363.75 m 506 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 363.75 m 378 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 363.75 m 440 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 363.75 m 506 363.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 335.75 m 378 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 335.75 m 440 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 335.75 m 506 335.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 307.75 m 378 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 307.75 m 506 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 307.75 m 378 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 294.75 m 378 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 292.75 m 378 292.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 307.75 m 440 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 294.75 m 440 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 292.75 m 440 292.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 307.75 m 506 307.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 294.75 m 506 294.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 292.75 m 506 292.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 229.75 m 378 229.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 229.75 m 440 229.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 229.75 m 506 229.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 216.75 m 378 216.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 214.75 m 378 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 216.75 m 440 216.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 214.75 m 440 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 216.75 m 506 216.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 214.75 m 506 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 214.75 m 378 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 216.75 m 378 216.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 214.75 m 440 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 216.75 m 440 216.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 214.75 m 506 214.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 216.75 m 506 216.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 165.75 m 378 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 165.75 m 440 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 165.75 m 506 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 152.75 m 378 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 150.75 m 378 150.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 152.75 m 440 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 150.75 m 440 150.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 152.75 m 506 152.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 150.75 m 506 150.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 130.75 m 378 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 128.75 m 378 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 130.75 m 440 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 128.75 m 440 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 130.75 m 506 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 128.75 m 506 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 128.75 m 378 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 130.75 m 378 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 107.75 m 378 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 105.75 m 378 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 128.75 m 440 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 130.75 m 440 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 107.75 m 440 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 105.75 m 440 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 128.75 m 506 128.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 130.75 m 506 130.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 107.75 m 506 107.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 105.75 m 506 105.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 85.75 m 378 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 83.75 m 378 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 85.75 m 440 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 83.75 m 440 83.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 85.75 m 506 85.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 83.75 m 506 83.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.20 694.98 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 680.730078125 m 198.73046875 680.730078125 l s q 0 0 0 rg BT 52.50 681.98 Td (\($ in thousands, except per-share amounts\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 342.50 681.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.50 681.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.50 681.98 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 668.32 Td (Revenues:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 654.32 Td (Premiums writteninsurance:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 639.32 Td (Direct) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 639.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 638.42 Td (982,976) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.10 638.42 Td (1,033,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 638.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 638.42 Td (892,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 624.32 Td (Assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.00 624.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 623.47 Td (\(882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 623.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.80 623.47 Td (\(904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 623.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.80 623.47 Td (\(903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 623.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 609.32 Td (Ceded) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 609.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.30 608.47 Td (\(56,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 608.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 608.47 Td (\(81,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 608.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 608.47 Td (\(85,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 608.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 594.32 Td (Net premiums written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 594.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 593.42 Td (925,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 593.42 Td (950,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 593.42 Td (806,305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 579.32 Td (\(Increase\) decrease in unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 579.32 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.30 578.47 Td (\(80,653) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 578.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 578.47 Td (\(169,578) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 578.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 578.47 Td (\(103,920) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 578.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 564.32 Td (Net premiums earnedinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 564.32 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 564.32 Td (844,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 564.32 Td (781,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 564.32 Td (702,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 550.32 Td (Services revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.00 550.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 550.32 Td (76,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 550.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 550.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 536.32 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 536.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 536.32 Td (65,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 536.32 Td (68,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 536.32 Td (72,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 522.32 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 522.32 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 522.32 Td (83,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 522.37 Td (\(98,945) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 522.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 522.32 Td (114,282) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 508.32 Td (Net \(losses\) gains on other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.00 508.32 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.30 508.37 Td (\(3,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 508.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.30 508.37 Td (\(7,580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 508.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 508.32 Td (7,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 494.32 Td (Other income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.00 494.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 494.32 Td (5,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 494.32 Td (6,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 494.32 Td (5,595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 480.32 Td (Total revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 480.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.10 480.32 Td (1,072,685) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 480.32 Td (749,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 480.32 Td (902,743) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 466.32 Td (Expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 452.32 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 452.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 452.32 Td (246,083) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 452.32 Td (562,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 452.32 Td (921,548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 438.32 Td (Policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 438.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 438.32 Td (24,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 438.32 Td (28,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 438.32 Td (34,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 424.32 Td (Direct cost of services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 424.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 424.32 Td (43,605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 424.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 424.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 410.32 Td (Other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 410.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 410.32 Td (252,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 410.32 Td (257,402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 410.32 Td (167,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 396.32 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 396.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 396.32 Td (90,464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 396.32 Td (74,618) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.65 396.32 Td (51,832) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 382.32 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 382.32 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 382.32 Td (8,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 382.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.15 382.32 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.50 368.32 Td (Total expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 368.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 368.32 Td (665,529) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 368.32 Td (923,252) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.10 368.32 Td (1,175,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 354.32 Td (Pretax income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.00 354.32 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 354.32 Td (407,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 354.37 Td (\(173,346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 354.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 354.37 Td (\(272,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 354.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 340.32 Td (Income tax benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.00 340.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.30 340.37 Td (\(852,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 340.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 340.37 Td (\(31,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 340.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.30 340.37 Td (\(48,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 340.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 326.32 Td (Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.00 326.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.10 326.32 Td (1,259,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 326.37 Td (\(141,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 326.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 326.37 Td (\(224,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 326.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 312.32 Td (Loss from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.00 312.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.30 312.37 Td (\(300,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 312.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 312.37 Td (\(55,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 312.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 312.37 Td (\(227,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 312.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 298.32 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.00 298.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 298.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 298.32 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 298.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 298.37 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 298.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 298.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.30 298.37 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 298.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 276.32 Td (Net income \(loss\) per share:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 262.32 Td (Basic:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 248.32 Td ( Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 248.32 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 248.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 248.32 Td (6.83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 248.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 248.37 Td (\(0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 248.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 248.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 248.37 Td (\(1.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 248.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 234.32 Td ( Loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.00 234.32 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.30 234.37 Td (\(1.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 234.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 234.37 Td (\(0.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 234.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 234.37 Td (\(1.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 234.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 220.32 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.00 220.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 220.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 220.32 Td (5.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 220.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 220.37 Td (\(1.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 220.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 220.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 220.37 Td (\(3.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 220.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 198.32 Td (Diluted:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 184.32 Td ( Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 184.32 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 184.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 184.32 Td (5.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 184.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 184.37 Td (\(0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 184.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 184.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 184.37 Td (\(1.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 184.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 170.32 Td ( Loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.00 170.32 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.30 170.37 Td (\(1.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 170.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 170.37 Td (\(0.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 170.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 170.37 Td (\(1.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 170.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 156.32 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.00 156.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 156.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 156.32 Td (4.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 156.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.30 156.37 Td (\(1.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 156.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 156.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.30 156.37 Td (\(3.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.15 156.32 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 134.32 Td (Weighted-average number of common shares outstandingbasic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.00 134.32 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 134.32 Td (184,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 134.32 Td (166,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 134.32 Td (132,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 120.32 Td (Weighted-average number of common and common equivalent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 110.32 Td (shares outstandingdiluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 110.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 111.42 Td (233,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 111.42 Td (166,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.65 111.42 Td (132,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 89.32 Td (Dividends per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.00 89.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 89.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 89.32 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 89.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 89.32 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.50 89.32 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.65 89.32 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.75 68.25 Td (See Notes to Consolidated Financial Statements.) Tj ET Q endstream endobj 247 0 obj <> endobj 248 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (123) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 137.40 714.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 197.22 714.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 231.78 714.25 Td (A) Tj ET Q q 0 0 0 rg BT 238.25 714.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 303.17 714.25 Td ( COMPREHENSIVE INCOME \(LOSS\)) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 685.75 m 407 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 407 685.75 m 411 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 685.75 m 469 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 685.75 m 473 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 685.75 m 407 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 670.75 m 407 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 685.75 m 469 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 670.75 m 469 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 685.75 m 537 685.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 670.75 m 537 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 670.75 m 407 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 655.75 m 407 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 670.75 m 469 670.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 655.75 m 469 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 655.75 m 537 655.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 623.75 m 407 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 623.75 m 469 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 623.75 m 537 623.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 566.75 m 407 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 566.75 m 469 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 566.75 m 537 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 566.75 m 407 566.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 550.75 m 407 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 550.75 m 469 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 550.75 m 537 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 550.75 m 407 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 525.75 m 407 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 550.75 m 469 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 525.75 m 469 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 550.75 m 537 550.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 525.75 m 537 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 507.75 m 407 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 507.75 m 469 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 507.75 m 537 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 507.75 m 407 507.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 492.75 m 407 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 490.75 m 407 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 492.75 m 469 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 490.75 m 469 490.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 492.75 m 537 492.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 473 490.75 m 537 490.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.20 689.98 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 673.730078125 m 126.078125 673.730078125 l s q 0 0 0 rg BT 76.50 674.98 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.50 674.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.50 674.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.50 674.98 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 660.42 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 660.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 660.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 660.42 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 660.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 660.47 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 660.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 660.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.30 660.47 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 660.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 645.42 Td (Other comprehensive income, net of tax \(see Note 12\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 628.42 Td (Net foreign currency translation adjustments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.00 628.32 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.80 628.47 Td (\(226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 628.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 628.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.80 628.47 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 628.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 613.42 Td (Unrealized gains \(losses\) on investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 596.42 Td (Unrealized holding gains arising during the period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.00 596.32 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 596.42 Td (13,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 596.42 Td (19,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.65 596.42 Td (12,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 581.42 Td (Less: Reclassification adjustment for net \(losses\) gains) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 571.42 Td (included in net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.00 571.32 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.30 571.47 Td (\(1,039) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 571.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 571.42 Td (656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.65 571.42 Td (6,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 555.42 Td (Net unrealized gains on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.00 555.32 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 555.42 Td (14,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 555.42 Td (18,493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.65 555.42 Td (5,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 540.42 Td (Net unrealized \(losses\) gains on investments recorded as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 530.42 Td (assets held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 530.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.80 530.47 Td (\(302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 530.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.65 530.42 Td (2,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.80 530.47 Td (\(488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 530.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 512.42 Td (Other comprehensive income, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.00 512.32 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 512.42 Td (14,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 512.42 Td (21,090) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.65 512.42 Td (4,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 496.42 Td (Comprehensive income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.00 496.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 496.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 496.42 Td (973,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 496.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 496.47 Td (\(175,895) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.15 496.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.50 496.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.30 496.47 Td (\(446,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.15 496.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.75 84.25 Td (See Notes to Consolidated Financial Statements.) Tj ET Q endstream endobj 249 0 obj <> endobj 250 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (124) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 309.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 97.40 714.25 Td (CONSOLIDA) Tj ET Q q 0 0 0 rg BT 157.22 714.25 Td (TED ST) Tj ET Q q 0 0 0 rg BT 191.78 714.25 Td (A) Tj ET Q q 0 0 0 rg BT 198.25 714.25 Td (TEMENTS OF) Tj ET Q q 0 0 0 rg BT 263.17 714.25 Td ( CHANGES IN COMMON ST) Tj ET Q q 0 0 0 rg BT 394.67 714.25 Td (OCKHOLDERS) Tj ET Q q 0 0 0 rg BT 468.93 714.25 Td ( EQUITY) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 665.75 m 251.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 665.75 m 316.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 665.75 m 381.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 665.75 m 446.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 665.75 m 511.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 665.75 m 576.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 665.75 m 251.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 665.75 m 316.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 665.75 m 381.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 665.75 m 446.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 665.75 m 511.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 665.75 m 576.5 665.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 538.75 m 251.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 527.75 m 251.5 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 525.75 m 251.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 538.75 m 316.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 527.75 m 316.5 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 525.75 m 316.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 538.75 m 381.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 527.75 m 381.5 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 525.75 m 381.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 538.75 m 446.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 527.75 m 446.5 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 525.75 m 446.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 538.75 m 511.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 527.75 m 511.5 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 525.75 m 511.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 538.75 m 576.5 538.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 527.75 m 576.5 527.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 525.75 m 576.5 525.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 394.75 m 251.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 383.75 m 251.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 381.75 m 251.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 394.75 m 316.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 383.75 m 316.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 381.75 m 316.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 394.75 m 381.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 383.75 m 381.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 381.75 m 381.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 394.75 m 446.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 383.75 m 446.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 381.75 m 446.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 394.75 m 511.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 383.75 m 511.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 381.75 m 511.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 394.75 m 576.5 394.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 383.75 m 576.5 383.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 381.75 m 576.5 381.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 236.75 m 251.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 225.75 m 251.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 186.5 223.75 m 251.5 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 236.75 m 316.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 225.75 m 316.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251.5 223.75 m 316.5 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 236.75 m 381.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 225.75 m 381.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316.5 223.75 m 381.5 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 236.75 m 446.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 225.75 m 446.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381.5 223.75 m 446.5 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 236.75 m 511.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 225.75 m 511.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446.5 223.75 m 511.5 223.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 236.75 m 576.5 236.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 225.75 m 576.5 225.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511.5 223.75 m 576.5 223.75 l s BT /F2 6.00 Tf ET 0 0 0 RG /GS0 gs 0.57 w 0 i [] 0 d 1 J 1 j 3 M 35 668.64755859375 m 72.18359375 668.64755859375 l s q 0 0 0 rg BT 35.00 669.59 Td (\(In thousands\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 220.35 676.81 Td (Common) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 231.25 669.81 Td (Stock ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 286.00 676.81 Td (T) Tj ET Q q 0 0 0 rg BT 290.15 676.81 Td (r) Tj ET Q q 0 0 0 rg BT 293.13 676.81 Td (easury) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 296.25 669.81 Td (Stock ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 332.55 683.81 Td (Additional) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 337.60 676.81 Td (Paid-in) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 337.40 669.81 Td (Capital) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 400.05 676.81 Td (Retained) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 386.75 669.81 Td (Earnings \(Deficit\) ) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 469.35 669.81 Td (AOCI) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 535.80 669.81 Td (Total) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 657.80 Td (BALANCE, JANUARY 1, 2012) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 128.75 657.40 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 189.00 657.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 238.15 657.80 Td (151) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 254.00 657.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 288.55 657.85 Td (\(892,052) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.65 657.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 319.00 657.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 350.65 657.80 Td (1,966,565) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 384.00 657.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 424.40 657.80 Td (96,227) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 449.00 657.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.40 657.80 Td (11,400) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.00 657.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 545.65 657.80 Td (1,182,291) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 645.80 Td (Net loss) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 58.75 645.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 645.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 645.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 645.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.55 645.85 Td (\(451,468) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 443.65 645.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 645.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.55 645.80 Td (\(451,468) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 645.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 633.80 Td (Net foreign currency translation adjustment, net of) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 44.00 626.80 Td (tax) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 55.25 626.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 626.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 626.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 626.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 626.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 502.80 626.85 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 508.65 626.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 567.80 626.80 Td (\(7) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 626.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 614.80 Td (Net unrealized gain on investments, net of tax) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 163.75 614.40 Td (. . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 614.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 614.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 614.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 614.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 492.90 614.80 Td (4,860) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 557.90 614.80 Td (4,860) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 602.80 Td (Repurchases of common stock under incentive plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 602.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 304.30 602.85 Td (\(42) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.65 602.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 602.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 602.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 602.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 564.30 602.80 Td (\(42) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 602.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 590.80 Td (Issuance of common stock under benefit plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 167.25 590.40 Td (. . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 590.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 590.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 368.15 590.80 Td (489) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 590.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 590.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 563.15 590.80 Td (489) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 578.80 Td (Amortization of restricted stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 125.25 578.40 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 578.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 578.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 578.80 Td (57) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 578.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 578.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 566.65 578.80 Td (57) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 566.80 Td (Net actuarial loss) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 86.75 566.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 566.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 566.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 566.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 566.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 495.80 566.85 Td (\(158) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 508.65 566.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.80 566.80 Td (\(158) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 566.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 554.80 Td (Stock-based compensation expense, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 146.25 554.40 Td (. . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 554.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 554.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.90 554.80 Td (1,638) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 554.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 554.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 557.90 554.80 Td (1,638) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 542.80 Td (Dividends declared) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 90.25 542.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 542.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 542.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.55 542.85 Td (\(1,335) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 378.65 542.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 542.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 542.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 555.55 542.80 Td (\(1,335) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 542.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 530.80 Td (BALANCE, DECEMBER 31, 2012) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 139.25 530.40 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 189.00 530.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 238.15 530.80 Td (151) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 254.00 530.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 288.55 530.85 Td (\(892,094) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.65 530.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 319.00 530.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 350.65 530.80 Td (1,967,414) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 384.00 530.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.55 530.85 Td (\(355,241) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 443.65 530.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 449.00 530.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.40 530.80 Td (16,095) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.00 530.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.90 530.80 Td (736,325) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 518.80 Td (Net loss) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 58.75 518.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 518.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 518.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 518.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.55 518.85 Td (\(196,985) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 443.65 518.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 518.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 548.55 518.80 Td (\(196,985) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 518.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 506.80 Td (Net unrealized gain on investments, net of tax) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 163.75 506.40 Td (. . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 506.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 506.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 506.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 506.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.40 506.80 Td (21,090) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 554.40 506.80 Td (21,090) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 494.80 Td (Repurchases of common stock under incentive plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 494.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 300.80 494.85 Td (\(713) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.65 494.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 494.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 494.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 494.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.80 494.80 Td (\(713) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 494.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 482.80 Td (Issuance of common stock - stock offering) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 156.75 482.40 Td (. . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 482.80 Td (39) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 482.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 355.90 482.80 Td (299,371) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 482.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 482.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.90 482.80 Td (299,410) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 470.80 Td (Issuance of common stock under incentive plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 174.25 470.40 Td (. . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 245.15 470.80 Td (1) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 470.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 470.80 Td (62) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 470.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 470.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 566.65 470.80 Td (63) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 458.80 Td (Issuance of common stock under benefit plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 167.25 458.40 Td (. . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 458.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 458.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 368.15 458.80 Td (672) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 458.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 458.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 563.15 458.80 Td (672) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 446.80 Td (Issuance of convertible debt \(See Note 11\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 156.75 446.40 Td (. . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 446.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 446.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 359.40 446.80 Td (77,026) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 446.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 446.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 554.40 446.80 Td (77,026) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 434.80 Td (Amortization of restricted stock) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 125.25 434.40 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 434.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 434.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 434.80 Td (21) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 434.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 434.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 566.65 434.80 Td (21) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 422.80 Td (Net actuarial gain) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 86.75 422.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 422.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 422.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 422.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 422.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 498.15 422.80 Td (198) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 563.15 422.80 Td (198) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 410.80 Td (Stock-based compensation expense, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 146.25 410.40 Td (. . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 410.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 410.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 362.90 410.80 Td (4,170) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 410.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 410.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 557.90 410.80 Td (4,170) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 398.80 Td (Dividends declared) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 90.25 398.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 398.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 398.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.55 398.85 Td (\(1,632) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 378.65 398.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 398.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 398.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 555.55 398.80 Td (\(1,632) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 398.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 386.80 Td (BALANCE, DECEMBER 31, 2013) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 139.25 386.40 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 189.00 386.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 238.15 386.80 Td (191) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 254.00 386.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 288.55 386.85 Td (\(892,807) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.65 386.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 319.00 386.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 350.65 386.80 Td (2,347,104) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 384.00 386.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 418.55 386.85 Td (\(552,226) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 443.65 386.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 449.00 386.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.40 386.80 Td (37,383) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.00 386.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.90 386.80 Td (939,645) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 374.80 Td (Net income) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 69.25 374.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 374.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 374.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 374.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 420.90 374.80 Td (959,517) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 374.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.90 374.80 Td (959,517) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 362.80 Td (Net foreign currency translation adjustment, net of) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 44.00 355.80 Td (tax) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 55.25 355.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 355.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 355.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 355.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 355.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 495.80 355.85 Td (\(226) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 508.65 355.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.80 355.80 Td (\(226) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 355.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 343.80 Td (Net unrealized gain on investments, net of tax) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 163.75 343.40 Td (. . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 343.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.40 343.80 Td (14,387) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 554.40 343.80 Td (14,387) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 331.80 Td (Repurchases of common stock under incentive plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 331.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 300.80 331.85 Td (\(154) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.65 331.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 331.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 331.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 331.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 560.80 331.80 Td (\(154) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 331.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 319.80 Td (Issuance of common stock - stock offering) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 156.75 319.40 Td (. . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 319.80 Td (18) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 319.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 355.90 319.80 Td (247,170) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 319.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 319.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 550.90 319.80 Td (247,188) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 307.80 Td (Issuance of common stock under incentive plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 174.25 307.40 Td (. . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 307.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 307.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 368.15 307.80 Td (182) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 307.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 307.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 563.15 307.80 Td (182) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 295.80 Td (Issuance of common stock under benefit plans) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 167.25 295.40 Td (. . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 295.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 295.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 368.15 295.80 Td (959) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 295.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 295.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 563.15 295.80 Td (959) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 283.80 Td (Net actuarial loss) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 86.75 283.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 283.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 283.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 371.65 283.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 283.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 499.30 283.85 Td (\(59) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 508.65 283.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 564.30 283.80 Td (\(59) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 283.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 271.80 Td (Stock-based compensation expense, net) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 146.25 271.40 Td (. . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 271.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 271.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 359.40 271.80 Td (12,176) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 271.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 271.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 554.40 271.80 Td (12,176) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 259.80 Td (Reclassification to equity component of currently) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 44.00 252.80 Td (redeemable convertible senior notes) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 146.25 252.40 Td (. . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 252.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 252.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 357.05 252.85 Td (\(74,690) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 378.65 252.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 436.65 252.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 252.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 552.05 252.80 Td (\(74,690) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 252.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 240.80 Td (Dividends declared) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 90.25 240.40 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 241.65 240.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 306.65 240.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 360.55 240.85 Td (\(1,388) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 378.65 240.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 430.80 240.85 Td (\(477) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 443.65 240.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 501.65 240.80 Td () Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 555.55 240.80 Td (\(1,865) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 573.65 240.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 35.00 228.80 Td (BALANCE, DECEMBER 31, 2014) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 139.25 228.40 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 189.00 228.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 238.15 228.80 Td (209) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 254.00 228.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 288.55 228.85 Td (\(892,961) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 313.65 228.80 Td (\)) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 319.00 228.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 350.65 228.80 Td (2,531,513) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 384.00 228.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 420.90 228.80 Td (406,814) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 449.00 228.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 489.40 228.80 Td (51,485) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 514.00 228.80 Td ($) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 545.65 228.80 Td (2,097,060) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.75 81.25 Td (See Notes to Consolidated Financial Statements.) Tj ET Q endstream endobj 251 0 obj <> endobj 252 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (125) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 689.5 m 440 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 689.5 m 445 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 689.5 m 500 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 689.5 m 505 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 689.5 m 563 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 689.5 m 440 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 678.5 m 440 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 689.5 m 500 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 678.5 m 500 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 689.5 m 563 689.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 678.5 m 563 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 678.5 m 440 678.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 406.5 m 440 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 406.5 m 500 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 406.5 m 563 406.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 377.5 m 440 377.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 363.5 m 440 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 377.5 m 500 377.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 363.5 m 500 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 377.5 m 563 377.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 363.5 m 563 363.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 169.5 m 440 169.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 169.5 m 500 169.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 169.5 m 563 169.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 140.5 m 440 140.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 126.5 m 440 126.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 140.5 m 500 140.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 126.5 m 500 126.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 140.5 m 563 140.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 126.5 m 563 126.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 719.18 Td (Radian Group Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.65 704.18 Td (CONSOLIDATED STATEMENTS OF CASH FLOWS) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 681.480078125 m 102.078125 681.480078125 l s q 0 0 0 rg BT 52.50 682.73 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.70 691.63 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.50 681.58 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 681.58 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 681.58 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 669.23 Td (Cash flows from operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 656.17 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.00 656.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 656.17 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 656.22 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 656.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 656.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 656.22 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 656.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 641.17 Td (Loss from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.00 641.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 641.17 Td (300,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 641.17 Td (55,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 641.17 Td (227,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 626.17 Td (Adjustments to reconcile net income \(loss\) to net cash used in operating) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 616.17 Td (activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 601.17 Td (Net \(gains\) losses on investments and other financial instruments recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 591.17 Td (in earnings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 591.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 591.22 Td (\(79,989) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 591.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 591.17 Td (105,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 591.22 Td (\(121,892) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 591.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 576.17 Td (Net payments related to derivative contracts and VIEs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 576.07 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.80 576.22 Td (\(125) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 576.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 576.22 Td (\(8,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 576.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 576.22 Td (\(4,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 576.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 561.17 Td (Net cash received \(paid\) for commutations, terminations and recaptures) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.00 561.07 Td (. . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 561.17 Td (1,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 561.22 Td (\(254,667) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 561.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 561.17 Td (3,190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 546.17 Td (Deferred income tax \(benefit\) provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 546.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 546.22 Td (\(825,843) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 546.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 546.22 Td (\(31,847) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 546.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 546.17 Td (7,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 531.17 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.00 531.07 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 531.17 Td (8,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 531.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 531.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 516.17 Td (Depreciation and other amortization, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 516.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 516.17 Td (57,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 516.17 Td (69,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 516.17 Td (53,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 501.17 Td (Change in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 501.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 486.17 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.00 486.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 486.17 Td (77,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 486.17 Td (184,659) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 486.17 Td (148,967) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 471.17 Td (Deferred policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 471.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 471.17 Td (17,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 471.17 Td (8,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 471.17 Td (13,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 456.17 Td (Reinsurance recoverables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.00 456.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 456.17 Td (18,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 456.17 Td (42,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 456.17 Td (66,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 441.17 Td (Reserve for losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.00 441.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 441.22 Td (\(604,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 441.22 Td (\(664,588) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 441.22 Td (\(164,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 441.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 426.17 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 426.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 426.22 Td (\(26,744) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 426.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 426.17 Td (16,764) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 426.22 Td (\(50,080) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 426.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.50 411.17 Td (Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.00 411.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 411.22 Td (\(55,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 411.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 411.17 Td (54,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 411.17 Td (24,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 396.17 Td (Net cash used in operating activities, continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.00 396.07 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 396.22 Td (\(153,245) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 396.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 396.22 Td (\(619,040) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 396.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 396.22 Td (\(247,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 396.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 382.07 Td (Net cash provided by \(used in\) operating activities, discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 382.07 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 382.07 Td (17,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 382.12 Td (\(45,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 382.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 382.12 Td (\(263,337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 382.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 368.07 Td (Net cash used in operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.00 368.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 368.12 Td (\(136,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 368.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 368.12 Td (\(664,937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 368.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 368.12 Td (\(510,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 368.07 Td (\)) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 354.18 Td (Cash flows from investing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 339.17 Td (Proceeds from sales of fixed-maturity investments available for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.00 339.07 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 339.17 Td (19,672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 339.17 Td (17,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 339.17 Td (30,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 324.17 Td (Proceeds from sales of equity securities available for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.00 324.07 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 324.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 324.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 324.17 Td (31,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 309.17 Td (Proceeds from sales of trading securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 309.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 309.17 Td (671,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 309.17 Td (533,340) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.10 309.17 Td (3,759,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 294.17 Td (Proceeds from redemptions of fixed-maturity investments available for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.00 294.07 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 294.17 Td (4,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 294.17 Td (538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 294.17 Td (5,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 279.17 Td (Proceeds from redemptions of fixed-maturity investments held to maturity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.00 279.07 Td (. .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 279.17 Td (350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 279.17 Td (325) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 279.17 Td (2,076) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 264.17 Td (Proceeds from redemptions of equity securities available for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.00 264.07 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 264.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 264.17 Td (10,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 264.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 249.17 Td (Purchases of fixed-maturity investments available for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.00 249.07 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 249.22 Td (\(519,166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 249.22 Td (\(21,432) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 249.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 249.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 234.17 Td (Purchases of trading securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.00 234.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 234.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 234.22 Td (\(259,897) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 234.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.80 234.22 Td (\(3,877,633) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 234.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 219.17 Td (\(Purchases\) sales and redemptions of short-term investments, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.00 219.07 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 219.22 Td (\(364,855) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 219.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.30 219.22 Td (\(363,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 219.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 219.17 Td (356,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 204.17 Td (Sales of other assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 204.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 204.17 Td (7,836) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 204.17 Td (41,397) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 204.17 Td (12,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 189.17 Td (Purchases of property and equipment, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.00 189.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 189.22 Td (\(18,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 189.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 189.22 Td (\(6,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 189.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 189.22 Td (\(2,199) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 189.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 174.17 Td (Acquisitions, net of cash acquired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 174.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 174.22 Td (\(295,977) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 174.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 174.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 174.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 159.17 Td (Net cash \(used in\) provided by investing activities, continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 159.07 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 159.22 Td (\(494,471) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 159.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 159.22 Td (\(47,491) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 159.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 159.17 Td (318,320) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 145.07 Td (Net cash provided by investing activities, discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.00 145.07 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 145.07 Td (156,839) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 145.07 Td (107,790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 145.07 Td (342,753) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 131.07 Td (Net cash \(used in\) provided by investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 131.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.30 131.12 Td (\(337,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 131.07 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 131.07 Td (60,299) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.65 131.07 Td (661,073) Tj ET Q endstream endobj 253 0 obj <> endobj 254 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (126) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 688.5 m 440 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 688.5 m 445 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 688.5 m 500 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 688.5 m 505 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 688.5 m 563 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 688.5 m 440 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 677.5 m 440 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 688.5 m 500 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 677.5 m 500 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 688.5 m 563 688.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 677.5 m 563 677.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 718.18 Td (Radian Group Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 188.65 703.18 Td (CONSOLIDATED STATEMENTS OF CASH FLOWS) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 680.480078125 m 102.078125 680.480078125 l s q 0 0 0 rg BT 52.50 681.73 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.70 690.63 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.50 680.58 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.00 680.58 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 525.50 680.58 Td (2012) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 678 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 677.5 m 440 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 678 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 677.5 m 500 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 678 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 677.5 m 563 677.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 588.5 m 440 588.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 588.5 m 500 588.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 588.5 m 563 588.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 558.5 m 440 558.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 440 558.5 m 445 558.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 558.5 m 500 558.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 543.5 m 500 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 500 558.5 m 505 558.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 558.5 m 563 558.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 543.5 m 563 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 543.5 m 440 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 528.5 m 440 528.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 543.5 m 500 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 528.5 m 500 528.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 543.5 m 563 543.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 528.5 m 563 528.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 483.5 m 440 483.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 483.5 m 500 483.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 483.5 m 563 483.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 483.5 m 440 483.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 469.5 m 440 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 467.5 m 440 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 483.5 m 500 483.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 469.5 m 500 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 467.5 m 500 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 483.5 m 563 483.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 469.5 m 563 469.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 467.5 m 563 467.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 426.5 m 440 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 424.5 m 440 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 426.5 m 500 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 424.5 m 500 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 426.5 m 563 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 424.5 m 563 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 424.5 m 440 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 426.5 m 440 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 411.5 m 440 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 409.5 m 440 409.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 424.5 m 500 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 426.5 m 500 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 411.5 m 500 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 445 409.5 m 500 409.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 424.5 m 563 424.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 426.5 m 563 426.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 411.5 m 563 411.5 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 505 409.5 m 563 409.5 l s BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 668.18 Td (Cash flows from financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.00 668.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 653.17 Td (Dividends paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.00 653.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.30 653.22 Td (\(1,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 653.22 Td (\(1,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 653.22 Td (\(1,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 653.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 638.17 Td (Proceeds/payments related to issuance or exchange of debt, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.00 638.07 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 638.17 Td (293,809) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 638.17 Td (377,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 638.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 623.17 Td (Redemption of long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.00 623.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.30 623.22 Td (\(57,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 623.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 623.22 Td (\(79,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 623.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 623.22 Td (\(153,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 623.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 608.17 Td (Issuance of common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.00 608.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 608.17 Td (247,188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 608.17 Td (299,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 608.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 593.17 Td (Excess tax benefits from stock-based awards) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 593.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.15 593.17 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 593.17 Td (752) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 593.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 578.17 Td (Net cash provided by \(used in\) financing activities, continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.00 578.07 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 578.17 Td (482,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 578.17 Td (596,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 578.22 Td (\(154,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 578.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 563.17 Td (Net cash provided by \(used in\) financing activities, discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.00 563.07 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 563.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 563.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.15 563.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 548.17 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 548.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.60 548.17 Td (482,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 548.17 Td (596,941) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 548.22 Td (\(154,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 548.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 533.17 Td (Effect of exchange rate changes on cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 533.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.80 533.22 Td (\(68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 533.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.15 533.17 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.80 533.22 Td (\(11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 533.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 518.17 Td (Increase \(decrease\) in cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.00 518.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.65 518.17 Td (8,142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 518.22 Td (\(7,697) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 518.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 518.22 Td (\(4,034) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 518.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 503.17 Td (Cash, beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.00 503.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 503.17 Td (22,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 503.17 Td (29,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 503.17 Td (33,020) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 488.17 Td (Change in cash of business held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 488.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.80 488.22 Td (\(557) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 488.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 488.17 Td (1,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.15 488.17 Td (422) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 473.17 Td (Cash, end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 473.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 473.17 Td (30,465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 473.17 Td (22,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 473.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 473.17 Td (29,408) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.50 445.18 Td (Supplemental disclosures of cash flow information:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 430.17 Td (Income taxes \(received\) paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.00 430.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 430.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.30 430.22 Td (\(4,312) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.15 430.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 430.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 430.17 Td (4,436) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 430.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 430.22 Td (\(32,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 430.17 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 415.17 Td (Interest paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.00 415.07 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.65 415.17 Td (50,702) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.50 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 415.17 Td (40,380) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.50 415.17 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 415.17 Td (38,378) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.75 105.00 Td (See Notes to Consolidated Financial Statements.) Tj ET Q endstream endobj 255 0 obj <> endobj 256 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (127) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 213.20 714.25 Td (Notes to Consolidated Financial Statements) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 685.25 Td (1. Description of Business and Recent Developments) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 664.25 Td (Business Overview) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 647.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 647.25 Td (e provide mortgage and real estate products and services with a primary strategic focus on domestic, residential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 635.25 Td (mortgage insurance on First-lien mortgage loans. ) Tj ET Q q 0 0 0 rg BT 248.44 635.25 Td (W) Tj ET Q q 0 0 0 rg BT 257.07 635.25 Td (e currently have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.98 635.25 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.98 635.25 Td ( reportable business segmentsmortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 623.25 Td (and MRES. On December 22, 2014, Radian Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 362.48 623.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 386.65 623.25 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 494.12 623.25 Td (Agreement to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 611.25 Td (sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.89 611.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.22 611.25 Td ( of the issued and outstanding shares of Radian ) Tj ET Q q 0 0 0 rg BT 279.46 611.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 303.63 611.25 Td (Assurance, our financial guaranty insurance subsidiary) Tj ET Q q 0 0 0 rg BT 522.35 611.25 Td (, and as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 599.25 Td (result we have reclassified the operating results related to the pending disposition as discontinued operations for all periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 587.25 Td (presented in our consolidated statements of operations and no longer present a financial guaranty segment. Prior periods have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (been revised to conform to the current period presentation for these changes. See Note 3 for additional information related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (discontinued operations.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 542.25 Td (Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 525.25 Td (Our mortgage insurance segment provides credit-related insurance coverage, principally through private mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.25 Td (insurance, to mortgage lending institutions. ) Tj ET Q q 0 0 0 rg BT 225.13 513.25 Td (W) Tj ET Q q 0 0 0 rg BT 233.76 513.25 Td (e provide our mortgage insurance products and services mainly through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.25 Td (wholly-owned subsidiary) Tj ET Q q 0 0 0 rg BT 150.23 501.25 Td (, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 222.61 501.25 Td (. Private mortgage insurance protects mortgage lenders from all or a portion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.25 Td (default-related losses on residential mortgage loans made to home buyers who generally make down payments of less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.69 489.25 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.02 489.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.25 Td (of the home) Tj ET Q q 0 0 0 rg BT 100.04 477.25 Td (s purchase price. Private mortgage insurance also facilitates the sale of these mortgage loans in the secondary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.25 Td (mortgage market, most of which are sold to the GSEs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 448.25 Td (Our mortgage insurance segment of) Tj ET Q q 0 0 0 rg BT 216.61 448.25 Td (fers primary mortgage insurance coverage on residential First-liens. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.57 448.25 Td (At December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 436.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 436.25 Td (, primary insurance on First-liens represented approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.87 436.25 Td (96.6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.70 436.25 Td ( of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.86 436.25 Td ($44.8 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.97 436.25 Td ( total direct RIF) Tj ET Q q 0 0 0 rg BT 482.77 436.25 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.22 436.25 Td (At December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 424.25 Td (, pool insurance represented approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.44 424.25 Td (3.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.27 424.25 Td ( of our total direct RIF) Tj ET Q q 0 0 0 rg BT 354.72 424.25 Td (. ) Tj ET Q q 0 0 0 rg BT 359.17 424.25 Td (Additionally) Tj ET Q q 0 0 0 rg BT 409.08 424.25 Td (, in the past we of) Tj ET Q q 0 0 0 rg BT 479.99 424.25 Td (fered other forms of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.25 Td (credit enhancement on residential mortgage assets. ) Tj ET Q q 0 0 0 rg BT 255.08 412.25 Td (These products included mortgage insurance on Second-liens and primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.25 Td (mortgage insurance on international mortgages \(collectively) Tj ET Q q 0 0 0 rg BT 289.60 400.25 Td (, we refer to the risk associated with these transactions as non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.25 Td (traditional\). Our non-traditional RIF was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.46 388.25 Td ($73.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.35 388.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.85 388.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.10 388.25 Td (, representing less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.24 388.25 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.57 388.25 Td ( of our total direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.25 Td (RIF) Tj ET Q q 0 0 0 rg BT 64.26 376.25 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 62.50 355.25 Td (MRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 338.25 Td (Our MRES segment provides services and solutions to the mortgage and real estate industries. Our MRES business is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.25 Td (leading provider of services and solutions to the mortgage and real estate industries, providing outsourced services, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.25 Td (information-based analytics and specialty consulting for buyers and sellers of, and investors in, mortgage- and real estate-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 302.25 Td (related loans and securities and other debt instruments. ) Tj ET Q q 0 0 0 rg BT 271.20 302.25 Td (The primary services of our MRES business include:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 285.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 285.25 Td (Loan Review/Due Diligence) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.24 285.25 Td (Loan-level due diligence for various asset classes and securitizations, with a primary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 273.25 Td (focus on the mortgage and RMBS markets, utilizing skilled professionals and proprietary technology) Tj ET Q q 0 0 0 rg BT 488.94 273.25 Td (, with of) Tj ET Q q 0 0 0 rg BT 522.37 273.25 Td (ferings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 261.25 Td (focused on credit underwriting, regulatory compliance and collateral valuation;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 244.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 244.25 Td (Surveillance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.48 244.25 Td (Third-party performance oversight, risk management and consulting services, with of) Tj ET Q q 0 0 0 rg BT 487.14 244.25 Td (ferings focused on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 232.25 Td (RMBS surveillance, loan servicer oversight, loan-level servicing compliance reviews and operational reviews of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 220.25 Td (mortgage servicers and originators;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 203.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 203.25 Td (Component Services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.42 203.25 Td (Outsourced solutions of) Tj ET Q q 0 0 0 rg BT 272.79 203.25 Td (fered through Clayton) Tj ET Q q 0 0 0 rg BT 363.88 203.25 Td (s subsidiary) Tj ET Q q 0 0 0 rg BT 410.73 203.25 Td (, Green River Capital, focused on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 191.25 Td (single family rental market, including valuations, property inspections, title reviews, lease reviews, tax lien reviews ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 179.25 Td (and due diligence reviews for single family rental properties;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 162.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 162.25 Td (REO Management) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.65 162.25 Td (REO asset management services of) Tj ET Q q 0 0 0 rg BT 310.53 162.25 Td (fered through Clayton) Tj ET Q q 0 0 0 rg BT 401.62 162.25 Td (s subsidiary) Tj ET Q q 0 0 0 rg BT 448.47 162.25 Td (, Green River Capital, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 150.25 Td (which include management of the entire REO disposition process for our clients; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 133.25 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 133.25 Td (Eur) Tj ET Q q 0 0 0 rg BT 100.13 133.25 Td (oRisk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.35 133.25 Td (Outsourced mortgage services in the United Kingdom and Europe, with of) Tj ET Q q 0 0 0 rg BT 430.15 133.25 Td (ferings that include due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 121.25 Td (diligence services, quality control reviews, valuation reviews and consulting services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 104.25 Td (The results of Clayton) Tj ET Q q 0 0 0 rg BT 165.43 104.25 Td (s operations, included in our financial statements from the June 30, 2014 date of acquisition, are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 92.25 Td (reflected in our MRES segment. See Item 7.Recent Developments) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 338.87 92.25 Td (Acquisition of Clayton) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.86 92.25 Td (.) Tj ET Q endstream endobj 257 0 obj <> endobj 258 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (128) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 62.50 708.75 Td (Financial Guaranty and Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 691.75 Td (On December 22, 2014, Radian Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 337.31 691.75 Td (Asset ) Tj ET Q q 0 0 0 rg BT 361.48 691.75 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 468.95 691.75 Td (Agreement to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (Radian ) Tj ET Q q 0 0 0 rg BT 79.77 679.75 Td (Asset ) Tj ET Q q 0 0 0 rg BT 103.94 679.75 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 157.82 679.75 Td (Assured, for a purchase price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.30 679.75 Td ($810 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.70 679.75 Td (. ) Tj ET Q q 0 0 0 rg BT 404.14 679.75 Td (After closing costs and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (adjustments, we expect net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.87 667.75 Td ($790 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.26 667.75 Td (. Radian expects to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 511.87 667.75 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 103.38 655.75 Td (Assured in the first half of 2015, subject to satisfaction of customary closing conditions including regulatory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (approvals.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 626.75 Td (The divestiture is part of Radian) Tj ET Q q 0 0 0 rg BT 205.41 626.75 Td (s strategy to focus on the mortgage and real estate markets and to accelerate its ability to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.75 Td (comply with the proposed PMIERs. ) Tj ET Q q 0 0 0 rg BT 195.42 614.75 Td (The consummation of the transaction is expected to increase Radian Guaranty) Tj ET Q q 0 0 0 rg BT 510.32 614.75 Td (s ) Tj ET Q q 0 0 0 rg BT 516.16 614.75 Td (A) Tj ET Q q 0 0 0 rg BT 522.63 614.75 Td (vailable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.75 Td (Assets, as required under the PMIERs, by the net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.76 602.75 Td ($790 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 602.75 Td (, after closing costs and other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.75 Td (adjustments. For additional information related to discontinued operations, see Note 3.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 573.75 Td (The business activities of Radian ) Tj ET Q q 0 0 0 rg BT 207.64 573.75 Td (Asset ) Tj ET Q q 0 0 0 rg BT 231.81 573.75 Td (Assurance primarily comprised our financial guaranty segment and, as a result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.75 Td (we have reclassified the operating results related to the pending disposition as discontinued operations for all periods presented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.75 Td (in our consolidated statements of operations and no longer present a financial guaranty segment. Certain corporate income and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.75 Td (expenses that were previously allocated to the financial guaranty segment but were not reclassified to discontinued operations, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.75 Td (such as investment income, interest expense and corporate overhead expenses, have been reallocated to the mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.75 Td (segment. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 492.75 Td (Acquisition of Clayton) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 475.75 Td (On June 30, 2014, we acquired all of the outstanding equity interests of Clayton for a purchase price, including working ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.75 Td (capital adjustments, of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.51 463.75 Td ($312 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.90 463.75 Td (. ) Tj ET Q q 0 0 0 rg BT 258.72 463.75 Td (The acquisition is consistent with Radian) Tj ET Q q 0 0 0 rg BT 426.20 463.75 Td (s growth and diversification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.75 Td (strategy to pursue opportunities to provide additional mortgage- and real estate-related products and services to the mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.75 Td (finance market.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 422.75 Td (The acquisition of Clayton was treated as a purchase for accounting purposes. ) Tj ET Q q 0 0 0 rg BT 387.39 422.75 Td (Therefore, the assets and liabilities were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.75 Td (recorded based on their fair values as of June 30, 2014, the date of acquisition. ) Tj ET Q q 0 0 0 rg BT 365.52 410.75 Td (At acquisition, the fair value of assets acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.75 Td (was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.55 398.75 Td ($152.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.44 398.75 Td ( and the fair value of liabilities assumed was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.67 398.75 Td ($31.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.56 398.75 Td (. ) Tj ET Q q 0 0 0 rg BT 365.38 398.75 Td (The excess of the acquisition price over the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.75 Td (estimated fair value of the net assets acquired resulted in goodwill of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.19 386.75 Td ($191.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.08 386.75 Td (. ) Tj ET Q q 0 0 0 rg BT 390.90 386.75 Td (The goodwill represents the estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.75 Td (future economic benefits arising from the assets acquired that did not qualify to be identified and recognized individually) Tj ET Q q 0 0 0 rg BT 533.43 374.75 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.75 Td (includes the value of discounted expected future cash flows of Clayton, Clayton) Tj ET Q q 0 0 0 rg BT 372.19 362.75 Td (s workforce, expected syner) Tj ET Q q 0 0 0 rg BT 484.18 362.75 Td (gies with our other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.75 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 350.75 Td (filiates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite useful life and is subject to review ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.75 Td (for impairment annually) Tj ET Q q 0 0 0 rg BT 146.04 338.75 Td (, or more frequently) Tj ET Q q 0 0 0 rg BT 225.36 338.75 Td (, whenever circumstances indicate potential impairment. Currently) Tj ET Q q 0 0 0 rg BT 491.29 338.75 Td (, we believe ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.75 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 326.75 Td ($189.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.65 326.75 Td ( of the goodwill related to this transaction will be deductible for tax purposes over a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.21 326.75 Td (15 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.75 Td (years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.60 314.75 Td (. See Note 7 for additional information regarding goodwill and other intangible assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 297.75 Td (The allocation of the purchase price, based on the fair values of assets and liabilities as of the acquisition date, was as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.75 Td (follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 249.25 m 458 249.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 114.25 m 458 114.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 100.25 m 458 100.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 403 98.25 m 458 98.25 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 179.5 252.23007812499998 m 228.1875 252.23007812499998 l s q 0 0 0 rg BT 179.50 253.48 Td (\(in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.75 261.48 Td (June 30,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.00 253.48 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 238.92 Td (Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.00 238.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.50 238.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 238.92 Td (16,521) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 223.92 Td (Restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 223.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 223.92 Td (1,591) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 208.92 Td (Accounts receivable, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.00 208.82 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 208.92 Td (11,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 193.92 Td (Property and equipment, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.00 193.82 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.65 193.92 Td (2,419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 178.92 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.00 178.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 178.92 Td (191,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 163.92 Td (Other intangible assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.00 163.82 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 163.92 Td (102,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 148.92 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 148.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 148.92 Td (17,852) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.50 133.92 Td (Less:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 118.92 Td (Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 118.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.65 118.92 Td (31,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.50 103.92 Td (Total purchase price) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.00 103.82 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.50 103.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.65 103.92 Td (312,498) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 259 0 obj <> endobj 260 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (129) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Historical results for Clayton for the periods prior to our acquisition were not material to our consolidated financial results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (for those periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 679.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 679.60 Td (e used a portion of the proceeds from our May 2014 issuance of equity and debt to fund this acquisition. See Note 1) Tj ET Q q 0 0 0 rg BT 543.22 679.60 Td (1 for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.60 Td (additional information related to our May 2014 issuance of debt. ) Tj ET Q q 0 0 0 rg BT 309.71 667.60 Td (Acquisition-related costs of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.74 667.60 Td ($6.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.63 667.60 Td (, which include costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.60 Td (such as advisory) Tj ET Q q 0 0 0 rg BT 114.95 655.60 Td (, legal, accounting, valuation and other professional or consulting fees, have been expensed as incurred and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (classified as other operating expenses.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 622.60 Td (BofA) Tj ET Q q 0 0 0 rg BT 84.12 622.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 132.08 622.60 Td (Agreement) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 605.60 Td (On September 16, 2014, Radian Guaranty entered into the BofA) Tj ET Q q 0 0 0 rg BT 328.88 605.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 376.10 605.60 Td (Agreement in order to resolve actual and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.60 Td (potential claims or disputes related to the parties) Tj ET Q q 0 0 0 rg BT 245.64 593.60 Td ( respective rights and duties as to mortgage insurance coverage on the Subject ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.60 Td (Loans. ) Tj ET Q q 0 0 0 rg BT 78.76 581.60 Td (The required consent of the GSEs to implement the BofA) Tj ET Q q 0 0 0 rg BT 308.43 581.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 355.65 581.60 Td (Agreement was received in December 2014, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.60 Td (implementation of the agreement for Subject Loans owned by the GSEs or held in portfolio by the Insureds commenced on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.60 Td (February 1, 2015.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 540.60 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.04 540.60 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.37 540.60 Td ( of the Subject Loans were neither held in portfolio by the Insureds nor owned by the GSEs, and will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.60 Td (require the consent of certain other investors for these loans to be included in the BofA) Tj ET Q q 0 0 0 rg BT 396.90 528.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 444.11 528.60 Td (Agreement except with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.60 Td (respect to certain limited rights of cancellation. See Note 10 for additional information about the BofA) Tj ET Q q 0 0 0 rg BT 459.38 516.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 506.60 516.60 Td (Agreement.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 495.60 Td (Mortgage Insurance Capital Requirements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 478.60 Td (The FHF) Tj ET Q q 0 0 0 rg BT 108.15 478.60 Td (A, the GSEs and state insurance regulators impose various capital requirements on our insurance subsidiaries. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.60 Td (These include financial requirements, such as Risk-to-capital, other risk-based capital measures and surplus requirements, that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.60 Td (potentially may limit the amount of insurance that our insurance subsidiaries may write. ) Tj ET Q q 0 0 0 rg BT 403.67 454.60 Td (The GSEs and our state insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.60 Td (regulators also possess significant discretion with respect to our insurance subsidiaries.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 425.60 Td (Under state insurance regulations, Radian Guaranty is required to maintain minimum surplus levels and, in certain states, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.60 Td (a minimum ratio of statutory capital relative to the level of net RIF) Tj ET Q q 0 0 0 rg BT 315.85 413.60 Td (, or Risk-to-capital. ) Tj ET Q q 0 0 0 rg BT 404.80 413.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.85 413.60 Td (sixteen) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.17 413.60 Td ( RBC States currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.60 Td (impose a Statutory RBC Requirement. ) Tj ET Q q 0 0 0 rg BT 205.97 401.60 Td (The most common Statutory RBC Requirement is that a mortgage insurer) Tj ET Q q 0 0 0 rg BT 501.29 401.60 Td () Tj ET Q q 0 0 0 rg BT 504.07 401.60 Td (s Risk-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.60 Td (capital may not exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.90 389.60 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.90 389.60 Td ( to 1. In certain of the RBC States, a mortgage insurer must satisfy an MPP) Tj ET Q q 0 0 0 rg BT 453.76 389.60 Td ( Requirement. ) Tj ET Q q 0 0 0 rg BT 512.73 389.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.60 Td (statutory capital requirements for the non-RBC States are de minimis \(ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.20 377.60 Td ($1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.59 377.60 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.37 377.60 Td ($5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.76 377.60 Td (\); however) Tj ET Q q 0 0 0 rg BT 525.39 377.60 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.60 Td (insurance laws of these states generally grant broad supervisory powers to state agencies or of) Tj ET Q q 0 0 0 rg BT 425.31 365.60 Td (ficials to enforce rules or exercise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.60 Td (discretion af) Tj ET Q q 0 0 0 rg BT 99.02 353.60 Td (fecting almost every significant aspect of the insurance business, including the power to revoke or restrict an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.60 Td (insurance company) Tj ET Q q 0 0 0 rg BT 129.75 341.60 Td (s ability to write new business. Unless an RBC State grants a waiver or other form of relief, if a mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.60 Td (insurer is not in compliance with the Statutory RBC Requirement of that state, the mortgage insurer may be prohibited from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.60 Td (writing new mortgage insurance business in that state. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 339.43 317.60 Td (s domiciliary state, Pennsylvania, is not one of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.60 Td (RBC States. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.73 305.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.73 305.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.17 305.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.17 305.60 Td (, the RBC States accounted for approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.23 305.60 Td (56.3%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.06 305.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 305.60 Td (55.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.33 305.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 480.99 305.60 Td (, of Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.60 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 89.49 293.60 Td (s total primary NIW) Tj ET Q q 0 0 0 rg BT 169.38 293.60 Td (. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 245.19 293.60 Td (s Risk-to-capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.51 293.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.75 293.60 Td (, after giving ef) Tj ET Q q 0 0 0 rg BT 475.21 293.60 Td (fect to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.92 293.60 Td ($100 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.31 293.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.60 Td (capital contribution from Radian Group in February 2015, had improved to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.77 281.60 Td (17.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.27 281.60 Td ( to 1 from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.48 281.60 Td (19.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.98 281.60 Td ( to 1 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.26 281.60 Td (as of December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.51 281.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.60 Td (Radian Guaranty was in compliance with all other applicable Statutory RBC Requirements as of December 31, 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 252.60 Td (The NAIC is in the process of reviewing the minimum capital and surplus requirements for mortgage insurers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.60 Td (considering changes to the Model ) Tj ET Q q 0 0 0 rg BT 186.41 240.60 Td (Act. ) Tj ET Q q 0 0 0 rg BT 205.67 240.60 Td (While the outcome of this process is not known, it is possible that among other changes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.60 Td (the NAIC will recommend and adopt more stringent capital requirements that could increase the capital requirements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.60 Td (Radian Guaranty in states that adopt the new Model ) Tj ET Q q 0 0 0 rg BT 259.17 216.60 Td (Act. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 199.60 Td (The GSEs are in the process of revising their eligibility requirements for private mortgage insurers. ) Tj ET Q q 0 0 0 rg BT 470.28 199.60 Td (As part of this process, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.60 Td (the FHF) Tj ET Q q 0 0 0 rg BT 81.82 187.60 Td (A) Tj ET Q q 0 0 0 rg BT 88.49 187.60 Td ( released proposed PMIERs for public comment on July 10, 2014. ) Tj ET Q q 0 0 0 rg BT 355.21 187.60 Td (The PMIERs, when finalized and adopted, will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.60 Td (establish the new requirements that will be imposed on private mortgage insurers, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 486.79 175.60 Td (, to remain eligible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.60 Td (insurers of mortgage loans purchased by the GSEs. ) Tj ET Q q 0 0 0 rg BT 256.22 163.60 Td (The proposed PMIERs include the PMIERs Financial Requirements, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.60 Td (are expected to replace the capital adequacy standards under the current GSE eligibility requirements.) Tj ET Q q 0 0 0 rg BT 458.87 151.60 Td (The proposed PMIERs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.60 Td (Financial Requirements require a mortgage insurer) Tj ET Q q 0 0 0 rg BT 253.41 139.60 Td () Tj ET Q q 0 0 0 rg BT 256.19 139.60 Td (s ) Tj ET Q q 0 0 0 rg BT 262.03 139.60 Td (A) Tj ET Q q 0 0 0 rg BT 268.51 139.60 Td (vailable ) Tj ET Q q 0 0 0 rg BT 302.11 139.60 Td (Assets to meet or exceed Minimum Required ) Tj ET Q q 0 0 0 rg BT 485.13 139.60 Td (Assets that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.60 Td (calculated based on RIF and a variety of measures designed to evaluate credit quality) Tj ET Q q 0 0 0 rg BT 389.56 127.60 Td (. ) Tj ET Q q 0 0 0 rg BT 394.01 127.60 Td (Among other things, the proposed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.60 Td (PMIERs exclude from ) Tj ET Q q 0 0 0 rg BT 141.43 115.60 Td (A) Tj ET Q q 0 0 0 rg BT 147.91 115.60 Td (vailable ) Tj ET Q q 0 0 0 rg BT 181.51 115.60 Td (Assets: \(i\) an amount equal to Unearned Premium Reserves; and \(ii\) certain subsidiary capital, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.60 Td (including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 160.58 103.60 Td (s capital that is attributable to its ownership of Radian ) Tj ET Q q 0 0 0 rg BT 378.32 103.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 402.49 103.60 Td (Assurance.) Tj ET Q endstream endobj 261 0 obj <> endobj 262 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (130) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (The public comment period for the proposed PMIERs ended on September 8, 2014. ) Tj ET Q q 0 0 0 rg BT 409.25 708.60 Td (The FHF) Tj ET Q q 0 0 0 rg BT 444.90 708.60 Td (A) Tj ET Q q 0 0 0 rg BT 451.57 708.60 Td ( is currently reviewing and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (considering input before adopting the final PMIERs. ) Tj ET Q q 0 0 0 rg BT 261.69 696.60 Td (All aspects of the final PMIERs are expected to become ef) Tj ET Q q 0 0 0 rg BT 495.87 696.60 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.57 696.60 Td (180 days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 561.40 696.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (after their final publication. It is anticipated that approved insurers who fail to meet the PMIERs Financial Requirements when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (they become ef) Tj ET Q q 0 0 0 rg BT 110.40 672.60 Td (fective would, at the discretion of the GSEs, be permitted to operate under a transition plan during an extended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (transition period of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.43 660.60 Td (two years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.03 660.60 Td ( from the final publication date, and would continue to be eligible insurers during that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (period. ) Tj ET Q q 0 0 0 rg BT 79.87 648.60 Td (W) Tj ET Q q 0 0 0 rg BT 88.50 648.60 Td (e expect the final PMIERs to be published during the first half of 2015 and to be ef) Tj ET Q q 0 0 0 rg BT 420.19 648.60 Td (fective by December 31, 2015. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 631.60 Td (In order for Radian Guaranty to comply with the PMIERs Financial Requirements as proposed, we expect to contribute a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (substantial portion of our holding company cash and investments to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 390.17 619.60 Td (, while maintaining a suf) Tj ET Q q 0 0 0 rg BT 489.14 619.60 Td (ficient level of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (holding company cash and investments to carry out our business strategy) Tj ET Q q 0 0 0 rg BT 341.01 607.60 Td (, and also that we will be successful in: \(1\) completing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (the pending sale of Radian ) Tj ET Q q 0 0 0 rg BT 158.08 595.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 182.25 595.60 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 236.13 595.60 Td (Assured pursuant to the Radian ) Tj ET Q q 0 0 0 rg BT 363.61 595.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 387.78 595.60 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 495.26 595.60 Td (Agreement; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (\(2\) leveraging other options such as commutations of existing risk or external reinsurance for a portion of our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (insurance RIF in a manner that provides capital relief and is compliant with the PMIERs.In the event we are unable to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (successfully execute these or similar transactions or strategies, or such transactions are not available on terms that are attractive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (to us, we may seek additional capital by incurring additional debt, by issuing additional equity) Tj ET Q q 0 0 0 rg BT 425.99 547.60 Td (, or by selling assets, which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (may not be able to do on favorable terms, if at all. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 518.60 Td (The amount of capital or capital relief that may be required to comply with the PMIERs also may be impacted by: \(1\) the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.60 Td (performance of our mortgage insurance business, including our level of defaults, the losses we incur on new or existing defaults ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.60 Td (and the amount and credit characteristics of new business we write, among other factors; and \(2\) changes in the final PMIERs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.60 Td (Financial Requirements from their proposed form that impact the amount of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 427.18 482.60 Td (s Minimum Required ) Tj ET Q q 0 0 0 rg BT 514.68 482.60 Td (Assets or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (its ) Tj ET Q q 0 0 0 rg BT 60.90 470.60 Td (A) Tj ET Q q 0 0 0 rg BT 67.38 470.60 Td (vailable ) Tj ET Q q 0 0 0 rg BT 100.97 470.60 Td (Assets. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 63.00 449.60 Td (Capital Stock Issuance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 432.60 Td (In May 2014, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.32 432.60 Td (17.825 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.21 432.60 Td ( shares of our common stock at a public of) Tj ET Q q 0 0 0 rg BT 399.27 432.60 Td (fering price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.96 432.60 Td ($14.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.46 432.60 Td ( per share, and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.60 Td (received aggregate net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.07 420.60 Td ($247.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.96 420.60 Td ( after deducting underwriting discounts and commissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.60 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 408.60 Td (fering expenses.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 387.60 Td (Risks and Uncertainties) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.60 Td (Radian Group and its subsidiaries are subject to risks and uncertainties that could af) Tj ET Q q 0 0 0 rg BT 407.01 370.60 Td (fect amounts reported in our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.60 Td (statements in future periods.Our future performance and financial condition are subject to significant risks and uncertainties ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.60 Td (that could cause actual results to be materially dif) Tj ET Q q 0 0 0 rg BT 247.58 346.60 Td (ferent from our estimates and forward-looking statements.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 313.60 Td (2. Significant ) Tj ET Q q 0 0 0 rg BT 107.57 313.60 Td (Accounting Policies) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (Basis of Presentation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.60 Td (Our consolidated financial statements are prepared in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 383.84 275.60 Td ( and include the accounts of all wholly-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.60 Td (owned subsidiaries. Companies in which we, or one of our subsidiaries, exercise significant influence \(generally ownership ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.60 Td (interests ranging from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.31 251.60 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.64 251.60 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.42 251.60 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.75 251.60 Td (\), are accounted for in accordance with the equity method of accounting. ) Tj ET Q q 0 0 0 rg BT 481.85 251.60 Td (Any ) Tj ET Q q 0 0 0 rg BT 501.39 251.60 Td (VIEs for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.60 Td (which we are the primary beneficiary are consolidated. ) Tj ET Q q 0 0 0 rg BT 271.35 239.60 Td (All intercompany accounts and transactions, and intercompany profits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.60 Td (and losses, have been eliminated. Certain prior period amounts have been reclassified to conform to current period presentation.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 206.60 Td (Use of Estimates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 189.60 Td (The preparation of financial statements in conformity with GAAP) Tj ET Q q 0 0 0 rg BT 335.45 189.60 Td ( requires us to make estimates and assumptions that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.60 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 177.60 Td (fect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.60 Td (statements and the reported amounts of revenues and expenses during the reporting periods. ) Tj ET Q q 0 0 0 rg BT 419.21 165.60 Td (While the amounts included in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.60 Td (consolidated financial statements include our best estimates and assumptions, actual results may vary materially) Tj ET Q q 0 0 0 rg BT 497.06 153.60 Td (.) Tj ET Q endstream endobj 263 0 obj <> endobj 264 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (131) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (Held-For-Sale Classification ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 691.75 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 691.75 Td (e report a business as held for sale when management is committed to a formal plan to sell the assets, the business is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (available for immediate sale and is being actively marketed at a price that is reasonable in relation to its fair value, an active ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated, the sale is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (probable and expected to be completed within one year) Tj ET Q q 0 0 0 rg BT 270.13 655.75 Td (, and it is deemed unlikely that significant changes to the plan will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.75 Td (made or that the plan will be withdrawn. ) Tj ET Q q 0 0 0 rg BT 213.63 643.75 Td (A) Tj ET Q q 0 0 0 rg BT 220.30 643.75 Td ( business classified as held for sale is reflected at the lower of its carrying amount or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.75 Td (estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.75 Td (Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Balance Sheets in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.75 Td (period in which the business is classified as held for sale. ) Tj ET Q q 0 0 0 rg BT 280.01 607.75 Td (After a business is classified as held for sale, depreciation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.75 Td (amortization expense is not recognized on its assets.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 574.75 Td (Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 557.75 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 557.75 Td (e report the results of operations of a business as discontinued operations if the business is classified as held for sale, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.75 Td (the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.75 Td (disposal transaction and we will not have any significant continuing involvement in the operations of the business after the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.75 Td (disposal transaction. In the period in which the business meets the criteria of a discontinued operation, its results are reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.75 Td (income or loss from discontinued operations in the Consolidated Statements of Operations for current and prior periods, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.75 Td (include any required adjustment of the carrying amount to its fair value less cost to sell. In addition, tax is allocated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.75 Td (continuing operations and discontinued operations. ) Tj ET Q q 0 0 0 rg BT 255.95 485.75 Td (The amount of tax allocated to discontinued operations is the dif) Tj ET Q q 0 0 0 rg BT 513.47 485.75 Td (ference ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.75 Td (between the tax originally allocated to continuing operations and the tax allocated to the restated amount of income from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.75 Td (continuing operations in each period.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 440.75 Td (Reserve for Losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 423.75 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 423.75 Td (e establish reserves to provide for losses and LAE and the estimated costs of settling claims in our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.75 Td (segment in accordance with the accounting standard regarding accounting and reporting by insurance enterprises. ) Tj ET Q q 0 0 0 rg BT 505.17 411.75 Td (Although this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.75 Td (standard specifically excludes mortgage insurance from its guidance relating to the reserve for losses, we establish reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 387.75 Td (mortgage insurance as described below) Tj ET Q q 0 0 0 rg BT 206.01 387.75 Td (, using the guidance contained in this standard supplemented with other accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.75 Td (guidance, due to the lack of specific guidance for mortgage insurance.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 358.75 Td (Estimating our mortgage insurance loss reserves involves significant reliance upon assumptions and estimates with regard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.75 Td (to the likelihood, magnitude and timing of each potential loss, including an estimate of the number of defaulted loans that will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.75 Td (be successfully rescinded or denied. ) Tj ET Q q 0 0 0 rg BT 195.94 334.75 Td (The models, assumptions and estimates we use to establish loss reserves may prove to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.75 Td (inaccurate, especially during an extended economic downturn or a period of extreme market volatility and uncertainty) Tj ET Q q 0 0 0 rg BT 520.89 322.75 Td (. ) Tj ET Q q 0 0 0 rg BT 525.34 322.75 Td (As such, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.75 Td (we cannot be certain that our reserve estimate will be adequate to cover ultimate losses on incurred defaults.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 293.75 Td (Commutations and other negotiated terminations of our insured risks in our mortgage insurance segment provide us with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.75 Td (an opportunity to exit exposures for an agreed upon payment, or payments, sometimes at an amount less than the previously ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.75 Td (estimated ultimate liability) Tj ET Q q 0 0 0 rg BT 156.05 269.75 Td (. Once all exposures relating to such policies are extinguished, all reserves for losses and LAE and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.75 Td (other balances relating to the insured policies are generally reversed, with any remaining net gain or loss typically recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.75 Td (through provision for losses. ) Tj ET Q q 0 0 0 rg BT 166.26 245.75 Td (W) Tj ET Q q 0 0 0 rg BT 174.90 245.75 Td (e take into consideration the specific contractual and economic terms for each individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.75 Td (agreement when accounting for our commutations or other negotiated terminations, which may result in dif) Tj ET Q q 0 0 0 rg BT 478.92 233.75 Td (ferences in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 221.75 Td (accounting for these transactions.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 265 0 obj <> endobj 266 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (132) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 708.60 Td (Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 691.60 Td (In the mortgage insurance segment, the default and claim cycle begins with the receipt of a default notice from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 679.60 Td (servicer) Tj ET Q q 0 0 0 rg BT 80.59 679.60 Td (. Reserves for losses are established upon receipt of notification from servicers that a borrower has missed two monthly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.60 Td (payments, which is when we consider a loan to be in default for financial statement and internal tracking purposes. ) Tj ET Q q 0 0 0 rg BT 511.12 667.60 Td (W) Tj ET Q q 0 0 0 rg BT 519.76 667.60 Td (e also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.60 Td (establish reserves for associated LAE, consisting of the estimated cost of the claims administration process, including legal and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (other fees and expenses associated with administering the claims process. ) Tj ET Q q 0 0 0 rg BT 346.17 643.60 Td (W) Tj ET Q q 0 0 0 rg BT 354.81 643.60 Td (e maintain an extensive database of claim payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (history and use models based on a variety of loan characteristics to determine the likelihood that a default will reach claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (status. During 2014, we continued to refine our loss reserving techniques and developed additional segmentations, primarily ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (based on a loan) Tj ET Q q 0 0 0 rg BT 114.20 607.60 Td (s ) Tj ET Q q 0 0 0 rg BT 120.41 607.60 Td (T) Tj ET Q q 0 0 0 rg BT 126.17 607.60 Td (ime in Default and its current Stage of Default, in assessing the likelihood that a default will result in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (claim. Previously) Tj ET Q q 0 0 0 rg BT 118.84 595.60 Td (, we gave greater weight to other loan characteristics, including the status of the loan as reported by its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (servicer) Tj ET Q q 0 0 0 rg BT 80.75 583.60 Td (, as defined by the number of missed payments, and the type of loan product. Our process includes forecasting the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (impact of our loss mitigation ef) Tj ET Q q 0 0 0 rg BT 175.13 571.60 Td (forts in protecting us against fraud, underwriting negligence, breach of representation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (warranties, inadequate documentation of submitted claims and other items that may give rise to insurance rescissions or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (cancellations and claim denials, to help determine the Default to Claim Rate. Lastly) Tj ET Q q 0 0 0 rg BT 383.74 547.60 Td (, we project the Claim Severity) Tj ET Q q 0 0 0 rg BT 507.50 547.60 Td (, which is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (also impacted by Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 185.32 535.60 Td (Activity associated with claim curtailments due to servicer noncompliance with our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (policies and servicing guidelines. ) Tj ET Q q 0 0 0 rg BT 185.12 523.60 Td (When there is a claim under primary mortgage insurance, the coverage percentage is applied ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (to the claim amount, which consists of the unpaid loan principal, plus past due interest \(for which our liability is contractually ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (capped in accordance with the terms of our Master Policies\) and certain expenses associated with the default, to determine our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.60 Td (maximum liability) Tj ET Q q 0 0 0 rg BT 123.01 487.60 Td (. Based on these estimates, we arrive at our estimate of loss reserves as of that time) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.13 487.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 470.60 Td (W) Tj ET Q q 0 0 0 rg BT 81.04 470.60 Td (ith respect to loans that are in default, considerable judgment is exercised as to the adequacy of reserve levels. Loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (reserves are generally increased as defaulted loans age, because historically) Tj ET Q q 0 0 0 rg BT 350.93 458.60 Td (, as defaulted loans age, they have been more likely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (to result in foreclosure, and therefore, have been more likely to result in a claim payment. In the past, as the number of missed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (payments increased, there was generally more certainty regarding these estimates. However) Tj ET Q q 0 0 0 rg BT 416.17 434.60 Td (, following the financial crisis we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td (experienced significant delays in foreclosures. ) Tj ET Q q 0 0 0 rg BT 236.65 422.60 Td (As a result, significant uncertainty remains with respect to the ultimate resolution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (of aged defaults. ) Tj ET Q q 0 0 0 rg BT 118.18 410.60 Td (This uncertainty requires management to use considerable judgment in estimating the rate at which these loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.60 Td (will result in claims. Once a default is considered to have reached Foreclosure Stage, the likelihood that the default will reach ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.60 Td (claim status increases. Once a claim is submitted, reserves are further increased to reflect the fact that the default has moved ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.60 Td (closer to resulting in a claim payment. If a default cures, the reserve for that loan is removed from the reserve for losses and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.60 Td (LAE.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 345.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 345.60 Td (e also establish reserves for defaults that we estimate have been incurred but have not been reported) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.42 345.60 Td ( \(IBNR\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.85 345.60 Td (to us on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.60 Td (a timely basis by the servicer) Tj ET Q q 0 0 0 rg BT 165.45 333.60 Td (, as well as for previously rescinded policies and denied claims that we estimate will be reinstated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.60 Td (and subsequently paid. ) Tj ET Q q 0 0 0 rg BT 143.19 321.60 Td (W) Tj ET Q q 0 0 0 rg BT 151.83 321.60 Td (e generally give the policyholder up to 90 days to challenge our decision to rescind coverage before ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.60 Td (we consider a policy to be rescinded and remove it from our defaulted inventory; therefore, we currently expect only a limited ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.60 Td (percentage of policies that were rescinded to be reinstated. ) Tj ET Q q 0 0 0 rg BT 285.88 297.60 Td (W) Tj ET Q q 0 0 0 rg BT 294.52 297.60 Td (e currently expect a significant percentage of claims that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.60 Td (denied to be resubmitted as a perfected claim and ultimately paid. Most often, a claim denial is the result of a servicer) Tj ET Q q 0 0 0 rg BT 520.54 285.60 Td () Tj ET Q q 0 0 0 rg BT 523.32 285.60 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.60 Td (inability to provide the loan origination file or other servicing documents for review) Tj ET Q q 0 0 0 rg BT 384.87 273.60 Td (. Under the terms of our Master Policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.60 Td (with our lending customers, our policyholders have up to one year after the acquisition of borrower) Tj ET Q q 0 0 0 rg BT 446.98 261.60 Td () Tj ET Q q 0 0 0 rg BT 449.76 261.60 Td (s title to provide to us the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 249.60 Td (necessary documents to perfect a claim. ) Tj ET Q q 0 0 0 rg BT 210.82 249.60 Td (All estimates are periodically reviewed and adjustments are made as they become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 237.60 Td (necessary) Tj ET Q q 0 0 0 rg BT 87.72 237.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 220.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 220.60 Td (e do not establish reserves for loans that are in default if we believe that we will not be liable for the payment of a claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.60 Td (with respect to that default. For example, for those defaults in which we are in a second loss position \(i.e., we are not required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.60 Td (to make a payment until a certain aggregate amount of losses have already been recognized on a given group of loans\), we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.60 Td (initially calculate the reserve for defaulted loans in the transaction as if there were no deductible. If the existing deductible for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.60 Td (given Structured ) Tj ET Q q 0 0 0 rg BT 118.19 172.60 Td (T) Tj ET Q q 0 0 0 rg BT 123.95 172.60 Td (ransaction is greater than the aggregate reserve amount for the defaults contained within the transaction, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.60 Td (do not establish a reserve for the defaults, or if appropriate, we record a partial reserve. ) Tj ET Q q 0 0 0 rg BT 399.45 160.60 Td (W) Tj ET Q q 0 0 0 rg BT 408.08 160.60 Td (e do not establish loss reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.60 Td (expected future claims on insured mortgages that are not in default. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 353.01 148.60 Td (Reserve for PDR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.76 148.60 Td ( below for an exception to this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.60 Td (general principle.) Tj ET Q endstream endobj 267 0 obj <> endobj 268 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (For purposes of reserve modeling, loans are aggregated into groups using a variety of factors. ) Tj ET Q q 0 0 0 rg BT 449.60 708.60 Td (The attributes currently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (used to define the groups for purposes of developing various assumptions include, but are not limited to, the Stage of Default, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (the ) Tj ET Q q 0 0 0 rg BT 64.04 684.60 Td (T) Tj ET Q q 0 0 0 rg BT 69.79 684.60 Td (ime in Default, product type \(i.e., Prime, ) Tj ET Q q 0 0 0 rg BT 234.20 684.60 Td (Alt-A) Tj ET Q q 0 0 0 rg BT 256.98 684.60 Td ( or Subprime\), type of insurance \(i.e., primary or pool\), loss position \(i.e., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (with or without a deductible\) and the state where the property is located \(segregated into three state groups in order to adjust for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 660.60 Td (ferences in foreclosure timing\). ) Tj ET Q q 0 0 0 rg BT 188.25 660.60 Td (W) Tj ET Q q 0 0 0 rg BT 196.89 660.60 Td (e use an actuarial projection methodology referred to as a roll rate analysis that uses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (historical claim frequency information to determine the projected ultimate Default to Claim Rates based on the Stage of Default ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (and ) Tj ET Q q 0 0 0 rg BT 66.26 636.60 Td (T) Tj ET Q q 0 0 0 rg BT 72.01 636.60 Td (ime in Default. ) Tj ET Q q 0 0 0 rg BT 134.59 636.60 Td (The Default to Claim Rate also includes our estimates with respect to expected insurance rescissions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (claim denials, which have the ef) Tj ET Q q 0 0 0 rg BT 178.16 624.60 Td (fect of reducing our Default to Claim Rates.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 607.60 Td (Since 2009, we have experienced an elevated level of insurance rescissions and claim denials for various reasons, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (including, without limitation, underwriting negligence, fraudulent applications and appraisals, breach of representations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (warranties and inadequate documentation, primarily related to our Legacy Portfolio. ) Tj ET Q q 0 0 0 rg BT 388.27 583.60 Td (Although we expect the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (estimated rescissions and denials embedded within our reserve analysis to remain elevated as compared to levels before 2009, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (we expect them to continue to decrease over time, as the defaults related to our Legacy Portfolio decline as a proportion of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (total default portfolio and as we realize the results through actual rescissions and denials, or the commutations of insured loans. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (In addition, with respect to claims decisions on the population of Future Legacy Loans covered under the BofA) Tj ET Q q 0 0 0 rg BT 494.39 535.60 Td ( Settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (Agreement, Radian Guaranty has agreed, subject to certain limited exceptions and conditions, that it will not ef) Tj ET Q q 0 0 0 rg BT 493.91 523.60 Td (fect any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (coverage rescissions, claim denials or curtailments. See Note 10 of Notes to Consolidated Financial Statements for additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (information about the BofA) Tj ET Q q 0 0 0 rg BT 160.32 499.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 207.53 499.60 Td (Agreement. ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 482.60 Td (After estimating the Default to Claim Rate, we estimate the severity of each product type, type of insurance and state ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (grouping based on the average of recently observed severity rates. ) Tj ET Q q 0 0 0 rg BT 316.16 470.60 Td (These average severity estimates are then applied to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (individual loan coverage amounts to determine reserves. Senior management regularly reviews the modeled frequency) Tj ET Q q 0 0 0 rg BT 523.12 458.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (rescission, denial and severity estimates, which are based on historical trends as described above. If recent emer) Tj ET Q q 0 0 0 rg BT 496.65 446.60 Td (ging or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (projected trends dif) Tj ET Q q 0 0 0 rg BT 127.07 434.60 Td (fer significantly from the historical trends used to develop the modeled estimates, management evaluates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td (these trends in determining how they should be considered in its reserve estimates.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.25 422.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 405.60 Td (In addition, as part of our claims review process, we assess whether defaulted loans were serviced appropriately in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.60 Td (accordance with our insurance policies and servicing guidelines. ) Tj ET Q q 0 0 0 rg BT 309.50 393.60 Td (T) Tj ET Q q 0 0 0 rg BT 314.92 393.60 Td (o the extent a servicer has failed to satisfy its servicing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.60 Td (obligations, our insurance policies provide that we may curtail the claim payment for such default, and in some circumstances, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.60 Td (cancel coverage or deny the claim. Since 201) Tj ET Q q 0 0 0 rg BT 230.16 369.60 Td (1, claim curtailments have increased both in frequency and in size, which has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (contributed to a reduction in the severity of our claim payments during this period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.29 357.60 Td (While we cannot give assurance regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (the extent or level at which such claim curtailments will continue, we expect the level of claim curtailments to remain elevated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.60 Td (compared to historical levels \(excluding claims processed in accordance with the BofA) Tj ET Q q 0 0 0 rg BT 397.44 333.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 444.66 333.60 Td (Agreement\), in light of well ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.60 Td (publicized issues in the servicing industry and our existing Legacy Portfolio of aged defaults.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.75 321.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 304.60 Td (The elevated levels of our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 245.40 304.60 Td (Activities have led to an increased risk of litigation. Our Master Policies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (specify the time period during which a suit or action arising from any right of the insured under the policy must be commenced. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 280.60 Td (e continue to face a significant number of challenges from certain lender customers regarding our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 516.04 280.60 Td (Activities, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.60 Td (which have resulted in some reversals of our decisions regarding rescissions, denials and curtailments. ) Tj ET Q q 0 0 0 rg BT 461.06 268.60 Td (Although we believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.60 Td (our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 130.89 256.60 Td (Activities are justified under our policies, if we are not successful in defending these actions in any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.60 Td (potential legal or other proceedings, including negotiated settlements, we may need to reassume the risk on, and increase loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.60 Td (reserves for) Tj ET Q q 0 0 0 rg BT 96.02 232.60 Td (, those policies or pay additional claims. ) Tj ET Q q 0 0 0 rg BT 259.41 232.60 Td (The assumptions embedded in our estimated Default to Claim Rate on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.60 Td (in-force default inventory include an adjustment to our estimated rescission and denial rate, to account for the fact that we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.60 Td (expect a certain number of policies to be reinstated and ultimately to be paid, as a result of valid challenges by such policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.60 Td (holders. ) Tj ET Q q 0 0 0 rg BT 83.39 196.60 Td (As discussed above, we also establish reserves for IBNR defaults related to previously rescinded policies and denied or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.60 Td (curtailed claims, which we believe are likely to be reinstated \(in the case of previously rescinded policies\) or resubmitted and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.60 Td (paid \(in the case of previously denied claims\).) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 155.60 Td (Unless a liability associated with such activities or discussions becomes probable and can be reasonably estimated, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.60 Td (consider our claim payments and our rescissions, denials and curtailments to be resolved for financial reporting purposes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.60 Td (Under the accounting standard regarding contingencies, an estimated loss is accrued only if we determine that the loss is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.60 Td (probable and can be reasonably estimated. For populations of disputed rescissions, denials and curtailments where we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.60 Td (determine that a settlement is probable and that a loss can be reasonably estimated, we reflect our best estimate of the expected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.60 Td (loss related to the populations under discussion in our financial statements, primarily as a component of our IBNR reserve. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.60 Td (While our reserves include our best estimate of such losses, the outcome of the discussions or potential legal proceedings that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.60 Td (could ensue is uncertain, and it is reasonably possible that a loss exists in excess of the amount accrued.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.39 71.60 Td ( ) Tj ET Q endstream endobj 269 0 obj <> endobj 270 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Included in our loss reserves is an estimate related to a potential additional payment to Freddie Mac under the Freddie ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (Mac ) Tj ET Q q 0 0 0 rg BT 69.22 696.60 Td (Agreement, which is dependent upon the Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 301.12 696.60 Td (Activity on the population of loans subject to that agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (Our reserve related to this potential additional payment is based on the estimated rescissions, denials, curtailments, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (cancellations for this population of loans, determined using assumptions that are consistent with those utilized to determine our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (overall loss reserves.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 639.60 Td (Reserve for PDR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 622.60 Td (Insurance enterprises are required to establish a PDR if the net present value of the expected future losses and expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.60 Td (for a particular product line exceeds the net present value of expected future premiums and existing reserves for that product ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.60 Td (line. ) Tj ET Q q 0 0 0 rg BT 69.31 598.60 Td (W) Tj ET Q q 0 0 0 rg BT 77.95 598.60 Td (e reassess our expectations for premiums, losses and expenses for our mortgage insurance business at least quarterly and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.60 Td (update our premium deficiency analyses accordingly) Tj ET Q q 0 0 0 rg BT 260.16 586.60 Td (. Expected future expenses include consideration of maintenance costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.60 Td (associated with maintaining records relating to insurance contracts and with the processing of premium collections. ) Tj ET Q q 0 0 0 rg BT 513.07 574.60 Td (W) Tj ET Q q 0 0 0 rg BT 521.71 574.60 Td (e also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.60 Td (consider investment income in the premium deficiency calculation through the use of our pre-tax investment yield to discount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.60 Td (certain cash flows for this analysis.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 533.60 Td (For our mortgage insurance business, we group our mortgage insurance products into two categories: First-lien and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.60 Td (Second-lien. ) Tj ET Q q 0 0 0 rg BT 102.08 521.60 Td (T) Tj ET Q q 0 0 0 rg BT 107.49 521.60 Td (o assess the need for a PDR on our First-lien insurance portfolio, we develop loss projections based on modeled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.60 Td (loan defaults related to our current RIF) Tj ET Q q 0 0 0 rg BT 204.76 509.60 Td (. ) Tj ET Q q 0 0 0 rg BT 209.58 509.60 Td (This projection is based on recent trends in default experience, severity and rates of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.60 Td (defaulted loans moving to claim \(such Default to Claim Rates are net of our estimates of rescissions and denials\), as well as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.60 Td (recent trends in the rate at which loans are prepaid.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 468.60 Td (For our Second-lien insurance business, we project future premiums and losses for this business using historical results to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.60 Td (help determine future performance for both prepayments and claims. ) Tj ET Q q 0 0 0 rg BT 326.62 456.60 Td (An estimated expense factor is then applied, and the result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.60 Td (is discounted using a rate of return that approximates our pre-tax investment yield. ) Tj ET Q q 0 0 0 rg BT 382.00 444.60 Td (This net present value, less any existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.60 Td (reserves, is recorded as a premium deficiency and the reserve is updated at least quarterly based on actual results for that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.60 Td (quarter) Tj ET Q q 0 0 0 rg BT 77.42 420.60 Td (, along with updated transaction level projections.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 399.60 Td (Fair V) Tj ET Q q 0 0 0 rg BT 75.90 399.60 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.60 Td (Our estimated fair value measurements are intended to reflect the assumptions market participants would use in pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.60 Td (an asset or liability based on the best information available. ) Tj ET Q q 0 0 0 rg BT 289.16 370.60 Td (Assumptions include the risks inherent in a particular valuation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.60 Td (technique \(such as a pricing model\) and the risks inherent in the inputs to the model. Changes in economic conditions and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.60 Td (capital market conditions, including but not limited to, credit spread changes, benchmark interest rate changes, market volatility ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.60 Td (and changes in the value of underlying collateral or of any third-party guaranty or insurance, could cause actual results to dif) Tj ET Q q 0 0 0 rg BT 547.75 334.60 Td (fer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.60 Td (materially from our estimated fair value measurements. ) Tj ET Q q 0 0 0 rg BT 273.68 322.60 Td (W) Tj ET Q q 0 0 0 rg BT 282.32 322.60 Td (e define fair value as the current amount that would be received to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 310.60 Td (sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 293.60 Td (In accordance with GAAP) Tj ET Q q 0 0 0 rg BT 178.19 293.60 Td (, we established a three-level valuation hierarchy for disclosure of fair value measurements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.60 Td (based on the transparency of inputs to the valuation of an asset or liability as of the measurement date. ) Tj ET Q q 0 0 0 rg BT 460.86 281.60 Td (The hierarchy gives the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.60 Td (highest priority to unadjusted quoted prices in active markets for identical assets or liabilities \(Level I measurements\) and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.60 Td (lowest priority to unobservable inputs \(Level III measurements\). ) Tj ET Q q 0 0 0 rg BT 310.08 257.60 Td (The level in the fair value hierarchy within which the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.60 Td (value measurement falls is determined based on the lowest level input that is significant to the measurement in its entirety) Tj ET Q q 0 0 0 rg BT 536.22 245.60 Td (. ) Tj ET Q q 0 0 0 rg BT 541.04 245.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 233.60 Td (three levels of the fair value hierarchy are defined below:) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 216.60 Td (Level I ) Tj ET Q q 0 0 0 rg BT 112.50 216.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 216.60 Td (Unadjusted quoted prices for identical assets or liabilities in active markets that are accessible at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 204.60 Td (measurement date for identical, unrestricted assets or liabilities;) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 187.60 Td (Level II ) Tj ET Q q 0 0 0 rg BT 112.50 187.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 187.60 Td (Prices or valuations based on observable inputs other than quoted prices in active markets for identical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 175.60 Td (assets and liabilities; and) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 158.60 Td (Level III ) Tj ET Q q 0 0 0 rg BT 112.50 158.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 158.60 Td (Prices or valuations that require inputs that are both significant to the fair value measurement and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 146.60 Td (unobservable. Level III inputs are used to measure fair value only to the extent that observable inputs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.50 134.60 Td (not available.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 117.60 Td (For markets in which inputs are not observable or are limited, we use significant judgment and assumptions that a typical ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.60 Td (market participant would use to evaluate the market price of an asset or liability) Tj ET Q q 0 0 0 rg BT 367.90 105.60 Td (. Given the level of judgment necessary) Tj ET Q q 0 0 0 rg BT 525.81 105.60 Td (, another ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.60 Td (market participant may derive a materially dif) Tj ET Q q 0 0 0 rg BT 233.13 93.60 Td (ferent estimate of fair value. ) Tj ET Q q 0 0 0 rg BT 348.45 93.60 Td (These assets and liabilities are classified in Level III ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.60 Td (of our fair value hierarchy) Tj ET Q q 0 0 0 rg BT 153.80 81.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 271 0 obj <> endobj 272 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (135) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (A) Tj ET Q q 0 0 0 rg BT 79.98 708.60 Td (vailable for sale securities, trading securities, and certain other assets are recorded at fair value as described in Note 5. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (All changes in fair value of trading securities and certain other assets are included in our consolidated statements of operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (All changes in the fair value of available for sale securities are recorded in ) Tj ET Q q 0 0 0 rg BT 348.81 684.60 Td (AOCI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.25 684.60 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 663.60 Td (Insurance Premiums-Revenue Recognition) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 646.60 Td (Mortgage insurance premiums written on an annual and multi-year basis are initially recorded as unearned premiums and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 634.60 Td (earned over time. ) Tj ET Q q 0 0 0 rg BT 121.14 634.60 Td (Annual premiums are amortized on a monthly) Tj ET Q q 0 0 0 rg BT 304.88 634.60 Td (, straight-line basis. Multi-year premiums are amortized over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 622.60 Td (the terms of the contracts in relation to the anticipated claim payment pattern based on historical industry experience. Premiums ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 610.60 Td (written on a monthly basis are earned over the period that coverage is provided. ) Tj ET Q q 0 0 0 rg BT 370.60 610.60 Td (When we rescind insurance coverage on a loan, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 598.60 Td (we refund all premiums received in connection with such coverage. Premium revenue is recognized net of our accrual for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 586.60 Td (estimated rescission refunds. ) Tj ET Q q 0 0 0 rg BT 167.07 586.60 Td (W) Tj ET Q q 0 0 0 rg BT 176.11 586.60 Td (ith respect to our reinsurance transactions, ceded premiums written are initially set up as prepaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 574.60 Td (reinsurance and are amortized in a manner consistent with the recognition of income on direct premiums. Premiums on certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.60 Td (Structured ) Tj ET Q q 0 0 0 rg BT 93.47 562.60 Td (T) Tj ET Q q 0 0 0 rg BT 99.23 562.60 Td (ransactions in our mortgage insurance business are recognized over the period that coverage is provided.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 541.60 Td (Deferred Policy ) Tj ET Q q 0 0 0 rg BT 116.32 541.60 Td (Acquisition Costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 524.60 Td (Incremental, direct costs associated with the acquisition of mortgage insurance business, consisting of compensation and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.60 Td (other policy issuance and underwriting expenses, are initially deferred and reported as deferred policy acquisition costs. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 500.60 Td (Amortization of these costs for each underwriting year book of business is char) Tj ET Q q 0 0 0 rg BT 366.45 500.60 Td (ged against revenue in proportion to estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 488.60 Td (gross profits over the estimated life of the policies. ) Tj ET Q q 0 0 0 rg BT 254.82 488.60 Td (This includes accruing interest on the unamortized balance of deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.60 Td (policy acquisition costs. Ceding commissions received under our reinsurance agreements related to these costs are also deferred ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.60 Td (and accounted for using similar assumptions. Estimates of expected gross profit, including persistency and loss development ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.60 Td (assumptions for each underwriting year used as a basis for amortization, are evaluated quarterly and the total amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.60 Td (recorded to date is adjusted by a char) Tj ET Q q 0 0 0 rg BT 197.87 440.60 Td (ge or credit to our consolidated statements of operations if actual experience or other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 428.60 Td (evidence suggests that previous estimates should be revised. Considerable judgment is used in evaluating these estimates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 416.60 Td (the assumptions on which they are based. ) Tj ET Q q 0 0 0 rg BT 217.62 416.60 Td (The use of dif) Tj ET Q q 0 0 0 rg BT 273.25 416.60 Td (ferent assumptions may have a significant ef) Tj ET Q q 0 0 0 rg BT 451.35 416.60 Td (fect on the amortization of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 404.60 Td (deferred policy acquisition costs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 387.60 Td (Ef) Tj ET Q q 0 0 0 rg BT 82.76 387.60 Td (fective January 1, 2012, we adopted the F) Tj ET Q q 0 0 0 rg BT 248.91 387.60 Td (ASB update to the accounting standard regarding accounting for costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 375.60 Td (associated with acquiring or renewing insurance contracts on a prospective basis. ) Tj ET Q q 0 0 0 rg BT 376.43 375.60 Td (This update redefines acquisition costs as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 363.60 Td (incremental costs that are related directly to the successful acquisition of new or renewal insurance contracts. Previously) Tj ET Q q 0 0 0 rg BT 530.62 363.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 351.60 Td (acquisition costs were defined as costs that vary with and are primarily related to the acquisition of insurance contracts. ) Tj ET Q q 0 0 0 rg BT 529.16 351.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.60 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 339.60 Td (fect of this revised definition of acquisition costs has resulted in the recognition of additional expenses in our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.60 Td (insurance business when incurred, rather than being deferred to subsequent periods. ) Tj ET Q q 0 0 0 rg BT 386.71 327.60 Td (There was no change to the amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 315.60 Td (requirements due to this update. ) Tj ET Q q 0 0 0 rg BT 179.84 315.60 Td (The implementation of this new guidance significantly reduced the amount of our deferral of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.60 Td (policy acquisition costs associated with acquiring mortgage insurance contracts. However) Tj ET Q q 0 0 0 rg BT 408.44 303.60 Td (, the lower amount of acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 291.60 Td (costs deferred will be of) Tj ET Q q 0 0 0 rg BT 145.95 291.60 Td (fset by reduced amortization expense in subsequent periods. ) Tj ET Q q 0 0 0 rg BT 388.75 291.60 Td (While the timing of the recognition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 279.60 Td (certain costs in our results of operations has changed as a result of the adoption of this update, there is no ef) Tj ET Q q 0 0 0 rg BT 479.75 279.60 Td (fect on the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 267.60 Td (acquisition costs recognized over time or on our cash flows. ) Tj ET Q q 0 0 0 rg BT 291.38 267.60 Td (Amounts deferred as acquisition costs for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.23 267.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.23 267.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.67 267.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.67 267.60 Td ( reflect a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 255.60 Td (reduction for ceding commissions written on risk ceded under the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 388.13 255.60 Td (T) Tj ET Q q 0 0 0 rg BT 393.88 255.60 Td (ransactions \(as defined in Note 8\). ) Tj ET Q q 0 0 0 rg BT 533.38 255.60 Td (W) Tj ET Q q 0 0 0 rg BT 542.02 255.60 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.60 Td (amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.98 243.60 Td ($24.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.87 243.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.87 243.60 Td ($28.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.76 243.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.20 243.60 Td ($34.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.09 243.60 Td ( of deferred policy acquisition costs in our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 231.60 Td (business in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.17 231.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.17 231.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.17 231.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.17 231.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.61 231.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.61 231.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 233.27 231.60 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 210.60 Td (Revenue Recognition-Services Revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 193.60 Td (Services revenue is recognized when pervasive evidence of an arrangement exists, the service has been performed, the fee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 181.60 Td (is fixed and determinable and collection of the resulting receivable is reasonably assured. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 164.60 Td (The MRES segment derives most of its revenue from professional service activities. ) Tj ET Q q 0 0 0 rg BT 412.03 164.60 Td (A) Tj ET Q q 0 0 0 rg BT 418.70 164.60 Td ( portion of these activities are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 152.60 Td (provided under time-and-materials billing arrangements. Services revenue consisting of billed fees and pass-through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 140.60 Td (expenses is recorded as work is performed and expenses are incurred. Services revenue also includes expenses billed to clients, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 128.60 Td (which includes travel and other out-of-pocket expenses, and other reimbursable expenses.) Tj ET Q endstream endobj 273 0 obj <> endobj 274 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (The MRES segment also derives revenue from REO management activities, and is generally paid a fixed fee or a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (percentage of the sale proceeds upon the sale of a property) Tj ET Q q 0 0 0 rg BT 283.19 696.60 Td (. Services revenue is recognized when the sale of a property closes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (and the client has confirmed receipt of the sale proceeds from a buyer) Tj ET Q q 0 0 0 rg BT 327.72 684.60 Td (. In certain instances, fees are received at the time that an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (asset is assigned to Radian for REO management. ) Tj ET Q q 0 0 0 rg BT 251.22 672.60 Td (These fees are recorded as deferred revenue and are recognized on a straight-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (line basis over the average period of time required to sell an asset and complete the earnings process.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 643.60 Td (The MRES segment also provides certain services under multiple element arrangements, including valuations, title ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (reviews and tax lien reviews. Contracts for these services include provisions requiring the client to pay a per unit price for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (services that have been performed if the client cancels the contract. Each service qualifies as a separate unit of accounting on a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (per unit basis, and we recognize revenue as each individual service is performed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 590.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 590.60 Td (e do not recognize revenue or expense related to amounts advanced by us and subsequently reimbursed by clients for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.60 Td (maintenance or repairs of REO properties because we are not the primary obligor and we have minimal credit risk. ) Tj ET Q q 0 0 0 rg BT 510.82 578.60 Td (W) Tj ET Q q 0 0 0 rg BT 519.46 578.60 Td (e record ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.60 Td (an expense if an advance is made that is not in accordance with a client contract and the client is not obligated to reimburse us.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 545.60 Td (Direct Cost of Services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 528.60 Td (Direct cost of services consists primarily of employee compensation and related payroll benefits, the cost of billable labor ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.60 Td (assigned to revenue-generating activities, as well as corresponding travel and related expenses incurred in providing such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.60 Td (services to clients. Direct cost of services also includes costs paid to outside vendors, including real estate agents that provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.60 Td (valuation and related services. Direct cost of services does not include an allocation of overhead costs.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (Income T) Tj ET Q q 0 0 0 rg BT 88.30 471.60 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 454.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 454.60 Td (e provide for income taxes in accordance with the provisions of the accounting standard regarding accounting for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.60 Td (income taxes. ) Tj ET Q q 0 0 0 rg BT 106.43 442.60 Td (As required under this standard, our DT) Tj ET Q q 0 0 0 rg BT 265.31 442.60 Td (As and DTLs are recognized under the balance sheet method, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.60 Td (recognizes the future tax ef) Tj ET Q q 0 0 0 rg BT 158.15 430.60 Td (fect of temporary dif) Tj ET Q q 0 0 0 rg BT 240.99 430.60 Td (ferences between the amounts recorded in our consolidated financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.60 Td (and the tax bases of these amounts. DT) Tj ET Q q 0 0 0 rg BT 205.33 418.60 Td (As and DTLs are measured using the enacted tax rates expected to apply to taxable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.60 Td (income in the periods in which the DT) Tj ET Q q 0 0 0 rg BT 202.83 406.60 Td (A) Tj ET Q q 0 0 0 rg BT 209.50 406.60 Td ( or DTL) Tj ET Q q 0 0 0 rg BT 241.90 406.60 Td ( is expected to be realized or settled.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 389.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 389.60 Td (e are required to establish a valuation allowance against our DT) Tj ET Q q 0 0 0 rg BT 336.24 389.60 Td (A) Tj ET Q q 0 0 0 rg BT 342.91 389.60 Td ( when it is more likely than not that all or some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.60 Td (portion of our DT) Tj ET Q q 0 0 0 rg BT 120.08 377.60 Td (A) Tj ET Q q 0 0 0 rg BT 126.75 377.60 Td ( will not be realized. ) Tj ET Q q 0 0 0 rg BT 210.61 377.60 Td (At each balance sheet date, we assess our need for a valuation allowance. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.60 Td (assessment is based on all available evidence, both positive and negative. ) Tj ET Q q 0 0 0 rg BT 345.07 365.60 Td (This requires management to exercise judgment and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.60 Td (make assumptions regarding whether our DT) Tj ET Q q 0 0 0 rg BT 229.49 353.60 Td (A) Tj ET Q q 0 0 0 rg BT 236.16 353.60 Td ( will be realized in future periods. ) Tj ET Q q 0 0 0 rg BT 373.70 353.60 Td (The primary negative evidence that we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.60 Td (considered has been our cumulative losses in recent years. ) Tj ET Q q 0 0 0 rg BT 284.79 341.60 Td (W) Tj ET Q q 0 0 0 rg BT 293.43 341.60 Td (e also consider positive evidence when assessing the need for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.60 Td (valuation allowance, such as future reversals of existing taxable temporary dif) Tj ET Q q 0 0 0 rg BT 361.71 329.60 Td (ferences, future projections of taxable income, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.60 Td (taxable income within the applicable carryback and carryforward periods, and potential tax planning strategies. ) Tj ET Q q 0 0 0 rg BT 496.37 317.60 Td (The recognition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.60 Td (of our DT) Tj ET Q q 0 0 0 rg BT 88.69 305.60 Td (A) Tj ET Q q 0 0 0 rg BT 95.36 305.60 Td ( ultimately depends on the existence of suf) Tj ET Q q 0 0 0 rg BT 265.96 305.60 Td (ficient taxable income of the appropriate character \(ordinary income or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.60 Td (capital gains\) within the applicable carryback and carryforward periods provided under the tax law) Tj ET Q q 0 0 0 rg BT 443.97 293.60 Td (. In assessing our need for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.60 Td (valuation allowance, the weight assigned to the ef) Tj ET Q q 0 0 0 rg BT 248.70 281.60 Td (fect of both negative and positive evidence is commensurate with the extent to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.60 Td (which such evidence can be objectively verified. ) Tj ET Q q 0 0 0 rg BT 246.09 269.60 Td (As of December 31, 2014, after analyzing all positive and negative evidence ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.60 Td (available, we believe there is significant positive, objectively verifiable evidence that outweighs all negative evidence and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.60 Td (supports a conclusion that it is more-likely-than-not that substantially all of the Company) Tj ET Q q 0 0 0 rg BT 409.44 245.60 Td (s DT) Tj ET Q q 0 0 0 rg BT 428.36 245.60 Td (As will be realized. ) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 228.60 Td (Our provision for income taxes for interim financial periods is based on an estimate of our annual ef) Tj ET Q q 0 0 0 rg BT 474.03 228.60 Td (fective tax rate for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.60 Td (full year of 2014. ) Tj ET Q q 0 0 0 rg BT 121.24 216.60 Td (When estimating our full year 2014 ef) Tj ET Q q 0 0 0 rg BT 273.79 216.60 Td (fective tax rate, we adjust our forecasted pre-tax income for gains and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.60 Td (losses on our derivative transactions and investments, changes in the accounting for uncertainty in income taxes, changes in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.60 Td (beginning of year valuation allowance, and other adjustments. ) Tj ET Q q 0 0 0 rg BT 300.35 192.60 Td (The impact of these items is accounted for discretely at the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.60 Td (federal applicable tax rate. During 2012 and 2013, given the impact on our pre-tax results of net gains or losses resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.60 Td (our derivative transactions and our investment portfolio, and the continued uncertainty regarding our ability to rely on certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.60 Td (short-term financial projections, which directly af) Tj ET Q q 0 0 0 rg BT 248.14 156.60 Td (fected our ability to estimate an ef) Tj ET Q q 0 0 0 rg BT 384.57 156.60 Td (fective tax rate for the full year) Tj ET Q q 0 0 0 rg BT 508.54 156.60 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.60 Td (recorded our interim period income tax provision \(benefit\) based on actual results of operations.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 123.60 Td (Foreign Currency Revaluation/T) Tj ET Q q 0 0 0 rg BT 185.25 123.60 Td (ranslation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 106.60 Td (Assets and liabilities denominated in foreign currencies are revalued or translated at year) Tj ET Q q 0 0 0 rg BT 428.71 106.60 Td (-end exchange rates. Operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.60 Td (results are translated at average rates of exchange prevailing during the year) Tj ET Q q 0 0 0 rg BT 352.97 94.60 Td (. Unrealized gains and losses, net of deferred taxes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.60 Td (resulting from translation are included in ) Tj ET Q q 0 0 0 rg BT 215.01 82.60 Td (AOCI in stockholders) Tj ET Q q 0 0 0 rg BT 305.37 82.60 Td ( equity) Tj ET Q q 0 0 0 rg BT 332.21 82.60 Td (. Realized gains and losses resulting from transactions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 70.60 Td (foreign currency are recorded in our statements of operations.) Tj ET Q endstream endobj 275 0 obj <> endobj 276 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (137) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (Cash and Restricted Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 691.75 Td (Included in our restricted cash balances ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.99 691.75 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.23 691.75 Td ( were: \(1\) funds for a mortgage insurance reserve policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (held in escrow for any future duties, rights and liabilities; \(2\) funds held as collateral under our insurance trust agreements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (related to health care benefits; and \(3\) funds held in trust for the benefit of certain policyholders.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 650.75 Td (W) Tj ET Q q 0 0 0 rg BT 82.54 650.75 Td (ithin our consolidated statements of cash flows, we classify cash receipts and cash payments related to items measured ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 638.75 Td (at fair value according to their nature and purpose. Because our trading activity relates to overall strategic initiatives and is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 626.75 Td (trading related, it is recorded as cash flows from investing activities. ) Tj ET Q q 0 0 0 rg BT 325.07 626.75 Td (While our securities trading activity was significant in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 614.75 Td (2012, this activity was primarily a result of strategic repositioning of the portfolio in order to: \(1\)shorten duration for liquidity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.75 Td (purposes; and \(2\)increase our allocation to taxable bonds to maximize our after) Tj ET Q q 0 0 0 rg BT 368.64 602.75 Td (-tax yields. ) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 581.75 Td (Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 564.75 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 564.75 Td (e group assets in our investment portfolio into one of three main categories: held to maturity) Tj ET Q q 0 0 0 rg BT 450.57 564.75 Td (, available for sale or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 552.75 Td (trading securities. Fixed-maturity securities for which we have the positive intent and ability to hold to maturity are classified as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 540.75 Td (held to maturity and are reported at amortized cost. Investments in securities not classified as held to maturity or trading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 528.75 Td (securities are classified as available for sale and are reported at fair value, with unrealized gains and losses \(net of tax\) reported ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.75 Td (as a separate component of stockholders) Tj ET Q q 0 0 0 rg BT 213.42 516.75 Td ( equity as ) Tj ET Q q 0 0 0 rg BT 253.69 516.75 Td (AOCI. Investments classified as trading securities are reported at fair value, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.75 Td (with unrealized gains and losses reported as a separate component of income. Short-term investments consist of money market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.75 Td (instruments, certificates of deposit and highly liquid, interest-bearing instruments with an original maturity of three months or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.75 Td (less at the time of purchase. ) Tj ET Q q 0 0 0 rg BT 162.52 480.75 Td (Amortization of premium and accretion of discount are calculated principally using the interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.75 Td (method over the term of the investment. Realized gains and losses on investments are recognized using the specific ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.75 Td (identification method.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.81 456.75 Td ( See Notes 5 and 6 for further discussion on the fair value of investments.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 439.75 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 439.75 Td (e record an other) Tj ET Q q 0 0 0 rg BT 149.40 439.75 Td (-than-temporary impairment adjustment on a security if we intend to sell the impaired security) Tj ET Q q 0 0 0 rg BT 526.14 439.75 Td (, if it is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.75 Td (more likely than not that we will be required to sell the impaired security prior to recovery of its amortized cost basis, or if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.75 Td (present value of cash flows we expect to collect is less than the amortized cost basis of the security) Tj ET Q q 0 0 0 rg BT 444.28 415.75 Td (. If a sale is likely) Tj ET Q q 0 0 0 rg BT 514.72 415.75 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.75 Td (security is classified as other) Tj ET Q q 0 0 0 rg BT 164.27 403.75 Td (-than-temporarily impaired and the full amount of the impairment is recognized as a loss in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 391.75 Td (statement of operations. Otherwise, losses on securities that are other) Tj ET Q q 0 0 0 rg BT 325.61 391.75 Td (-than-temporarily impaired are separated into: \(i\)the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 379.75 Td (portion of loss that represents the credit loss; and \(ii\)the portion that is due to other factors. ) Tj ET Q q 0 0 0 rg BT 417.84 379.75 Td (The credit loss portion is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.75 Td (recognized as a loss in the statement of operations, while the loss due to other factors is recognized in ) Tj ET Q q 0 0 0 rg BT 457.72 367.75 Td (AOCI, net of taxes. ) Tj ET Q q 0 0 0 rg BT 537.70 367.75 Td (A) Tj ET Q q 0 0 0 rg BT 544.37 367.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.75 Td (credit loss is determined to exist if the present value of discounted cash flows expected to be collected from the security is less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.75 Td (than the cost basis of the security) Tj ET Q q 0 0 0 rg BT 181.59 343.75 Td (. ) Tj ET Q q 0 0 0 rg BT 186.41 343.75 Td (The present value of discounted cash flows is determined using the original yield of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 331.75 Td (security) Tj ET Q q 0 0 0 rg BT 80.51 331.75 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.01 331.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.51 331.75 Td (In evaluating whether a decline in value is other) Tj ET Q q 0 0 0 rg BT 277.45 331.75 Td (-than-temporary) Tj ET Q q 0 0 0 rg BT 341.78 331.75 Td (, we consider several factors in addition to the above, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 319.75 Td (including, but not limited to, the following:) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 302.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 302.75 Td (the extent and the duration of the decline in value;) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 285.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 285.75 Td (the reasons for the decline in value \(e.g., credit event, interest related or market fluctuations\); and) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 268.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 268.75 Td (the financial position, access to capital and near term prospects of the issuer) Tj ET Q q 0 0 0 rg BT 388.61 268.75 Td (, including the current and future impact of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 256.75 Td (any specific events.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 235.75 Td (Accounts and Notes Receivable) Tj ET Q BT /F1 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 72.00 218.75 Td (Accounts and notes receivable primarily consist of accrued premiums receivable due from our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 49.50 206.75 Td (customers, amounts due from our MRES customers for services our MRES segment has performed, and the profit commission ) Tj ET Q BT /F1 10.00 Tf ET q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 49.50 194.75 Td (receivable related to the Initial QSR ) Tj ET Q q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 195.93 194.75 Td (T) Tj ET Q q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 201.69 194.75 Td (ransaction. See Note 8 for details. ) Tj ET Q q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 338.87 194.75 Td (Accounts and notes receivable are carried at their ) Tj ET Q BT /F1 10.00 Tf ET q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 49.50 182.75 Td (estimated collectible amounts, net of any allowance for doubtful accounts, and are periodically evaluated for collectability ) Tj ET Q BT /F1 10.00 Tf ET q 0.1450980392156863 0.1450980392156863 0.1450980392156863 rg BT 49.50 170.75 Td (based on past payment history and current economic conditions.) Tj ET Q BT /F4 10.00 Tf ET 0 Tr /GS0 gs 0 Tw 0 Tc 100 Tz 0 TL q 0 0 0 rg BT 49.50 149.75 Td (Company-Owned Life Insurance \(COLI\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 132.75 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 132.75 Td (e are the beneficiary of insurance policies on the lives of certain of our current and past of) Tj ET Q q 0 0 0 rg BT 441.53 132.75 Td (ficers and employees. ) Tj ET Q q 0 0 0 rg BT 530.76 132.75 Td (W) Tj ET Q q 0 0 0 rg BT 539.39 132.75 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.75 Td (have recognized the amount that could be realized upon surrender of the insurance policies in other assets in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.75 Td (balance sheets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.42 108.75 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.50 108.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.94 108.75 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.94 108.75 Td (, the cash surrender value of company-owned life insurance totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.67 108.75 Td ($80.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.75 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 96.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 96.75 Td ($78.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.72 96.75 Td (, respectively) Tj ET Q q 0 0 0 rg BT 204.38 96.75 Td (.) Tj ET Q endstream endobj 277 0 obj <> endobj 278 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (138) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (Property and Equipment) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 691.75 Td (Property and equipment is carried at cost, net of depreciation. For financial statement reporting purposes, computer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 679.75 Td (hardware and software is depreciated over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.08 679.75 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.07 679.75 Td ( years and furniture, fixtures and of) Tj ET Q q 0 0 0 rg BT 382.22 679.75 Td (fice equipment is depreciated over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.44 679.75 Td (seven) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.21 679.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.75 Td (years. Leasehold improvements are depreciated over the lesser of the life of the asset improved or the remaining term of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.75 Td (lease. For income tax purposes, we use accelerated depreciation methods.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 634.75 Td (Goodwill and Other Intangible ) Tj ET Q q 0 0 0 rg BT 178.60 634.75 Td (Assets, Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 617.75 Td (Goodwill and other intangible assets were established primarily in connection with our acquisition of Clayton. Goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 605.75 Td (represents the estimated future economic benefits arising from the assets we have acquired that did not qualify to be identified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 593.75 Td (and recognized individually) Tj ET Q q 0 0 0 rg BT 160.48 593.75 Td (, and includes the value of discounted expected future cash flows of Clayton, Clayton) Tj ET Q q 0 0 0 rg BT 505.11 593.75 Td (s workforce, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 581.75 Td (expected syner) Tj ET Q q 0 0 0 rg BT 109.01 581.75 Td (gies with our other af) Tj ET Q q 0 0 0 rg BT 194.36 581.75 Td (filiates and other unidentifiable intangible assets. Goodwill is deemed to have an indefinite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 569.75 Td (useful life and is subject to review for impairment annually) Tj ET Q q 0 0 0 rg BT 285.73 569.75 Td (, or more frequently) Tj ET Q q 0 0 0 rg BT 365.05 569.75 Td (, whenever circumstances indicate potential ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.75 Td (impairment. ) Tj ET Q q 0 0 0 rg BT 100.42 557.75 Td (The value of goodwill is supported by revenue, which is driven primarily by transaction volume. Lower earnings ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.75 Td (over sustained periods can lead to impairment of goodwill, which could result in a char) Tj ET Q q 0 0 0 rg BT 397.83 545.75 Td (ge to earnings.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 528.75 Td (Intangible assets, other than goodwill, primarily consist of Clayton) Tj ET Q q 0 0 0 rg BT 341.96 528.75 Td (s client relationships, technology) Tj ET Q q 0 0 0 rg BT 472.95 528.75 Td (, trade name and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 516.75 Td (trademarks, client backlog and non-competition agreements. Client relationships represent the value of the specifically acquired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.75 Td (customer relationships and are valued using the excess earnings approach using estimated client revenues, attrition rates, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.75 Td (implied royalty rates and discount rates. ) Tj ET Q q 0 0 0 rg BT 211.78 492.75 Td (The excess earnings approach estimates the present value of expected earnings in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.75 Td (excess of a traditional return on business assets. ) Tj ET Q q 0 0 0 rg BT 242.88 480.75 Td (T) Tj ET Q q 0 0 0 rg BT 248.29 480.75 Td (echnology represents proprietary software used for loan review and due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.75 Td (diligence, managing the REO disposition process and performing surveillance of mortgage loan servicers. ) Tj ET Q q 0 0 0 rg BT 475.59 468.75 Td (T) Tj ET Q q 0 0 0 rg BT 481.35 468.75 Td (rade name and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.75 Td (trademarks reflect the value inherent in the recognition of the Clayton name and its reputation. For purposes of our intangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.75 Td (assets, we use the term client backlog to refer to the estimated present value of fees to be earned for services performed on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.75 Td (loans currently under surveillance or REO assets under management. ) Tj ET Q q 0 0 0 rg BT 328.12 432.75 Td (The value of a non-competition agreement is an appraisal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.75 Td (of potential lost revenues that would arise from an individual leaving to work for a competitor or initiating a competing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.75 Td (enterprise. For financial reporting purposes, intangible assets with finite lives are amortized over their applicable estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.75 Td (useful lives in a manner that approximates the pattern of expected economic benefit from each intangible asset.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 379.75 Td (The calculation of the estimated fair value of goodwill and other intangibles requires the use of significant estimates and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 367.75 Td (assumptions that are highly subjective in nature, such as attrition rates, discount rates, future expected cash flows and market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 355.75 Td (conditions. ) Tj ET Q q 0 0 0 rg BT 95.98 355.75 Td (The most significant assumptions relate to the valuation of goodwill and client relationships. Our estimates are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 343.75 Td (based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 322.75 Td (Accounting for Stock-Based Compensation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 305.75 Td (The stock-based compensation cost related to share-based liability awards is based on the fair value as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.75 Td (measurement date. ) Tj ET Q q 0 0 0 rg BT 126.79 293.75 Td (The compensation cost for equity instruments is measured based on the grant-date fair value at the date of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.75 Td (issuance. Compensation cost is recognized over the periods that an employee provides service in exchange for the award. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.75 Td (Note 15 for further information.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 248.75 Td (Recent ) Tj ET Q q 0 0 0 rg BT 79.95 248.75 Td (Accounting Pronouncements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 231.75 Td (In July 2012, the F) Tj ET Q q 0 0 0 rg BT 146.54 231.75 Td (ASB issued a new accounting standard update that simplifies the impairment test for indefinite-lived ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 219.75 Td (intangible assets other than goodwill. ) Tj ET Q q 0 0 0 rg BT 200.96 219.75 Td (The update gives the option to first assess qualitative factors to determine if it is more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 207.75 Td (likely than not that the carrying amount of an indefinite-lived intangible asset exceeds its fair value, in order to determine ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.75 Td (whether it is necessary to perform a quantitative valuation test. ) Tj ET Q q 0 0 0 rg BT 302.85 195.75 Td (This update was ef) Tj ET Q q 0 0 0 rg BT 377.92 195.75 Td (fective for interim and annual reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.75 Td (periods beginning on or after September 15, 2012. ) Tj ET Q q 0 0 0 rg BT 253.16 183.75 Td (The adoption of this update did not have a significant impact on our financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.75 Td (position, results of operations or cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.14 171.75 Td ( ) Tj ET Q endstream endobj 279 0 obj <> endobj 280 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (139) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (In February 2013, the F) Tj ET Q q 0 0 0 rg BT 165.96 708.60 Td (ASB issued an update to the accounting standard regarding comprehensive income, requiring ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (additional information to be presented on the face of the financial statements or as separate disclosures. ) Tj ET Q q 0 0 0 rg BT 465.01 696.60 Td (This update requires an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (entity to present the changes in each component of accumulated other comprehensive income.) Tj ET Q q 0 0 0 rg BT 427.70 684.60 Td (An entity is required to present ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (certain amounts reclassified out of accumulated other comprehensive income to their respective line items in net income, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (component. Other reclassifications out of accumulated other comprehensive income are required to be cross-referenced to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (existing disclosures. ) Tj ET Q q 0 0 0 rg BT 132.92 648.60 Td (W) Tj ET Q q 0 0 0 rg BT 141.56 648.60 Td (e adopted this update ef) Tj ET Q q 0 0 0 rg BT 236.35 648.60 Td (fective January 1, 2013. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 648.60 Td (In Note 12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.42 648.60 Td ( we have presented the changes in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (balances for each component of accumulated other comprehensive income as well as current period reclassifications out of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (accumulated other comprehensive income. ) Tj ET Q q 0 0 0 rg BT 222.86 624.60 Td (This update impacted disclosures only and did not af) Tj ET Q q 0 0 0 rg BT 433.74 624.60 Td (fect our consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (position, earnings or cash flows.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.92 612.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 595.60 Td (In ) Tj ET Q q 0 0 0 rg BT 82.28 595.60 Td (April 2014, the F) Tj ET Q q 0 0 0 rg BT 150.42 595.60 Td (ASB issued an update to the accounting standard for reporting discontinued operations and disclosures ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (of disposals of components of an entity) Tj ET Q q 0 0 0 rg BT 206.05 583.60 Td (. ) Tj ET Q q 0 0 0 rg BT 210.87 583.60 Td (This update changes the requirements for reporting discontinued operations. ) Tj ET Q q 0 0 0 rg BT 517.45 583.60 Td (A) Tj ET Q q 0 0 0 rg BT 524.12 583.60 Td ( disposal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (of a component of an entity or a group of components of an entity is required to be reported in discontinued operations if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (disposal represents \(or would represent\) a strategic shift that has \(or will have\) a major ef) Tj ET Q q 0 0 0 rg BT 406.14 559.60 Td (fect on an entity) Tj ET Q q 0 0 0 rg BT 473.62 559.60 Td (s operations and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (financial results when any of the following occurs: \(a\) the component of an entity or group of components of an entity meets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (the criteria to be classified as held for sale; \(b\) the component of an entity or group of components of an entity is disposed of by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (sale; or) Tj ET Q q 0 0 0 rg BT 78.25 523.60 Td (, \(c\) the component of an entity or group of components of an entity is disposed of other than by sale \(for example, by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (abandonment or in a distribution to owners in a spin-of) Tj ET Q q 0 0 0 rg BT 269.56 511.60 Td (f\). ) Tj ET Q q 0 0 0 rg BT 281.04 511.60 Td (The amendments in this update require expanded disclosures about ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (discontinued operations. ) Tj ET Q q 0 0 0 rg BT 149.58 499.60 Td (The provisions of this update are ef) Tj ET Q q 0 0 0 rg BT 291.02 499.60 Td (fective for all disposals \(or classifications as held for sale\) of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.60 Td (components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.60 Td (those years. Early adoption is permitted, but only for disposals \(or classifications as held for sale\) that have not been reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.60 Td (financial statements previously issued or available for issuance. ) Tj ET Q q 0 0 0 rg BT 306.18 463.60 Td (W) Tj ET Q q 0 0 0 rg BT 314.82 463.60 Td (e did not elect early adoption of this update for the pending ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.60 Td (disposition of Radian ) Tj ET Q q 0 0 0 rg BT 137.00 451.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 161.17 451.60 Td (Assurance. ) Tj ET Q q 0 0 0 rg BT 207.64 451.60 Td (The significance of this guidance for the Company is dependent on any future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.60 Td (dispositions or disposals.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.79 439.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.60 Td (In May 2014, the F) Tj ET Q q 0 0 0 rg BT 148.20 422.60 Td (ASB issued an update to the accounting standard regarding revenue recognition. ) Tj ET Q q 0 0 0 rg BT 471.81 422.60 Td (This update is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (intended to provide a consistent approach in recognizing revenue. In accordance with the new standard, recognition of revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.60 Td (occurs when a customer obtains control of promised goods or services in an amount that reflects the consideration to which the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.60 Td (entity expects to be entitled in exchange for those goods or services. In addition, the new standard requires that reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.60 Td (companies disclose the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.60 Td (customers.) Tj ET Q q 0 0 0 rg BT 94.87 362.60 Td (While this update is not expected to change revenue recognition principles related to our insurance products, this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.60 Td (update may be applicable to revenues from our new MRES segment, which has been included in our consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.60 Td (operations beginning with the third quarter of 2014. ) Tj ET Q q 0 0 0 rg BT 259.00 338.60 Td (The provisions of this update are ef) Tj ET Q q 0 0 0 rg BT 400.44 338.60 Td (fective for interim and annual periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.60 Td (beginning after December 15, 2016. ) Tj ET Q q 0 0 0 rg BT 196.21 326.60 Td (W) Tj ET Q q 0 0 0 rg BT 204.85 326.60 Td (e are currently evaluating the impact of this update, if any) Tj ET Q q 0 0 0 rg BT 435.50 326.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 293.60 Td (3. Discontinued Operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 272.60 Td (On December 22, 2014, Radian Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 335.81 272.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 359.98 272.60 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 467.45 272.60 Td (Agreement to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.83 260.60 Td ( of the issued and outstanding shares of Radian ) Tj ET Q q 0 0 0 rg BT 263.07 260.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 287.24 260.60 Td (Assurance, Radian) Tj ET Q q 0 0 0 rg BT 365.00 260.60 Td (s financial guaranty insurance subsidiary) Tj ET Q q 0 0 0 rg BT 527.63 260.60 Td (, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.60 Td (Assured, for a purchase price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.98 248.60 Td ($810 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.38 248.60 Td (, subject to certain adjustments. ) Tj ET Q q 0 0 0 rg BT 419.77 248.60 Td (The purchase price is payable in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 236.60 Td (cash on the closing date. Radian expects to complete the sale of Radian ) Tj ET Q q 0 0 0 rg BT 336.63 236.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 360.80 236.60 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 414.68 236.60 Td (Assured in the first half of 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 224.60 Td (subject to satisfaction of customary closing conditions including regulatory approvals.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 207.60 Td (The divestiture is part of Radian) Tj ET Q q 0 0 0 rg BT 203.91 207.60 Td (s strategy to focus its business toward the mortgage and real estate markets and to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.60 Td (accelerate its ability to comply with the proposed PMIERs. ) Tj ET Q q 0 0 0 rg BT 288.16 195.60 Td (The consummation of the transaction is expected to increase Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.60 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 89.49 183.60 Td (s ) Tj ET Q q 0 0 0 rg BT 95.33 183.60 Td (A) Tj ET Q q 0 0 0 rg BT 101.80 183.60 Td (vailable ) Tj ET Q q 0 0 0 rg BT 135.40 183.60 Td (Assets, as required under the PMIERs, by the net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.66 183.60 Td ($790 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.05 183.60 Td (. See Note 1 for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 171.60 Td (additional information regarding the PMIERs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 154.60 Td (Based upon the applicable terms of the Radian ) Tj ET Q q 0 0 0 rg BT 260.28 154.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 284.45 154.60 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 391.93 154.60 Td (Agreement, we determined that Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 73.67 142.60 Td (Assurance met the criteria for held for sale and discontinued operations accounting at December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 500.75 142.60 Td (As a result, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.60 Td (recognized an approximate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.28 130.60 Td ($468 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.67 130.60 Td ( pre-tax impairment char) Tj ET Q q 0 0 0 rg BT 310.61 130.60 Td (ge for the year ended December 31, 2014, which is reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.60 Td (loss from discontinued operations in the Consolidated Statements of Operations and in other liabilities in the table below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 106.60 Td (summarizing the major components of assets and liabilities held for sale on the Consolidated Balance Sheets. ) Tj ET Q q 0 0 0 rg BT 488.94 106.60 Td (W) Tj ET Q q 0 0 0 rg BT 497.58 106.60 Td (e have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 94.60 Td (reclassified the related operating results as discontinued operations for all periods presented in our consolidated statements of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 82.60 Td (operations. No general corporate overhead or interest expense was allocated to discontinued operations. ) Tj ET Q endstream endobj 281 0 obj <> endobj 282 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Previously) Tj ET Q q 0 0 0 rg BT 114.13 708.60 Td (, Radian ) Tj ET Q q 0 0 0 rg BT 149.40 708.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 173.57 708.60 Td (Assurance comprised substantially all of the financial guaranty segment. Radian ) Tj ET Q q 0 0 0 rg BT 496.54 708.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 520.71 708.60 Td (Assurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (provides direct insurance and reinsurance on credit-based risks. ) Tj ET Q q 0 0 0 rg BT 305.24 696.60 Td (As a result, the assets and liabilities associated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (discontinued operations have historically been a source of significant volatility to Radian) Tj ET Q q 0 0 0 rg BT 408.57 684.60 Td (s results of operations, due to various ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (factors including fluctuations in fair value and credit risk. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 655.60 Td (Although closing under the Radian ) Tj ET Q q 0 0 0 rg BT 213.92 655.60 Td (Asset Stock Purchase ) Tj ET Q q 0 0 0 rg BT 301.97 655.60 Td (Agreement is subject to conditions, the purchase price is not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (subject to adjustment based on Radian ) Tj ET Q q 0 0 0 rg BT 205.03 643.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 229.20 643.60 Td (Assurance) Tj ET Q q 0 0 0 rg BT 273.63 643.60 Td (s results of operations, changes in valuation or market conditions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (occurring after December 31, 2014 through the closing date. ) Tj ET Q q 0 0 0 rg BT 293.40 631.60 Td (Therefore, assuming satisfaction of the closing conditions, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (we expect will be satisfied, the financial results of Radian ) Tj ET Q q 0 0 0 rg BT 282.48 619.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 306.65 619.60 Td (Assurance are not expected to have an impact on Radian) Tj ET Q q 0 0 0 rg BT 535.73 619.60 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (financial condition or results of operations after December 31, 2014 and therefore, significant estimates associated with Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 73.67 595.60 Td (Assurance) Tj ET Q q 0 0 0 rg BT 118.10 595.60 Td (s assets and liabilities are not subject to risks and uncertainties that could materially af) Tj ET Q q 0 0 0 rg BT 462.82 595.60 Td (fect amounts reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (our financial statements in future periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 566.60 Td (Summarized financial information regarding discontinued operations is provided in the tables below) Tj ET Q q 0 0 0 rg BT 472.63 566.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 549.60 Td (The loss from discontinued operations consisted of the following components for the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 519.1 m 393 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 519.1 m 399 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 519.1 m 464 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 519.1 m 470 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 519.1 m 535 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 519.1 m 393 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 504.1 m 393 504.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 519.1 m 464 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 504.1 m 464 504.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 519.1 m 470 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 464 504.1 m 470 504.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 519.1 m 535 519.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 504.1 m 535 504.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 504.1 m 464 504.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 504.1 m 535 504.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 384.1 m 393 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 384.1 m 464 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 384.1 m 535 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 384.1 m 393 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 369.1 m 393 369.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 384.1 m 464 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 369.1 m 464 369.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 384.1 m 535 384.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 369.1 m 535 369.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 309.1 m 393 309.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 309.1 m 464 309.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 309.1 m 535 309.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 309.1 m 393 309.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 294.1 m 393 294.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 309.1 m 464 309.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 294.1 m 464 294.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 309.1 m 535 309.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 294.1 m 535 294.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 264.1 m 393 264.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 264.1 m 464 264.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 264.1 m 535 264.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 219.10000000000002 m 393 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 219.10000000000002 m 464 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 219.10000000000002 m 535 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 219.10000000000002 m 393 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 205.10000000000002 m 393 205.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 328 203.10000000000002 m 393 203.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 219.10000000000002 m 464 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 205.10000000000002 m 464 205.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 203.10000000000002 m 464 203.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 219.10000000000002 m 535 219.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 205.10000000000002 m 535 205.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 470 203.10000000000002 m 535 203.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.70 523.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 78.5 507.080078125 m 128.078125 507.080078125 l s q 0 0 0 rg BT 78.50 508.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.00 508.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.00 508.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 494.00 508.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 494.67 Td (Net premiums earned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.00 494.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 493.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 493.77 Td (37,194) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 493.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 493.77 Td (49,474) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 493.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 493.77 Td (36,598) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 479.67 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.00 479.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 478.77 Td (35,633) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 478.77 Td (39,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 478.77 Td (41,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 464.67 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 464.67 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 463.77 Td (51,409) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 463.82 Td (\(50,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 463.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 463.77 Td (70,606) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 449.67 Td (Impairment losses on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.00 449.67 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.15 448.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.80 448.82 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 448.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.80 448.82 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 448.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 434.67 Td (Change in fair value of derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.00 434.67 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 433.77 Td (130,617) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 433.82 Td (\(32,406) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 433.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.30 433.82 Td (\(143,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 433.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 419.67 Td (Net gains \(losses\) on other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.00 419.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.65 418.77 Td (3,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 418.77 Td (2,845) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.30 418.82 Td (\(90,071) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 418.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 404.67 Td (Gain on sale of affiliate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 404.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.15 403.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 403.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.65 403.77 Td (7,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 389.67 Td (Other income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.00 389.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.15 388.77 Td (88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.80 388.82 Td (\(20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 388.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 388.77 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 374.67 Td (Total revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.00 374.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 373.77 Td (258,844) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 373.77 Td (9,081) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.30 373.82 Td (\(77,337) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 373.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 344.67 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.00 344.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.65 343.77 Td (2,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 343.77 Td (2,486) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 343.77 Td (37,664) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 329.67 Td (Policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 329.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.65 328.77 Td (6,340) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 328.77 Td (13,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 328.77 Td (27,745) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 314.67 Td (Other operating expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.00 314.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 313.77 Td (23,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 313.77 Td (27,127) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 313.77 Td (29,010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 299.67 Td (Total expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.00 299.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 298.77 Td (32,919) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 298.77 Td (42,791) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 298.77 Td (94,419) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 269.67 Td (Equity in net \(loss\) income of affiliates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.00 269.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.80 268.82 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 268.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.15 268.77 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.80 268.82 Td (\(13) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 268.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 254.67 Td (Income \(loss\) from operations of businesses held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.00 254.67 Td (. . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.65 253.77 Td (225,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 253.82 Td (\(33,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 253.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.30 253.82 Td (\(171,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 253.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 239.67 Td (Loss on classification as held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.00 239.67 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.30 238.82 Td (\(467,527) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 238.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 238.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.15 238.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 224.67 Td (Income tax provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.00 224.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 223.77 Td (58,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 223.77 Td (21,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.65 223.77 Td (55,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.50 209.67 Td (Loss from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.00 209.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.50 208.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.30 208.82 Td (\(300,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 208.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.50 208.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.30 208.82 Td (\(55,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 208.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.50 208.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.30 208.82 Td (\(227,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 208.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 283 0 obj <> endobj 284 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (The assets and liabilities associated with the discontinued operations have been segregated in the consolidated balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (sheets. ) Tj ET Q q 0 0 0 rg BT 78.76 696.60 Td (The following table summarizes the major components of Radian ) Tj ET Q q 0 0 0 rg BT 342.86 696.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 367.03 696.60 Td (Assurance) Tj ET Q q 0 0 0 rg BT 411.46 696.60 Td (s assets and liabilities held for sale on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (the Consolidated Balance Sheets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.80 684.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.04 684.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.48 684.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.48 684.60 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 656.1 m 389.5 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389.5 656.1 m 395.5 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 656.1 m 460.5 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 656.1 m 389.5 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 641.1 m 389.5 641.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 656.1 m 460.5 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 641.1 m 460.5 641.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 641.1 m 389.5 641.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 641.1 m 460.5 641.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 551.1 m 389.5 551.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 551.1 m 460.5 551.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 537.1 m 389.5 537.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 535.1 m 389.5 535.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 537.1 m 460.5 537.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 535.1 m 460.5 535.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 535.1 m 389.5 535.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 537.1 m 389.5 537.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 535.1 m 460.5 535.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 537.1 m 460.5 537.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 446.1 m 389.5 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 446.1 m 460.5 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 446.1 m 389.5 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 432.1 m 389.5 432.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324.5 430.1 m 389.5 430.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 446.1 m 460.5 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 432.1 m 460.5 432.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 395.5 430.1 m 460.5 430.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.75 660.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 75 644.080078125 m 124.578125 644.080078125 l s q 0 0 0 rg BT 75.00 645.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 348.50 645.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.50 645.33 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 631.67 Td (Fixed-maturity investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.50 631.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 630.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 630.77 Td (224,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 630.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 630.77 Td (85,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 616.67 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.50 616.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 615.77 Td (3,749) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 615.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 601.67 Td (Trading securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.50 601.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 600.77 Td (689,887) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 600.77 Td (884,696) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 586.67 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.50 586.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 585.77 Td (435,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 585.77 Td (493,376) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 571.67 Td (Other invested assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.50 571.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 570.77 Td (108,206) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 570.77 Td (106,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 556.67 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.50 556.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 555.77 Td (274,637) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 555.77 Td (198,581) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 541.67 Td (Total assets held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.50 541.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 540.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.65 540.77 Td (1,736,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 540.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.65 540.77 Td (1,768,061) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 511.67 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.50 511.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 510.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 510.77 Td (158,921) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 510.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 510.77 Td (201,798) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 496.67 Td (Reserve for losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.50 496.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 495.77 Td (31,558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 495.77 Td (21,069) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 481.67 Td (VIE debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 481.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 480.77 Td (85,016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 480.77 Td (91,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 466.67 Td (Derivative liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.50 466.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 465.77 Td (183,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 465.77 Td (307,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 451.67 Td (Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.50 451.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 450.77 Td (488,143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 450.77 Td (20,767) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.00 436.67 Td (Total liabilities held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.50 436.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 435.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 435.77 Td (947,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.00 435.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 435.77 Td (642,619) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.60 Td (The following table provides highlights of financial guaranty derivative contracts as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 380.1 m 431.5 380.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431.5 380.1 m 436.5 380.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 380.1 m 496.5 380.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 380.1 m 431.5 380.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 365.1 m 431.5 365.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 380.1 m 496.5 380.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 365.1 m 496.5 365.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 365.1 m 431.5 365.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 436.5 365.1 m 496.5 365.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.25 384.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 117 368.080078125 m 171.6875 368.080078125 l s q 0 0 0 rg BT 117.00 369.33 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.00 369.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 458.00 369.33 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 354.77 Td (Number of contracts) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.50 354.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.00 354.77 Td (74) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 354.77 Td (93) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 339.77 Td (Par/notional amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.50 339.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 339.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.60 339.77 Td (8,755,457) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 339.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.60 339.77 Td (12,269,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 324.77 Td (Total net liability) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.50 324.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 324.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 324.77 Td (159,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.00 324.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.15 324.77 Td (290,543) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 299.60 Td (The following table provides financial guaranty gross and net claim liability details by internal surveillance category ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.74 299.60 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.60 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 287.60 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 217 235.10000000000002 m 282 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 235.10000000000002 m 351 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 235.10000000000002 m 421 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 235.10000000000002 m 490 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 235.10000000000002 m 559 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 217 235.10000000000002 m 282 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 286 235.10000000000002 m 351 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 235.10000000000002 m 421 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 235.10000000000002 m 490 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 235.10000000000002 m 559 235.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 217 175.10000000000002 m 282 175.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 175.10000000000002 m 421 175.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 175.10000000000002 m 559 175.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 217 175.10000000000002 m 282 175.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 217 161.10000000000002 m 282 161.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 217 159.10000000000002 m 282 159.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 175.10000000000002 m 421 175.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 161.10000000000002 m 421 161.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 356 159.10000000000002 m 421 159.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 175.10000000000002 m 490 175.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 161.10000000000002 m 490 161.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 425 159.10000000000002 m 490 159.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 175.10000000000002 m 559 175.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 161.10000000000002 m 559 161.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 494 159.10000000000002 m 559 159.10000000000002 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 54.5 238.080078125 m 109.1875 238.080078125 l s q 0 0 0 rg BT 54.50 239.33 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 230.50 247.33 Td (Number of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 236.10 239.33 Td (Policies) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 299.30 263.33 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 301.30 255.33 Td (weighted-) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 289.45 247.33 Td (average contract) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 294.10 239.33 Td (period \(years\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.60 247.33 Td (Gross Claim) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.30 239.33 Td (Liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.70 247.33 Td (Gross Potential) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.55 239.33 Td (Recoveries) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 508.55 255.33 Td (Net Claim) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 498.55 247.33 Td (Liability \(Asset\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.30 239.33 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 224.77 Td (Performing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.00 224.67 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.15 224.77 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.50 224.77 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 224.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.15 224.77 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.50 224.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.15 224.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 224.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.15 224.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 209.77 Td (Special Mention) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.00 209.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 209.77 Td (166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.50 209.77 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 209.77 Td (14,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.65 209.77 Td (1,733) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 209.77 Td (4,540) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 194.77 Td (Intensified Surveillance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 194.67 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.15 194.77 Td (85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.50 194.77 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 194.77 Td (219,594) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 194.77 Td (269,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 194.77 Td (37,328) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.50 179.77 Td (Case Reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 179.67 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.15 179.77 Td (91) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.50 179.77 Td (19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.65 179.77 Td (35,467) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.65 179.77 Td (47,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.30 179.82 Td (\(12,302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.15 179.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.00 164.77 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 164.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 164.77 Td (347) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.50 164.77 Td (17) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.50 164.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.65 164.77 Td (269,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.50 164.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.65 164.77 Td (318,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.50 164.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 164.77 Td (29,566) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 148.60 Td (________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.60 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 136.60 Td (Net of discount and unearned premium reserves.) Tj ET Q endstream endobj 285 0 obj <> endobj 286 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (142) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.00 708.60 Td (The following is a brief description of each of the surveillance categories listed above:) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 691.60 Td (Performing-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.44 691.60 Td (Performing credits generally have investment grade internal ratings, denoting nominal to moderate credit risk. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 674.60 Td (Special mention-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.48 674.60 Td (This category includes insured transactions that are rated no more than two rating levels below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.60 Td (investment grade. ) Tj ET Q q 0 0 0 rg BT 122.54 662.60 Td (Although these insured transactions typically are not performing as expected, we have determined that such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 650.60 Td (transactions are not expected to have severe, prolonged stress and we do not believe that claim payments are imminent. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 633.60 Td (Intensified Surveillance-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.02 633.60 Td (This category includes transactions in financial guaranty) Tj ET Q q 0 0 0 rg BT 398.84 633.60 Td (s insured portfolio that are rated below ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 621.60 Td (investment grade and indicate a severe and often permanent adverse change in the transaction) Tj ET Q q 0 0 0 rg BT 426.84 621.60 Td (s credit profile. ) Tj ET Q q 0 0 0 rg BT 489.97 621.60 Td (T) Tj ET Q q 0 0 0 rg BT 495.73 621.60 Td (ransactions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 609.60 Td (this category are still performing, meaning they have not yet defaulted on a payment, but our risk management department has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 597.60 Td (determined that there is a substantial likelihood of default.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 580.60 Td (Case Reserves-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.37 580.60 Td (This category consists of insured transactions where a payment default on the insured obligation has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.60 Td (occurred. ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (4. Segment Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 514.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 514.60 Td (e currently have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.05 514.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.05 514.60 Td ( strategic business units that we manage separatelymortgage insurance and, ef) Tj ET Q q 0 0 0 rg BT 483.15 514.60 Td (fective with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.60 Td (June 30, 2014 acquisition of Clayton, MRES. ) Tj ET Q q 0 0 0 rg BT 233.39 502.60 Td (As a result of the Radian ) Tj ET Q q 0 0 0 rg BT 334.48 502.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 358.65 502.60 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 466.12 502.60 Td (Agreement to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.83 490.60 Td ( of the issued and outstanding shares of Radian ) Tj ET Q q 0 0 0 rg BT 263.07 490.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 287.24 490.60 Td (Assurance, we have reclassified the operating results related to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.60 Td (pending disposition as discontinued operations for all periods presented in our consolidated statements of operations and no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.60 Td (longer present a financial guaranty segment. Certain corporate income and expenses that were previously allocated to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.60 Td (financial guaranty segment but were not reclassified to discontinued operations, such as investment income, interest expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 442.60 Td (and corporate overhead expenses, have been reallocated to the mortgage insurance segment. Prior periods have been revised to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.60 Td (conform to the current period presentation for these changes. See Note 3 for additional information related to discontinued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.60 Td (operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 401.60 Td (In addition to amounts previously allocated to the financial guaranty segment, we allocate corporate expenses to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.60 Td (mortgage insurance segment based on an allocated percentage of time spent on the mortgage insurance segment. In addition, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.60 Td (have allocated all corporate cash and investments to our mortgage insurance segment, as well as all interest expense other than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.60 Td (the expense related to the Senior Notes due 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 348.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 348.60 Td (e allocate to our MRES segment: \(i\) corporate expenses based on an allocated percentage of time spent on the MRES ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.60 Td (segment; and \(ii\) as noted above, all interest expense related to the Senior Notes due 2019 as the issuance proceeds funded our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (acquisition of Clayton. No corporate cash or investments are allocated to the MRES segment. Because the Clayton acquisition ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (occurred on June 30, 2014, we have included its results of operations from the date of acquisition. Inter) Tj ET Q q 0 0 0 rg BT 462.52 312.60 Td (-segment activities are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.60 Td (recorded at market rates for segment reporting and eliminated in consolidation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 283.60 Td (Ef) Tj ET Q q 0 0 0 rg BT 80.76 283.60 Td (fective with the fourth quarter of 2014, the MRES business undertook the management responsibilities of certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.60 Td (additional loan servicer surveillance functions previously considered part of the mortgage insurance segment. ) Tj ET Q q 0 0 0 rg BT 489.36 271.60 Td (As a result, these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 259.60 Td (activities are now reported in the MRES segment for all periods presented.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 242.60 Td (Adjusted Pr) Tj ET Q q 0 0 0 rg BT 96.62 242.60 Td (etax Operating Income \(Loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 225.60 Td (Our senior management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 306.25 225.60 Td (ficer \(our chief operating decision maker\), uses adjusted pretax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 213.60 Td (operating income \(loss\) as our primary measure to evaluate the fundamental financial performance of Radian) Tj ET Q q 0 0 0 rg BT 488.77 213.60 Td (s business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 201.60 Td (segments and to allocate resources to the segments. ) Tj ET Q q 0 0 0 rg BT 256.94 201.60 Td (Adjusted pretax operating income \(loss\) is defined as pretax income \(loss\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 189.60 Td (from continuing operations excluding the ef) Tj ET Q q 0 0 0 rg BT 225.11 189.60 Td (fects of net gains \(losses\) on investments and other financial instruments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.60 Td (acquisition-related expenses, amortization and impairment of intangible assets and net impairment losses recognized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.60 Td (earnings. It also excludes gains and losses related to changes in fair value estimates on insured credit derivatives and instead ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.60 Td (includes the impact of changes in the present value of expected insurance claims and recoveries on insured credit derivatives, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.60 Td (based on our ongoing insurance loss monitoring. Management) Tj ET Q q 0 0 0 rg BT 301.68 141.60 Td (s use of this measure as its primary measure to evaluate segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.60 Td (performance began with the quarter ended March 31, 2014. ) Tj ET Q q 0 0 0 rg BT 289.13 129.60 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 338.47 129.60 Td (, for comparison purposes, we also present the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.60 Td (applicable measures from the corresponding periods of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.93 117.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.93 117.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.37 117.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.37 117.60 Td ( on a basis consistent with the current year presentation.) Tj ET Q endstream endobj 287 0 obj <> endobj 288 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 708.60 Td (Although adjusted pretax operating income \(loss\) excludes certain items that have occurred in the past and are expected to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (occur in the future, the excluded items represent those that are: \(1\) not viewed as part of the operating performance of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (primary activities; or \(2\) not expected to result in an economic impact equal to the amount reflected in pretax income \(loss\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (from continuing operations. ) Tj ET Q q 0 0 0 rg BT 163.19 672.60 Td (These adjustments, along with the reasons for their treatment, are described below) Tj ET Q q 0 0 0 rg BT 491.59 672.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 655.60 Td (\(1\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 655.60 Td (Change in fair value of derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.92 655.60 Td (. Gains and losses related to changes in the fair value of insured credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 643.60 Td (derivatives are subject to significant fluctuation based on changes in interest rates, credit spreads, credit ratings and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 631.60 Td (other market, asset-class and transaction-specific conditions and factors that may be unrelated or only indirectly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 619.60 Td (related to our obligation to pay future claims. ) Tj ET Q q 0 0 0 rg BT 268.88 619.60 Td (W) Tj ET Q q 0 0 0 rg BT 277.92 619.60 Td (ith the exception of the estimated present value of net credit \(losses\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 607.60 Td (recoveries incurred discussed in item 2 below) Tj ET Q q 0 0 0 rg BT 267.57 607.60 Td (, we believe these gains and losses will reverse over time and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 595.60 Td (consequently these changes are not expected to result in economic gains or losses. ) Tj ET Q q 0 0 0 rg BT 416.33 595.60 Td (Therefore, these gains and losses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 583.60 Td (are excluded from our calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 566.60 Td (\(2\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 566.60 Td (Estimated pr) Tj ET Q q 0 0 0 rg BT 136.52 566.60 Td (esent value of net cr) Tj ET Q q 0 0 0 rg BT 216.67 566.60 Td (edit \(losses\) r) Tj ET Q q 0 0 0 rg BT 270.74 566.60 Td (ecoveries incurr) Tj ET Q q 0 0 0 rg BT 335.62 566.60 Td (ed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.56 566.60 Td ( ) Tj ET Q q 0 0 0 rg BT 352.38 566.60 Td (The change in present value of insurance claims we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 554.60 Td (expect to pay or recover on insured credit derivatives represents the amount of the change in credit derivatives from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 542.60 Td (item 1 above, that we expect to result in an economic loss or recovery based on our ongoing loss monitoring analytics. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 530.60 Td (Therefore, this item is expected to have an economic impact and is included in our calculation of adjusted pretax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 518.60 Td (operating income \(loss\). ) Tj ET Q q 0 0 0 rg BT 184.37 518.60 Td (Also included in this item is the change in expected economic loss or recovery associated with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 506.60 Td (our consolidated ) Tj ET Q q 0 0 0 rg BT 154.19 506.60 Td (VIEs.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 489.60 Td (\(3\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 489.60 Td (Net gains \(losses\) on investments and other financial instruments. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.59 489.60 Td ( ) Tj ET Q q 0 0 0 rg BT 353.91 489.60 Td (The recognition of realized investment gains or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 477.60 Td (losses can vary significantly across periods as the activity is highly discretionary based on the timing of individual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 465.60 Td (securities sales due to such factors as market opportunities, our tax and capital profile and overall market cycles. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 453.60 Td (Unrealized investment gains and losses arise primarily from changes in the market value of our investments that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 441.60 Td (classified as trading. ) Tj ET Q q 0 0 0 rg BT 169.74 441.60 Td (These valuation adjustments may not necessarily result in economic gains or losses. ) Tj ET Q q 0 0 0 rg BT 507.54 441.60 Td (W) Tj ET Q q 0 0 0 rg BT 516.17 441.60 Td (e do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 429.60 Td (view them to be indicative of our fundamental operating activities. ) Tj ET Q q 0 0 0 rg BT 354.40 429.60 Td (T) Tj ET Q q 0 0 0 rg BT 360.16 429.60 Td (rends in the profitability of our fundamental ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 417.60 Td (operating activities can be more clearly identified without the fluctuations of these realized and unrealized gains or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 405.60 Td (losses. ) Tj ET Q q 0 0 0 rg BT 114.21 405.60 Td (Therefore, these items are excluded from our calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 388.60 Td (\(4\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 388.60 Td (Acquisition-r) Tj ET Q q 0 0 0 rg BT 137.90 388.60 Td (elated expenses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.87 388.60 Td (Acquisition-related expenses represent the costs incurred to ef) Tj ET Q q 0 0 0 rg BT 456.21 388.60 Td (fect an acquisition of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 376.60 Td (business \(i.e., a business combination\). Because we pursue acquisitions on a limited and selective basis and not in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 364.60 Td (ordinary course of our business, we do not view acquisition-related expenses as a consequence of a primary business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 352.60 Td (activity) Tj ET Q q 0 0 0 rg BT 114.84 352.60 Td (. ) Tj ET Q q 0 0 0 rg BT 119.66 352.60 Td (Therefore, we do not consider these expenses to be part of our operating performance and they are excluded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 340.60 Td (from our calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 67.50 323.60 Td (\(5\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 323.60 Td (Amortization and impairment of intangible assets. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.56 323.60 Td ( ) Tj ET Q q 0 0 0 rg BT 290.50 323.60 Td (Amortization of intangible assets represents the periodic expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 311.60 Td (required to amortize the cost of intangible assets over their estimated useful lives. Intangible assets with an indefinite ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 299.60 Td (useful life are also periodically reviewed for potential impairment and impairment adjustments are made whenever ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 287.60 Td (appropriate. ) Tj ET Q q 0 0 0 rg BT 135.85 287.60 Td (These char) Tj ET Q q 0 0 0 rg BT 179.25 287.60 Td (ges are not viewed as part of the operating performance of our primary activities and therefore ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 275.60 Td (are excluded from our calculation of adjusted pretax operating income \(loss\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 258.60 Td (\(6\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 85.50 258.60 Td (Net impairment losses r) Tj ET Q q 0 0 0 rg BT 180.41 258.60 Td (ecognized in earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.67 258.60 Td ( ) Tj ET Q q 0 0 0 rg BT 272.99 258.60 Td (The recognition of net impairment losses on investments can vary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 246.60 Td (significantly in both size and timing, depending on market credit cycles. ) Tj ET Q q 0 0 0 rg BT 376.63 246.60 Td (W) Tj ET Q q 0 0 0 rg BT 385.27 246.60 Td (e do not view these impairment losses to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 234.60 Td (indicative of our fundamental operating activities. ) Tj ET Q q 0 0 0 rg BT 287.75 234.60 Td (Therefore, whenever these losses occur) Tj ET Q q 0 0 0 rg BT 444.78 234.60 Td (, we exclude them from our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 222.60 Td (calculation of adjusted pretax operating income \(loss\).) Tj ET Q endstream endobj 289 0 obj <> endobj 290 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (144) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 708.60 Td (Summarized financial information concerning our operating segments, as of and for the periods indicated, is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 680.1 m 391 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391 680.1 m 397 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 680.1 m 454 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 680.1 m 460 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 680.1 m 517 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 680.1 m 391 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 656.1 m 391 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391 680.1 m 397 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 680.1 m 454 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 656.1 m 454 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 680.1 m 460 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 680.1 m 517 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 656.1 m 517 656.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 626.1 m 391 626.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 626.1 m 454 626.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 626.1 m 517 626.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 626.1 m 454 626.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 626.1 m 517 626.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 566.1 m 391 566.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 566.1 m 517 566.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 566.1 m 391 566.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 551.1 m 391 551.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 566.1 m 454 566.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 551.1 m 454 551.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 566.1 m 517 566.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 551.1 m 517 551.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 551.1 m 391 551.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 551.1 m 517 551.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 446.1 m 391 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 446.1 m 454 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 446.1 m 517 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 446.1 m 454 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 431.1 m 454 431.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 446.1 m 517 446.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 431.1 m 517 431.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 431.1 m 391 431.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 431.1 m 454 431.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 431.1 m 517 431.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 402.1 m 391 402.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 400.1 m 391 400.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 402.1 m 454 402.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 400.1 m 454 400.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 402.1 m 517 402.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 400.1 m 517 400.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.75 684.33 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 659.080078125 m 126.078125 659.080078125 l s q 0 0 0 rg BT 76.50 660.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.30 668.33 Td (Mortgage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 344.85 660.33 Td (Insurance) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.75 660.33 Td (MRES \(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.25 660.33 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 645.77 Td (Net premiums writteninsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 645.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 645.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 645.77 Td (925,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 645.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 645.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 645.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 645.77 Td (925,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 631.67 Td (Increase in unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.00 631.67 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.30 630.82 Td (\(80,653) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 630.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 630.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.30 630.82 Td (\(80,653) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.15 630.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 615.77 Td (Net premiums earnedinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 615.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 615.77 Td (844,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 615.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 615.77 Td (844,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 600.77 Td (Services revenue \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 600.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 600.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 600.77 Td (76,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 600.77 Td (76,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 585.77 Td (Net investment income \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.00 585.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 585.77 Td (65,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 585.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 585.77 Td (65,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 570.77 Td (Other income \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.00 570.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.65 570.77 Td (5,321) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.65 570.77 Td (1,265) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 570.77 Td (6,586) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 555.77 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 555.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 555.77 Td (915,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 555.77 Td (77,974) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 555.77 Td (993,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.50 555.77 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 525.77 Td (Provision for losses \(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 525.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 525.77 Td (246,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 525.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 525.77 Td (246,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 510.77 Td (Estimated present value of net credit recoveries incurred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.00 510.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 510.77 Td (113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 510.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.15 510.77 Td (113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 495.77 Td (Policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 495.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 495.77 Td (24,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 495.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 495.77 Td (24,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 480.77 Td (Direct cost of services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 480.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 480.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 480.77 Td (43,605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 480.77 Td (43,605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 465.77 Td (Other operating expenses \(3\) \(6\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 465.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 465.77 Td (225,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 465.77 Td (20,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 465.77 Td (245,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 450.77 Td (Interest expense \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 450.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 450.77 Td (81,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.65 450.77 Td (8,864) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 450.77 Td (90,464) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 435.77 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 435.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 435.77 Td (578,568) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 435.77 Td (72,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 435.77 Td (651,096) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 405.77 Td (Adjusted pretax operating income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 405.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 405.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 405.77 Td (336,936) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 405.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.65 405.77 Td (5,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 405.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 405.77 Td (342,382) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 375.77 Td (Cash and investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 375.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 375.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 375.77 Td (3,649,582) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 375.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 375.77 Td (10,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 375.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.10 375.77 Td (3,659,764) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 360.77 Td (Restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 360.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 360.77 Td (11,508) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.65 360.77 Td (2,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 360.77 Td (14,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 345.77 Td (Deferred policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 345.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 345.77 Td (12,003) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 345.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 345.77 Td (12,003) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 330.77 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 330.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 330.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 330.77 Td (191,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 330.77 Td (191,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 315.77 Td (Other intangible assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.00 315.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 315.77 Td (137) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 315.77 Td (96,171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 315.77 Td (96,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 300.77 Td (Assets held for sale \(7\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 300.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 300.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 300.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.10 300.77 Td (1,736,444) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 285.77 Td (Total assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 285.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 285.77 Td (4,786,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.65 285.77 Td (336,878) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.10 285.77 Td (6,859,963) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 270.77 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 270.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 270.77 Td (644,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 270.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 270.77 Td (644,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 255.77 Td (Reserve for losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 255.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.10 255.77 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.15 255.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.10 255.77 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 225.77 Td (NIW \(in millions\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 225.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.50 225.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.65 225.77 Td (37,349) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 209.60 Td (________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 197.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 197.60 Td (Includes the acquisition of Clayton, ef) Tj ET Q q 0 0 0 rg BT 224.56 197.60 Td (fective June 30, 2014.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 185.60 Td (Includes a de minimis amount of inter) Tj ET Q q 0 0 0 rg BT 223.99 185.60 Td (-segment revenues in the MRES segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.60 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 173.60 Td (Includes corporate income and expenses that have been reallocated to the mortgage insurance segment that were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 161.60 Td (previously allocated to the financial guaranty segment, but were not reclassified to discontinued operations. ) Tj ET Q q 0 0 0 rg BT 504.47 161.60 Td (These items ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 149.60 Td (include net investment income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.80 149.60 Td ($4.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.69 149.60 Td (, other income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 149.60 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.39 149.60 Td (, interest expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.86 149.60 Td ($53.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.75 149.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 137.60 Td (corporate overhead expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.83 137.60 Td ($13.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.72 137.60 Td ( for the year ended December 31, 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.60 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 125.60 Td (Excludes the following revenue items not included in adjusted pretax operating income: \(a\) net gains on investments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 113.60 Td ($83.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.89 113.60 Td (; and \(b\) net losses on other financial instruments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.40 113.60 Td ($3.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.29 113.60 Td (. Includes inter) Tj ET Q q 0 0 0 rg BT 444.79 113.60 Td (-segment revenues of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.82 113.60 Td ($0.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 101.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.89 101.60 Td ( in the MRES segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.60 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 89.60 Td (Includes inter) Tj ET Q q 0 0 0 rg BT 126.50 89.60 Td (-segment expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.09 89.60 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.98 89.60 Td ( in the mortgage insurance segment.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 77.60 Td (\(6\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 77.60 Td (Excludes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 111.16 77.60 Td ($6.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.05 77.60 Td ( of acquisition-related expenses not included in segment other operating expenses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 65.60 Td (\(7\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 65.60 Td (Assets held for sale are not part of the mortgage insurance or MRES segments.) Tj ET Q endstream endobj 291 0 obj <> endobj 292 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (145) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 700 m 367 700 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 700 m 373 700 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 700 m 430 700 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 700 m 367 700 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 687 m 367 687 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 700 m 373 700 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 700 m 430 700 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 687 m 430 687 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 687 m 367 687 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 674 m 367 674 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 687 m 373 687 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 687 m 430 687 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 674 m 430 674 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 644 m 367 644 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 644 m 430 644 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 644 m 430 644 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 599 m 367 599 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 599 m 430 599 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 599 m 367 599 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 584 m 367 584 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 599 m 430 599 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 584 m 430 584 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 584 m 367 584 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 584 m 430 584 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 484 m 367 484 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 484 m 430 484 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 484 m 367 484 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 469 m 367 469 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 484 m 430 484 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 469 m 430 469 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 469 m 367 469 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 469 m 430 469 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 440 m 367 440 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310 438 m 367 438 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 440 m 430 440 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 438 m 430 438 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.70 704.23 Td (Mortgage Insurance) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 346.25 691.23 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 676.980078125 m 102.078125 676.980078125 l s q 0 0 0 rg BT 52.50 678.23 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 330.00 678.23 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.00 678.23 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 663.67 Td (Net premiums writteninsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 663.57 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.50 663.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 663.67 Td (950,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 663.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 663.67 Td (806,305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 649.57 Td (Increase in unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.00 649.57 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.30 648.72 Td (\(169,578) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 648.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.30 648.72 Td (\(103,920) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 648.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 633.67 Td (Net premiums earnedinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 633.57 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 633.67 Td (781,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 633.67 Td (702,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 618.67 Td (Net investment income \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 618.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 618.67 Td (68,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 618.67 Td (72,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 603.67 Td (Other income \(2\) \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.00 603.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 603.67 Td (6,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.65 603.67 Td (5,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 588.67 Td (Total \(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 588.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 588.67 Td (855,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 588.67 Td (780,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 558.67 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.00 558.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 558.67 Td (562,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 558.67 Td (921,548) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 543.67 Td (Estimated present value of net credit \(recoveries\) losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 533.67 Td (incurred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 533.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.80 533.72 Td (\(21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 533.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.15 533.67 Td (933) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 518.67 Td (Policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.00 518.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 518.67 Td (28,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 518.67 Td (34,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 503.67 Td (Other operating expenses \(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.00 503.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 503.67 Td (257,402) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 503.67 Td (167,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 488.67 Td (Interest expense \(6\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.00 488.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 488.67 Td (74,618) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 488.67 Td (51,832) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 473.67 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.00 473.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 473.67 Td (923,231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.10 473.67 Td (1,176,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 443.67 Td (Adjusted pretax operating loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 443.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.50 443.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.30 443.72 Td (\(67,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 443.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 443.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.30 443.72 Td (\(395,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.15 443.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 413.67 Td (Cash and investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.00 413.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.50 413.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 413.67 Td (3,384,558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 413.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.10 413.67 Td (3,447,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 398.67 Td (Restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 398.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 398.67 Td (22,527) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 398.67 Td (24,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 383.67 Td (Deferred policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.00 383.57 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 383.67 Td (29,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 383.67 Td (38,478) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 368.67 Td (Total assets \(7\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.00 368.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 368.67 Td (3,853,630) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.10 368.67 Td (3,937,588) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 353.67 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.00 353.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.65 353.67 Td (567,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.65 353.67 Td (382,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 338.67 Td (Reserve for losses and LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.00 338.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.10 338.67 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.10 338.67 Td (3,083,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 308.67 Td (NIW \(in millions\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.00 308.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.50 308.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 308.67 Td (47,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 308.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.65 308.67 Td (37,061) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 292.50 Td (________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.50 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 280.50 Td (Net investment income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.08 280.50 Td ($6.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.98 280.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.41 280.50 Td ($9.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.31 280.50 Td ( has been reallocated to the mortgage insurance segment for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 268.50 Td (years ended December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.56 268.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.00 268.50 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 268.50 Td (, respectively) Tj ET Q q 0 0 0 rg BT 292.66 268.50 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.50 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 256.50 Td (Other income of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.03 256.50 Td ($0.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.92 256.50 Td ( has been reallocated to the mortgage insurance segment for each of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.41 256.50 Td (years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 244.50 Td (December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.58 244.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.02 244.50 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.02 244.50 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.50 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 232.50 Td (Does not include change in fair value of derivative instruments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.20 232.50 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.09 232.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.53 232.50 Td (\($0.2\) million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.08 232.50 Td ( for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 220.50 Td (December 31, 2013 and 2012, respectively) Tj ET Q q 0 0 0 rg BT 242.68 220.50 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.50 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 208.50 Td (For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.19 208.50 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.78 208.50 Td (, excludes the following revenue items not included in adjusted pretax operating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 196.50 Td (loss: \(a\) net losses on investments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.15 196.50 Td ($98.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.04 196.50 Td (; \(b\) net losses on other financial instruments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.61 196.50 Td ($7.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.50 196.50 Td (; and \(c\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 184.50 Td (change in fair value of derivative instruments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.93 184.50 Td ($0.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.82 184.50 Td (. For the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.02 184.50 Td (December31, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.60 184.50 Td (, excludes the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 172.50 Td (following revenue items not included in adjusted pretax operating loss: \(a\) net gains on investments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.13 172.50 Td ($1) Tj ET Q q 0 0 0 rg BT 493.76 172.50 Td (14.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 172.50 Td (;\(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 160.50 Td (net losses on other financial instruments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.13 160.50 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.02 160.50 Td (; and \(c\) change in fair value of derivative instruments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.77 160.50 Td (\($0.2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 148.50 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.89 148.50 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.50 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 136.50 Td (Corporate overhead expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.06 136.50 Td ($20.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.95 136.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.39 136.50 Td ($15.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.28 136.50 Td ( have been reallocated to the mortgage insurance segment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 124.50 Td (for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.88 124.50 Td (years ended December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.44 124.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.88 124.50 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.88 124.50 Td (, respectively) Tj ET Q q 0 0 0 rg BT 321.54 124.50 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.50 Td (\(6\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 112.50 Td (Interest expense of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.02 112.50 Td ($56.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.91 112.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.35 112.50 Td ($44.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.24 112.50 Td ( has been reallocated to the mortgage insurance segment for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.08 112.50 Td (years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 100.50 Td (ended December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.96 100.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.40 100.50 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.40 100.50 Td (, respectively) Tj ET Q q 0 0 0 rg BT 269.06 100.50 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.50 Td (\(7\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 88.50 Td (Does not include assets held for sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.85 88.50 Td ($1.8 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.96 88.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.40 88.50 Td ($2.0 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.51 88.50 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.89 88.50 Td (years ended December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.45 88.50 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.89 88.50 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.89 88.50 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 76.50 Td (respectively) Tj ET Q q 0 0 0 rg BT 119.66 76.50 Td (, which are not a part of the mortgage insurance segment.) Tj ET Q endstream endobj 293 0 obj <> endobj 294 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (146) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Certain corporate income and expenses have been reallocated to the mortgage insurance segment as listed above in notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (\(1\) through \(4\) to the table. ) Tj ET Q q 0 0 0 rg BT 160.68 696.60 Td (These amounts represent items that were previously allocated to the financial guaranty segment but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (were not reclassified to discontinued operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 667.60 Td (The reconciliation of adjusted pretax operating income \(loss\) to consolidated pretax income \(loss\) from continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.60 Td (operations is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 632.1 m 371 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 632.1 m 388 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 632.1 m 443 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 632.1 m 460 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 632.1 m 515 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 632.1 m 371 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 619.1 m 371 619.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 632.1 m 388 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 632.1 m 443 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 619.1 m 443 619.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 443 632.1 m 460 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 632.1 m 515 632.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 619.1 m 515 619.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 619.1 m 371 619.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 619.1 m 443 619.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 577.1 m 371 577.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 563.1 m 371 563.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 577.1 m 443 577.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 563.1 m 443 563.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 577.1 m 515 577.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 563.1 m 515 563.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 510.1 m 371 510.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 485.1 m 371 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 510.1 m 443 510.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 485.1 m 443 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 510.1 m 515 510.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 485.1 m 515 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 420.1 m 371 420.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 407.1 m 371 407.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 316 405.1 m 371 405.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 420.1 m 443 420.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 407.1 m 443 407.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 405.1 m 443 405.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 420.1 m 515 420.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 407.1 m 515 407.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 405.1 m 515 405.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.75 636.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 622.930078125 m 102.078125 622.930078125 l s q 0 0 0 rg BT 52.50 624.18 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.00 623.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.00 623.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.00 623.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 609.67 Td (Adjusted pretax operating income \(loss\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 595.67 Td (Mortgage insurance \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.00 595.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 595.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 595.67 Td (336,936) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 595.35 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 595.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 595.72 Td (\(67,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 595.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 595.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 595.72 Td (\(395,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 595.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 581.67 Td (MRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 581.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 344.65 581.67 Td (5,446) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 374.30 581.35 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 581.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 581.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 567.67 Td (Total adjusted pretax operating income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 567.67 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 567.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 567.67 Td (342,382) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 567.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 567.72 Td (\(67,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 567.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 567.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 567.72 Td (\(395,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 567.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 539.67 Td (Change in fair value of derivative instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 539.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 539.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 539.67 Td (635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.80 539.72 Td (\(192) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 539.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.50 524.77 Td (Less: Estimated present value of net credit \(losses\) recoveries) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 514.77 Td (incurred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.00 514.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.80 514.82 Td (\(113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 514.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 514.77 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.80 514.82 Td (\(933) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 514.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 499.77 Td (Change in fair value of derivative instruments expected to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 489.77 Td (reverse over time) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.00 489.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.15 489.77 Td (113) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.15 489.77 Td (614) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.15 489.77 Td (741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 466.67 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.00 466.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.65 466.67 Td (83,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.30 466.72 Td (\(98,945) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 466.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 466.67 Td (114,282) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 452.67 Td (Net \(losses\) gains on other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.00 452.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.30 452.72 Td (\(3,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 452.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 452.72 Td (\(7,580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 452.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 452.67 Td (7,802) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 438.67 Td (Acquisition-related expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.00 438.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.30 438.72 Td (\(6,680) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 438.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 438.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 438.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 424.67 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.00 424.67 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.30 424.72 Td (\(8,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.15 424.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.15 424.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 424.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 410.67 Td (Consolidated pretax income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 410.67 Td (. .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.50 410.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 410.67 Td (407,156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 410.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.30 410.72 Td (\(173,346) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 410.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 410.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 410.72 Td (\(272,428) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.15 410.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 394.60 Td (________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 382.60 Td (Includes inter) Tj ET Q q 0 0 0 rg BT 126.50 382.60 Td (-segment expenses of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.09 382.60 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.98 382.60 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.35 382.60 Td (year ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.02 382.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 370.60 Td (Includes certain corporate income and expenses that have been reallocated to the mortgage insurance segment for all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 358.60 Td (periods presented, as listed in the preceding detailed tables. ) Tj ET Q q 0 0 0 rg BT 311.46 358.60 Td (These amounts represent items that were previously allocated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 346.60 Td (to the financial guaranty segment but were not reclassified to discontinued operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.60 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 334.60 Td (Includes inter) Tj ET Q q 0 0 0 rg BT 126.50 334.60 Td (-segment revenues of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.52 334.60 Td ($0.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.42 334.60 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.79 334.60 Td (year ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.46 334.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 317.60 Td (On a consolidated basis, adjusted pretax operating income \(loss\) is a measure not determined in accordance with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.60 Td (GAAP) Tj ET Q q 0 0 0 rg BT 75.62 305.60 Td (. ) Tj ET Q q 0 0 0 rg BT 80.44 305.60 Td (T) Tj ET Q q 0 0 0 rg BT 85.85 305.60 Td (otal adjusted pretax operating income \(loss\) is not a measure of total profitability) Tj ET Q q 0 0 0 rg BT 409.00 305.60 Td (, and therefore should not be viewed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.60 Td (as a substitute for GAAP) Tj ET Q q 0 0 0 rg BT 149.12 293.60 Td ( pretax income \(loss\) from continuing operations. Our definition of adjusted pretax operating income ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.60 Td (\(loss\) may not be comparable to similarly-named measures reported by other companies.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 264.60 Td (Concentration of Risk) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 247.60 Td (Net premiums earned attributable to foreign countries and long-lived assets located in foreign countries were immaterial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.60 Td (for the periods presented. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 218.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 218.60 Td (, California is the only state that accounted for more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.01 218.60 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.34 218.60 Td ( of our mortgage insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.60 Td (business measured by primary RIF) Tj ET Q q 0 0 0 rg BT 188.12 206.60 Td (. California accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.36 206.60 Td (13.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.19 206.60 Td ( of our mortgage insurance segment) Tj ET Q q 0 0 0 rg BT 465.53 206.60 Td (s primary RIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.14 206.60 Td (at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.60 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 194.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.52 194.60 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.82 194.60 Td (. California also accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.67 194.60 Td (9.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.50 194.60 Td ( of our mortgage insurance segment) Tj ET Q q 0 0 0 rg BT 526.84 194.60 Td (s pool ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.60 Td (RIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.56 182.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.86 182.60 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.06 182.60 Td (10.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.89 182.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.39 182.60 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.70 182.60 Td (. California accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.93 182.60 Td (17.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.76 182.60 Td ( of our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.60 Td (insurance segment) Tj ET Q q 0 0 0 rg BT 126.42 170.60 Td (s direct primary NIW) Tj ET Q q 0 0 0 rg BT 212.04 170.60 Td ( for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.50 170.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.08 170.60 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.29 170.60 Td (18.4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.12 170.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.55 170.60 Td (17.1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.38 170.60 Td ( for the years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.60 Td (ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.88 158.60 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.46 158.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.90 158.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.90 158.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 246.56 158.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 141.60 Td (The lar) Tj ET Q q 0 0 0 rg BT 101.91 141.60 Td (gest single mortgage insurance customer \(including branches and af) Tj ET Q q 0 0 0 rg BT 373.31 141.60 Td (filiates\), measured by primary NIW) Tj ET Q q 0 0 0 rg BT 515.39 141.60 Td (, accounted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.60 Td (for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.66 129.60 Td (4.0%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.49 129.60 Td ( of NIW) Tj ET Q q 0 0 0 rg BT 117.63 129.60 Td ( during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.74 129.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.74 129.60 Td (, compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.94 129.60 Td (5.8%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.77 129.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.21 129.60 Td (6.2%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.04 129.60 Td ( from the lar) Tj ET Q q 0 0 0 rg BT 336.56 129.60 Td (gest single customer in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.99 129.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.99 129.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.43 129.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.43 129.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 543.09 129.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.60 Td (Earned premiums from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.75 117.60 Td (one) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.19 117.60 Td ( mortgage insurance customer represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.51 117.60 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.84 117.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.84 117.60 Td (21%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.17 117.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.60 117.60 Td (19%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.93 117.60 Td ( of our consolidated revenues in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 105.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 105.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 105.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 105.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.94 105.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 186.60 105.60 Td (. Earned premiums from an additional customer represented ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.02 105.60 Td (17%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.35 105.60 Td ( of our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.60 Td (revenues in 2012.) Tj ET Q endstream endobj 295 0 obj <> endobj 296 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (147) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (5. Fair) Tj ET Q q 0 0 0 rg BT 77.64 708.75 Td ( ) Tj ET Q q 0 0 0 rg BT 79.96 708.75 Td (V) Tj ET Q q 0 0 0 rg BT 86.27 708.75 Td (alue of Financial Instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 687.75 Td (The following is a list of those assets and liabilities that are measured at fair value by hierarchy level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 687.75 Td (as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 675.75 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 645.25 m 359 645.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 645.25 m 423 645.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 645.25 m 487 645.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 476.25 m 359 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 476.25 m 423 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 476.25 m 487 476.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 460.25 m 359 460.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 460.25 m 423 460.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 460.25 m 487 460.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 447.25 m 359 447.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 445.25 m 359 445.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 447.25 m 423 447.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 445.25 m 423 445.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 447.25 m 487 447.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 445.25 m 487 445.25 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 648.230078125 m 94.5078125 648.230078125 l s q 0 0 0 rg BT 52.50 649.48 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.10 649.48 Td (LevelI) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.55 649.48 Td (LevelII) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 450.25 649.48 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 636.48 Td (Assets and Liabilities at Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 621.92 Td (Investment Portfolio:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 607.82 Td (U.S. government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.00 607.82 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 607.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 607.82 Td (836.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 607.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 607.82 Td (3.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.50 607.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 607.82 Td (839.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 592.92 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 592.82 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 592.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 592.92 Td (362.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 592.92 Td (362.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 578.82 Td (Money market instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 578.82 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 578.82 Td (600.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 578.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 578.82 Td (600.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 564.82 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 564.82 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 564.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 564.82 Td (992.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 564.82 Td (992.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 550.82 Td (RMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 550.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 550.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 550.82 Td (132.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 550.82 Td (132.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 536.82 Td (CMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 536.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 536.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 536.82 Td (246.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 536.82 Td (246.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 522.82 Td (Other ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.00 522.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 522.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 522.82 Td (185.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 522.82 Td (185.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 508.82 Td (Foreign government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.00 508.82 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 508.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 508.82 Td (37.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.65 508.82 Td (37.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 494.82 Td (Equity securities \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 494.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 494.82 Td (164.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 494.82 Td (51.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.65 494.82 Td (215.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 480.82 Td (Other investments \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 480.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 480.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 480.82 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 480.82 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 464.92 Td (Total Investments at Fair Value \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 464.82 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 464.92 Td (1,601.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 464.92 Td (2,013.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 464.92 Td (3,614.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 450.82 Td (Total Assets at Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 450.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 450.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 450.82 Td (1,601.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 450.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 450.82 Td (2,013.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.50 450.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.15 450.82 Td (3,614.7) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.75 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.75 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.75 Td (Comprising broadly diversified domestic equity mutual funds and certain common stocks included within Level I and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.75 Td (various preferred stocks invested across numerous companies and industries included within Level II.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.75 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.75 Td (Comprising short-term CDs \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.50 398.75 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.39 398.75 Td (\) included within Level II.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.75 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.75 Td (Does not include certain other invested assets \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.00 386.75 Td ($14.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.89 386.75 Td (\), primarily invested in limited partnerships, accounted for as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 374.75 Td (cost-method investments and not measured at fair value. ) Tj ET Q q 0 0 0 rg BT 299.44 374.75 Td (Also excludes investments classified as assets held for sale of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 362.75 Td ($495.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.89 362.75 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.89 362.75 Td ($839.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.78 362.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.22 362.75 Td ($102.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.11 362.75 Td (, with fair values categorized in Level I, Level II and Level III, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 350.75 Td (respectively) Tj ET Q q 0 0 0 rg BT 119.66 350.75 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 329.75 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.08 329.75 Td (, there were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.50 329.75 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.50 329.75 Td ( Level III assets, and total Level III liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.59 329.75 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.49 329.75 Td ( accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.18 329.75 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.51 329.75 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.75 Td (total liabilities measured at fair value. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 300.75 Td (For the year ended December 31, 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.78 300.75 Td ($137.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.67 300.75 Td ( of U.S. government and agency securities and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.00 300.75 Td ($21.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.89 300.75 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.75 Td (equity securities were transferred from Level II to Level I at the end of the period as a result of our ongoing review of the inputs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.75 Td (to the valuations of our assets and liabilities, and the availability of unadjusted quoted prices in active markets for those ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.75 Td (identical securities as of that date. ) Tj ET Q q 0 0 0 rg BT 187.32 264.75 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.07 264.75 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.07 264.75 Td ( investment transfers from Level I to Level II for the year ended December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.75 Td (2014.) Tj ET Q endstream endobj 297 0 obj <> endobj 298 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (The following is a list of those assets and liabilities that are measured at fair value by hierarchy level ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 708.60 Td (as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 696.60 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 668.1 m 359 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 668.1 m 423 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 668.1 m 487 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 668.1 m 551 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 490.1 m 359 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 490.1 m 423 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 490.1 m 487 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 490.1 m 551 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 473.1 m 359 473.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 473.1 m 423 473.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 473.1 m 487 473.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 473.1 m 551 473.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 459.1 m 359 459.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 457.1 m 359 457.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 459.1 m 423 459.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 457.1 m 423 457.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 459.1 m 487 459.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 457.1 m 487 457.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 459.1 m 551 459.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496 457.1 m 551 457.1 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 671.080078125 m 94.5078125 671.080078125 l s q 0 0 0 rg BT 52.50 672.33 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 319.10 672.33 Td (LevelI) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.55 672.33 Td (LevelII) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.00 672.33 Td (LevelIII) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 514.25 672.33 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 659.33 Td (Assets and Liabilities at Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 644.77 Td (Investment Portfolio:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 629.77 Td (U.S. government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.00 629.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 629.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 629.77 Td (450.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 629.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 629.77 Td (246.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.50 629.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 629.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 629.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 629.77 Td (696.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 614.77 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 614.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 614.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 614.77 Td (374.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 614.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 614.77 Td (374.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 599.77 Td (Money market instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 599.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 599.77 Td (484.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 599.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 599.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 599.77 Td (484.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 584.77 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 584.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 584.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 584.77 Td (880.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 584.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 584.77 Td (880.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 569.77 Td (RMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 569.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 569.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 569.77 Td (338.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 569.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 569.77 Td (338.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 554.77 Td (CMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 554.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 554.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 554.77 Td (209.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 554.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 554.77 Td (209.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 539.77 Td (Other ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.00 539.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 539.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 539.77 Td (120.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 539.77 Td (0.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 539.77 Td (121.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 524.77 Td (Foreign government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.00 524.67 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 524.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 524.77 Td (28.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 524.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 524.77 Td (28.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 509.77 Td (Equity securities \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 509.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 509.77 Td (128.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.65 509.77 Td (75.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 509.77 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 509.77 Td (204.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 494.77 Td (Other investments \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 494.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.15 494.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.65 494.77 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 494.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.65 494.77 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 477.77 Td (Total Investments at Fair Value \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 477.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 477.77 Td (1,063.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 477.77 Td (2,274.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 477.77 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 477.77 Td (3,338.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 462.77 Td (Total Assets at Fair Value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 462.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 462.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.15 462.77 Td (1,063.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.50 462.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.15 462.77 Td (2,274.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.50 462.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.65 462.77 Td (1.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.50 462.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.15 462.77 Td (3,338.9) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 434.60 Td (Comprising broadly diversified domestic equity mutual funds included within Level I and various preferred and common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 422.60 Td (stocks invested across numerous companies and industries included within Levels II and III.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 410.60 Td (Comprising short-term CDs \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.50 410.60 Td ($1.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.39 410.60 Td (\) included within Level II.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.60 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 398.60 Td (Does not include fixed-maturities held to maturity \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.34 398.60 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.23 398.60 Td (\) and certain other invested assets \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.73 398.60 Td ($22.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.62 398.60 Td (\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 386.60 Td (primarily invested in limited partnerships, accounted for as cost-method investments and not measured at fair value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 369.60 Td (At December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.08 369.60 Td (, our total Level III assets approximated less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.47 369.60 Td (1%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.80 369.60 Td ( of total assets measured at fair value and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (total Level III liabilities of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.07 357.60 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.97 357.60 Td ( accounted for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.66 357.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.99 357.60 Td ( of total liabilities measured at fair value.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 340.60 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.74 340.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.74 340.60 Td ( investment transfers between Level I and Level II for the year ended December 31, 2013. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 323.60 Td (Rollforward activity of Level III assets and liabilities \(including realized and unrealized gains and losses, purchases, sales, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.60 Td (issuances, settlements and transfers\) was not material during the years ended December 31, 2014 and 2013.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 290.60 Td (The following are descriptions of our valuation methodologies for financial assets and liabilities measured at fair value.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 269.60 Td (Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 252.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 252.60 Td (e are responsible for the determination of the value of all investments carried at fair value and the supporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 240.60 Td (methodologies and assumptions. ) Tj ET Q q 0 0 0 rg BT 182.09 240.60 Td (T) Tj ET Q q 0 0 0 rg BT 187.50 240.60 Td (o assist us in this responsibility) Tj ET Q q 0 0 0 rg BT 311.58 240.60 Td (, we utilize independent third-party valuation service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 228.60 Td (providers to gather) Tj ET Q q 0 0 0 rg BT 124.63 228.60 Td (, analyze and interpret market information and estimate fair values based upon relevant methodologies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.60 Td (assumptions for various asset classes and individual securities. ) Tj ET Q q 0 0 0 rg BT 302.33 216.60 Td (W) Tj ET Q q 0 0 0 rg BT 310.96 216.60 Td (e perform monthly quantitative and qualitative analyses on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.60 Td (prices received from third parties to determine whether the prices are reasonable estimates of fair value. Our analysis includes: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 192.60 Td (\(i\) a review of the methodology used by third-party pricing services; \(ii\) a comparison of pricing services) Tj ET Q q 0 0 0 rg BT 473.07 192.60 Td ( valuations to other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 180.60 Td (independent sources; \(iii\) a review of month-to-month price fluctuations; and \(iv\) a comparison of actual purchase and sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 168.60 Td (transactions with valuations received from third parties.) Tj ET Q q 0 0 0 rg BT 274.81 168.60 Td (These processes are designed to ensure that our investment values are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 156.60 Td (accurately recorded, that the data inputs and valuation techniques utilized are appropriate and consistently applied and that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 144.60 Td (assumptions are reasonable and consistent with the objective of determining fair value.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 127.60 Td (U.S. government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.57 127.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.57 127.60 Td (The fair value of U.S. government and agency securities is estimated using ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.60 Td (observed market transactions, including broker) Tj ET Q q 0 0 0 rg BT 237.30 115.60 Td (-dealer quotes and actual trade activity as a basis for valuation. U.S. government ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 103.60 Td (and agency securities are categorized in either Level I or Level II of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 415.88 103.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 299 0 obj <> endobj 300 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (149) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.00 708.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.00 708.60 Td (The fair value of state and municipal obligations is estimated using recent transaction ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (activity) Tj ET Q q 0 0 0 rg BT 78.84 696.60 Td (, including market observations. Evaluation models are used, which incorporate bond structure, yield curve, credit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (spreads and other factors. ) Tj ET Q q 0 0 0 rg BT 154.00 684.60 Td (These securities are generally categorized in Level II of the fair value hierarchy or in Level III when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (market-based transaction activity is unavailable.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 655.60 Td (Money market instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.15 655.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.15 655.60 Td (The fair value of money market instruments is based on daily prices, which are published ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (and available to all potential investors and market participants. ) Tj ET Q q 0 0 0 rg BT 302.20 643.60 Td (As such, these securities are categorized in Level I of the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (value hierarchy) Tj ET Q q 0 0 0 rg BT 110.76 631.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 614.60 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.67 614.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.67 614.60 Td (The fair value of corporate bonds and notes is estimated using recent transaction activity) Tj ET Q q 0 0 0 rg BT 546.07 614.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.60 Td (including market observations. Spread models are used that incorporate issuer and structure characteristics, such as credit risk ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.60 Td (and early redemption features, where applicable. ) Tj ET Q q 0 0 0 rg BT 246.45 590.60 Td (These securities are generally categorized in Level II of the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.60 Td (hierarchy or in Level III when market-based transaction activity is unavailable.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 561.60 Td (RMBS, CMBS, and Other ) Tj ET Q q 0 0 0 rg BT 178.30 561.60 Td (ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.52 561.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.52 561.60 Td (The fair value of these instruments is estimated based on prices of comparable securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.60 Td (and spreads and observable prepayment speeds. ) Tj ET Q q 0 0 0 rg BT 242.86 549.60 Td (These securities are generally categorized in Level II of the fair value hierarchy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.60 Td (or in Level III when market-based transaction activity is unavailable. ) Tj ET Q q 0 0 0 rg BT 327.83 537.60 Td (The fair value of any Level III securities is generally ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.60 Td (estimated by discounting estimated future cash flows.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 508.60 Td (For) Tj ET Q q 0 0 0 rg BT 88.13 508.60 Td (eign government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.19 508.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.19 508.60 Td (The fair value of foreign government and agency securities is estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.60 Td (using observed market yields used to create a maturity curve and observed credit spreads from market makers and broker) Tj ET Q q 0 0 0 rg BT 534.12 496.60 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.60 Td (dealers. ) Tj ET Q q 0 0 0 rg BT 82.63 484.60 Td (These securities are categorized in Level II of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 360.45 484.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 467.60 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.43 467.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.43 467.60 Td (The fair value of these securities is generally estimated using observable market data in active markets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 455.60 Td (or bid prices from market makers and broker) Tj ET Q q 0 0 0 rg BT 228.40 455.60 Td (-dealers. Generally) Tj ET Q q 0 0 0 rg BT 303.82 455.60 Td (, these securities are categorized in Level I or II of the fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.60 Td (hierarchy) Tj ET Q q 0 0 0 rg BT 86.60 443.60 Td (, as observable market data are readily available. ) Tj ET Q q 0 0 0 rg BT 283.18 443.60 Td (A) Tj ET Q q 0 0 0 rg BT 289.85 443.60 Td ( small number of our equity securities, however) Tj ET Q q 0 0 0 rg BT 480.51 443.60 Td (, are categorized in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.60 Td (Level III of the fair value hierarchy due to a lack of market-based transaction data or the use of model-based evaluations.) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 414.60 Td (Other investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.99 414.60 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.99 414.60 Td (These securities primarily consist of short-term) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.10 414.60 Td ( CDs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.38 414.60 Td (, which are categorized in Level II of the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.60 Td (value hierarchy) Tj ET Q q 0 0 0 rg BT 110.76 402.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 381.60 Td (Other Fair V) Tj ET Q q 0 0 0 rg BT 102.29 381.60 Td (alue Disclosure) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 364.60 Td (The carrying value and estimated fair value of other selected assets and liabilities not carried at fair value on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.60 Td (consolidated balance sheets were as follows as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 324.1 m 337 324.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 337 324.1 m 343 324.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 324.1 m 395 324.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 324.1 m 463 324.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 324.1 m 469 324.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 324.1 m 521 324.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 285 305.1 m 337 305.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 305.1 m 395 305.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 411 305.1 m 463 305.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 469 305.1 m 521 305.1 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 328.35 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.25 328.33 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.25 328.33 Td (December 31, 2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 308.080078125 m 94.5078125 308.080078125 l s q 0 0 0 rg BT 52.50 309.33 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 294.70 316.18 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.45 308.18 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 351.15 316.18 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.65 308.18 Td (Fair) Tj ET Q q 0 0 0 rg BT 365.17 308.18 Td () Tj ET Q q 0 0 0 rg BT 367.02 308.18 Td (V) Tj ET Q q 0 0 0 rg BT 372.06 308.18 Td (alue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 420.70 316.18 Td (Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 422.45 308.18 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 477.15 316.18 Td (Estimated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.65 308.18 Td (Fair) Tj ET Q q 0 0 0 rg BT 491.17 308.18 Td () Tj ET Q q 0 0 0 rg BT 493.02 308.18 Td (V) Tj ET Q q 0 0 0 rg BT 498.06 308.18 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 295.67 Td (Assets:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 281.67 Td (Fixed-maturities held to maturity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.00 281.67 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.50 281.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.15 281.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 281.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.15 281.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.50 281.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.65 281.67 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.50 281.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.65 281.67 Td (0.4) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.50 281.35 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 267.67 Td (Other invested assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 159.00 267.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.65 267.67 Td (14.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 267.67 Td (20.5) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.50 267.35 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 267.67 Td (22.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.65 267.67 Td (27.8) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.50 267.35 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 253.67 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 239.67 Td (Long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.00 239.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.15 239.67 Td (1,209.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 239.67 Td (1,859.3) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 397.50 239.35 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.65 239.67 Td (930.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.15 239.67 Td (1,502.7) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 523.50 239.35 Td (\(1\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.60 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 211.60 Td (These estimated fair values would be classified in Level II of the fair value hierarchy) Tj ET Q q 0 0 0 rg BT 411.21 211.60 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 194.60 Td (Fixed-Maturities Held to Maturity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.86 194.60 Td (The fair values of fixed-maturity securities are obtained from independent pricing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.60 Td (services that use observed market transactions, including broker) Tj ET Q q 0 0 0 rg BT 305.33 182.60 Td (-dealer quotes and actual trade activity as a basis for valuation. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 165.60 Td (Other Invested ) Tj ET Q q 0 0 0 rg BT 134.96 165.60 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.86 165.60 Td (The fair value of these assets, primarily invested in limited partnerships, is estimated based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.60 Td (information within the financial statements provided by the limited partnerships. ) Tj ET Q q 0 0 0 rg BT 373.97 153.60 Td (These interests are accounted for and carried ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.60 Td (as cost-method investments.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 124.60 Td (Long-T) Tj ET Q q 0 0 0 rg BT 102.04 124.60 Td (erm Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.42 124.60 Td (The carrying amount of long-term debt is net of the equity component of our convertible notes, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 112.60 Td (is accounted for under the accounting standard for convertible debt instruments that may be settled in cash upon conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 100.60 Td (\(including partial cash settlement\). ) Tj ET Q q 0 0 0 rg BT 190.66 100.60 Td (The fair value is estimated based on the quoted market prices for the same or similar issues. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 88.60 Td (See Note 1) Tj ET Q q 0 0 0 rg BT 93.01 88.60 Td (1 for further information.) Tj ET Q endstream endobj 301 0 obj <> endobj 302 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (150) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (6. Investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 687.75 Td (Our held to maturity and available for sale securities within our investment portfolio consisted of the following as of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 647.25 m 335 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 647.25 m 345 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 647.25 m 405 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 647.25 m 415 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 647.25 m 475 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 647.25 m 485 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 647.25 m 545 647.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 619.25 m 335 619.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 619.25 m 405 619.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 619.25 m 475 619.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 619.25 m 545 619.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 499.25 m 335 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 499.25 m 405 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 499.25 m 475 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 499.25 m 545 499.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 484.25 m 335 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 484.25 m 405 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 484.25 m 475 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 484.25 m 545 484.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 469.25 m 335 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 469.25 m 405 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 469.25 m 475 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 469.25 m 545 469.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 455.25 m 335 455.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 453.25 m 335 453.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 455.25 m 405 455.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 453.25 m 405 453.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 455.25 m 475 455.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 453.25 m 475 453.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 455.25 m 545 455.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 453.25 m 545 453.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.25 651.48 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 622.230078125 m 102.078125 622.230078125 l s q 0 0 0 rg BT 52.50 623.48 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 631.48 Td (Amortized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.70 623.48 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.65 623.48 Td (FairValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.55 639.33 Td (Gr) Tj ET Q q 0 0 0 rg BT 444.18 639.33 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.90 631.33 Td (Unr) Tj ET Q q 0 0 0 rg BT 439.53 631.33 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.45 623.33 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.55 639.33 Td (Gr) Tj ET Q q 0 0 0 rg BT 514.18 639.33 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.90 631.33 Td (Unr) Tj ET Q q 0 0 0 rg BT 509.53 631.33 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.35 623.33 Td (Losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 608.92 Td (Fixed-maturities available for sale:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 593.92 Td (U.S. government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.00 593.82 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 593.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 593.92 Td (5,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 593.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.65 593.92 Td (5,751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 593.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 593.92 Td (48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 593.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 593.92 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 578.92 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.00 578.82 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 578.92 Td (17,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 578.92 Td (18,910) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 578.92 Td (1,183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 578.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 563.92 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 563.82 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 563.92 Td (277,678) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 563.92 Td (284,408) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 563.92 Td (7,288) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 563.92 Td (558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 548.92 Td (RMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 548.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 548.92 Td (41,467) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 548.92 Td (42,520) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.65 548.92 Td (1,053) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 548.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 533.92 Td (CMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 533.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 533.92 Td (57,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 533.92 Td (58,234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 533.92 Td (876) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 533.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 518.92 Td (Other ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.00 518.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 518.92 Td (109,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 518.92 Td (107,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 518.92 Td (8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 518.92 Td (1,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 503.92 Td (Foreign government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.00 503.82 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 503.92 Td (19,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 503.92 Td (19,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 503.92 Td (307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 503.92 Td (242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 488.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 488.92 Td (528,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 488.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 488.92 Td (536,890) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 488.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 488.92 Td (10,763) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 488.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 488.92 Td (2,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 473.92 Td (Equity securities available for sale \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.00 473.82 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 473.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 473.92 Td (76,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 473.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 473.92 Td (143,368) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 473.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 473.92 Td (66,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 473.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 473.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 458.92 Td (Total debt and equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 458.82 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 458.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 458.92 Td (605,560) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 458.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 458.92 Td (680,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 458.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 458.92 Td (77,231) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 458.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 458.92 Td (2,533) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 442.75 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 430.75 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 430.75 Td (Comprising broadly diversified domestic equity mutual funds \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.46 430.75 Td ($143.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.35 430.75 Td ( fair value\) and a preferred stock investment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 418.75 Td (in Freddie Mac \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.92 418.75 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.82 418.75 Td ( fair value\).) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 386.25 m 335 386.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 335 386.25 m 345 386.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 386.25 m 405 386.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 386.25 m 415 386.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 386.25 m 475 386.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 475 386.25 m 485 386.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 386.25 m 545 386.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 359.25 m 335 359.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 359.25 m 405 359.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 359.25 m 475 359.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 359.25 m 545 359.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 333.25 m 335 333.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 333.25 m 405 333.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 333.25 m 475 333.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 333.25 m 545 333.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 320.25 m 335 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 320.25 m 405 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 320.25 m 475 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 320.25 m 545 320.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 268.25 m 335 268.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 268.25 m 405 268.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 268.25 m 475 268.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 268.25 m 545 268.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 255.25 m 335 255.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 255.25 m 405 255.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 255.25 m 475 255.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 255.25 m 545 255.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 242.25 m 335 242.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 242.25 m 405 242.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 242.25 m 475 242.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 242.25 m 545 242.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 230.25 m 335 230.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 275 228.25 m 335 228.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 230.25 m 405 230.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345 228.25 m 405 228.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 230.25 m 475 230.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 228.25 m 475 228.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 230.25 m 545 230.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 485 228.25 m 545 228.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 377.25 390.48 Td (December 31, 2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 362.230078125 m 102.078125 362.230078125 l s q 0 0 0 rg BT 52.50 363.48 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 286.25 371.48 Td (Amortized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.70 363.48 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.65 363.48 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.55 378.33 Td (Gr) Tj ET Q q 0 0 0 rg BT 444.18 378.33 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.90 370.33 Td (Unr) Tj ET Q q 0 0 0 rg BT 439.53 370.33 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.45 362.33 Td (Gains) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.55 378.33 Td (Gr) Tj ET Q q 0 0 0 rg BT 514.18 378.33 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 495.90 370.33 Td (Unr) Tj ET Q q 0 0 0 rg BT 509.53 370.33 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.35 362.33 Td (Losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 349.82 Td (Fixed-maturities held to maturity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 336.82 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.00 336.82 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 336.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 336.82 Td (358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 336.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 336.82 Td (351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 336.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 336.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 336.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 336.82 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 323.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.15 323.82 Td (358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 323.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.15 323.82 Td (351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 323.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 323.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 323.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 323.82 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 310.82 Td (Fixed-maturities available for sale:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 297.82 Td (U.S. government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.00 297.82 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 297.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.65 297.82 Td (5,636) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 297.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.65 297.82 Td (5,697) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 297.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 297.82 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 297.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 297.82 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 284.82 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.00 284.82 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 284.82 Td (17,924) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 284.82 Td (17,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 284.82 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 284.82 Td (545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 271.82 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 271.82 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 271.82 Td (11,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 271.82 Td (12,045) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 271.82 Td (578) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.15 271.82 Td (484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 258.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 258.82 Td (35,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 258.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.65 258.82 Td (35,145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 258.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 258.82 Td (699) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 258.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 258.82 Td (1,065) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 245.82 Td (Equity securities available for sale \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.00 245.82 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 245.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 245.82 Td (76,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 245.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 245.82 Td (129,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 245.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 245.82 Td (52,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 245.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.15 245.82 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 232.82 Td (Total debt and equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.00 232.82 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.50 232.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 232.82 Td (112,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.50 232.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.65 232.82 Td (164,657) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 232.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 232.82 Td (52,960) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.50 232.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.65 232.82 Td (1,072) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 217.75 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 205.75 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 205.75 Td (Comprising broadly diversified domestic equity mutual funds \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.46 205.75 Td ($128.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.35 205.75 Td ( fair value\) and various preferred and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 193.75 Td (common stocks invested across numerous companies and industries \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.17 193.75 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.06 193.75 Td ( fair value\).) Tj ET Q endstream endobj 303 0 obj <> endobj 304 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (The trading securities within our investment portfolio, which are recorded at fair value, consisted of the following as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 668.1 m 359 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 668.1 m 369 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 668.1 m 429 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 668.1 m 359 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 655.1 m 359 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 668.1 m 429 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 655.1 m 429 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 520.1 m 359 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 520.1 m 429 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 506.1 m 359 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 299 504.1 m 359 504.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 506.1 m 429 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 369 504.1 m 429 504.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.25 672.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 658.080078125 m 102.078125 658.080078125 l s q 0 0 0 rg BT 52.50 659.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 320.50 659.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.50 659.33 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 644.77 Td (Trading securities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 629.77 Td (U.S. government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.00 629.67 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.50 629.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 629.77 Td (134,530) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 629.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 629.77 Td (240,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 614.77 Td (State and municipal obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 614.67 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 614.77 Td (343,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 614.77 Td (356,715) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 599.77 Td (Corporate bonds and notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 599.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 599.77 Td (708,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 599.77 Td (868,403) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 584.77 Td (RMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 584.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 584.77 Td (89,810) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 584.77 Td (338,776) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 569.77 Td (CMBS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.00 569.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.65 569.77 Td (188,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 569.77 Td (209,191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 554.77 Td (Other ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 554.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 554.77 Td (77,755) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 554.77 Td (121,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 539.77 Td (Foreign government and agency securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 539.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 539.77 Td (18,331) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 539.77 Td (28,303) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 524.77 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 524.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 524.77 Td (72,256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 524.77 Td (75,094) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 509.77 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 509.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.50 509.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.10 509.77 Td (1,633,584) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.50 509.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.10 509.77 Td (2,238,741) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 484.60 Td (For trading securities that were held ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.12 484.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.42 484.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.86 484.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.86 484.60 Td (, we had net unrealized gains during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.03 484.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.03 484.60 Td ( and net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.60 Td (unrealized losses during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 472.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.64 472.60 Td ( associated with those securities in the amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.21 472.60 Td ($65.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.10 472.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.54 472.60 Td ($88.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.43 472.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 547.09 472.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 455.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 455.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.97 455.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.97 455.60 Td (, our investment portfolio included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.61 455.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.61 455.60 Td ( Sovereign securities of the Stressed European ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 443.60 Td (Countries \(Greece, Spain, Italy) Tj ET Q q 0 0 0 rg BT 172.98 443.60 Td (, Hungary) Tj ET Q q 0 0 0 rg BT 212.32 443.60 Td (, Portugal and Ireland, collectively\) which have Sovereign obligations that have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 431.60 Td (under particular stress due to economic uncertainty) Tj ET Q q 0 0 0 rg BT 253.22 431.60 Td (, potential restructuring and ratings downgrades, and included ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 431.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.15 431.60 Td ( securities ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 419.60 Td (of any other countries under similar stress.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 402.60 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.61 402.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.17 402.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.17 402.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.17 402.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.61 402.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.61 402.60 Td (, we did not sell or transfer any fixed-maturity investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.60 Td (classified as held to maturity) Tj ET Q q 0 0 0 rg BT 163.82 390.60 Td (. For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.93 390.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.49 390.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.49 390.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.49 390.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.93 390.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.93 390.60 Td (, we did not transfer any securities from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.60 Td (the available for sale or trading categories. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 361.60 Td (Net investment income consisted of:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 334.1 m 300 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 334.1 m 305 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 334.1 m 359 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 359 334.1 m 364 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 334.1 m 423 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 334.1 m 300 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 321.1 m 300 321.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 334.1 m 359 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 321.1 m 359 321.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 334.1 m 423 334.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 321.1 m 423 321.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 251.10000000000002 m 300 251.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 251.10000000000002 m 359 251.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 251.10000000000002 m 423 251.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 223.10000000000002 m 300 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 223.10000000000002 m 359 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 223.10000000000002 m 423 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 223.10000000000002 m 300 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 210.10000000000002 m 300 210.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 249 208.10000000000002 m 300 208.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 223.10000000000002 m 359 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 210.10000000000002 m 359 210.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 305 208.10000000000002 m 359 208.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 223.10000000000002 m 423 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 210.10000000000002 m 423 210.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 364 208.10000000000002 m 423 208.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 291.20 338.18 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 324.080078125 m 126.078125 324.080078125 l s q 0 0 0 rg BT 76.50 325.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.00 325.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.50 325.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 385.00 325.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 311.67 Td (Investment income:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 251.50 310.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 307.50 310.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 366.50 310.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 297.67 Td (Fixed-maturities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 297.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 297.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.65 297.67 Td (62,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.50 297.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 297.67 Td (66,131) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 297.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 297.67 Td (66,518) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 283.67 Td (Equity securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 283.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.65 283.67 Td (6,287) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 283.67 Td (6,592) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 283.67 Td (7,738) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 269.67 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.00 269.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.15 269.67 Td (246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.15 269.67 Td (255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 269.67 Td (304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 255.67 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 255.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.65 255.67 Td (1,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.65 255.67 Td (1,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 255.67 Td (3,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 241.67 Td (Gross investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.00 241.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.65 241.67 Td (70,733) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 241.67 Td (74,948) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 241.67 Td (78,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 227.67 Td (Investment expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 227.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.30 227.67 Td (\(5,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.15 227.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.30 227.72 Td (\(6,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.15 227.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.30 227.72 Td (\(5,794) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.15 227.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 213.67 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 213.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 213.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.65 213.67 Td (65,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.50 213.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.65 213.67 Td (68,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.50 213.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 213.67 Td (72,679) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 305 0 obj <> endobj 306 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (152) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (Net realized and unrealized gains \(losses\) on investments consisted of:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 680.1 m 366 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 680.1 m 373 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 680.1 m 424 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 424 680.1 m 431 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 680.1 m 483 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 680.1 m 366 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 667.1 m 366 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 680.1 m 424 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 667.1 m 424 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 680.1 m 483 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 667.1 m 483 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 555.1 m 366 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 555.1 m 424 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 555.1 m 483 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 527.1 m 366 527.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 514.1 m 366 514.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 315 512.1 m 366 512.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 527.1 m 424 527.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 514.1 m 424 514.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373 512.1 m 424 512.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 527.1 m 483 527.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 514.1 m 483 514.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 512.1 m 483 512.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.20 684.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 670.080078125 m 126.078125 670.080078125 l s q 0 0 0 rg BT 76.50 671.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 332.00 671.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.00 671.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.50 671.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 657.67 Td (Net realized \(losses\) gains on investments:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 317.50 656.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 375.50 656.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 433.50 656.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 643.67 Td (Fixed-maturities held to maturity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.00 643.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 643.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.80 643.72 Td (\(9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 643.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 643.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.15 643.67 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.50 643.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 643.67 Td (37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 629.67 Td (Fixed-maturities available for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.00 629.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.30 629.72 Td (\(1,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 629.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.15 629.67 Td (937) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 629.67 Td (2,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 615.67 Td (Equities available for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.00 615.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.15 615.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.15 615.67 Td (349) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.65 615.67 Td (5,070) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 601.67 Td (Trading securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 601.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.30 601.72 Td (\(6,996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 601.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 601.67 Td (7,997) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.60 601.67 Td (142,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 587.67 Td (Short-term investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.00 587.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 587.67 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.15 587.67 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.15 587.67 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 573.67 Td (Other invested assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.00 573.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.15 573.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.65 573.67 Td (8,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.15 573.67 Td (375) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 559.67 Td (Other gains) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.00 559.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.15 559.67 Td (246) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.15 559.67 Td (126) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.15 559.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 545.67 Td (Net realized \(losses\) gains on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.00 545.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.30 545.72 Td (\(8,357) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.15 545.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.65 545.67 Td (18,253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.60 545.67 Td (150,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 531.67 Td (Unrealized gains \(losses\) on trading securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.00 531.67 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 531.67 Td (92,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.30 531.72 Td (\(117,198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.15 531.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.30 531.72 Td (\(36,435) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.15 531.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 517.67 Td (Total gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.00 517.67 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.50 517.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 517.67 Td (83,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.50 517.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 389.30 517.72 Td (\(98,945) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.15 517.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.50 517.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 446.60 517.67 Td (114,282) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 492.60 Td (The sources of our proceeds and related investment gains \(losses\) on our available for sale securities are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 464.1 m 378 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 464.1 m 384 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 464.1 m 441 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 464.1 m 447 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 464.1 m 504 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 464.1 m 378 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 451.1 m 378 451.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 464.1 m 384 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 464.1 m 441 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384 451.1 m 441 451.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441 464.1 m 447 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 464.1 m 504 464.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 447 451.1 m 504 451.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.20 468.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 454.080078125 m 126.078125 454.080078125 l s q 0 0 0 rg BT 76.50 455.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 340.50 455.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.50 455.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.50 455.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 441.67 Td (Fixed-maturities available for sale:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 323.50 440.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 386.50 440.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 449.50 440.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 427.67 Td (Proceeds received from redemptions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 427.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.50 427.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 427.67 Td (4,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.50 427.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 427.67 Td (538) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.50 427.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 427.67 Td (5,815) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 413.67 Td (Proceeds received from sales) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.00 413.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 413.67 Td (19,672) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 413.67 Td (17,185) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 413.67 Td (30,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 399.67 Td (Gross investment gains from sales and redemptions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 399.67 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 399.67 Td (99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.65 399.67 Td (1,078) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 399.67 Td (3,018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 385.67 Td (Gross investment losses from sales and redemptions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 385.67 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.30 385.72 Td (\(1,698) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 385.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.80 385.72 Td (\(141) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.15 385.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.80 385.72 Td (\(292) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.15 385.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 371.67 Td (Equities available for sale:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 374.50 370.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 437.50 370.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 500.50 370.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 357.67 Td (Proceeds received from sales and redemptions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.00 357.67 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 357.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 357.67 Td (10,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 357.67 Td (31,235) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 343.67 Td (Gross investment gains from sales and redemptions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 343.67 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.15 343.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 343.67 Td (348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 343.67 Td (5,070) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 318.60 Td (The change in unrealized gains \(losses\) recorded in accumulated other comprehensive income \(loss\) consisted of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 306.60 Td (following:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 278.1 m 431 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 278.1 m 437 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 278.1 m 487 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 278.1 m 491 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 278.1 m 541 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 278.1 m 431 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 265.1 m 431 265.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 431 278.1 m 437 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 278.1 m 487 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 265.1 m 487 265.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487 278.1 m 491 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 278.1 m 541 278.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 265.1 m 541 265.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 215.10000000000002 m 431 215.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 215.10000000000002 m 487 215.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 215.10000000000002 m 431 215.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 202.10000000000002 m 431 202.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 200.10000000000002 m 431 200.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 215.10000000000002 m 487 215.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 202.10000000000002 m 487 202.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 200.10000000000002 m 487 200.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 215.10000000000002 m 541 215.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 202.10000000000002 m 541 202.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 200.10000000000002 m 541 200.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 135.10000000000002 m 431 135.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 135.10000000000002 m 487 135.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 135.10000000000002 m 431 135.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 122.10000000000002 m 431 122.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 381 120.10000000000002 m 431 120.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 135.10000000000002 m 487 135.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 122.10000000000002 m 487 122.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 437 120.10000000000002 m 487 120.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 135.10000000000002 m 541 135.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 122.10000000000002 m 541 122.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491 120.10000000000002 m 541 120.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.70 282.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 268.080078125 m 102.078125 268.080078125 l s q 0 0 0 rg BT 52.50 269.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.00 269.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 452.00 269.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.00 269.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 255.67 Td (Fixed-maturities:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 383.50 254.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 439.50 254.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 493.50 254.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 241.67 Td (Unrealized holding gains \(losses\) arising during the period, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.00 241.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 241.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 241.67 Td (4,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 241.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 241.72 Td (\(240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 241.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.50 241.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 241.67 Td (2,694) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 227.67 Td (Less reclassification adjustment for net \(losses\) gains included in net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 217.72 Td (income \(loss\), net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.00 217.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.30 219.82 Td (\(1,039) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 219.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.15 219.77 Td (929) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 219.77 Td (3,395) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 205.67 Td (Net unrealized gains \(losses\) on investments, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.00 205.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 205.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 205.67 Td (5,570) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 205.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.30 205.72 Td (\(1,169) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 205.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.50 205.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.80 205.72 Td (\(701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 537.15 205.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 177.67 Td (Equities:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 427.50 176.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 483.50 176.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 537.50 176.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 163.67 Td (Unrealized holding gains arising during the period, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.00 163.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 163.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 163.67 Td (9,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 163.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 163.67 Td (19,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.50 163.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 163.67 Td (9,572) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 149.67 Td (Less reclassification adjustment for net \(losses\) gains included in net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 139.67 Td (income \(loss\), net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.00 139.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.15 139.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.80 139.82 Td (\(273) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.15 139.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 139.77 Td (3,523) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 125.67 Td (Net unrealized gains on investments, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 125.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.50 125.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 125.67 Td (9,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.50 125.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 125.67 Td (19,662) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.50 125.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.65 125.67 Td (6,049) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 307 0 obj <> endobj 308 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (The following tables show the gross unrealized losses and fair value of our securities deemed available for sale and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (held to maturity) Tj ET Q q 0 0 0 rg BT 117.17 696.60 Td (, aggregated by investment category and length of time that individual securities have been in a continuous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (unrealized loss position, as of the dates indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 650.1 m 178 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 178 650.1 m 182 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 650.1 m 226 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 650.1 m 230 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 650.1 m 276 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 650.1 m 318 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 318 650.1 m 322 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 650.1 m 367 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 650.1 m 371 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 650.1 m 415 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 650.1 m 457 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 650.1 m 461 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 650.1 m 506 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 506 650.1 m 510 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 650.1 m 559 650.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 631.1 m 140 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 631.1 m 178 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 631.1 m 226 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 631.1 m 276 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 631.1 m 318 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 631.1 m 367 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 631.1 m 415 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 631.1 m 457 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 631.1 m 506 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 631.1 m 559 631.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 522.1 m 226 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 522.1 m 276 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 522.1 m 318 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 522.1 m 367 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 522.1 m 178 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 508.1 m 178 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 506.1 m 178 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 522.1 m 226 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 508.1 m 226 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 182 506.1 m 226 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 522.1 m 276 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 508.1 m 276 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 506.1 m 276 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 522.1 m 318 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 508.1 m 318 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 506.1 m 318 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 522.1 m 367 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 508.1 m 367 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 506.1 m 367 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 522.1 m 415 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 508.1 m 415 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371 506.1 m 415 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 522.1 m 457 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 508.1 m 457 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 419 506.1 m 457 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 522.1 m 506 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 508.1 m 506 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 506.1 m 506 506.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 522.1 m 559 522.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 508.1 m 559 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 510 506.1 m 559 506.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 651.33 Td (December 31, 2014:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 643.33 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 635.33 Td (Description of Securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 170.75 654.33 Td (Less Than 12 Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 309.75 654.33 Td (12 Months or Greater) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.75 654.33 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 152.15 642.18 Td (# of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 142.50 634.18 Td (securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 185.65 635.33 Td (FairValue) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 233.90 642.18 Td (Unr) Tj ET Q q 0 0 0 rg BT 247.53 642.18 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 241.35 634.18 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 292.15 642.18 Td (# of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 282.50 634.18 Td (securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 326.15 635.33 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 373.90 642.18 Td (Unr) Tj ET Q q 0 0 0 rg BT 387.53 642.18 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.35 634.18 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 431.15 642.18 Td (# of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.50 634.18 Td (securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 465.15 635.33 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 515.40 642.18 Td (Unr) Tj ET Q q 0 0 0 rg BT 529.03 642.18 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 522.85 634.18 Td (Losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 621.67 Td (U.S. government) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 611.67 Td (and agency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 601.67 Td (securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 601.67 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 601.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 601.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.15 601.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.50 601.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.15 601.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 601.77 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 601.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 601.77 Td (3,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 601.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.15 601.77 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 601.77 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.50 601.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 601.77 Td (3,455) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.50 601.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.15 601.77 Td (6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 586.77 Td (Corporate bonds and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 576.77 Td (notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 576.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 576.77 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.60 576.77 Td (40,917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.15 576.77 Td (410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 576.77 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 576.77 Td (1,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 576.77 Td (148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 576.77 Td (25) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.60 576.77 Td (41,944) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 576.77 Td (558) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 561.77 Td (Other ABS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 561.67 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 561.77 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.60 561.77 Td (97,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.65 561.77 Td (1,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 561.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 561.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 561.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 561.77 Td (34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.60 561.77 Td (97,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 561.77 Td (1,727) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 546.77 Td (Foreign government) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 536.77 Td (and agency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 526.77 Td (securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 526.67 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.15 526.77 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.65 526.77 Td (6,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.15 526.77 Td (242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.15 526.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.15 526.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.15 526.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 526.77 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.65 526.77 Td (6,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.15 526.77 Td (242) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 511.77 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 511.67 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.15 511.77 Td (62) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.50 511.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.60 511.77 Td (144,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.50 511.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.65 511.77 Td (2,379) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.15 511.77 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.50 511.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.65 511.77 Td (4,482) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.50 511.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.15 511.77 Td (154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 511.77 Td (64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.50 511.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.60 511.77 Td (149,108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.50 511.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 511.77 Td (2,533) Tj ET Q BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 469.1 m 179 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 179 469.1 m 183 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 469.1 m 228 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 228 469.1 m 232 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 469.1 m 277 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 469.1 m 319 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 469.1 m 323 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 469.1 m 368 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 469.1 m 372 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 469.1 m 417 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 469.1 m 459 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 469.1 m 463 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 469.1 m 507 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 469.1 m 511 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 469.1 m 555 469.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 450.1 m 140 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 450.1 m 179 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 450.1 m 228 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 450.1 m 277 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 450.1 m 319 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 450.1 m 368 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 450.1 m 417 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 450.1 m 459 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 450.1 m 507 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 450.1 m 555 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 450.1 m 228 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 450.1 m 277 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 450.1 m 319 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 450.1 m 368 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 450.1 m 417 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 368.1 m 179 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 355.1 m 179 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 140 353.1 m 179 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 368.1 m 228 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 355.1 m 228 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 183 353.1 m 228 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 368.1 m 277 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 355.1 m 277 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 232 353.1 m 277 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 368.1 m 319 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 355.1 m 319 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 281 353.1 m 319 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 368.1 m 368 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 355.1 m 368 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 353.1 m 368 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 368.1 m 417 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 355.1 m 417 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 353.1 m 417 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 368.1 m 459 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 355.1 m 459 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 421 353.1 m 459 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 368.1 m 507 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 355.1 m 507 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 463 353.1 m 507 353.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 368.1 m 555 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 355.1 m 555 355.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 353.1 m 555 353.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 470.33 Td (December 31, 2013:) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 462.33 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 454.33 Td (Description of Securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 171.25 473.33 Td (Less Than 12 Months) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.25 473.33 Td (12 Months or Greater) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 478.75 473.33 Td (Total) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 152.65 461.18 Td (# of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 143.00 453.18 Td (securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 187.15 454.33 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 235.40 461.18 Td (Unr) Tj ET Q q 0 0 0 rg BT 249.03 461.18 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.85 453.18 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 293.15 461.18 Td (# of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 283.50 453.18 Td (securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.15 454.33 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.40 461.18 Td (Unr) Tj ET Q q 0 0 0 rg BT 389.03 461.18 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.85 453.18 Td (Losses) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.15 461.18 Td (# of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 423.50 453.18 Td (securities) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.65 454.33 Td (Fair Value) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 513.90 461.18 Td (Unr) Tj ET Q q 0 0 0 rg BT 527.53 461.18 Td (ealized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 521.35 453.18 Td (Losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 439.77 Td (U.S. government) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 429.77 Td (and agency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 419.77 Td (securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 419.67 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.15 419.77 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.50 419.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.65 419.77 Td (3,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.50 419.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 419.77 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.15 419.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.50 419.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 419.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 419.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.15 419.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 419.77 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.50 419.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 419.77 Td (3,413) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 419.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.15 419.77 Td (36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 404.77 Td (State and municipal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 394.77 Td (obligations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.00 394.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.15 394.77 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.65 394.77 Td (5,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 394.77 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 394.77 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 394.77 Td (5,514) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 394.77 Td (534) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 394.77 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.60 394.77 Td (11,475) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 394.77 Td (552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 380.67 Td (Corporate bonds and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 370.72 Td (notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 370.72 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 165.15 372.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.15 372.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 372.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 372.77 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 372.77 Td (2,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.15 372.77 Td (484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 372.77 Td (2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 372.77 Td (2,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.15 372.77 Td (484) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 358.67 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.00 358.67 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 170.15 358.67 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.50 358.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.65 358.67 Td (9,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.50 358.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 358.67 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.15 358.67 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.50 358.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.65 358.67 Td (8,480) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 358.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 358.67 Td (1,018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.15 358.67 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.50 358.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.60 358.67 Td (17,854) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 358.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.65 358.67 Td (1,072) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 333.60 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.24 333.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.24 333.60 Td ( credit losses recognized in earnings in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.70 333.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.70 333.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.70 333.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.70 333.60 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.03 333.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.03 333.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 316.60 Td (Impairments due to credit deterioration that result in a conclusion that the present value of cash flows expected to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.60 Td (collected will not be suf) Tj ET Q q 0 0 0 rg BT 145.40 304.60 Td (ficient to recover the amortized cost basis of the security are considered other) Tj ET Q q 0 0 0 rg BT 455.08 304.60 Td (-than-temporary) Tj ET Q q 0 0 0 rg BT 519.40 304.60 Td (. Other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (declines in fair value \(for example, due to interest rate changes, sector credit rating changes or company-specific rating ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.60 Td (changes\) that result in a conclusion that the present value of cash flows expected to be collected will not be suf) Tj ET Q q 0 0 0 rg BT 492.51 280.60 Td (ficient to recover ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.60 Td (the amortized cost basis of the security also may serve as a basis to conclude that an other) Tj ET Q q 0 0 0 rg BT 408.35 268.60 Td (-than-temporary impairment has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.60 Td (occurred.) Tj ET Q q 0 0 0 rg BT 89.29 256.60 Td (T) Tj ET Q q 0 0 0 rg BT 94.71 256.60 Td (o the extent we determine that a security is deemed to have had an other) Tj ET Q q 0 0 0 rg BT 382.73 256.60 Td (-than-temporary impairment, an impairment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.60 Td (loss is recognized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 227.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 227.60 Td (e had securities in an unrealized loss position that we did not consider to be other) Tj ET Q q 0 0 0 rg BT 406.58 227.60 Td (-than-temporarily impaired as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 215.60 Td (. For all investment categories, the unrealized losses of 12 months or greater duration ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.32 215.60 Td (as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 203.60 Td (, were generally caused by interest rate or credit spread movements since the purchase date, and as such, we expect the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.60 Td (present value of cash flows to be collected from these securities to be suf) Tj ET Q q 0 0 0 rg BT 341.17 191.60 Td (ficient to recover the amortized cost basis of these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 179.60 Td (securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.71 179.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.74 179.60 Td (, we did not have the intent to sell any debt securities in an unrealized loss position and we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.60 Td (determined that it is more likely than not that we will not be required to sell the securities before recovery of their cost basis, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.60 Td (which may be at maturity; therefore, we did not consider these investments to be other) Tj ET Q q 0 0 0 rg BT 395.03 155.60 Td (-than-temporarily impaired ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.10 155.60 Td (at December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.60 Td (31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.50 143.60 Td (.) Tj ET Q endstream endobj 309 0 obj <> endobj 310 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (The contractual maturities of fixed-maturity investments are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 680.1 m 334 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 680.1 m 344 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 680.1 m 404 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 667.1 m 334 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 334 667.1 m 344 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 667.1 m 404 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 649.1 m 334 649.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 649.1 m 404 649.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 547.1 m 334 547.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 547.1 m 404 547.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 547.1 m 334 547.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 534.1 m 334 534.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 532.1 m 334 532.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 547.1 m 404 547.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 534.1 m 404 534.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 532.1 m 404 532.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 306.25 684.33 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 308.40 671.33 Td (Available for Sale) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 652.080078125 m 126.078125 652.080078125 l s q 0 0 0 rg BT 76.50 653.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 285.25 659.18 Td (Amortized) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 295.70 651.23 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.20 659.18 Td (Fair) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 363.85 651.23 Td (V) Tj ET Q q 0 0 0 rg BT 368.89 651.23 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 638.77 Td (Due in one year or less \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.00 638.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.50 638.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 638.77 Td (2,247) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 638.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.65 638.77 Td (2,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 623.77 Td (Due after one year through five years \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 623.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 623.77 Td (39,483) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 623.77 Td (39,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 608.77 Td (Due after five years through ten years \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 608.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 608.77 Td (154,234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 608.77 Td (155,790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 593.77 Td (Due after ten years \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 593.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 593.77 Td (124,451) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 593.77 Td (130,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 579.67 Td (RMBS \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 579.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 579.67 Td (41,467) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 579.67 Td (42,520) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 565.67 Td (CMBS \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 565.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.65 565.67 Td (57,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.65 565.67 Td (58,234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 551.67 Td (Other ABS \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 551.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 551.67 Td (109,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 551.67 Td (107,701) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 537.67 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 537.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.50 537.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.65 537.67 Td (528,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 537.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 537.67 Td (536,890) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 521.60 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 509.60 Td (Actual maturities may dif) Tj ET Q q 0 0 0 rg BT 174.29 509.60 Td (fer as a result of calls before scheduled maturity) Tj ET Q q 0 0 0 rg BT 365.78 509.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 497.60 Td (RMBS, CMBS, and Other ) Tj ET Q q 0 0 0 rg BT 179.24 497.60 Td (ABS are shown separately) Tj ET Q q 0 0 0 rg BT 284.40 497.60 Td (, as they are not due at a single maturity date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 480.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 480.60 Td (, we did not have any investment in any person and its af) Tj ET Q q 0 0 0 rg BT 403.79 480.60 Td (filiates that exceeded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.69 480.60 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.02 480.60 Td ( of our total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.60 Td (stockholders) Tj ET Q q 0 0 0 rg BT 102.63 468.60 Td ( equity) Tj ET Q q 0 0 0 rg BT 129.48 468.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 451.60 Td (Securities on deposit with various state insurance commissioners amounted to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.88 451.60 Td ($12.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.78 451.60 Td ( at both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.27 451.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.86 451.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.60 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 439.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 439.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 422.60 Td (As part of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 183.47 422.60 Td (Agreement, Radian Guaranty had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.37 422.60 Td ($209.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.26 422.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.70 422.60 Td ($206.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.59 422.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.09 422.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 548.39 422.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 410.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 410.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 139.10 410.60 Td (, in a collateral account currently invested primarily in trading securities, which is pledged to cover Loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.60 Td (Mitigation ) Tj ET Q q 0 0 0 rg BT 93.67 398.60 Td (Activity on the loans subject to the agreement. Subject to certain conditions in the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 476.63 398.60 Td (Agreement, amounts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.60 Td (in the collateral account may be released to Radian Guaranty over time to the extent that Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 471.03 386.60 Td (Activity becomes final ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.60 Td (in accordance with the terms of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 245.26 374.60 Td (Agreement. However) Tj ET Q q 0 0 0 rg BT 330.94 374.60 Td (, if the amount of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 468.15 374.60 Td (Activity that becomes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.60 Td (final in accordance with the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 215.82 362.60 Td (Agreement after the collateral account was established is less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.94 362.60 Td ($205 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.33 362.60 Td ( prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.60 Td (to the termination of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 201.40 350.60 Td (Agreement, then any shortfall will be paid to Freddie Mac from the funds in the collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.60 Td (account.) Tj ET Q endstream endobj 311 0 obj <> endobj 312 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (155) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (7. Goodwill and Other) Tj ET Q q 0 0 0 rg BT 144.89 708.75 Td ( Intangible ) Tj ET Q q 0 0 0 rg BT 193.24 708.75 Td (Assets, Net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 687.75 Td (The following table shows the changes in the carrying amount of goodwill by segment for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.77 687.75 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 675.75 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 640.25 m 469.25 640.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 627.25 m 469.25 627.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 582.25 m 469.25 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 582.25 m 469.25 582.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 567.25 m 469.25 567.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 522.25 m 469.25 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 462.25 m 469.25 462.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 448.25 m 469.25 448.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388.25 446.25 m 469.25 446.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.20 652.33 Td (Year Ended) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.00 644.33 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 166.75 630.230078125 m 216.328125 630.230078125 l s q 0 0 0 rg BT 166.75 631.48 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.65 631.48 Td (MRES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.75 616.92 Td (Balance at beginning of period:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.75 601.92 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.25 601.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.75 601.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.90 601.92 Td (2,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.75 586.92 Td (Accumulated impairment losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.25 586.82 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.40 586.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.75 571.92 Td (Goodwill, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.25 571.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.90 571.92 Td (2,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.75 541.92 Td (Goodwill acquired during the period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.25 541.82 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.90 541.92 Td (191,932) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.75 526.92 Td (Impairment losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.25 526.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.55 526.97 Td (\(2,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.40 526.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.75 496.92 Td (Balance at end of period:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.75 481.92 Td (Goodwill) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.25 481.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.90 481.92 Td (194,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.75 466.92 Td (Accumulated impairment losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.25 466.82 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.55 466.97 Td (\(2,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.40 466.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.75 451.92 Td (Goodwill, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.25 451.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.75 451.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.90 451.92 Td (191,932) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 426.75 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 426.75 Td (e conducted our annual goodwill impairment analysis in the fourth quarter of 2014. ) Tj ET Q q 0 0 0 rg BT 415.55 426.75 Td (As a result, we recorded a goodwill ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.75 Td (impairment of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.93 414.75 Td ($2.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.82 414.75 Td ( related to a small subsidiary within our MRES segment that we had acquired in 2013. ) Tj ET Q q 0 0 0 rg BT 504.70 414.75 Td (As part of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 402.75 Td (annual goodwill impairment assessment, we estimated the fair value of this subsidiary using an income approach. ) Tj ET Q q 0 0 0 rg BT 505.87 402.75 Td (The key ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 390.75 Td (assumption in our fair value analysis was forecasted future cash flows, which were less than originally expected. ) Tj ET Q q 0 0 0 rg BT 502.23 390.75 Td (There is no ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 378.75 Td (goodwill remaining for this subsidiary at December 31, 2014. Our remaining goodwill balance relates entirely to our Clayton ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 366.75 Td (acquisition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 349.75 Td (The following is a summary of the gross and net carrying amounts and accumulated amortization of our other intangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 337.75 Td (assets as of and for the year to date periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 309.25 m 382 309.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 309.25 m 388 309.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 309.25 m 453 309.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 309.25 m 459 309.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 309.25 m 524 309.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 287.25 m 382 287.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 287.25 m 453 287.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 287.25 m 524 287.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 287.25 m 382 287.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 287.25 m 524 287.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 212.25 m 382 212.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 198.25 m 382 198.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 196.25 m 382 196.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 212.25 m 453 212.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 198.25 m 453 198.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 196.25 m 453 196.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 212.25 m 524 212.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 198.25 m 524 198.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 196.25 m 524 196.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 171.25 m 382 171.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 171.25 m 388 171.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 171.25 m 453 171.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 453 171.25 m 459 171.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 171.25 m 524 171.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 150.25 m 382 150.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 150.25 m 453 150.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 150.25 m 524 150.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 120.25 m 382 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 106.25 m 382 106.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 319 104.25 m 382 104.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 120.25 m 453 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 106.25 m 453 106.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 388 104.25 m 453 104.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 120.25 m 524 120.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 106.25 m 524 106.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459 104.25 m 524 104.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.75 313.48 Td (December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 89.5 290.230078125 m 139.078125 290.230078125 l s q 0 0 0 rg BT 89.50 291.48 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.25 299.48 Td (Gross Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.95 291.48 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.30 299.48 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.10 291.48 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.20 299.48 Td (Net Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.95 291.48 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 276.92 Td (Client relationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 276.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.50 276.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 276.92 Td (79,203) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 276.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.30 276.97 Td (\(2,917) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.15 276.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.50 276.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 276.92 Td (76,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 261.92 Td (Technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 261.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 261.92 Td (8,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.80 261.97 Td (\(797) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.15 261.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.65 261.92 Td (8,173) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 246.92 Td (Trademark) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 246.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 246.92 Td (7,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.80 246.97 Td (\(393) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.15 246.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.65 246.92 Td (7,467) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 231.92 Td (Client backlog) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 231.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 231.92 Td (6,680) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.30 231.97 Td (\(2,406) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.15 231.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 497.65 231.92 Td (4,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 216.92 Td (Non-competition agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 216.82 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 216.92 Td (145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.80 216.97 Td (\(37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.15 216.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 216.92 Td (108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 201.92 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 201.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.50 201.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.65 201.92 Td (102,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 201.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.30 201.97 Td (\(6,550) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.15 201.92 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.50 201.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.65 201.92 Td (96,308) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 388.75 175.48 Td (December 31, 2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 323.25 162.48 Td (Gross Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.95 154.48 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.30 162.48 Td (Accumulated) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 397.10 154.48 Td (Amortization) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.20 162.48 Td (Net Carrying) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 476.95 154.48 Td (Amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 139.92 Td (Technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 139.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.50 139.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 139.92 Td (200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 139.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 139.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.50 139.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 139.92 Td (200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 124.92 Td (Non-competition agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 124.82 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.15 124.92 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 124.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.15 124.92 Td (5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.50 109.92 Td (Total) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 109.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.50 109.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 109.92 Td (205) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.50 109.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.15 109.92 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.50 109.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 109.92 Td (205) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 313 0 obj <> endobj 314 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (156) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (For tax purposes, substantially all of the goodwill and other intangible assets are expected to be deductible and amortized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (over a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.58 696.60 Td (15 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.18 696.60 Td (. For financial reporting purposes, other intangible assets with finite lives will be amortized over their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (applicable estimated useful lives in a manner that approximates the pattern of expected economic benefit from each intangible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (asset, as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331 644.1 m 379 644.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 379 644.1 m 386 644.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 644.1 m 428 644.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 341.85 648.33 Td (Estimated Useful Life) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.50 633.77 Td (Client relationships) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.00 633.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.20 633.77 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.30 633.77 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.90 633.77 Td (15 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.50 618.77 Td (Technology) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.00 618.67 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.20 618.77 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.30 618.77 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.90 618.77 Td (6 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.50 603.77 Td (Trademark) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.00 603.67 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.90 603.77 Td (10 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.50 588.77 Td (Client backlog) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 588.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.20 588.77 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.30 588.77 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.90 588.77 Td (5 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.50 573.77 Td (Non-competition agreements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.00 573.67 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.20 573.77 Td (2 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.30 573.77 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.90 573.77 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 548.60 Td (The estimated aggregate amortization expense for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.13 548.60 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.13 548.60 Td ( and thereafter is as follows \(in thousands\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 522.77 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.50 522.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.00 522.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 522.77 Td (12,009) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 507.77 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.50 507.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 507.77 Td (10,886) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 492.77 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.50 492.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 492.77 Td (10,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 477.77 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.50 477.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 477.77 Td (10,389) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 462.77 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.50 462.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 462.77 Td (9,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 447.77 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.50 447.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.15 447.77 Td (43,074) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (8. Reinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 389.60 Td (In our mortgage insurance business, we have used reinsurance as a risk management tool to manage Radian Guaranty) Tj ET Q q 0 0 0 rg BT 545.18 389.60 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.60 Td (regulatory Risk-to-capital and to comply with certain state requirements that limit the amount of risk a mortgage insurer may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.60 Td (retain on a single loan to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.58 365.60 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.91 365.60 Td ( of the total loan amount. Premiums are ceded under captive arrangements and the QSR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.60 Td (Reinsurance ) Tj ET Q q 0 0 0 rg BT 101.24 353.60 Td (T) Tj ET Q q 0 0 0 rg BT 107.00 353.60 Td (ransactions \(and previously were ceded under Smart Home\). Included in other assets are prepaid reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.60 Td (premiums of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.83 341.60 Td ($57.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.72 341.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.16 341.60 Td ($60.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.05 341.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.55 341.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.85 341.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.29 341.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.29 341.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 412.95 341.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 324.60 Td (The ef) Tj ET Q q 0 0 0 rg BT 99.13 324.60 Td (fect of reinsurance on net premiums written and earned is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 296.1 m 391 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391 296.1 m 397 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 296.1 m 462 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 296.1 m 468 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 296.1 m 533 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 296.1 m 391 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 283.1 m 391 283.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 296.1 m 462 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 283.1 m 462 283.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 283.1 m 468 283.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 296.1 m 533 296.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 283.1 m 533 283.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 223.10000000000002 m 391 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 223.10000000000002 m 462 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 223.10000000000002 m 533 223.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 209.10000000000002 m 391 209.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 207.10000000000002 m 391 207.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 209.10000000000002 m 462 209.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 207.10000000000002 m 462 207.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 209.10000000000002 m 533 209.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 207.10000000000002 m 533 207.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 148.10000000000002 m 391 148.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 148.10000000000002 m 462 148.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 148.10000000000002 m 533 148.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 134.10000000000002 m 391 134.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 326 132.10000000000002 m 391 132.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 134.10000000000002 m 462 134.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 132.10000000000002 m 462 132.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 134.10000000000002 m 533 134.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 132.10000000000002 m 533 132.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 384.70 300.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 286.080078125 m 126.078125 286.080078125 l s q 0 0 0 rg BT 76.50 287.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.00 287.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 424.00 287.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.00 287.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 273.67 Td (Net premiums written-insurance:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 258.67 Td (Direct) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.00 258.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 257.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 257.77 Td (982,976) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 257.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 257.77 Td (1,033,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 257.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 257.77 Td (892,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 243.67 Td (Assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.00 243.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.80 242.82 Td (\(882) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 242.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.80 242.82 Td (\(904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 242.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.80 242.82 Td (\(903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 242.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 228.67 Td (Ceded) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.00 228.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.30 227.82 Td (\(56,913) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 227.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.30 227.82 Td (\(81,421) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 227.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.30 227.82 Td (\(85,442) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 227.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 213.67 Td (Net premiums written-insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.00 213.67 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 212.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 212.77 Td (925,181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 212.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 212.77 Td (950,998) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 212.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 212.77 Td (806,305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 198.67 Td (Net premiums earned-insurance:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 183.67 Td (Direct) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.00 183.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 182.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 182.77 Td (905,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 182.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 182.77 Td (848,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 182.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 182.77 Td (743,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 168.67 Td (Assumed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.00 168.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 167.77 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 167.77 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.80 167.82 Td (\(953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 167.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 153.67 Td (Ceded) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.00 153.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.30 152.82 Td (\(61,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 152.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.30 152.82 Td (\(67,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.15 152.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.30 152.82 Td (\(40,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 152.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 138.67 Td (Net premiums earned-insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.00 138.67 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.50 137.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 137.77 Td (844,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 137.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 137.77 Td (781,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 137.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 137.77 Td (702,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.50 133.60 Td ( ) Tj ET Q endstream endobj 315 0 obj <> endobj 316 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (The following table shows the amounts related to the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 361.87 708.60 Td (T) Tj ET Q q 0 0 0 rg BT 367.63 708.60 Td (ransactions for the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 680.1 m 274 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 680.1 m 280 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 680.1 m 330 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 680.1 m 336 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 680.1 m 386 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 680.1 m 442 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 680.1 m 448 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 680.1 m 498 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 680.1 m 504 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 680.1 m 554 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 680.1 m 274 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 667.1 m 274 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 274 667.1 m 280 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 667.1 m 330 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 330 667.1 m 336 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 667.1 m 386 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 680.1 m 442 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 667.1 m 442 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 680.1 m 448 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 667.1 m 448 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 680.1 m 498 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 667.1 m 498 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 680.1 m 504 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 667.1 m 504 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 680.1 m 554 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 667.1 m 554 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 667.1 m 274 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 652.1 m 274 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 667.1 m 330 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 652.1 m 330 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 667.1 m 386 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 652.1 m 386 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 667.1 m 442 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 652.1 m 442 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 667.1 m 448 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 667.1 m 498 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 652.1 m 498 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 667.1 m 504 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 667.1 m 554 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 652.1 m 554 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 224 652.1 m 274 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 280 652.1 m 330 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 336 652.1 m 386 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392 652.1 m 442 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442 652.1 m 448 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448 652.1 m 498 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 498 652.1 m 504 652.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 504 652.1 m 554 652.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 263.50 684.33 Td (Initial QSR Transaction) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 429.75 684.33 Td (Second QSR Transaction) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 260.20 671.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 428.20 671.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 59.5 655.080078125 m 109.078125 655.080078125 l s q 0 0 0 rg BT 59.50 656.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 240.50 656.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 296.50 656.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 352.50 656.33 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.50 656.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 464.50 656.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.50 656.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 641.77 Td (Ceded premiums written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 641.67 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.50 641.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 641.77 Td (10,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.50 641.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 641.77 Td (23,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.50 641.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 641.77 Td (52,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.50 641.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 641.77 Td (33,751) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.50 641.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 641.77 Td (40,225) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.50 641.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 641.77 Td (9,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 626.77 Td (Ceded premiums earned) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 626.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.65 626.77 Td (17,319) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.65 626.77 Td (29,746) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 626.77 Td (16,088) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 626.77 Td (29,820) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 626.77 Td (18,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 626.77 Td (504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.50 611.77 Td (Ceding commissions written) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 611.67 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.65 611.77 Td (4,862) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.65 611.77 Td (5,762) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.65 611.77 Td (13,038) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 611.77 Td (11,813) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 611.77 Td (14,079) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 611.77 Td (3,377) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 586.60 Td (Ceded losses to date under the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 269.55 586.60 Td (T) Tj ET Q q 0 0 0 rg BT 275.31 586.60 Td (ransactions have been immaterial.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 569.60 Td (Under the Initial QSR ) Tj ET Q q 0 0 0 rg BT 162.36 569.60 Td (T) Tj ET Q q 0 0 0 rg BT 168.12 569.60 Td (ransaction, Radian Guaranty agreed to cede to the third-party reinsurance provider ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.20 569.60 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.53 569.60 Td ( of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 557.60 Td (NIW) Tj ET Q q 0 0 0 rg BT 69.31 557.60 Td ( beginning with the business written in the fourth quarter of 201) Tj ET Q q 0 0 0 rg BT 324.72 557.60 Td (1 up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.00 557.60 Td ($1.6 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.12 557.60 Td ( of ceded RIF) Tj ET Q q 0 0 0 rg BT 455.02 557.60 Td (. ) Tj ET Q q 0 0 0 rg BT 459.84 557.60 Td (W) Tj ET Q q 0 0 0 rg BT 468.48 557.60 Td (e have ceded the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 545.60 Td (maximum amount permitted under the Initial QSR ) Tj ET Q q 0 0 0 rg BT 254.01 545.60 Td (T) Tj ET Q q 0 0 0 rg BT 259.76 545.60 Td (ransaction, and therefore, are no longer ceding NIW) Tj ET Q q 0 0 0 rg BT 468.10 545.60 Td ( under this transaction. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.53 533.60 Td (, RIF ceded under the Initial QSR ) Tj ET Q q 0 0 0 rg BT 289.54 533.60 Td (T) Tj ET Q q 0 0 0 rg BT 295.30 533.60 Td (ransaction declined to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.54 533.60 Td ($1.1 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.66 533.60 Td (.Radian Guaranty had the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 521.60 Td (ability) Tj ET Q q 0 0 0 rg BT 74.40 521.60 Td (, at its option, to recapture two-thirds of the reinsurance ceded as part of this transaction on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.68 521.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.26 521.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 509.60 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 509.60 Td (, we chose not to recapture that risk and negotiated an amendment to the transaction pursuant to which we received a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.60 Td ($9.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 497.60 Td ( profit commission based on experience to date, which increased net premiums earned, and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.87 497.60 Td ($15.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.76 497.60 Td ( upfront ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.60 Td (supplemental ceding commission, which has been deferred and is expected to be amortized as a reduction to our policy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.60 Td (acquisition costs over approximately the next ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.34 473.60 Td (five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.49 473.60 Td (. Ef) Tj ET Q q 0 0 0 rg BT 286.75 473.60 Td (fective January 1, 2015, the ceding commission was reduced from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 461.60 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.83 461.60 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.61 461.60 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.94 461.60 Td ( for two-thirds of the reinsurance ceded under the Initial QSR ) Tj ET Q q 0 0 0 rg BT 347.29 461.60 Td (T) Tj ET Q q 0 0 0 rg BT 353.05 461.60 Td (ransaction.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 444.60 Td (In the fourth quarter of 2012, Radian Guaranty and the same third-party reinsurance provider entered into the Second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.60 Td (QSR ) Tj ET Q q 0 0 0 rg BT 71.27 432.60 Td (T) Tj ET Q q 0 0 0 rg BT 77.03 432.60 Td (ransaction, pursuant to which Radian Guaranty agreed to cede to the third-party reinsurance provider ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.27 432.60 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.60 432.60 Td ( of its NIW) Tj ET Q q 0 0 0 rg BT 546.69 432.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.60 Td (beginning with the business written the fourth quarter of 2012. Ef) Tj ET Q q 0 0 0 rg BT 311.77 420.60 Td (fective ) Tj ET Q q 0 0 0 rg BT 340.92 420.60 Td (April 1, 2013, Radian Guaranty amended the original ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.60 Td (terms of the Second QSR ) Tj ET Q q 0 0 0 rg BT 153.47 408.60 Td (T) Tj ET Q q 0 0 0 rg BT 159.23 408.60 Td (ransaction to reduce the percentage of all premiums and losses incurred on new business ceded to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.60 Td (the reinsurer under this reinsurance agreement on a prospective basis from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.67 396.60 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.00 396.60 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.77 396.60 Td (5%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.10 396.60 Td ( with respect to NIW) Tj ET Q q 0 0 0 rg BT 477.79 396.60 Td ( on conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.60 Td (GSE loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 367.60 Td (As of December 31, 2014, we had ceded the maximum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.54 367.60 Td ($1.6 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 367.60 Td ( of RIF as mutually agreed upon under the Second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.20 Td (QSR ) Tj ET Q q 0 0 0 rg BT 71.27 353.20 Td (T) Tj ET Q q 0 0 0 rg BT 77.03 353.20 Td (ransaction.) Tj ET Q BT /F1 12.00 Tf ET q 0 0 0 rg BT 120.62 353.20 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 336.20 Td (Similar to the Initial QSR ) Tj ET Q q 0 0 0 rg BT 177.09 336.20 Td (T) Tj ET Q q 0 0 0 rg BT 182.85 336.20 Td (ransaction, the Second QSR ) Tj ET Q q 0 0 0 rg BT 297.37 336.20 Td (T) Tj ET Q q 0 0 0 rg BT 303.13 336.20 Td (ransaction also provides that, ef) Tj ET Q q 0 0 0 rg BT 429.85 336.20 Td (fective as of December 31, 2015, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.20 Td (Radian Guaranty will have the ability) Tj ET Q q 0 0 0 rg BT 199.08 324.20 Td (, at its option \(the Commutation Option\), to recapture one-half of the reinsurance ceded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.20 Td (with respect to conventional GSE loans, which would result in Radian Guaranty reassuming the related RIF potentially in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.20 Td (exchange for a payment of a profit commission amount from the reinsurer) Tj ET Q q 0 0 0 rg BT 345.24 300.20 Td (. Pursuant to the original terms of the Second QSR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.20 Td (T) Tj ET Q q 0 0 0 rg BT 55.26 288.20 Td (ransaction:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 271.20 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 271.20 Td (Radian Guaranty agreed to cede to the reinsurer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.30 271.20 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.63 271.20 Td ( of all premiums and losses incurred with respect to conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 259.20 Td (GSE loans and will initially receive a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.40 259.20 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.73 259.20 Td ( ceding commission; provided, that if we do not exercise our Commutation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 247.20 Td (Option, the ceding commission will be reduced to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.40 247.20 Td (30%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.73 247.20 Td ( for the portion of the ceded RIF that was subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 235.20 Td (Commutation Option; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 218.20 Td (\(ii\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 218.20 Td (Radian Guaranty had the ability to cede ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.83 218.20 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.16 218.20 Td ( of all premiums and losses incurred with respect to non-conventional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 206.20 Td (portfolio loans and will receive a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.90 206.20 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.23 206.20 Td ( ceding commission. ) Tj ET Q q 0 0 0 rg BT 323.04 206.20 Td (W) Tj ET Q q 0 0 0 rg BT 331.68 206.20 Td (e have not ceded any risk on non-conventional portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 194.20 Td (loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 177.20 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 177.20 Td (e and other companies in the mortgage insurance industry have participated in reinsurance arrangements with mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 165.20 Td (lenders commonly referred to as captive reinsurance arrangements. Under captive reinsurance arrangements, a mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.20 Td (lender typically established a reinsurance company that assumed part of the risk associated with the portfolio of that lender) Tj ET Q q 0 0 0 rg BT 541.38 153.20 Td () Tj ET Q q 0 0 0 rg BT 544.16 153.20 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 141.20 Td (mortgages insured by us on a flow basis \(as compared to mortgages insured in Structured ) Tj ET Q q 0 0 0 rg BT 408.96 141.20 Td (T) Tj ET Q q 0 0 0 rg BT 414.72 141.20 Td (ransactions, which typically are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 129.20 Td (eligible for captive reinsurance arrangements\). In return for the reinsurance company) Tj ET Q q 0 0 0 rg BT 392.40 129.20 Td (s assumption of a portion of the risk, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 117.20 Td (ceded a portion of the mortgage insurance premiums paid to us to the reinsurance company) Tj ET Q q 0 0 0 rg BT 413.73 117.20 Td (. ) Tj ET Q q 0 0 0 rg BT 418.55 117.20 Td (The captive reinsurers are typically ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 105.20 Td (required to maintain minimum capitalization equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.27 105.20 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.60 105.20 Td ( of the risk assumed. ) Tj ET Q q 0 0 0 rg BT 368.41 105.20 Td (W) Tj ET Q q 0 0 0 rg BT 377.04 105.20 Td (e have also participated, on a limited basis, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 93.20 Td (quota share captive reinsurance agreements under which the captive reinsurance company assumed a pro rata share of all ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 81.20 Td (losses in return for a pro rata share of the premiums collected.) Tj ET Q endstream endobj 317 0 obj <> endobj 318 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (During the financial crisis and downturn in the housing and related credit markets in which losses have increased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (significantly) Tj ET Q q 0 0 0 rg BT 98.84 696.60 Td (, most all captive reinsurance arrangements have attached, requiring our captive reinsurers to make payments to us. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (In all cases, the captive reinsurer established a trust to secure our potential cash recoveries. ) Tj ET Q q 0 0 0 rg BT 415.01 684.60 Td (W) Tj ET Q q 0 0 0 rg BT 423.65 684.60 Td (e generally are the sole ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (beneficiary under these trusts, and therefore, have the ability to initiate disbursements under the trusts in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (terms of our captive reinsurance agreements. ) Tj ET Q q 0 0 0 rg BT 230.81 660.60 Td (All of our existing captive reinsurance arrangements are operating on a run-of) Tj ET Q q 0 0 0 rg BT 542.45 660.60 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (basis, meaning that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.93 648.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.93 648.60 Td ( new business is being placed in these captives. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 631.60 Td (In some instances, we anticipate that the ultimate losses ceded to the captive reinsurers will be greater than the assets ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (currently held by the segregated trusts established for each captive reinsurer) Tj ET Q q 0 0 0 rg BT 352.72 619.60 Td (. Recorded recoverables, however) Tj ET Q q 0 0 0 rg BT 488.08 619.60 Td (, are limited to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (current trust balances. ) Tj ET Q q 0 0 0 rg BT 139.84 607.60 Td (W) Tj ET Q q 0 0 0 rg BT 148.47 607.60 Td (e expect that most of the actual cash recoveries from those captives that have not yet been terminated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (on a cut-of) Tj ET Q q 0 0 0 rg BT 92.63 595.60 Td (f basis will be received over the next few years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 574.60 Td (T) Tj ET Q q 0 0 0 rg BT 79.26 574.60 Td (rust assets related to our captive arrangements are required to be invested in investment grade securities. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 498.28 574.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 562.60 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 562.60 Td (, the trust assets for these trust accounts consisted primarily of cash equivalents, money market investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 550.60 Td (and investment grade securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 529.60 Td (The following tables present information related to our captive transactions for the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 501.1 m 477.5 501.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 501.1 m 481.5 501.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 501.1 m 546.5 501.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 501.1 m 477.5 501.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 489.1 m 477.5 489.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 501.1 m 546.5 501.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 489.1 m 546.5 489.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 489.1 m 477.5 489.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 434.70 505.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 67 491.930078125 m 109.0078125 491.930078125 l s q 0 0 0 rg BT 67.00 493.18 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 493.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.50 493.18 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 479.67 Td (RIF ceded under captive reinsurance arrangements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.50 479.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.00 479.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 479.67 Td (129.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.00 479.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 479.67 Td (199.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 465.67 Td (Ceded losses recoverable related to captives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.50 465.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 465.67 Td (24.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 465.67 Td (45.0) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 440.60 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 136.54 440.60 Td (43%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 154.87 440.60 Td ( of our total ceded losses recoverable at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.36 440.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.94 440.60 Td ( were related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.35 440.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.35 440.60 Td ( captive reinsurers.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 412.1 m 408.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408.5 412.1 m 412.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 412.1 m 477.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477.5 412.1 m 481.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 412.1 m 546.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 412.1 m 408.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 399.1 m 408.5 399.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 412.1 m 477.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412.5 399.1 m 477.5 399.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 412.1 m 546.5 412.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481.5 399.1 m 546.5 399.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.20 416.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 67 402.080078125 m 109.0078125 402.080078125 l s q 0 0 0 rg BT 67.00 403.33 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.50 403.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 403.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 505.50 403.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 389.67 Td (Ceded premiums written related to captives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 389.67 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 388.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 388.77 Td (12.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.00 388.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 388.77 Td (17.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.00 388.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 388.77 Td (23.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 374.67 Td (Ceded premiums earned related to captives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 374.67 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 373.77 Td (13.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 373.77 Td (17.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 373.77 Td (23.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.00 359.67 Td (Ceded recoveries, excluding amounts received upon terminations of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.00 349.67 Td (captive reinsurance transactions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.50 349.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 350.77 Td (21.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 350.77 Td (47.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 350.77 Td (34.7) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 325.60 Td (In 2004, we developed a program, referred to as Smart Home, for reinsuring risk associated with non-prime mortgages. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 313.60 Td (From 2004 through 2007, we entered into ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.92 313.60 Td (four) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.58 313.60 Td ( Smart Home transactions. ) Tj ET Q q 0 0 0 rg BT 343.62 313.60 Td (As of May 2013, all of the Smart Home transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.60 Td (had been terminated.) Tj ET Q endstream endobj 319 0 obj <> endobj 320 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (159) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (9. Other) Tj ET Q q 0 0 0 rg BT 84.87 708.75 Td ( ) Tj ET Q q 0 0 0 rg BT 86.81 708.75 Td (Assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 687.75 Td (The following table shows the components of other assets for the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 657.25 m 451.75 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.75 657.25 m 459.75 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.75 657.25 m 542.75 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 657.25 m 451.75 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 642.25 m 451.75 642.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 451.75 657.25 m 459.75 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.75 657.25 m 542.75 657.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.75 642.25 m 542.75 642.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 642.25 m 451.75 642.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.75 642.25 m 542.75 642.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 522.25 m 451.75 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 508.25 m 451.75 508.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 370.75 506.25 m 451.75 506.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.75 522.25 m 542.75 522.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.75 508.25 m 542.75 508.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 459.75 506.25 m 542.75 506.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.00 661.48 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 93.25 645.230078125 m 144.828125 645.230078125 l s q 0 0 0 rg BT 93.25 646.48 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.75 646.48 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.75 646.48 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 631.92 Td (Deposit with the IRS \(Note 14\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.75 631.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.25 631.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 631.92 Td (88,557) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.25 631.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 631.92 Td (88,557) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 616.92 Td (COLI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.75 616.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 616.92 Td (80,755) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 616.92 Td (78,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 601.92 Td (Prepaid reinsurance premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.75 601.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 601.92 Td (57,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 601.92 Td (60,512) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 586.92 Td (Reinsurance recoverables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.75 586.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 586.92 Td (28,119) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 586.92 Td (46,846) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 571.92 Td (Property and equipment \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.75 571.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 571.92 Td (27,248) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 571.92 Td (10,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 556.92 Td (Accrued investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.75 556.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 556.92 Td (20,022) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 556.92 Td (21,306) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 541.92 Td (Deferred policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.75 541.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 541.92 Td (12,003) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 541.92 Td (29,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.25 526.92 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 119.75 526.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 526.92 Td (61,496) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.40 526.92 Td (44,091) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 99.25 511.92 Td (Total other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.75 511.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.25 511.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.40 511.92 Td (375,491) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.25 511.92 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.40 511.92 Td (379,903) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.75 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.75 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 483.75 Td (Property and equipment, at cost less accumulated depreciation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.69 483.75 Td ($100,207) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.19 483.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.63 483.75 Td ($96,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.13 483.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.63 483.75 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.93 483.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.37 483.75 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.37 483.75 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 471.75 Td (respectively) Tj ET Q q 0 0 0 rg BT 119.66 471.75 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 438.75 Td (10. Losses and Loss ) Tj ET Q q 0 0 0 rg BT 134.81 438.75 Td (Adjustment Expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 417.75 Td (The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.75 Td (indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 377.25 m 382 377.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 382 377.25 m 389 377.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 377.25 m 447 377.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 377.25 m 382 377.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 364.25 m 382 364.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 377.25 m 447 377.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 364.25 m 447 364.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 266.25 m 382 266.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 266.25 m 447 266.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 252.25 m 382 252.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 252.25 m 447 252.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 210.25 m 382 210.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 196.25 m 382 196.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 210.25 m 447 210.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 196.25 m 447 196.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 168.25 m 382 168.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 155.25 m 382 155.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 324 153.25 m 382 153.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 168.25 m 447 168.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 155.25 m 447 155.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 389 153.25 m 447 153.25 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 339.70 381.48 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 367.230078125 m 126.078125 367.230078125 l s q 0 0 0 rg BT 76.50 368.48 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.50 368.48 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 408.50 368.48 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 354.82 Td (Reserves for losses by category:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 326.50 353.63 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 391.50 353.63 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 340.82 Td (Prime) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 340.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 340.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.65 340.82 Td (700,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 340.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 340.82 Td (937,307) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 326.82 Td (Alt-A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 326.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.65 326.82 Td (292,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 326.82 Td (384,841) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 312.82 Td (A minus and below) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 312.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.65 312.82 Td (179,103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 312.82 Td (215,545) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 298.82 Td (IBNR and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 298.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.65 298.82 Td (223,114) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 298.82 Td (347,698) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 284.82 Td (LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 284.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 284.82 Td (56,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 284.82 Td (51,245) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 270.82 Td (Reinsurance recoverable \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.00 270.82 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 270.82 Td (26,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 270.82 Td (38,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 256.82 Td (Total primary reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.00 256.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.10 256.82 Td (1,477,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.10 256.82 Td (1,974,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 242.82 Td (Pool) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.00 242.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 242.82 Td (75,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 242.82 Td (169,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 228.82 Td (IBNR and other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 228.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 228.82 Td (1,775) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 228.82 Td (8,938) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 214.82 Td (LAE) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 214.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 214.82 Td (3,542) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 214.82 Td (5,439) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 200.82 Td (Total pool reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 200.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.65 200.82 Td (81,102) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 200.82 Td (184,059) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 186.82 Td (Total First-lien reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 186.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.10 186.82 Td (1,558,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.10 186.82 Td (2,159,058) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 172.82 Td (Second-lien and other \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 172.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.65 172.82 Td (1,417) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 172.82 Td (5,295) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 158.82 Td (Total reserve for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.00 158.82 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 158.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.10 158.82 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.50 158.82 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.10 158.82 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 142.75 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 130.75 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 130.75 Td (Represents ceded losses on captive transactions and the QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 370.07 130.75 Td (T) Tj ET Q q 0 0 0 rg BT 375.83 130.75 Td (ransactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 118.75 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 118.75 Td (Does not include our Second-lien PDR that is included in other liabilities.) Tj ET Q endstream endobj 321 0 obj <> endobj 322 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (The following table presents information relating to our mortgage insurance reserves for losses, including IBNR, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (LAE but excluding Second-lien PDR, for the periods indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 668.1 m 394 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394 668.1 m 400 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 668.1 m 455 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 668.1 m 515 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 668.1 m 394 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 655.1 m 394 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 668.1 m 455 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 655.1 m 455 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 668.1 m 515 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 655.1 m 515 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 612.1 m 394 612.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 612.1 m 455 612.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 612.1 m 515 612.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 597.1 m 394 597.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 597.1 m 455 597.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 597.1 m 515 597.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 542.1 m 394 542.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 542.1 m 455 542.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 542.1 m 515 542.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 542.1 m 394 542.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 527.1 m 394 527.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 542.1 m 455 542.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 527.1 m 455 527.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 527.1 m 515 527.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 482.1 m 394 482.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 482.1 m 455 482.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 482.1 m 515 482.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 482.1 m 394 482.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 482.1 m 455 482.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 482.1 m 515 482.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 467.1 m 394 467.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 467.1 m 455 467.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 467.1 m 515 467.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 437.1 m 394 437.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 437.1 m 455 437.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 437.1 m 515 437.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 426.1 m 394 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 424.1 m 394 424.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 426.1 m 455 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 400 424.1 m 455 424.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 426.1 m 515 426.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 424.1 m 515 424.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 382.20 672.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 658.080078125 m 126.078125 658.080078125 l s q 0 0 0 rg BT 76.50 659.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.00 659.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.00 659.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.00 659.33 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 76.50 645.83 Td (Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 631.77 Td (Balance at January 1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 631.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.50 631.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.10 631.77 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 631.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.10 631.77 Td (3,083,608) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 631.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 631.77 Td (3,247,900) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 616.77 Td (Less reinsurance recoverables \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 616.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.65 616.77 Td (38,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 616.77 Td (83,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 616.77 Td (151,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 601.77 Td (Balance at January 1, net of reinsurance recoverables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.00 601.67 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.10 601.77 Td (2,125,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.10 601.77 Td (3,000,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 601.77 Td (3,096,331) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 586.77 Td (Add losses and LAE incurred in respect of default notices) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 576.77 Td (reported and unreported in:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 561.77 Td (Current year \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 561.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.65 561.77 Td (422,999) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 561.77 Td (584,174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 561.77 Td (899,511) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 546.77 Td (Prior years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.00 546.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.30 546.82 Td (\(177,360) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 546.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.30 546.82 Td (\(19,526) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 546.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 546.77 Td (21,996) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 531.77 Td (Total incurred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.00 531.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.65 531.77 Td (245,639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.65 531.77 Td (564,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 531.77 Td (921,507) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 516.77 Td (Deduct paid claims and LAE related to:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 501.77 Td (Current year \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.00 501.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.65 501.77 Td (9,006) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 501.77 Td (31,399) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 501.77 Td (12,503) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.50 486.77 Td (Prior years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.00 486.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.65 486.77 Td (829,256) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.10 486.77 Td (1,407,629) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 486.77 Td (1,004,965) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 471.77 Td (Total paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 471.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.65 471.77 Td (838,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.10 471.77 Td (1,439,028) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 471.77 Td (1,017,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 456.77 Td (Balance at end of period, net of reinsurance recoverables) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.00 456.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.10 456.77 Td (1,533,367) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.10 456.77 Td (2,125,990) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 456.77 Td (3,000,370) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 441.77 Td (Add reinsurance recoverables \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 441.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.65 441.77 Td (26,665) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.65 441.77 Td (38,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 441.77 Td (83,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 427.72 Td (Balance at December 31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 427.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.50 427.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.10 427.72 Td (1,560,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.50 427.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.10 427.72 Td (2,164,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 427.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.10 427.72 Td (3,083,608) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.60 Td (_________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 401.60 Td (Related to ceded losses on captive transactions, Smart Home \(for 2012\) and QSR Reinsurance ) Tj ET Q q 0 0 0 rg BT 451.44 401.60 Td (T) Tj ET Q q 0 0 0 rg BT 457.20 401.60 Td (ransactions. See Note 8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 389.60 Td (for additional information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 377.60 Td (Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 365.60 Td (had defaulted in a prior year) Tj ET Q q 0 0 0 rg BT 184.60 365.60 Td (, but then subsequently cured and later re-defaulted in the current year) Tj ET Q q 0 0 0 rg BT 464.64 365.60 Td (, that default would be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 353.60 Td (considered a current year default.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 336.60 Td (Our mortgage insurance loss reserves declined in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.10 336.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.10 336.60 Td (, primarily as a result of the volume of paid claims, cures and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (insurance rescissions and claim denials continuing to outpace new default notices received. ) Tj ET Q q 0 0 0 rg BT 416.70 324.60 Td (T) Tj ET Q q 0 0 0 rg BT 422.11 324.60 Td (otal incurred losses during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.42 324.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.42 324.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (primarily were the result of new default notices during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 270.26 312.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.26 312.60 Td (. ) Tj ET Q q 0 0 0 rg BT 295.08 312.60 Td (The impact to incurred losses from default notices reported in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 300.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 300.60 Td ( was partially mitigated by favorable reserve development on prior year defaults, which was driven primarily by higher ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 288.60 Td (cures and lower Claim Severity rates than were previously estimated. Our results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.62 288.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.62 288.60 Td ( also include the impact of the BofA) Tj ET Q q 0 0 0 rg BT 551.31 288.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.60 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 94.22 276.60 Td (Agreement, as described below) Tj ET Q q 0 0 0 rg BT 219.08 276.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 259.60 Td (T) Tj ET Q q 0 0 0 rg BT 77.41 259.60 Td (otal paid claims decreased for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.30 259.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.30 259.60 Td ( as compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.83 259.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.83 259.60 Td (. Our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.88 259.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.88 259.60 Td ( paid claims included the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.35 259.60 Td ($255 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.75 259.60 Td ( payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 247.60 Td (made upon the closing of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 220.57 247.60 Td (Agreement, as described below) Tj ET Q q 0 0 0 rg BT 345.43 247.60 Td (. ) Tj ET Q q 0 0 0 rg BT 350.25 247.60 Td (The additional decrease in paid claims in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.58 247.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.58 247.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.60 Td (compared to prior year periods is consistent with the overall decline in defaulted loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 218.60 Td (Our mortgage insurance loss reserves also declined in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.71 218.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.71 218.60 Td (, primarily as a result of a decrease in our total inventory of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.60 Td (defaults \(due in lar) Tj ET Q q 0 0 0 rg BT 124.57 206.60 Td (ge part to the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 232.31 206.60 Td (Agreement\), and also because the volume of paid claims, cures and insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.60 Td (rescissions and claim denials outpaced new default notices received. ) Tj ET Q q 0 0 0 rg BT 325.33 194.60 Td (T) Tj ET Q q 0 0 0 rg BT 330.74 194.60 Td (otal paid claims increased for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.97 194.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.97 194.60 Td ( from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.41 194.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.41 194.60 Td (, driven ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.60 Td (primarily by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.43 182.60 Td ($255 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.82 182.60 Td ( payment made upon the closing of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 378.32 182.60 Td (Agreement, and by greater ef) Tj ET Q q 0 0 0 rg BT 495.03 182.60 Td (ficiencies in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.60 Td (claims review process that allowed us to pay valid claims more quickly than in previous periods. In addition to reserves ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.60 Td (established for new default notices, which were the primary basis for our total incurred losses in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.33 158.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.33 158.60 Td (, losses incurred in 2013 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.60 Td (were also favorably impacted by reserve development on prior year defaults, as the initial loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.09 146.60 Td ($22 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.48 146.60 Td ( related to prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.60 Td (year defaults included in the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 218.05 134.60 Td (Agreement was more than of) Tj ET Q q 0 0 0 rg BT 333.94 134.60 Td (fset by a benefit from claim curtailments and cures that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.60 Td (was higher than previously estimated.) Tj ET Q endstream endobj 323 0 obj <> endobj 324 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (The losses incurred in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.53 708.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.53 708.60 Td ( were impacted by adverse reserve development on prior year defaults, primarily relating to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (the impact from the aging of underlying defaulted loans, partially of) Tj ET Q q 0 0 0 rg BT 321.74 696.60 Td (fset by higher actual insurance rescissions and claim denials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (than previously assumed in our loss reserve estimates. Our results for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.44 684.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 349.44 684.60 Td ( were also negatively impacted by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.22 684.60 Td ($46.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.11 684.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (decrease in our estimated reinsurance recoverable from our Smart Home transactions resulting from lower claims paid and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (higher insurance rescissions and claim denials than were previously estimated.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 643.60 Td (Our aggregate weighted average Default to Claim Rate assumption \(net of denials and rescissions\) used in estimating our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (primary reserve for losses was) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.13 631.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.63 631.60 Td (52%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.96 631.60 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.79 631.60 Td (47%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.12 631.60 Td ( excluding pending claims\) at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.92 631.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.50 631.60 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.20 631.60 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.53 631.60 Td ( at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.75 631.60 Td (December31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 619.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 619.60 Td (Our Default to Claim Rate estimates on defaulted loans are mainly developed based on the Stage of Default and ) Tj ET Q q 0 0 0 rg BT 524.46 619.60 Td (T) Tj ET Q q 0 0 0 rg BT 530.21 619.60 Td (ime in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (Default of the underlying defaulted loans, as measured by the progress toward foreclosure sale and the number of months in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (default.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.76 595.60 Td ( Our gross Default to Claim Rates on our primary portfolio ranged from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.98 595.60 Td (16%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.31 595.60 Td ( for new defaults, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 471.06 595.60 Td (65%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.39 595.60 Td ( for defaults not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (in Foreclosure Stage, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.64 583.60 Td (81%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.97 583.60 Td ( for Foreclosure Stage Defaults. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.93 583.60 Td (Our estimate of expected insurance rescissions and claim denials ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (\(net of expected reinstatements\) embedded in our Default to Claim Rate is generally based on our experience over the past year) Tj ET Q q 0 0 0 rg BT 558.90 571.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (with consideration given for dif) Tj ET Q q 0 0 0 rg BT 175.96 559.60 Td (ferences in characteristics between those rescinded policies and denied claims and the loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (remaining in our defaulted inventory) Tj ET Q q 0 0 0 rg BT 196.03 547.60 Td (, and also incorporates the estimated impact of the BofA) Tj ET Q q 0 0 0 rg BT 420.96 547.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 468.18 547.60 Td (Agreement.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 530.60 Td (The following table illustrates the amount of First-lien claims submitted to us for payment that were rescinded or denied, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.60 Td (for the periods indicated, net of any reinstatements of previously rescinded policies or denied claims within each period:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 490.1 m 347.5 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 347.5 490.1 m 353.5 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 490.1 m 408.5 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 490.1 m 468.5 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 490.1 m 347.5 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 477.1 m 347.5 477.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 490.1 m 408.5 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 477.1 m 408.5 477.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 490.1 m 468.5 490.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 477.1 m 468.5 477.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 477.1 m 347.5 477.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 477.1 m 408.5 477.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 477.1 m 468.5 477.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 447.1 m 347.5 447.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 425.1 m 347.5 425.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 292.5 423.1 m 347.5 423.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 447.1 m 408.5 447.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 425.1 m 408.5 425.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 353.5 423.1 m 408.5 423.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 447.1 m 468.5 447.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 425.1 m 468.5 425.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 423.1 m 468.5 423.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 335.70 494.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 75 480.080078125 m 117.0078125 480.080078125 l s q 0 0 0 rg BT 75.00 481.33 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 311.50 481.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 372.50 481.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.50 481.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 466.77 Td (Rescissions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.50 466.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.00 466.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 466.77 Td (56.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 466.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 466.77 Td (81.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 466.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 466.77 Td (279.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 451.77 Td (Denials) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 451.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.15 451.77 Td (87.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 451.77 Td (171.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 451.77 Td (539.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 437.67 Td (Total First-lien claims submitted for payment that) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.00 427.67 Td (were rescinded or denied\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.50 427.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.00 428.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.15 428.77 Td (144.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.00 428.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 428.77 Td (252.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.00 428.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.15 428.77 Td (818.7) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.60 Td (______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 400.60 Td (Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 383.60 Td (The elevated levels of our insurance rescissions and claim denials have reduced our paid losses and have resulted in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 371.60 Td (significant reduction in our loss reserves. Our estimate of net future rescissions and denials reduced our loss reserves ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.09 371.60 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 359.60 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 359.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.52 359.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 359.60 Td ( by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.78 359.60 Td ($125 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.17 359.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.61 359.60 Td ($247 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.00 359.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 417.66 359.60 Td (. ) Tj ET Q q 0 0 0 rg BT 422.48 359.60 Td (The amount of estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 347.60 Td (rescissions and denials incorporated into our reserve analysis at any point in time is af) Tj ET Q q 0 0 0 rg BT 393.12 347.60 Td (fected by a number of factors, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.60 Td (not only our estimated rate of rescissions and denials on future claims, but also the volume and attributes of our defaulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.60 Td (insured loans, our estimated Default to Claim Rate and our estimated Claim Severity) Tj ET Q q 0 0 0 rg BT 387.94 323.60 Td (, among other assumptions. ) Tj ET Q q 0 0 0 rg BT 499.60 323.60 Td (As of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.60 Td (December 31, 2014, these assumptions also reflect the estimated impact of the BofA) Tj ET Q q 0 0 0 rg BT 387.19 311.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 434.40 311.60 Td (Agreement, as further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.60 Td (discussed below) Tj ET Q q 0 0 0 rg BT 114.12 299.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 282.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.64 282.60 Td (e expect the amount of estimated rescissions and denials embedded within our reserve analysis to remain elevated as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.60 Td (compared to pre-financial crisis levels; however) Tj ET Q q 0 0 0 rg BT 241.52 270.60 Td (, as our Legacy Portfolio has become a smaller percentage of our overall ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.60 Td (insured portfolio, we have experienced a reduced amount of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 357.74 258.60 Td (Activity with respect to the claims we receive, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.60 Td (we expect this trend to continue. ) Tj ET Q q 0 0 0 rg BT 181.41 246.60 Td (As a result, our future Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 336.95 246.60 Td (Activity is not expected to mitigate our paid losses to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 234.60 Td (the same extent as in prior years. In the event that we experience a more rapid than expected decrease in the level of future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 222.60 Td (insurance rescissions and claim denials from the current levels, it could have an adverse ef) Tj ET Q q 0 0 0 rg BT 411.13 222.60 Td (fect on our paid losses and loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 210.60 Td (reserves.) Tj ET Q endstream endobj 325 0 obj <> endobj 326 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (162) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Our reported rescission, denial and claim curtailment activity in any given period is subject to challenge by our lender and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (servicer customers. ) Tj ET Q q 0 0 0 rg BT 129.01 696.60 Td (W) Tj ET Q q 0 0 0 rg BT 137.65 696.60 Td (e expect that a lar) Tj ET Q q 0 0 0 rg BT 207.98 696.60 Td (ge number of previously denied claims will be resubmitted with the required ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (documentation and ultimately paid; therefore, we have considered this expectation in developing our IBNR reserve estimate. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (This IBNR estimate was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.04 672.60 Td ($163.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 208.93 672.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.37 672.60 Td ($281.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.26 672.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.76 672.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.06 672.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.50 672.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 672.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 470.16 672.60 Td (. ) Tj ET Q q 0 0 0 rg BT 474.98 672.60 Td (The significant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (decrease in our IBNR reserve estimate in 2014 reflects the terms of the BofA) Tj ET Q q 0 0 0 rg BT 357.45 660.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 404.67 660.60 Td (Agreement. For ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.49 660.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.49 660.60 Td (, our IBNR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (estimate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.15 648.60 Td ($163.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.04 648.60 Td ( included approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.73 648.60 Td ($133.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.63 648.60 Td ( for loans subject to the BofA) Tj ET Q q 0 0 0 rg BT 431.38 648.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 478.60 648.60 Td (Agreement. ) Tj ET Q q 0 0 0 rg BT 527.84 648.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (remaining IBNR reserve included an estimate of future reinstatements of previously denied claims, rescinded policies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (curtailments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.26 624.60 Td ($18.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.15 624.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.15 624.60 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.04 624.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.48 624.60 Td ($3.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.37 624.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 341.03 624.60 Td (. ) Tj ET Q q 0 0 0 rg BT 345.85 624.60 Td (These IBNR reserves relate to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.86 624.60 Td ($1) Tj ET Q q 0 0 0 rg BT 478.49 624.60 Td (13.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.38 624.60 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (claims that were denied within the preceding 12 months, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.33 612.60 Td ($90.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.22 612.60 Td ( of policies rescinded within the preceding 24 months, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.60 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 600.60 Td ($34.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.33 600.60 Td ( of claim curtailments within the preceding 24 months. ) Tj ET Q q 0 0 0 rg BT 341.77 600.60 Td (The decrease in our IBNR reserve estimate as a result ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.60 Td (of the BofA) Tj ET Q q 0 0 0 rg BT 96.72 588.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 143.93 588.60 Td (Agreement was partially of) Tj ET Q q 0 0 0 rg BT 252.88 588.60 Td (fset by an increase in our mortgage insurance case reserves to incorporate the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.60 Td (fact that we have agreed not to take further action to ef) Tj ET Q q 0 0 0 rg BT 268.38 576.60 Td (fect rescissions and claims denials on a population of loans referred to in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.60 Td (the settlement agreement as Future Legacy Loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 547.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 547.60 Td (e also accrue for the premiums that we expect to refund to our lender customers in connection with our estimated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (insurance rescission activity) Tj ET Q q 0 0 0 rg BT 161.59 535.60 Td (. Our accrued liability for such refunds, which is included within other liabilities on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (consolidated balance sheets, was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.06 523.60 Td ($9.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.96 523.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.39 523.60 Td ($17.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.29 523.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.79 523.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.03 523.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.47 523.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.47 523.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 500.13 523.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 506.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 506.60 Td (e considered the sensitivity of First-lien loss reserve estimates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.36 506.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.66 506.60 Td ( by assessing the potential changes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.60 Td (resulting from a parallel shift in Claim Severity and Default to Claim Rate for primary loans. For example, assuming all other ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.60 Td (factors remain constant, for every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.66 482.60 Td (one percentage point) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.96 482.60 Td ( change in primary Claim Severity \(which we estimate to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.94 482.60 Td (103.7%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 543.77 482.60 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (unpaid principal balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.29 470.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.59 470.60 Td (\), we estimated that our loss reserves would change by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.62 470.60 Td ($12 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 458.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 80.89 458.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.19 458.60 Td (. For every ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.29 458.60 Td (one percentage point) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.59 458.60 Td ( change in our overall primary net Default to Claim Rate \(which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (we estimate to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.70 446.60 Td (52%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.03 446.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.53 446.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.83 446.60 Td (, including our assumptions related to rescissions and denials\), we estimated a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.20 446.60 Td ($23 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 434.60 Td ( change in our loss reserves ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.14 434.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.44 434.60 Td (.) Tj ET Q BT /F3 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 71.5 416.2669921875 m 162.3056640625 416.2669921875 l s q 0 0 0 rg BT 71.50 417.60 Td (Settlement ) Tj ET Q q 0 0 0 rg BT 115.47 417.60 Td (Agr) Tj ET Q q 0 0 0 rg BT 130.10 417.60 Td (eements) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 400.60 Td (On September 16, 2014, Radian Guaranty entered into the BofA) Tj ET Q q 0 0 0 rg BT 328.38 400.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 375.60 400.60 Td (Agreement, as referenced above, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.60 Td (Countrywide Home Loans, Inc. and Bank of ) Tj ET Q q 0 0 0 rg BT 229.19 388.60 Td (America, N.A. \(together) Tj ET Q q 0 0 0 rg BT 326.25 388.60 Td (, the Insureds\), as a successor to BofA) Tj ET Q q 0 0 0 rg BT 487.59 388.60 Td ( Home Loan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.60 Td (Servicing f/k/a Countrywide Home Loans Servicing LP) Tj ET Q q 0 0 0 rg BT 271.13 376.60 Td (, in order to resolve various actual and potential claims or disputes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.60 Td (related to the parties) Tj ET Q q 0 0 0 rg BT 133.44 364.60 Td ( respective rights and duties as to mortgage insurance coverage on Subject Loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 347.60 Td (The BofA) Tj ET Q q 0 0 0 rg BT 111.22 347.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 158.43 347.60 Td (Agreement provides that all claims decisions by Radian Guaranty on Legacy Loans \(including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 335.60 Td (claims paid, coverage rescissions, claim denials and curtailments\) that were communicated on or before February 13, 2013 will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.60 Td (become final and will not be subject to future challenge or adjustment. ) Tj ET Q q 0 0 0 rg BT 333.95 323.60 Td (W) Tj ET Q q 0 0 0 rg BT 342.99 323.60 Td (ith respect to a group of Legacy Loans referred to as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.60 Td (Future Legacy Loans, the BofA) Tj ET Q q 0 0 0 rg BT 175.86 311.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 223.07 311.60 Td (Agreement provides that, subject to certain limited exceptions and conditions, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.60 Td (Radian Guaranty will not ef) Tj ET Q q 0 0 0 rg BT 160.96 299.60 Td (fect any coverage rescissions, claim denials or curtailments on these loans. ) Tj ET Q q 0 0 0 rg BT 462.06 299.60 Td (T) Tj ET Q q 0 0 0 rg BT 467.47 299.60 Td (o the extent any such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.60 Td (Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 115.06 287.60 Td (Activities previously have been taken on Future Legacy Loans, Radian Guaranty will reinstate coverage and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.60 Td (pay a reimbursement amount equal to the dif) Tj ET Q q 0 0 0 rg BT 228.43 275.60 Td (ference between the amount actually paid by Radian Guaranty and the eligible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.60 Td (claim amount. Radian Guaranty has further agreed that with respect to Future Legacy Loans it will not assert any origination ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.60 Td (error or servicing defect as a basis for a decision not to pay a claim, nor will it ef) Tj ET Q q 0 0 0 rg BT 371.71 251.60 Td (fect a curtailment of such claims; provided ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.60 Td (however) Tj ET Q q 0 0 0 rg BT 83.53 239.60 Td (, that Radian Guaranty retains the right to curtail Legacy Loans that are less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.42 239.60 Td (90 days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.25 239.60 Td ( delinquent as of July 31, 2014 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.60 Td (\(Potential Curtailment Loans\) and any Future Legacy Loans serviced by a servicer other than the Insureds \(a Protected ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.60 Td (Curtailment\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 198.60 Td (The BofA) Tj ET Q q 0 0 0 rg BT 111.22 198.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 158.43 198.60 Td (Agreement further provides that for Servicing Only Loans: \(i\) if Radian Guaranty ef) Tj ET Q q 0 0 0 rg BT 495.37 198.60 Td (fected a claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.60 Td (payment on or before May 30, 2014, any curtailments on such loans will become final and will not be subject to future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.60 Td (challenge, appeal or adjustment; and \(ii\) for claim payments for Servicing Only Loans paid after May 30, 2014, Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.60 Td (Guaranty will not make any curtailments \(excluding Protected Curtailments, which may continue in the ordinary course\) and, to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.60 Td (the extent any curtailments previously have been ef) Tj ET Q q 0 0 0 rg BT 255.08 150.60 Td (fected on such loans, Radian Guaranty will pay a reimbursement amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 138.60 Td (equal to the curtailment amount. ) Tj ET Q q 0 0 0 rg BT 181.50 138.60 Td (The BofA) Tj ET Q q 0 0 0 rg BT 221.22 138.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 268.44 138.60 Td (Agreement does not af) Tj ET Q q 0 0 0 rg BT 359.06 138.60 Td (fect Radian Guaranty) Tj ET Q q 0 0 0 rg BT 447.35 138.60 Td (s right to ef) Tj ET Q q 0 0 0 rg BT 493.00 138.60 Td (fect rescissions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 126.60 Td (or denials on any Servicing Only Loans and any such rescissions or denials will continue to be governed by the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 114.60 Td (Master Policies, subject to certain requirements in the BofA) Tj ET Q q 0 0 0 rg BT 288.61 114.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 335.82 114.60 Td (Agreement regarding the documents required to perfect ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 102.60 Td (such claims. Radian Guaranty has further agreed not to assert any right to cancel coverage on any Subject Loan for failure to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 90.60 Td (initiate certain proceedings \(most commonly foreclosure proceedings\) within the timelines set forth in the applicable Master ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 78.60 Td (Policies.) Tj ET Q endstream endobj 327 0 obj <> endobj 328 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 708.60 Td (Implementation of the BofA) Tj ET Q q 0 0 0 rg BT 184.53 708.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 231.75 708.60 Td (Agreement commenced on February 1, 2015 for Subject Loans held in portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (by the Insureds or purchased by the GSEs on that date. ) Tj ET Q q 0 0 0 rg BT 270.56 696.60 Td (Approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.61 696.60 Td (12%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.94 696.60 Td ( of the Subject Loans were neither held in portfolio ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (by the Insureds nor owned by the GSEs, and will require the consent of certain other investors for these loans to be included in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (the BofA) Tj ET Q q 0 0 0 rg BT 85.89 672.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 133.10 672.60 Td (Agreement except with respect to certain limited rights of cancellation \(described above\). ) Tj ET Q q 0 0 0 rg BT 493.61 672.60 Td (While we can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (provide no assurance whether one or more of the other investors will consent to have their Subject Loans included in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (settlement, for purposes of the reserve established for the BofA) Tj ET Q q 0 0 0 rg BT 302.21 648.60 Td ( Settlement agreement, we have assumed that these investors ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (will provide consent. ) Tj ET Q q 0 0 0 rg BT 135.97 636.60 Td (Therefore, to the extent that one or more of the other investors do not consent to the settlement, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (associated Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 158.66 624.60 Td (Activities would not be reinstated under the terms of the BofA) Tj ET Q q 0 0 0 rg BT 408.04 624.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 455.26 624.60 Td (Agreement and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (portion of the reserve related to those other investors would be reversed.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 595.60 Td (In ) Tj ET Q q 0 0 0 rg BT 82.28 595.60 Td (August 2013, Radian Guaranty entered into the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 326.66 595.60 Td (Agreement, related to a group of First-lien mortgage loans ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (guaranteed by Freddie Mac that were insured by Radian Guaranty and were in default as of December31, 201) Tj ET Q q 0 0 0 rg BT 490.35 583.60 Td (1. ) Tj ET Q q 0 0 0 rg BT 500.17 583.60 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (transaction significantly impacted our financial position in 2013 by reducing our primary delinquent loan inventory and capping ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 120.31 559.60 Td (s total exposure on the entire population of loans subject to the agreement. ) Tj ET Q q 0 0 0 rg BT 419.68 559.60 Td (At closing we paid Freddie Mac for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (claims related to these loans, and also deposited funds into a collateral account to cover future Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 493.54 547.60 Td (Activity on these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (loans. Subject to certain conditions, amounts in the collateral account may be released to Radian Guaranty over time to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (extent that Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 159.49 523.60 Td (Activity becomes final in accordance with the terms of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 448.84 523.60 Td (Agreement. However) Tj ET Q q 0 0 0 rg BT 534.51 523.60 Td (, if the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (amount of Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 158.39 511.60 Td (Activity that becomes final in accordance with the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 414.96 511.60 Td (Agreement after the collateral ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (account was established is less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.47 499.60 Td ($205 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.86 499.60 Td ( prior to the scheduled termination of the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 464.69 499.60 Td (Agreement, then any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.60 Td (shortfall will be paid to Freddie Mac from the funds in the collateral account. Prior to consideration of the BofA) Tj ET Q q 0 0 0 rg BT 497.16 487.60 Td ( Settlement ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.60 Td (Agreement, from the time the collateral account was established through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.45 475.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.04 475.60 Td (, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.30 475.60 Td ($48 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.69 475.60 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.60 Td (additional Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 157.55 463.60 Td (Activity had become final in accordance with the Freddie Mac ) Tj ET Q q 0 0 0 rg BT 409.68 463.60 Td (Agreement and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.54 463.60 Td ($1) Tj ET Q q 0 0 0 rg BT 483.17 463.60 Td (13 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.56 463.60 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.60 Td (submitted claims had been rescinded, denied, curtailed or cancelled, but were not considered final in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 439.60 Td (Freddie Mac ) Tj ET Q q 0 0 0 rg BT 102.26 439.60 Td (Agreement. Giving ef) Tj ET Q q 0 0 0 rg BT 189.55 439.60 Td (fect to the BofA) Tj ET Q q 0 0 0 rg BT 253.70 439.60 Td ( Settlement ) Tj ET Q q 0 0 0 rg BT 300.92 439.60 Td (Agreement as of December 31, 2014, these amounts would have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.60 Td (been approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.14 427.60 Td ($1) Tj ET Q q 0 0 0 rg BT 140.76 427.60 Td (16 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.16 427.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.59 427.60 Td ($23 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.99 427.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 300.65 427.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 394.60 Td (1) Tj ET Q q 0 0 0 rg BT 53.95 394.60 Td (1. Long-T) Tj ET Q q 0 0 0 rg BT 95.26 394.60 Td (erm Debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 373.60 Td (The carrying value of our long-term debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.83 373.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.13 373.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.57 373.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.57 373.60 Td ( was as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 345.1 m 408 345.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 345.1 m 415 345.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 345.1 m 475 345.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 345.1 m 408 345.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 331.1 m 408 331.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 345.1 m 475 345.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 331.1 m 475 331.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 261.1 m 408 261.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 261.1 m 475 261.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 248.10000000000002 m 408 248.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 348 246.10000000000002 m 408 246.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 248.10000000000002 m 475 248.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 415 246.10000000000002 m 475 246.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 387.75 349.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 102.5 334.080078125 m 159.1875 334.080078125 l s q 0 0 0 rg BT 102.50 335.33 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.50 335.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.50 335.33 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 321.67 Td (5.375%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.50 321.67 Td (Senior Notes due 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 321.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.50 321.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.15 321.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 321.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 321.67 Td (54,481) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 307.67 Td (9.000%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.50 307.67 Td (Senior Notes due 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 307.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 307.67 Td (192,605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 307.67 Td (191,611) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 293.67 Td (3.000%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.50 293.67 Td (Convertible Senior Notes due 2017 \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 293.67 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 293.67 Td (375,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 293.67 Td (353,798) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 279.67 Td (2.250%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.50 279.67 Td (Convertible Senior Notes due 2019 \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.00 279.67 Td (. . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 279.67 Td (342,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 279.67 Td (330,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.55 265.67 Td (5.500%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.50 265.67 Td (Senior Notes due 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.00 265.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 265.67 Td (300,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 265.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 251.67 Td (Total long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.00 251.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.50 251.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.10 251.67 Td (1,209,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.50 251.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.65 251.67 Td (930,072) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.60 Td (_______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 223.60 Td (The principal amount of these notes is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.74 223.60 Td ($450 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.13 223.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 67.50 211.60 Td (The principal amount of these notes is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.74 211.60 Td ($400 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.13 211.60 Td (.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 190.60 Td (Senior Notes) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 173.60 Td (Senior Notes due 2015 and 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.33 173.60 Td (In June 2005, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.65 173.60 Td ($250 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.04 173.60 Td ( of Senior Notes due 2015. During 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.60 Td (we exchanged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.91 161.60 Td ($195.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.81 161.60 Td ( of the Senior Notes due 2015 for a new series of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.09 161.60 Td (9.000%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.92 161.60 Td ( Senior Notes due June2017 for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.60 Td (the purpose of improving our debt maturity profile. ) Tj ET Q q 0 0 0 rg BT 256.78 149.60 Td (These transactions, which are accounted for as extinguishments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.60 Td (debt, resulted in a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.98 137.60 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.87 137.60 Td (, primarily as a result of the requirement to record the Senior Notes due 2017 at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 125.60 Td (fair value. During 2014, in accordance with the optional redemption provisions of the notes, we redeemed all of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 113.60 Td (remaining outstanding principal amount of our Senior Notes due 2015 at a price established in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 101.60 Td (indenture governing these senior notes. ) Tj ET Q q 0 0 0 rg BT 208.72 101.60 Td (W) Tj ET Q q 0 0 0 rg BT 217.36 101.60 Td (e paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.02 101.60 Td ($57.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.91 101.60 Td ( to holders of the notes at redemption and recorded a loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 89.60 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 89.60 Td ($2.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 89.60 Td (. ) Tj ET Q endstream endobj 329 0 obj <> endobj 330 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (164) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Senior Notes due 2019. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.83 708.60 Td (In May 2014, in anticipation of the Clayton acquisition, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.72 708.60 Td ($300 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.12 708.60 Td ( principal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (amount of Senior Notes due 2019 and received net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.85 696.60 Td ($293.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.74 696.60 Td (. ) Tj ET Q q 0 0 0 rg BT 427.56 696.60 Td (The notes bear interest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.47 684.60 Td (5.500%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.30 684.60 Td ( per annum, payable semi-annually on June 1 and December 1 of each year) Tj ET Q q 0 0 0 rg BT 425.33 684.60 Td (, commencing on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (December 1, 2014. ) Tj ET Q q 0 0 0 rg BT 127.90 672.60 Td (These notes mature on June 1, 2019. ) Tj ET Q q 0 0 0 rg BT 276.30 672.60 Td (W) Tj ET Q q 0 0 0 rg BT 284.94 672.60 Td (e have the option to redeem these notes, in whole or in part, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (at any time or from time to time prior to maturity at a redemption price equal to the greater of: \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.75 660.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.08 660.60 Td ( of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (aggregate principal amount of the notes to be redeemed; and \(ii\) the make-whole amount, which is the present value of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (the notes discounted at the applicable treasury rate plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.04 636.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.04 636.60 Td ( basis points, plus, in each case, accrued interest thereon to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (the redemption date.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 607.60 Td (Covenants in Senior Notes. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.38 607.60 Td (The Senior Notes due 2017 and the Senior Notes due 2019 have covenants customary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (for securities of this nature, including covenants related to the payments of the notes, reports, compliance certificates ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (and modification of the covenants. ) Tj ET Q q 0 0 0 rg BT 190.02 583.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 239.92 583.60 Td (, the indentures governing the Senior Notes due 2017 and the Senior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (Notes due 2019 include covenants restricting us from encumbering the capital stock of a designated subsidiary \(as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (defined in the respective indentures for the notes\) or disposing of any capital stock of any designated subsidiary unless ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (either all of the stock is disposed of or we retain more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.93 547.60 Td (80%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.26 547.60 Td ( of the stock.) Tj ET Q BT /F4 10.00 Tf ET q 0 0 0 rg BT 49.50 526.60 Td (Convertible Senior Notes) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 509.60 Td (Convertible Senior Notes due 2017. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.54 509.60 Td (In November 2010, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.73 509.60 Td ($450 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.13 509.60 Td ( principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.99 509.60 Td (3.000%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.82 509.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 497.60 Td (Convertible Senior Notes due 2017 and received proceeds of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.26 497.60 Td ($391.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.15 497.60 Td (, which was net of underwriting expenses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 485.60 Td (and the cost of capped call transactions as discussed further below) Tj ET Q q 0 0 0 rg BT 313.76 485.60 Td (. Interest on these notes is payable semi-annually on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 473.60 Td (May15 and November15 of each year) Tj ET Q q 0 0 0 rg BT 205.28 473.60 Td (. ) Tj ET Q q 0 0 0 rg BT 210.10 473.60 Td (The ef) Tj ET Q q 0 0 0 rg BT 235.73 473.60 Td (fective interest rate for the liability component of this debt is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.94 473.60 Td (9.75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.77 473.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 456.60 Td (Holders of these notes may convert their notes from ) Tj ET Q q 0 0 0 rg BT 281.67 456.60 Td (August 15, 2017 up to the close of business on the second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 444.60 Td (scheduled trading day immediately preceding the maturity date \(the Conversion Period\), subject to certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 432.60 Td (conditions. Upon a conversion, we will pay cash up to the aggregate principal amount of the notes to be converted and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 420.60 Td (pay or deliver) Tj ET Q q 0 0 0 rg BT 104.63 420.60 Td (, as the case may be, cash, shares of our common stock or a combination of cash and shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 408.60 Td (common stock, at our election, in respect of the remainder) Tj ET Q q 0 0 0 rg BT 282.07 408.60 Td (, if any) Tj ET Q q 0 0 0 rg BT 309.47 408.60 Td (, of our conversion obligation that is in excess of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 396.60 Td (aggregate principal amount of the notes being converted. ) Tj ET Q q 0 0 0 rg BT 279.51 396.60 Td (The conversion rate initially is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.20 396.60 Td (85.5688) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.70 396.60 Td (shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 384.60 Td (common stock per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.87 384.60 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.37 384.60 Td ( principal amount of notes \(corresponding to an initial conversion price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 372.60 Td ($1) Tj ET Q q 0 0 0 rg BT 59.13 372.60 Td (1.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.63 372.60 Td ( per share of common stock prior to the consideration of the capped call transactions discussed below\). ) Tj ET Q q 0 0 0 rg BT 490.21 372.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 360.60 Td (conversion rate is subject to adjustment in certain events, but is not adjusted for any accrued and unpaid interest. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 348.60 Td (addition, following certain corporate events, we will, under certain circumstances increase the conversion rate for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 336.60 Td (holder who elects to convert their notes in connection with that corporate event. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.51 336.60 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.59 336.60 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 324.60 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 324.60 Td (51 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.15 324.60 Td ( shares reserved to cover the potential issuance of shares under the Convertible Senior Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 312.60 Td (due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 312.60 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 312.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 295.60 Td (Holders of the notes will be able to exercise their conversion rights prior to the Conversion Period, subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.60 Td (certain conditions, only under the following circumstances:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 266.60 Td (1. ) Tj ET Q q 0 0 0 rg BT 97.50 266.60 Td (During any calendar quarter after December31, 2010 \(and only during such calendar quarter\), if the last ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 254.60 Td (reported sale price of our common stock for each of at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 337.96 254.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.96 254.60 Td ( trading days \(whether or not consecutive\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 242.60 Td (during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.83 242.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.83 242.60 Td ( consecutive trading days ending on, and including, the last trading day of the immediately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 230.60 Td (preceding calendar quarter) Tj ET Q q 0 0 0 rg BT 203.70 230.60 Td (, is greater than or equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.11 230.60 Td (130%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.44 230.60 Td ( of the applicable conversion price on each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 218.60 Td (applicable trading day;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 201.60 Td (2. ) Tj ET Q q 0 0 0 rg BT 97.50 201.60 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.05 201.60 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.59 201.60 Td ( business day period after any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.22 201.60 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.77 201.60 Td ( consecutive trading day period in which the trading ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 189.60 Td (price per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.25 189.60 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.75 189.60 Td ( principal amount of the notes \(for each trading day during that measurement period\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 177.60 Td (less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.72 177.60 Td (98%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.05 177.60 Td ( of the product of the last reported sale price of the common stock and the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 165.60 Td (conversion rate on such trading day; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 148.60 Td (3. ) Tj ET Q q 0 0 0 rg BT 97.50 148.60 Td (Upon the occurrence of specified corporate events as described in the indenture for the notes.) Tj ET Q endstream endobj 331 0 obj <> endobj 332 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (165) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (During the three-month period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.84 708.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.43 708.60 Td (, our closing stock price exceeded the thresholds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (required for the holders of our Convertible Senior Notes due 2017 to be able to exercise their conversion rights during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (the three-month period ending March 31, 2015. See ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 273.33 684.60 Td (Convertible Senior Notes due 2017 and 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.87 684.60 Td ( below for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (information on accounting considerations related to convertible debt instruments that may be settled in cash upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (conversion, including the balance sheet classification of the equity component of certain convertible debt instruments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (such as the Convertible Senior Notes due 2017, that require the issuer to settle the aggregate principal amount of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (notes in cash.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 619.60 Td (In connection with the November 2010 of) Tj ET Q q 0 0 0 rg BT 241.05 619.60 Td (fering of the convertible notes, we also entered into capped call ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (transactions with an af) Tj ET Q q 0 0 0 rg BT 139.57 607.60 Td (filiate of Mor) Tj ET Q q 0 0 0 rg BT 193.26 607.60 Td (gan Stanley) Tj ET Q q 0 0 0 rg BT 239.54 607.60 Td (, whose obligations have been guaranteed by Mor) Tj ET Q q 0 0 0 rg BT 438.20 607.60 Td (gan Stanley) Tj ET Q q 0 0 0 rg BT 484.48 607.60 Td (. ) Tj ET Q q 0 0 0 rg BT 489.30 607.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (capped call transactions are intended to of) Tj ET Q q 0 0 0 rg BT 217.58 595.60 Td (fset the potential dilution to our common stock and/or any potential cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (payments that may be required to be made by us upon conversion of the notes in excess of the principal amount of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (notes, up to a stock price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.51 571.60 Td ($14.1) Tj ET Q q 0 0 0 rg BT 244.64 571.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.64 571.60 Td ( per share, which is the initial cap on the counterparty) Tj ET Q q 0 0 0 rg BT 467.06 571.60 Td (s share ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (delivery obligation under the call options. If the market value per share of our common stock, as measured under the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (terms of the capped call transactions, exceeds the applicable cap price of the capped call transactions, the number of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (shares of our common stock and/or the amount of cash we expect to receive upon the exercise of the capped call ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (transactions will be capped and the anti-dilutive and/or of) Tj ET Q q 0 0 0 rg BT 279.80 523.60 Td (fsetting ef) Tj ET Q q 0 0 0 rg BT 319.89 523.60 Td (fect of the capped call transactions will be limited. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (W) Tj ET Q q 0 0 0 rg BT 58.14 511.60 Td (e paid approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.05 511.60 Td ($46.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.94 511.60 Td ( from the net proceeds from the issuance and sale of the convertible notes to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (purchase the capped call transactions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 482.60 Td (The premium paid for the capped call transactions is recorded in additional paid-in capital in accordance with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (accounting standard for derivative financial instruments indexed to, and potentially settled in, an entity) Tj ET Q q 0 0 0 rg BT 463.55 470.60 Td (s own common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (stock and the accounting standard for determining whether an instrument \(or embedded feature\) is indexed to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (entity) Tj ET Q q 0 0 0 rg BT 75.05 446.60 Td (s own stock.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 429.60 Td (Convertible Senior Notes due 2019. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.04 429.60 Td (In March 2013, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.13 429.60 Td ($400 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.52 429.60 Td ( principal amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.38 429.60 Td (2.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.21 429.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.60 Td (Convertible Senior Notes due 2019 and received proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.52 417.60 Td ($389.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.41 417.60 Td (, net of underwriting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.60 Td (expenses. Interest is payable semi-annually on March 1 and September 1 of each year) Tj ET Q q 0 0 0 rg BT 391.60 405.60 Td (. ) Tj ET Q q 0 0 0 rg BT 396.42 405.60 Td (The ef) Tj ET Q q 0 0 0 rg BT 422.05 405.60 Td (fective interest rate for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.60 Td (the liability component of this debt is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.42 393.60 Td (6.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.25 393.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 376.60 Td (At any time on or after March 8, 2016, we may redeem all or part of the notes, but only if the last reported sale ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.60 Td (price of our common stock for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.91 364.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.91 364.60 Td ( or more trading days in a period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.04 364.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.04 364.60 Td ( consecutive trading days ending on, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.60 Td (including, the trading day prior to the date we provide notice of redemption exceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.00 352.60 Td (130%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.33 352.60 Td ( of the conversion price in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.60 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 340.60 Td (fect on each such trading day) Tj ET Q q 0 0 0 rg BT 173.33 340.60 Td (. ) Tj ET Q q 0 0 0 rg BT 178.15 340.60 Td (The redemption price will be equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.16 340.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.49 340.60 Td ( of the unpaid principal amount of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.60 Td (notes to be redeemed, plus accrued and unpaid interest. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.48 328.60 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.56 328.60 Td (, we had approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.92 328.60 Td (50 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.31 328.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.60 Td (shares reserved to cover the potential issuance of shares under the Convertible Senior Notes due 2019.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 299.60 Td (Holders of the notes will be able to convert the notes, at their option, before the close of business on the business ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.60 Td (day immediately preceding December 1, 2018, only under the following circumstances: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 270.60 Td (1. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 270.60 Td (During any calendar quarter commencing after March31, 2013 \(and only during such calendar quarter\), if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 258.60 Td (the last reported sale price of our common stock for each of at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.56 258.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.56 258.60 Td ( trading days \(whether or not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 246.60 Td (consecutive\) during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.36 246.60 Td (30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.36 246.60 Td ( consecutive trading days ending on, and including, the last trading day of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 234.60 Td (immediately preceding calendar quarter) Tj ET Q q 0 0 0 rg BT 248.69 234.60 Td (, is greater than or equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.09 234.60 Td (130%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.42 234.60 Td ( of the applicable conversion price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 222.60 Td (on each applicable trading day) Tj ET Q q 0 0 0 rg BT 211.52 222.60 Td (. During the calendar quarter ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.62 222.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.20 222.60 Td (, the sale price of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 210.60 Td (common stock met this criteria and therefore, the holders of the notes currently are able to convert the notes, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 198.60 Td (at their option, during the first calendar quarter of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.04 198.60 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.04 198.60 Td (; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 181.60 Td (2. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 181.60 Td (During the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.55 181.60 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.09 181.60 Td ( business day period after any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.72 181.60 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 288.27 181.60 Td ( consecutive trading day period in which the trading price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 169.60 Td (per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.27 169.60 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.77 169.60 Td ( principal amount of the notes \(for each trading day during that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.13 169.60 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.68 169.60 Td ( day measurement period\) was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 157.60 Td (less than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.22 157.60 Td (98%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.55 157.60 Td ( of the product of the last reported sale price of the common stock and the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 145.60 Td (conversion rate on such trading day; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 128.60 Td (3. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 128.60 Td (Any time prior to the close of business on the business day prior to the redemption date if we call the notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 116.60 Td (for redemption; or) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 99.60 Td (4. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.00 99.60 Td (Upon the occurrence of specified corporate events as described in the indenture for the notes. ) Tj ET Q endstream endobj 333 0 obj <> endobj 334 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (166) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (During the three-month period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 708.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.93 708.60 Td (, our closing stock prices exceeded the thresholds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (required for the holders of our Convertible Senior Notes due 2019 to be able to exercise their conversion rights during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (the three-month period ending March 31, 2015. Upon a conversion, we will satisfy our conversion obligation by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (paying or delivering, as the case may be, cash, shares of our common stock or a combination of cash and shares of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (common stock, at our election. ) Tj ET Q q 0 0 0 rg BT 175.12 660.60 Td (The conversion rate initially is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.81 660.60 Td (94.3396) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.31 660.60 Td (shares of our common stock per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.33 660.60 Td ($1,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.83 660.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (principal amount of notes \(corresponding to an initial conversion price of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.51 648.60 Td ($10.60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.01 648.60 Td ( per share of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (stock\). ) Tj ET Q q 0 0 0 rg BT 78.76 636.60 Td (The conversion rate is subject to adjustment in certain events, but will not be adjusted for accrued and unpaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (interest. In addition, following certain corporate events, we will, under certain circumstances, increase the conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (rate for a holder who elects to convert its notes in connection with that corporate event.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 595.60 Td (Convertible Senior Notes due 2017 and 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.54 595.60 Td (. ) Tj ET Q q 0 0 0 rg BT 257.36 595.60 Td (The Convertible Senior Notes due 2017 and 2019 are both ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (accounted for under the accounting standard for convertible debt instruments that may be settled in cash upon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (conversion \(including partial cash settlement\), which states that issuers of such instruments should separately account ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (for the liability and equity components in a manner that reflects the entity) Tj ET Q q 0 0 0 rg BT 346.63 559.60 Td (s nonconvertible debt borrowing rate when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (the interest cost is recognized in subsequent periods. Our convertible notes fall within the scope of this standard due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (our ability to elect to repay the conversion premium in cash. ) Tj ET Q q 0 0 0 rg BT 292.58 535.60 Td (W) Tj ET Q q 0 0 0 rg BT 301.22 535.60 Td (e have determined that the embedded conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (options in the convertible notes are not required to be separately accounted for as derivatives under the accounting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (standard for derivatives and hedging.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 494.60 Td (The carrying amount of each liability component was calculated by measuring the fair value of a similar liability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.60 Td (that does not have an associated equity component. ) Tj ET Q q 0 0 0 rg BT 256.76 482.60 Td (The carrying amount of each equity component, representing the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (embedded conversion option, was determined by deducting the fair value of the liability component from the initial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (proceeds ascribed to each convertible note issuance as a whole. ) Tj ET Q q 0 0 0 rg BT 305.05 458.60 Td (The excess of the principal amount of each liability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (component over its carrying amount is amortized as a component of interest expense over the expected life of a similar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (liability that does not have an associated equity component using the ef) Tj ET Q q 0 0 0 rg BT 334.52 434.60 Td (fective interest method. ) Tj ET Q q 0 0 0 rg BT 430.97 434.60 Td (The equity components ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td (are not remeasured as long as they continue to meet the conditions for equity classification as prescribed in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (accounting standard for derivative financial instruments indexed to, and potentially settled in, an entity) Tj ET Q q 0 0 0 rg BT 463.55 410.60 Td (s own common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.60 Td (stock and the accounting standard for determining whether an instrument \(or an embedded feature\) is indexed to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.60 Td (entity) Tj ET Q q 0 0 0 rg BT 75.05 386.60 Td (s own stock.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 369.60 Td (In any period when holders of the Convertible Senior Notes due 2017 are eligible to exercise their conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (option, the related equity component is reflected as mezzanine \(temporary\) equity rather than permanent equity) Tj ET Q q 0 0 0 rg BT 493.95 357.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (because we are required to settle the aggregate principal amount of the notes in cash. ) Tj ET Q q 0 0 0 rg BT 390.85 345.60 Td (This equity component is the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.60 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 333.60 Td (ference between \(1\) the amount of cash deliverable upon conversion \(i.e., par value of debt\) and \(2\) the carrying ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.60 Td (value of the debt.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 304.60 Td (During the three-month period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.34 304.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.93 304.60 Td (, our closing stock prices exceeded the thresholds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (required for the holders of our Convertible Senior Notes due 2017 to be able to exercise their conversion rights during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.60 Td (the three-month period ending March 31, 2015. ) Tj ET Q q 0 0 0 rg BT 241.40 280.60 Td (As a result, at ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.88 280.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.47 280.60 Td (, the equity component related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.60 Td (Convertible Senior Notes due 2017 was reclassified from permanent equity to mezzanine \(temporary\) equity as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.60 Td (equity component of currently redeemable convertible senior notes. ) Tj ET Q q 0 0 0 rg BT 331.16 256.60 Td (W) Tj ET Q q 0 0 0 rg BT 339.79 256.60 Td (e will evaluate whether the conversion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.60 Td (threshold requirements have been met on a quarterly basis, and will report the equity component related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.60 Td (Convertible Senior Notes due 2017 as temporary equity for any period in which the debt remains currently convertible.) Tj ET Q endstream endobj 335 0 obj <> endobj 336 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (167) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Issuance and transaction costs incurred at the time of the issuance of the convertible notes are allocated to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (liability and equity components in proportion to the allocation of proceeds and accounted for as debt issuance costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (and equity issuance costs, respectively) Tj ET Q q 0 0 0 rg BT 202.97 684.60 Td (. ) Tj ET Q q 0 0 0 rg BT 207.79 684.60 Td (The convertible notes are reflected on our consolidated balance sheets as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 636.1 m 294.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 636.1 m 310.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 636.1 m 365.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 636.1 m 426.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 636.1 m 442.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 636.1 m 497.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 636.1 m 294.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 623.1 m 294.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 294.5 623.1 m 310.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 623.1 m 365.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 636.1 m 426.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 623.1 m 426.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 636.1 m 442.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 623.1 m 442.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 636.1 m 497.5 636.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 623.1 m 497.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 623.1 m 294.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 610.1 m 294.5 610.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 623.1 m 365.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 610.1 m 365.5 610.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 623.1 m 426.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 610.1 m 426.5 610.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 426.5 623.1 m 442.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 623.1 m 497.5 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 610.1 m 497.5 610.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 610.1 m 497.5 610.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 568.1 m 294.5 568.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 568.1 m 426.5 568.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 568.1 m 497.5 568.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 568.1 m 294.5 568.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 555.1 m 294.5 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 553.1 m 294.5 553.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 568.1 m 365.5 568.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 555.1 m 365.5 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 553.1 m 365.5 553.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 568.1 m 426.5 568.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 555.1 m 426.5 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 553.1 m 426.5 553.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 568.1 m 497.5 568.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 555.1 m 497.5 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 553.1 m 497.5 553.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 553.1 m 497.5 553.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 555.1 m 497.5 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 516.1 m 294.5 516.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 514.1 m 294.5 514.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 516.1 m 365.5 516.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 514.1 m 365.5 514.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 516.1 m 426.5 516.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 514.1 m 426.5 514.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 516.1 m 497.5 516.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 514.1 m 497.5 514.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 488.1 m 294.5 488.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 239.5 486.1 m 294.5 486.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 488.1 m 365.5 488.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 310.5 486.1 m 365.5 486.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 488.1 m 426.5 488.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 486.1 m 426.5 486.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 488.1 m 497.5 488.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 442.5 486.1 m 497.5 486.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 242.95 640.33 Td (Convertible Senior Notes due 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 374.95 640.33 Td (Convertible Senior Notes due 2019) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 278.75 627.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.75 627.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 64 613.080078125 m 113.578125 613.080078125 l s q 0 0 0 rg BT 64.00 614.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 258.50 614.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.50 614.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 390.50 614.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 461.50 614.33 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 600.67 Td (Liability component:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 586.67 Td (Principal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 586.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 586.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 586.67 Td (450,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 586.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 586.67 Td (450,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 586.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 586.67 Td (400,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 586.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 586.67 Td (400,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 572.67 Td (Debt discount, net \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.80 572.67 Td (\(74,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.65 572.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 330.80 572.72 Td (\(96,202) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.65 572.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.80 572.72 Td (\(57,989) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.65 572.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.80 572.72 Td (\(69,818) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 572.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 558.67 Td (Net carrying amount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.50 558.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 558.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.15 558.67 Td (375,310) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 558.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.15 558.67 Td (353,798) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 558.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 558.67 Td (342,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 558.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 558.67 Td (330,182) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 529.77 Td (Equity component of currently redeemable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 519.77 Td (convertible senior notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.50 519.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 519.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.15 519.77 Td (74,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 519.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 519.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 519.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.65 519.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 519.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 519.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 64.00 491.67 Td (Equity component \(net of tax impact\) \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.50 491.67 Td (. .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.00 491.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.80 491.67 Td (\(9,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.65 491.67 Td (\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 297.00 491.35 Td (\(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.00 491.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.15 491.67 Td (65,679) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 491.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 491.67 Td (77,026) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 429.00 491.35 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.00 491.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.15 491.67 Td (77,026) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.00 491.35 Td (\(4\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.60 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 463.60 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 72.00 463.60 Td (Included within long-term debt and is being amortized over the life of the convertible notes.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 451.60 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 72.00 451.60 Td (Amount included within additional paid-in capital, net of the capped call transactions \(Convertible Senior Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 439.60 Td (due 2017\) and related issuance costs \(Convertible Senior Notes due 2017 and 2019\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.60 Td (\(3\) ) Tj ET Q q 0 0 0 rg BT 72.00 427.60 Td (Primarily represents the deferred tax amount related to this transaction due to the reclassification of the debt ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 415.60 Td (discount to temporary equity) Tj ET Q q 0 0 0 rg BT 186.60 415.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.60 Td (\(4\) ) Tj ET Q q 0 0 0 rg BT 72.00 403.60 Td (There was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.87 403.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.87 403.60 Td ( net tax impact recorded in equity related to the Convertible Senior Notes due 2019, as a result of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 391.60 Td (our full valuation allowance at the time the debt was issued.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 374.60 Td (The following table sets forth total interest expense recognized related to the convertible notes for the periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.60 Td (indicated:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 323.1 m 300 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 323.1 m 306 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 323.1 m 366 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 323.1 m 432 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 323.1 m 438 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 323.1 m 498 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 323.1 m 300 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 310.1 m 300 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 300 310.1 m 306 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 310.1 m 366 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 323.1 m 432 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 310.1 m 432 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 323.1 m 438 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 310.1 m 438 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 323.1 m 498 323.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 310.1 m 498 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 310.1 m 300 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 297.1 m 300 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 310.1 m 366 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 297.1 m 366 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 310.1 m 432 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 297.1 m 432 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432 310.1 m 438 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 310.1 m 498 310.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 297.1 m 498 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 297.1 m 300 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 297.1 m 366 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 297.1 m 432 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 297.1 m 498 297.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 242.10000000000002 m 300 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 242.10000000000002 m 366 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 242.10000000000002 m 432 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 242.10000000000002 m 498 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 242.10000000000002 m 300 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 229.10000000000002 m 300 229.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 240 227.10000000000002 m 300 227.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 242.10000000000002 m 366 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 229.10000000000002 m 366 229.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 306 227.10000000000002 m 366 227.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 242.10000000000002 m 432 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 229.10000000000002 m 432 229.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 372 227.10000000000002 m 432 227.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 242.10000000000002 m 498 242.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 229.10000000000002 m 498 229.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 438 227.10000000000002 m 498 227.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 243.45 327.33 Td (Convertible Senior Notes due 2017) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 375.45 327.33 Td (Convertible Senior Notes due 2019) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 279.25 314.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 411.25 314.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 261.50 301.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 327.50 301.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 393.50 301.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.50 301.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 76.5 287.080078125 m 126.078125 287.080078125 l s q 0 0 0 rg BT 76.50 288.33 Td (\(In thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 274.67 Td (Contractual interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.00 274.67 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 274.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.65 274.67 Td (13,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.50 274.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.65 274.67 Td (13,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 274.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 274.67 Td (9,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 274.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 274.67 Td (7,425) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 260.67 Td (Amortization of debt issuance costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.00 260.67 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.65 260.67 Td (1,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.65 260.67 Td (1,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 260.67 Td (1,282) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 260.67 Td (1,025) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 246.67 Td (Amortization of debt discount) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.00 246.67 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.65 246.67 Td (21,512) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.65 246.67 Td (19,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 246.67 Td (11,829) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 246.67 Td (9,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 232.67 Td (Total interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 232.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 232.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.65 232.67 Td (36,238) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.50 232.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.65 232.67 Td (34,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.50 232.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 232.67 Td (22,111) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.50 232.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.65 232.67 Td (17,673) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 207.60 Td (The Convertible Senior Notes due 2017 and 2019 have covenants generally customary for securities of this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 195.60 Td (nature, including covenants related to payments of the notes, reports, compliance certificates, the modification of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 183.60 Td (covenants and maintaining Radian Group) Tj ET Q q 0 0 0 rg BT 218.35 183.60 Td (s corporate existence. ) Tj ET Q endstream endobj 337 0 obj <> endobj 338 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (168) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Furthermore, the indentures for the Convertible Senior Notes due 2017 and 2019 include, among other terms, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (provisions under which the bankruptcy of Radian Group or the appointment of a receiver for Radian Group or for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (certain of its subsidiaries or other material assets would constitute an event of default under the indentures. Upon such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (a default, the note holders of the Convertible Senior Notes due 2017 or 2019 could declare the applicable notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (and payable \(which may) Tj ET Q q 0 0 0 rg BT 146.87 660.60 Td (, under certain circumstances, be automatically accelerated\), which would constitute an event ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (of default under the indentures for the Senior Notes due 2017 and 2019. Certain events could cause our applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (insurance regulator to appoint a receiver for our insurance subsidiaries. If this occurred, it would, unless waived by a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (majority of the applicable note holders, constitute an event of default under the indentures for the Convertible Senior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (Notes due 2017 and 2019, and therefore, also cause an event of default under the indentures for the Senior Notes due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.60 Td (2017 and the Senior Notes due 2019.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 567.60 Td (12. ) Tj ET Q q 0 0 0 rg BT 63.95 567.60 Td (Accumulated Other) Tj ET Q q 0 0 0 rg BT 148.47 567.60 Td ( Compr) Tj ET Q q 0 0 0 rg BT 181.35 567.60 Td (ehensive Income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 546.60 Td (The following table shows the rollforward of ) Tj ET Q q 0 0 0 rg BT 253.90 546.60 Td (AOCI as of the periods indicated: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 523.1 m 378 523.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 523.1 m 386 523.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 523.1 m 460 523.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 523.1 m 465 523.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 523.1 m 539 523.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 505.1 m 378 505.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 505.1 m 460 505.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 505.1 m 539 505.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 505.1 m 378 505.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 491.1 m 378 491.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 505.1 m 460 505.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 491.1 m 460 491.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 505.1 m 539 505.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 491.1 m 539 491.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 463.1 m 378 463.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 463.1 m 460 463.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 463.1 m 539 463.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 407.1 m 378 407.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 407.1 m 460 407.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 407.1 m 539 407.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 393.1 m 378 393.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 368.1 m 378 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 393.1 m 460 393.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 368.1 m 460 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 393.1 m 539 393.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 368.1 m 539 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 368.1 m 378 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 368.1 m 460 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 368.1 m 539 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 354.1 m 378 354.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 340.1 m 378 340.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 354.1 m 460 354.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 340.1 m 460 340.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 354.1 m 539 354.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 340.1 m 539 340.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 340.1 m 378 340.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 327.1 m 378 327.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 325.1 m 378 325.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 340.1 m 460 340.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 327.1 m 460 327.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 325.1 m 460 325.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 340.1 m 539 340.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 327.1 m 539 327.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 325.1 m 539 325.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 301.1 m 378 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 301.1 m 386 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 301.1 m 460 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 301.1 m 465 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 301.1 m 539 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 301.1 m 378 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 286.1 m 378 286.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 301.1 m 386 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 301.1 m 460 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 286.1 m 460 286.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 301.1 m 465 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 301.1 m 539 301.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 286.1 m 539 286.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 286.1 m 378 286.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 272.1 m 378 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 286.1 m 460 286.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 272.1 m 460 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 286.1 m 539 286.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 272.1 m 539 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 207.10000000000002 m 378 207.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 207.10000000000002 m 460 207.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 207.10000000000002 m 539 207.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 193.10000000000002 m 378 193.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 168.10000000000002 m 378 168.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 193.10000000000002 m 460 193.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 168.10000000000002 m 460 168.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 193.10000000000002 m 539 193.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 168.10000000000002 m 539 168.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 168.10000000000002 m 378 168.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 168.10000000000002 m 460 168.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 154.10000000000002 m 378 154.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 140.10000000000002 m 378 140.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 154.10000000000002 m 460 154.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 140.10000000000002 m 460 140.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 154.10000000000002 m 539 154.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 140.10000000000002 m 539 140.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 140.10000000000002 m 378 140.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 127.10000000000002 m 378 127.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 125.10000000000002 m 378 125.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 140.10000000000002 m 460 140.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 127.10000000000002 m 460 127.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 125.10000000000002 m 460 125.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 140.10000000000002 m 539 140.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 127.10000000000002 m 539 127.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 125.10000000000002 m 539 125.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 103.60000000000002 m 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 103.60000000000002 m BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.70 527.33 Td (Year Ended December 31, 2014) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 508.080078125 m 102.078125 508.080078125 l s q 0 0 0 rg BT 52.50 509.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 509.33 Td (Before Tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.95 509.33 Td (Tax Effect) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.90 509.33 Td (Net of Tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 495.67 Td (Balance at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 495.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 495.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 495.67 Td (57,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 495.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.65 495.67 Td (19,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 495.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 495.67 Td (37,383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 481.67 Td (OCI:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 467.67 Td (Net foreign currency translation adjustments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 467.67 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 467.72 Td (\(326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 467.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.80 467.72 Td (\(100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 467.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 467.72 Td (\(226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 467.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 451.77 Td (Unrealized gains on investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 434.77 Td (Unrealized holding gains arising during the period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 434.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 434.77 Td (21,204) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 434.77 Td (7,554) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 434.77 Td (13,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 420.67 Td (Less: Reclassification adjustment for net losses included) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 410.67 Td (in net income \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 410.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.30 411.82 Td (\(1,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 411.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.80 411.82 Td (\(560) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 411.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.30 411.82 Td (\(1,039) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 411.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 397.67 Td (Net unrealized gains on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 397.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 397.67 Td (22,803) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 397.67 Td (8,114) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 397.67 Td (14,689) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 382.77 Td (Net unrealized losses from investments recorded as) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 372.77 Td (assets held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.00 372.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 372.82 Td (\(329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 372.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.80 372.82 Td (\(27) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 372.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 372.82 Td (\(302) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 372.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 358.67 Td (OCI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 358.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 358.67 Td (22,148) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 358.67 Td (7,987) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 358.67 Td (14,161) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 344.67 Td (Net actuarial loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 344.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 344.72 Td (\(285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 344.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.80 344.72 Td (\(226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 344.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 344.72 Td (\(59) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 344.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 330.67 Td (Balance at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 330.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 330.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 330.67 Td (79,208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 330.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.65 330.67 Td (27,723) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 330.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 330.67 Td (51,485) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.70 305.33 Td (Year Ended December 31, 2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 289.080078125 m 102.078125 289.080078125 l s q 0 0 0 rg BT 52.50 290.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 290.33 Td (Before Tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.95 290.33 Td (Tax Effect) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.90 290.33 Td (Net of Tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 276.67 Td (Balance at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 276.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 276.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 276.67 Td (24,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 276.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 276.67 Td (8,809) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 276.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 276.67 Td (16,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 262.67 Td (OCI:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 248.67 Td (Unrealized gains on investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 234.67 Td (Unrealized holding gains arising during the period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 234.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 234.67 Td (29,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.65 234.67 Td (10,311) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 234.67 Td (19,149) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 220.67 Td (Less: Reclassification adjustment for net gains included) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 210.67 Td (in net loss \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 210.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 211.77 Td (1,285) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 211.77 Td (629) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 211.77 Td (656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 197.67 Td (Net unrealized gains on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 197.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 197.67 Td (28,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 197.67 Td (9,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 197.67 Td (18,493) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 182.77 Td (Net unrealized gains from investments recorded as assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 172.77 Td (held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.00 172.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 172.77 Td (3,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 172.77 Td (1,364) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 172.77 Td (2,597) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 158.67 Td (OCI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 158.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 158.67 Td (32,136) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.65 158.67 Td (11,046) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 158.67 Td (21,090) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 144.67 Td (Net actuarial gain) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.00 144.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.15 144.67 Td (305) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 144.67 Td (107) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.15 144.67 Td (198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 130.67 Td (Balance at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 130.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 130.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 130.67 Td (57,345) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 130.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.65 130.67 Td (19,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 130.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 130.67 Td (37,383) Tj ET Q endstream endobj 339 0 obj <> endobj 340 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (169) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 701 m 378 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 701 m 386 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 701 m 460 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 701 m 465 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 701 m 539 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 701 m 378 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 682 m 378 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 701 m 386 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 378 682 m 386 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 701 m 460 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 682 m 460 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 701 m 465 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 460 682 m 465 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 701 m 539 701 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 682 m 539 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 682 m 378 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 665 m 378 665 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 682 m 460 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 665 m 460 665 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 682 m 539 682 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 665 m 539 665 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 635 m 378 635 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 635 m 460 635 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 635 m 539 635 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 580 m 378 580 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 580 m 460 580 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 580 m 539 580 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 565 m 378 565 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 540 m 378 540 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 565 m 460 565 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 540 m 460 540 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 565 m 539 565 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 540 m 539 540 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 540 m 378 540 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 540 m 460 540 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 540 m 539 540 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 525 m 378 525 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 510 m 378 510 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 525 m 460 525 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 510 m 460 510 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 525 m 539 525 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 510 m 539 510 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 510 m 378 510 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 496 m 378 496 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 304 494 m 378 494 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 510 m 460 510 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 496 m 460 496 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386 494 m 460 494 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 510 m 539 510 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 496 m 539 496 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 494 m 539 494 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.70 705.23 Td (Year Ended December 31, 2012) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 684.980078125 m 102.078125 684.980078125 l s q 0 0 0 rg BT 52.50 686.23 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 322.00 686.23 Td (Before Tax) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 404.95 686.23 Td (Tax Effect) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.90 686.23 Td (Net of Tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 669.67 Td (Balance at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.00 669.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 669.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 669.67 Td (12,039) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 669.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 669.67 Td (639) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 669.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 669.67 Td (11,400) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 654.67 Td (OCI:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 639.67 Td (Net foreign currency translation adjustments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.00 639.57 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.80 639.72 Td (\(11) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 639.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 639.72 Td (\(4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 639.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 639.72 Td (\(7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 639.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.50 624.67 Td (Unrealized gains on investments:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 609.67 Td (Unrealized holding gains arising during the period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.00 609.57 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 609.67 Td (18,870) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 609.67 Td (6,604) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 609.67 Td (12,266) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 594.67 Td (Less: Reclassification adjustment for net gains included) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 584.67 Td (in net loss \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.00 584.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 584.67 Td (7,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.15 584.67 Td (878) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 584.67 Td (6,918) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 569.67 Td (Net unrealized gains on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 569.57 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 569.67 Td (11,074) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 569.67 Td (5,726) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 569.67 Td (5,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 554.67 Td (Net unrealized gains from investments recorded as assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.50 544.67 Td (held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.00 544.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.65 544.67 Td (2,045) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 544.67 Td (2,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 544.72 Td (\(488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 544.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 529.67 Td (OCI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 529.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 529.67 Td (13,108) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 529.67 Td (8,255) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 512.65 529.67 Td (4,853) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 514.67 Td (Net actuarial loss) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.00 514.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.80 514.72 Td (\(243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.15 514.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.80 514.72 Td (\(85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 514.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.80 514.72 Td (\(158) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 514.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 499.67 Td (Balance at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.00 499.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.50 499.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.65 499.67 Td (24,904) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 388.50 499.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.65 499.67 Td (8,809) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 499.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.65 499.67 Td (16,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.50 Td (_________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.50 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 471.50 Td (Included in net gains \(losses\) on investments on our consolidated statements of operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 438.50 Td (13. Income ) Tj ET Q q 0 0 0 rg BT 98.48 438.50 Td (T) Tj ET Q q 0 0 0 rg BT 104.23 438.50 Td (axes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 417.50 Td (The components of our consolidated income tax benefit from continuing operations are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 389 m 362 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 389 m 367 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 389 m 434 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 434 389 m 439 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 389 m 512 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 389 m 362 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 376 m 362 376 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 389 m 434 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 376 m 434 376 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 389 m 512 389 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 376 m 512 376 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 376 m 362 376 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 376 m 434 376 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 376 m 512 376 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 348 m 362 348 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 348 m 434 348 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 348 m 512 348 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 348 m 362 348 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 335 m 362 335 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 289 333 m 362 333 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 348 m 434 348 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 335 m 434 335 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 367 333 m 434 333 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 348 m 512 348 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 335 m 512 335 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 439 333 m 512 333 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 354.70 393.23 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 101.5 378.980078125 m 151.078125 378.980078125 l s q 0 0 0 rg BT 101.50 380.23 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 317.00 380.23 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.00 380.23 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 466.00 380.23 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 366.57 Td (Current \(benefit\) provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 366.57 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.50 366.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.30 366.62 Td (\(26,575) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 366.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.50 366.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.15 366.57 Td (352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 366.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.30 366.62 Td (\(56,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.15 366.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 352.57 Td (Deferred \(benefit\) provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 218.00 352.57 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.30 352.62 Td (\(825,843) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 352.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.30 352.62 Td (\(31,847) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 352.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 352.57 Td (7,817) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 338.57 Td (Total income tax benefit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.00 338.57 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.50 338.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.30 338.62 Td (\(852,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.15 338.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.50 338.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.30 338.62 Td (\(31,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.15 338.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.50 338.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.30 338.62 Td (\(48,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.15 338.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 313.50 Td (The reconciliation of taxes computed at the statutory tax rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 329.79 313.50 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.12 313.50 Td ( to the benefit for income taxes on continuing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 301.50 Td (operations is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 273 m 423.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 273 m 428.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 273 m 480.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 273 m 486.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 273 m 539.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 273 m 423.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 260 m 423.5 260 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423.5 273 m 428.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 273 m 480.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 260 m 480.5 260 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 480.5 273 m 486.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 273 m 539.5 273 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 260 m 539.5 260 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 260 m 423.5 260 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 260 m 480.5 260 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 260 m 539.5 260 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 113 m 423.5 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 113 m 480.5 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 113 m 539.5 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 113 m 423.5 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 100 m 423.5 100 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 371.5 98 m 423.5 98 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 113 m 480.5 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 100 m 480.5 100 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.5 98 m 480.5 98 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 113 m 539.5 113 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 100 m 539.5 100 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486.5 98 m 539.5 98 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.20 277.23 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 74 262.980078125 m 123.578125 262.980078125 l s q 0 0 0 rg BT 74.00 264.23 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 391.50 264.23 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 448.50 264.23 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 507.00 264.23 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 250.57 Td (Provision \(benefit\) for income taxes computed at the statutory tax rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 355.50 250.57 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 250.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.10 250.57 Td (142,504) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 250.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.80 250.62 Td (\(60,671) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 250.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 250.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.80 250.62 Td (\(95,350) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 250.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 236.57 Td (Change in tax resulting from:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 222.57 Td (Tax-exempt municipal bond interest and dividends received) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 212.57 Td (deduction \(net of proration\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.50 212.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.80 212.72 Td (\(1,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 212.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.80 212.72 Td (\(1,494) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 212.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 212.72 Td (\(1,818) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 212.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 198.57 Td (Foreign tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.50 198.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 198.57 Td (270) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.30 198.62 Td (\(1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 198.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 198.57 Td (54) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 184.57 Td (State tax \(benefit\) expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.50 184.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.30 184.62 Td (\(693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 184.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 184.57 Td (1,460) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.15 184.57 Td (4,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 170.57 Td (Unrecognized tax expense \(benefit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.50 170.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 170.57 Td (407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 170.57 Td (1,696) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.80 170.62 Td (\(2,906) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 170.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 155.67 Td (Deferred inventory adjustment related to fair value of derivatives) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.00 145.67 Td (and other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.50 145.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 145.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 145.67 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.80 145.72 Td (\(23,217) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 145.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 131.57 Td (Valuation allowance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 131.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 131.62 Td (\(995,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 131.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.15 131.57 Td (24,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 508.15 131.57 Td (71,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 117.57 Td (Other, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.50 117.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.15 117.57 Td (1,388) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 117.57 Td (2,969) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.30 117.62 Td (\(160) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 117.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 103.57 Td (Benefit for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 103.57 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.00 103.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 103.62 Td (\(852,418) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 103.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.00 103.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.80 103.62 Td (\(31,495) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 103.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.00 103.57 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.80 103.62 Td (\(48,323) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.65 103.57 Td (\)) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 341 0 obj <> endobj 342 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (The significant components of our net deferred tax assets and liabilities from continuing operations are summarized as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 668.1 m 462 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 668.1 m 468 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 668.1 m 528 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 668.1 m 462 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 655.1 m 462 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 668.1 m 528 668.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 655.1 m 528 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 655.1 m 462 655.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 463.1 m 462 463.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 463.1 m 528 463.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 463.1 m 462 463.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 451.1 m 462 451.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 463.1 m 528 463.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 451.1 m 528 451.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 368.1 m 462 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 368.1 m 528 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 368.1 m 462 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 356.1 m 462 356.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 368.1 m 528 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 356.1 m 528 356.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 356.1 m 462 356.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 344.1 m 462 344.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 356.1 m 528 356.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 344.1 m 528 344.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 344.1 m 462 344.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 333.1 m 462 333.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 331.1 m 462 331.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 344.1 m 528 344.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 333.1 m 528 333.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468 331.1 m 528 331.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.25 672.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 88.5 658.080078125 m 138.078125 658.080078125 l s q 0 0 0 rg BT 88.50 659.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 426.50 659.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 492.50 659.33 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 645.72 Td (DTAs:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 404.50 646.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 470.50 646.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 633.72 Td (Accrued expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.00 633.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.50 633.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 633.72 Td (60,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 633.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 633.72 Td (74,968) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 621.72 Td (Unearned premiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.00 621.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 621.72 Td (82,800) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 621.72 Td (50,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 609.72 Td (PDR) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 609.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 609.72 Td (780) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 609.72 Td (625) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 597.72 Td (NOL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.00 597.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 597.72 Td (475,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 597.72 Td (628,573) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 585.72 Td (Differences in fair value of derivative and other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.00 585.72 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 585.72 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 585.72 Td (31,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 573.72 Td (Rescission premium) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.00 573.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 573.72 Td (3,151) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.65 573.72 Td (5,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 561.72 Td (State and Local NOL Carryforwards) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.00 561.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 561.72 Td (34,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 561.72 Td (33,095) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 549.72 Td (Foreign tax credit carryforward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 549.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 549.72 Td (6,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.65 549.72 Td (6,015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 537.72 Td (Depreciation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 537.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 537.72 Td (70) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.65 537.72 Td (6,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 525.72 Td (Partnership investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.00 525.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 525.72 Td (74,179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 525.72 Td (74,569) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 513.72 Td (Loss reserves) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 513.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 513.72 Td (6,362) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 513.72 Td (13,586) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 501.72 Td (Outside basis difference of investment in subsidiary) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.00 501.72 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 501.72 Td (14,084) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 501.72 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 489.72 Td (Foreign currency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.00 489.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 489.72 Td (97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 489.72 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 477.72 Td (Alternative minimum tax credit carryforward) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.00 477.72 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 477.72 Td (2,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 477.72 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 465.72 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.00 465.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 465.72 Td (37,878) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 465.72 Td (31,547) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 453.72 Td (Total DTAs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.00 453.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 453.72 Td (798,506) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 453.72 Td (958,316) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 441.72 Td (DTLs:) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 458.50 442.48 Td () Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 524.50 442.48 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 429.72 Td (Deferred policy acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.00 429.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.65 429.72 Td (4,203) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 429.72 Td (10,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 417.72 Td (Convertible and other long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.00 417.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 417.72 Td (38,750) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 417.72 Td (47,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 405.72 Td (Differences in fair value of derivative and other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.00 405.72 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.15 405.72 Td (352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 405.72 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 394.72 Td (Net unrealized gain on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.00 394.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 394.72 Td (26,145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 394.72 Td (18,163) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 382.72 Td (Foreign currency) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.00 382.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 382.72 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 382.72 Td (18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 370.72 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.00 370.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 370.72 Td (10,981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.65 370.72 Td (5,609) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 358.72 Td (Total DTLs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.00 358.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 358.72 Td (80,431) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 358.72 Td (81,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 346.72 Td (Less: Valuation allowance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.00 346.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 346.72 Td (17,874) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 491.65 346.72 Td (858,635) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 334.72 Td (Net DTA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.00 334.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.50 334.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 334.72 Td (700,201) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.50 334.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.65 334.72 Td (17,902) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 311.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.03 311.60 Td (, we recorded a net current income tax payable of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.47 311.60 Td ($132.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.36 311.60 Td (, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 299.60 Td (primarily consists of liabilities related to applying the standards of accounting for uncertainty in income taxes and a current ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 287.60 Td (federal income tax recoverable of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.62 287.60 Td ($3.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.52 287.60 Td (. Before consideration of uncertain tax positions, we have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 275.60 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 275.60 Td ($1.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.87 275.60 Td ( of U.S. NOL) Tj ET Q q 0 0 0 rg BT 209.67 275.60 Td ( Carryforwards, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.48 275.60 Td ($6.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.37 275.60 Td ( of foreign tax credit carryforwards and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.83 275.60 Td ($2.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 562.33 275.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.60 Td (million of alternative minimum tax credit carryforwards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.37 263.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.61 263.60 Td (. ) Tj ET Q q 0 0 0 rg BT 381.43 263.60 Td (T) Tj ET Q q 0 0 0 rg BT 386.84 263.60 Td (o the extent not utilized, the U.S. NOL) Tj ET Q q 0 0 0 rg BT 541.44 263.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.60 Td (Carryforwards will expire during tax years 2028 through 2032 and the foreign tax credit carryforwards will expire during tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.60 Td (years 2018 through 2020. ) Tj ET Q q 0 0 0 rg BT 154.03 239.60 Td (The alternative minimum tax credit carryforwards have no expiration date. Certain entities within our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.60 Td (consolidated group have also generated DT) Tj ET Q q 0 0 0 rg BT 222.25 227.60 Td (As of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.95 227.60 Td ($34.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.84 227.60 Td ( relating to state and local NOL) Tj ET Q q 0 0 0 rg BT 486.54 227.60 Td ( Carryforwards, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.60 Td (which if unutilized, will expire during various future tax periods.) Tj ET Q endstream endobj 343 0 obj <> endobj 344 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (171) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Since December 31, 2010, when we initially concluded that a valuation allowance was required against substantially all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (our existing net DT) Tj ET Q q 0 0 0 rg BT 126.74 696.60 Td (A, as required under the accounting standard regarding accounting for income taxes, we have continued to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (weigh the potential ef) Tj ET Q q 0 0 0 rg BT 136.23 684.60 Td (fect of positive and negative evidence at each balance sheet date, giving consideration as to whether that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (evidence is objectively verifiable and thus how much weight shall be given to that evidence. ) Tj ET Q q 0 0 0 rg BT 420.87 672.60 Td (The primary negative evidence that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (has been considered has been our cumulative losses in recent years and potential stress scenarios with respect to our forecasts of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (future taxable income. ) Tj ET Q q 0 0 0 rg BT 141.50 648.60 Td (W) Tj ET Q q 0 0 0 rg BT 150.14 648.60 Td (e also consider positive evidence when assessing the need for a valuation allowance, such as future ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (reversals of existing taxable temporary dif) Tj ET Q q 0 0 0 rg BT 218.43 636.60 Td (ferences, future projections of taxable income, taxable income within the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (carryback and carryforward periods, and potential tax planning strategies. ) Tj ET Q q 0 0 0 rg BT 346.70 624.60 Td (The recognition of our DT) Tj ET Q q 0 0 0 rg BT 451.98 624.60 Td (A) Tj ET Q q 0 0 0 rg BT 458.65 624.60 Td ( ultimately depends on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (the existence of suf) Tj ET Q q 0 0 0 rg BT 126.79 612.60 Td (ficient taxable income of the appropriate character \(ordinary income or capital gains\) within the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.60 Td (carryback and carryforward periods provided under the tax law) Tj ET Q q 0 0 0 rg BT 301.52 600.60 Td (. Factors impacting the reversal of our valuation allowance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.60 Td (include the continued improvement in operating results and increased certainty regarding our projected incurred losses, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.60 Td (discussed in more detail below) Tj ET Q q 0 0 0 rg BT 172.16 576.60 Td (, and our ability to sustain profitability over a significant time period in amounts that are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 564.60 Td (suf) Tj ET Q q 0 0 0 rg BT 61.54 564.60 Td (ficient to support a conclusion that it is more likely than not that all or a portion of our DT) Tj ET Q q 0 0 0 rg BT 421.50 564.60 Td (As will be realized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 547.60 Td (During 2013 and 2014, we experienced significant positive trends in our mortgage insurance portfolio and in our core ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (operating results. ) Tj ET Q q 0 0 0 rg BT 120.69 535.60 Td (These positive trends are objectively verifiable as evidenced by GAAP) Tj ET Q q 0 0 0 rg BT 403.84 535.60 Td ( operating profitability) Tj ET Q q 0 0 0 rg BT 493.72 535.60 Td (, reductions in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (mortgage insurance defaults and claims submitted, and improvement in the composition of our insured portfolio. In December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (2014, we executed an agreement of sale for our wholly-owned financial guaranty subsidiary) Tj ET Q q 0 0 0 rg BT 417.33 511.60 Td (, Radian ) Tj ET Q q 0 0 0 rg BT 452.61 511.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 476.78 511.60 Td (Assurance. Based on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (expected net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.38 499.60 Td ($790 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.77 499.60 Td (, while the pending Radian ) Tj ET Q q 0 0 0 rg BT 372.19 499.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 396.36 499.60 Td (Assurance sale generated a discrete ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.60 Td (GAAP) Tj ET Q q 0 0 0 rg BT 76.36 487.60 Td ( pre-tax loss of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.82 487.60 Td ($468 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.21 487.60 Td ( during the fourth quarter of 2014, it also reduces uncertainty of future results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.60 Td (related to potential future defaults on these exposures.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 458.60 Td (Although the accounting standard regarding accounting for income taxes indicates that cumulative losses are a strong ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (indicator of negative evidence, it does not define this term or the length of time to consider when calculating a cumulative loss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (position. ) Tj ET Q q 0 0 0 rg BT 86.55 434.60 Td (While not a bright line, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.08 434.60 Td (three years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.66 434.60 Td ( \(i.e., current year plus two preceding years\) is typically considered a reasonable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td (starting point. ) Tj ET Q q 0 0 0 rg BT 107.37 422.60 Td (W) Tj ET Q q 0 0 0 rg BT 116.01 422.60 Td (e calculate our cumulative loss position as the cumulative pre-tax earnings \(loss\) for the most recent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.66 422.60 Td (three ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.60 410.60 Td (, adjusted for permanent dif) Tj ET Q q 0 0 0 rg BT 181.21 410.60 Td (ferences and changes in OCI. ) Tj ET Q q 0 0 0 rg BT 300.61 410.60 Td (As of December 31, 2014, our cumulative loss position was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.60 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 398.60 Td ($16 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.15 398.60 Td (, which represents a significant decrease from the cumulative loss as of December 31, 2010, when ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.60 Td (the valuation allowance was first established, of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.14 386.60 Td ($2.8 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.26 386.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 369.60 Td (In evaluating negative evidence, consideration was also given to the U.S. NOL) Tj ET Q q 0 0 0 rg BT 387.09 369.60 Td ( Carryforward period which extends ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (through the end of 2028. Based on management) Tj ET Q q 0 0 0 rg BT 243.90 357.60 Td (s projections, including adverse scenarios considered in our sensitivity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (analysis, we expect to utilize the NOL) Tj ET Q q 0 0 0 rg BT 202.14 345.60 Td ( Carryforward of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.64 345.60 Td ($1.5 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.76 345.60 Td ( within several years. ) Tj ET Q q 0 0 0 rg BT 465.68 345.60 Td (Additionally) Tj ET Q q 0 0 0 rg BT 515.58 345.60 Td (, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.60 Td (currently have no Internal Revenue Code Section 382 \(Section382\) or other limitations on our ability to utilize our existing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.60 Td (NOL.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 304.60 Td (After analyzing all positive and negative evidence available as noted above, we believe there is significant positive, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (objectively verifiable evidence that outweighs all negative evidence and supports a conclusion that it is more-likely-than-not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.60 Td (that substantially all of the Company) Tj ET Q q 0 0 0 rg BT 199.75 280.60 Td (s DT) Tj ET Q q 0 0 0 rg BT 218.67 280.60 Td (As will be realized. In evaluating the weight of evidence, we considered the concept ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.60 Td (of core earnings and the potential profitability of such earnings. ) Tj ET Q q 0 0 0 rg BT 314.69 268.60 Td (Absent the uncertainty and conditions existing in previous ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.60 Td (years and given the ability to generate profits based on our improved book of business, forecasts related to our core business are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.60 Td (significantly more positive, and more certain, than in prior years. In reaching our conclusions, we determined that certain non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.60 Td (insurance entities within the Group may continue to generate taxable losses on a separate company basis in the near term and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.60 Td (may not be able to utilize certain state and local NOLs on their state and local tax returns. ) Tj ET Q q 0 0 0 rg BT 410.03 220.60 Td (Therefore, we continue to believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.60 Td (a valuation allowance of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.27 208.60 Td ($17.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.16 208.60 Td ( with respect to DT) Tj ET Q q 0 0 0 rg BT 340.56 208.60 Td (As relating to these state and local NOLs is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.60 Td (appropriate.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 179.60 Td (In July 2013, the F) Tj ET Q q 0 0 0 rg BT 146.54 179.60 Td (ASB issued an update to the accounting standard regarding income taxes. ) Tj ET Q q 0 0 0 rg BT 442.94 179.60 Td (This update provides ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 167.60 Td (guidance concerning the balance sheet presentation of an unrecognized tax benefit when a Carryforward is available. ) Tj ET Q q 0 0 0 rg BT 519.39 167.60 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 155.60 Td (accounting standard requires an entity to present its DT) Tj ET Q q 0 0 0 rg BT 270.30 155.60 Td (As for the Carryforwards net of its liability related to unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 143.60 Td (benefits. ) Tj ET Q q 0 0 0 rg BT 85.60 143.60 Td (A) Tj ET Q q 0 0 0 rg BT 92.27 143.60 Td ( gross presentation will be required when the Carryforwards are not available under the tax law of the applicable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 131.60 Td (jurisdiction or when the Carryforwards would not be used by the entity to settle any additional income taxes resulting from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.60 Td (disallowance of the uncertain tax position. ) Tj ET Q q 0 0 0 rg BT 221.21 119.60 Td (This update is ef) Tj ET Q q 0 0 0 rg BT 287.41 119.60 Td (fective for fiscal years and interim periods within such years ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.60 Td (beginning after December 15, 2013. ) Tj ET Q q 0 0 0 rg BT 196.21 107.60 Td (W) Tj ET Q q 0 0 0 rg BT 204.85 107.60 Td (e adopted this update in the first quarter of 2014. ) Tj ET Q q 0 0 0 rg BT 402.12 107.60 Td (The adoption of this update did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.60 Td (af) Tj ET Q q 0 0 0 rg BT 57.09 95.60 Td (fect the recognition or measurement of uncertain tax positions and did not have a significant impact on our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.60 Td (financial statements or disclosures.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 345 0 obj <> endobj 346 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (Our ability to fully use our tax assets such as NOLs and tax credit Carryforwards would be substantially limited if we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (experience an ownership change within the meaning of Section 382. Section 382 rules governing when a change in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (ownership occurs are complex and subject to interpretation; however) Tj ET Q q 0 0 0 rg BT 325.12 684.60 Td (, in general, an ownership change would occur if any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.49 684.60 Td (five ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (percent) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.92 672.60 Td ( shareholders, as defined under Section382, collectively increase their ownership by more than ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.69 672.60 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.69 672.60 Td ( percentage points ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (over a rolling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.87 660.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.86 660.60 Td (-year period. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.89 660.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.92 660.60 Td (, we have not experienced an ownership change under Section382. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (However) Tj ET Q q 0 0 0 rg BT 85.75 648.60 Td (, if we were to experience a change in ownership under Section382 in a future period, then we may be limited in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (ability to fully utilize our NOL) Tj ET Q q 0 0 0 rg BT 172.72 636.60 Td ( and tax credit Carryforwards in future periods.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 619.60 Td (On October8, 2009, we adopted the Plan, which, as amended, was approved by our stockholders at our 2010 and 2013 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (annual meetings. ) Tj ET Q q 0 0 0 rg BT 119.58 607.60 Td (W) Tj ET Q q 0 0 0 rg BT 128.22 607.60 Td (e also adopted the Bylaw ) Tj ET Q q 0 0 0 rg BT 230.69 607.60 Td (Amendment and at our 2010 annual meeting, our stockholders approved the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (Charter ) Tj ET Q q 0 0 0 rg BT 81.43 595.60 Td (Amendment, which our stockholders reapproved at our 2013 annual meeting. ) Tj ET Q q 0 0 0 rg BT 393.39 595.60 Td (The Plan, the Bylaw ) Tj ET Q q 0 0 0 rg BT 476.99 595.60 Td (Amendment and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (Charter ) Tj ET Q q 0 0 0 rg BT 81.43 583.60 Td (Amendment were implemented in order to protect our ability to utilize our NOLs and other tax assets and prevent an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (ownership change under U.S. federal income tax rules by restricting or discouraging certain transfers of our common stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (that would: \(i\)create or result in a person becoming a five-percent shareholder under Section382; or \(ii\)increase the stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (ownership of any existing five-percent shareholder under Section382.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 530.60 Td (e are contesting adjustments resulting from the examination by the IRS of our 2000 through 2007 consolidated federal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.60 Td (income tax returns. ) Tj ET Q q 0 0 0 rg BT 128.74 518.60 Td (The IRS opposes the recognition of certain tax losses and deductions that were generated through our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.60 Td (investment in a portfolio of non-economic REMIC residual interests and proposed adjustments denying the associated tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.60 Td (benefits of these items. ) Tj ET Q q 0 0 0 rg BT 144.02 494.60 Td (W) Tj ET Q q 0 0 0 rg BT 152.65 494.60 Td (e appealed the proposed adjustments to ) Tj ET Q q 0 0 0 rg BT 311.50 494.60 Td (Appeals and made qualified deposits with the U.S. ) Tj ET Q q 0 0 0 rg BT 525.16 494.60 Td (T) Tj ET Q q 0 0 0 rg BT 530.92 494.60 Td (reasury ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.60 Td (of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.59 482.60 Td ($85 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.98 482.60 Td ( in June 2008 relating to the 2000 through 2004 tax years and approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.25 482.60 Td ($4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.64 482.60 Td ( in May ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (2010 relating to the 2005 through 2007 tax years in order to avoid the accrual of above-market-rate interest with respect to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (proposed adjustments.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 441.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 441.60 Td (e made several attempts to reach a compromised settlement with ) Tj ET Q q 0 0 0 rg BT 342.05 441.60 Td (Appeals, but in January 2013, we were notified that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 429.60 Td (Appeals had rejected our latest settlement of) Tj ET Q q 0 0 0 rg BT 227.03 429.60 Td (fer and planned to issue formal Notices of Deficiency \(known as 90-day letters\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.19 429.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 417.60 Td (On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid taxes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 405.60 Td (and penalties related to the REMIC matters of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.37 405.60 Td ($157 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.76 405.60 Td ( and exclude any potential benefit related to our NOL) Tj ET Q q 0 0 0 rg BT 561.48 405.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.60 Td (carryback ability) Tj ET Q q 0 0 0 rg BT 116.32 393.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.76 393.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.79 393.60 Td (, there also would be interest of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.35 393.60 Td ($1) Tj ET Q q 0 0 0 rg BT 421.98 393.60 Td (15 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.37 393.60 Td ( related to these matters. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.60 Td (Depending on the outcome, additional state income taxes, penalties and interest \(estimated in the aggregate to be approximately) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.72 381.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.60 Td ($30 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.89 369.60 Td ( as of December 31, 2014\) also may become due when a final resolution is reached. ) Tj ET Q q 0 0 0 rg BT 432.82 369.60 Td (The Notices of Deficiency also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (reflected additional amounts due of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.88 357.60 Td ($105 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.27 357.60 Td (, which are primarily associated with the disallowance of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (previously filed carryback of our 2008 NOL) Tj ET Q q 0 0 0 rg BT 226.30 345.60 Td ( to the 2006 and 2007 tax years. ) Tj ET Q q 0 0 0 rg BT 356.37 345.60 Td (W) Tj ET Q q 0 0 0 rg BT 365.00 345.60 Td (e currently believe that the disallowance of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.60 Td (2008 NOL) Tj ET Q q 0 0 0 rg BT 92.18 333.60 Td ( carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit of this NOL) Tj ET Q q 0 0 0 rg BT 530.31 333.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 321.60 Td (carryback claim.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.13 321.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.63 321.60 Td (On December 3, 2014, we petitioned the U.S. ) Tj ET Q q 0 0 0 rg BT 303.40 321.60 Td (T) Tj ET Q q 0 0 0 rg BT 308.81 321.60 Td (ax Court to litigate the Deficiency ) Tj ET Q q 0 0 0 rg BT 447.10 321.60 Td (Amount. ) Tj ET Q q 0 0 0 rg BT 484.70 321.60 Td (The litigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 309.60 Td (could take several years to resolve and may result in substantial legal expenses. ) Tj ET Q q 0 0 0 rg BT 369.22 309.60 Td (W) Tj ET Q q 0 0 0 rg BT 377.85 309.60 Td (e can provide no assurance regarding the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 297.60 Td (outcome of any such litigation or whether a compromised settlement with the IRS will ultimately be reached. ) Tj ET Q q 0 0 0 rg BT 488.65 297.60 Td (W) Tj ET Q q 0 0 0 rg BT 497.29 297.60 Td (e believe that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.60 Td (an adequate provision for income taxes has been made for the potential liabilities that may result from this matter) Tj ET Q q 0 0 0 rg BT 502.14 285.60 Td (. However) Tj ET Q q 0 0 0 rg BT 543.39 285.60 Td (, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.60 Td (the ultimate resolution of this matter produces a result that dif) Tj ET Q q 0 0 0 rg BT 296.48 273.60 Td (fers materially from our current expectations, there could be a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 261.60 Td (material impact on our ef) Tj ET Q q 0 0 0 rg BT 150.39 261.60 Td (fective tax rate, results of operations and cash flows.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 244.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 244.60 Td (, we have approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.32 244.60 Td ($61.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.21 244.60 Td ( of unrecognized tax benefits, including approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 232.60 Td ($60.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 232.60 Td ( of interest and penalties, that would af) Tj ET Q q 0 0 0 rg BT 258.72 232.60 Td (fect the ef) Tj ET Q q 0 0 0 rg BT 298.51 232.60 Td (fective tax rate, if recognized. Our policy for the recognition of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.60 Td (interest and penalties associated with uncertain tax positions is to record such items as a component of our income tax provision ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 208.60 Td (\(benefit\), of which approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.95 208.60 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.84 208.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.84 208.60 Td ($5.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.73 208.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.17 208.60 Td (\($0.8\) million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.72 208.60 Td ( were recorded as of December 31, 2014, 2013 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.60 Td (and 2012, respectively) Tj ET Q q 0 0 0 rg BT 139.10 196.60 Td (.) Tj ET Q endstream endobj 347 0 obj <> endobj 348 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (173) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (A) Tj ET Q q 0 0 0 rg BT 80.17 708.60 Td ( reconciliation of the beginning and ending unrecognized tax benefits is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 680.1 m 427 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 680.1 m 433 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 680.1 m 505 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 680.1 m 427 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 667.1 m 427 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 680.1 m 433 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 680.1 m 505 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 667.1 m 505 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 667.1 m 427 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 667.1 m 505 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 569.1 m 427 569.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 569.1 m 505 569.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 569.1 m 427 569.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 556.1 m 427 556.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 355 554.1 m 427 554.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 569.1 m 505 569.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 556.1 m 505 556.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 433 554.1 m 505 554.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 383.70 684.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 108.5 670.080078125 m 158.078125 670.080078125 l s q 0 0 0 rg BT 108.50 671.33 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 381.00 671.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 459.00 671.33 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 657.67 Td (Balance at beginning of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.00 657.67 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.50 657.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 657.67 Td (119,236) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 657.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 657.67 Td (114,013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 643.67 Td (Tax positions related to the current year:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.50 629.67 Td (Increases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 629.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.65 629.67 Td (2,352) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.65 629.67 Td (2,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 615.67 Td (Tax positions related to prior years:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.50 601.67 Td (Increases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 601.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.65 601.67 Td (24,361) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 601.67 Td (29,962) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 126.50 587.67 Td (Decreases) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.00 587.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.30 587.72 Td (\(1,546) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 587.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.30 587.72 Td (\(3,615) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 587.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 573.67 Td (Lapses of applicable statute of limitation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.00 573.67 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.30 573.72 Td (\(24,180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.15 573.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.30 573.72 Td (\(23,487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 501.15 573.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 559.67 Td (Balance at end of period) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 209.00 559.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.50 559.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.65 559.67 Td (120,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.50 559.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 559.67 Td (119,236) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 534.60 Td (In previous years, we took a return position in various jurisdictions that we are not required to remit taxes with regard to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 522.60 Td (the income generated from our investment in certain partnership interests. ) Tj ET Q q 0 0 0 rg BT 346.90 522.60 Td (Although we believe that these tax positions are more ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.60 Td (likely than not to succeed if adjudicated, measurement of the potential amount of liability for state and local taxes and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.60 Td (potential for penalty and interest thereon is performed on a quarterly basis. Our net unrecognized tax benefits related to prior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.60 Td (years increased by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.11 486.60 Td ($22.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 486.60 Td ( during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.11 486.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.11 486.60 Td (. ) Tj ET Q q 0 0 0 rg BT 295.93 486.60 Td (This net increase primarily reflects the impact of unrecognized tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.60 Td (benefits associated with our recognition of certain premium income. ) Tj ET Q q 0 0 0 rg BT 324.42 474.60 Td (Although unrecognized tax benefits for this item decreased ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.60 Td (by approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.26 462.60 Td ($24.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.15 462.60 Td ( due to the expiration of the applicable statute of limitations for the taxable period ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.60 Td (December 31, 2010, the related amounts continued to impact subsequent years resulting in a corresponding increase to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.60 Td (unrecognized tax benefits related primarily to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.14 438.60 Td (201) Tj ET Q q 0 0 0 rg BT 263.77 438.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.77 438.60 Td ( taxable year) Tj ET Q q 0 0 0 rg BT 319.30 438.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 421.60 Td (As discussed above, in December 2014, we petitioned the U.S. ) Tj ET Q q 0 0 0 rg BT 327.15 421.60 Td (T) Tj ET Q q 0 0 0 rg BT 332.56 421.60 Td (ax Court to litigate the IRS Notices of Deficiency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.60 Td (received on September 4, 2014. Over the next 12 months, if we determine that a compromised settlement cannot be reached ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.60 Td (with the IRS, then it is estimated that approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.57 397.60 Td ($73.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.47 397.60 Td ( of unrecognized tax benefits in the above tabular ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.60 Td (reconciliation may be reversed pursuant to the accounting standard for uncertain tax positions.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 368.60 Td (In the event we are not successful in defense of our tax positions taken for U.S. federal income tax purposes, and for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 356.60 Td (which we have recorded unrecognized tax benefits, then such adjustments originating in NOL) Tj ET Q q 0 0 0 rg BT 424.85 356.60 Td ( or NOL) Tj ET Q q 0 0 0 rg BT 458.36 356.60 Td ( carryback years may ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 344.60 Td (serve as a reduction to our existing NOL. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 327.60 Td (The following calendar tax years, listed by major jurisdiction, remain subject to examination:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.00 302.67 Td (U.S. Federal Corporation Income Tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.50 302.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.00 302.67 Td (2000-2007\(1\), 2011 - 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.00 288.67 Td (Significant State and Local Jurisdictions \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.50 288.67 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.00 288.67 Td (1999-2013) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.60 Td (_________________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 260.60 Td (\(1\) ) Tj ET Q q 0 0 0 rg BT 73.50 260.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 260.60 Td (e petitioned the U.S. ) Tj ET Q q 0 0 0 rg BT 166.39 260.60 Td (T) Tj ET Q q 0 0 0 rg BT 171.80 260.60 Td (ax Court to litigate the IRS Notices of Deficiency resulting from the examination of our 2000 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 248.60 Td (through 2007 consolidated federal income tax returns. ) Tj ET Q q 0 0 0 rg BT 292.14 248.60 Td (This litigation relates to the recognition of certain tax benefits ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 236.60 Td (associated with our investment in a portfolio of non-economic REMIC residual interests.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 51.00 224.60 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 73.50 224.60 Td (Arizona, California, Florida, Geor) Tj ET Q q 0 0 0 rg BT 209.95 224.60 Td (gia, New ) Tj ET Q q 0 0 0 rg BT 248.17 224.60 Td (Y) Tj ET Q q 0 0 0 rg BT 254.39 224.60 Td (ork, Ohio, Pennsylvania and New ) Tj ET Q q 0 0 0 rg BT 391.50 224.60 Td (Y) Tj ET Q q 0 0 0 rg BT 397.72 224.60 Td (ork City) Tj ET Q q 0 0 0 rg BT 430.13 224.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 191.60 Td (14. Statutory Information) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 170.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 170.60 Td (e prepare our statutory financial statements in accordance with the accounting practices required or permitted, if ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.60 Td (applicable, by the insurance departments of the respective states of domicile of our insurance subsidiaries. Required statutory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.60 Td (accounting practices include a variety of publications of the NAIC as well as state laws, regulations and general administrative ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.60 Td (rules. In addition, insurance departments have the right to permit other specific practices that may deviate from prescribed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 122.60 Td (practices. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.48 122.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.51 122.60 Td (, our use of any prescribed or permitted statutory accounting practices did not result in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 110.60 Td (reported statutory surplus or risk-based capital being significantly dif) Tj ET Q q 0 0 0 rg BT 325.92 110.60 Td (ferent from what would have been reported had NAIC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 98.60 Td (statutory accounting practices been followed. ) Tj ET Q endstream endobj 349 0 obj <> endobj 350 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (174) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 708.60 Td (State insurance regulators impose various capital requirements on our insurance subsidiaries. ) Tj ET Q q 0 0 0 rg BT 445.66 708.60 Td (These include Risk-to-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (capital, risk-based capital measures and surplus requirements that limit the amount of insurance that each of our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (subsidiaries may write. Our failure to maintain adequate levels of capital could lead to intervention by the various insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (regulatory authorities, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 300.34 672.60 Td (fect our business, business prospects and financial condition.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 655.60 Td (Radian Group serves as the holding company for our insurance subsidiaries, through which we conduct our mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (insurance business. ) Tj ET Q q 0 0 0 rg BT 129.03 643.60 Td (These insurance subsidiaries are subject to comprehensive, detailed regulation by the insurance departments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (in the various states where our insurance subsidiaries are domiciled or licensed to transact business. Insurance laws vary from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (state to state, but generally grant broad supervisory powers to state agencies or of) Tj ET Q q 0 0 0 rg BT 374.77 619.60 Td (ficials to examine insurance companies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (enforce rules or exercise discretion af) Tj ET Q q 0 0 0 rg BT 199.52 607.60 Td (fecting almost every significant aspect of the insurance business, including the power to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (revoke or restrict an insurance company) Tj ET Q q 0 0 0 rg BT 212.49 595.60 Td (s ability to write new business. ) Tj ET Q q 0 0 0 rg BT 338.13 595.60 Td (The state insurance regulations include various capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (requirements and dividend restrictions based on our insurance subsidiaries) Tj ET Q q 0 0 0 rg BT 349.79 583.60 Td ( statutory financial position and results of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (operations, as described in Note 1 and below) Tj ET Q q 0 0 0 rg BT 228.25 571.60 Td (. Our failure to maintain adequate levels of capital could lead to intervention by the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (various insurance regulatory authorities, which could materially and adversely af) Tj ET Q q 0 0 0 rg BT 373.09 559.60 Td (fect our business, business prospects and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (financial condition. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.20 547.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.23 547.60 Td (, the amount of restricted net assets held by our consolidated insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (subsidiaries \(which represents our equity investment in those insurance subsidiaries\) totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.69 535.60 Td ($2.2 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.80 535.60 Td ( of our consolidated net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (assets.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 506.60 Td (The ability of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 197.81 506.60 Td (, RMAI, Radian Insurance, Radian Mortgage Insurance and RGRI to pay dividends on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 494.60 Td (their common stock is restricted by certain provisions of the insurance laws of Pennsylvania, their state of domicile. Under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 482.60 Td (Pennsylvania) Tj ET Q q 0 0 0 rg BT 105.60 482.60 Td (s insurance laws, dividends and other distributions may only be paid out of an insurer) Tj ET Q q 0 0 0 rg BT 447.85 482.60 Td () Tj ET Q q 0 0 0 rg BT 450.63 482.60 Td (s positive unassigned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (surplus, measured as of the end of the prior fiscal year) Tj ET Q q 0 0 0 rg BT 265.97 470.60 Td (, unless the Pennsylvania Insurance Commissioner approves the payment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (of dividends or other distributions from another source. Radian Guaranty) Tj ET Q q 0 0 0 rg BT 341.00 458.60 Td (, RMAI, Radian Insurance, Radian Mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (Insurance and RGRI had negative unassigned surplus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.84 446.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.14 446.60 Td ( of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.47 446.60 Td ($715.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.36 446.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.36 446.60 Td ($161.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.25 446.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.25 446.60 Td ($279.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.14 446.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td ($46.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 434.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 434.60 Td ($341.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.72 434.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 234.38 434.60 Td (, compared to negative unassigned surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.12 434.60 Td ($623.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.01 434.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.01 434.60 Td ($161.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 539.90 434.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td ($305.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.39 422.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.39 422.60 Td ($69.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.28 422.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.72 422.60 Td ($360.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.61 422.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 298.27 422.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.27 422.60 Td (at December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.58 422.60 Td (. If any of these insurers had positive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (unassigned surplus as of the end of the prior fiscal year) Tj ET Q q 0 0 0 rg BT 269.59 410.60 Td (, unless the prior approval of the Pennsylvania Insurance Commissioner ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.60 Td (is obtained, such insurer only may pay dividends or other distributions during any 12-month period in an aggregate amount less ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.60 Td (than or equal to the greater of: \(i\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.00 386.60 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.33 386.60 Td ( of the preceding year) Tj ET Q q 0 0 0 rg BT 290.31 386.60 Td (-end statutory policyholders) Tj ET Q q 0 0 0 rg BT 405.09 386.60 Td ( surplus; or \(ii\)the preceding year) Tj ET Q q 0 0 0 rg BT 541.53 386.60 Td () Tj ET Q q 0 0 0 rg BT 544.30 386.60 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.60 Td (statutory net income. Due to the negative unassigned surplus at the end of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.21 374.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.21 374.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.21 374.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.21 374.60 Td ( dividends or other distributions can be paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.60 Td (from Radian Guaranty) Tj ET Q q 0 0 0 rg BT 138.82 362.60 Td (, RMAI, Radian Insurance, Radian Mortgage Insurance or RGRI in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.70 362.60 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.70 362.60 Td (, without approval from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.60 Td (Pennsylvania Insurance Commissioner) Tj ET Q q 0 0 0 rg BT 204.48 350.60 Td (. None of Radian Guaranty) Tj ET Q q 0 0 0 rg BT 311.85 350.60 Td (, RMAI, Radian Insurance, Radian Mortgage Insurance or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.60 Td (RGRI paid any dividends in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.21 338.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.21 338.60 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.54 338.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.54 338.60 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 321.60 Td (Radian Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 304.60 Td (RadianGuaranty is domiciled and licensed in Pennsylvania as astock casualty insurance company authorized to carry on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (the business of credit insurance, which includes the authority to write mortgage guaranty insurance. It is a monoline insurer) Tj ET Q q 0 0 0 rg BT 542.85 292.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.60 Td (restricted to writing only residential mortgage guaranty insurance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 263.60 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 142.81 263.60 Td (s statutory net income \(loss\), statutory policyholders) Tj ET Q q 0 0 0 rg BT 355.09 263.60 Td ( surplus and contingency reserve as of or for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 251.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.06 251.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.06 251.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.50 251.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 251.60 Td ( were as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 224.10000000000002 m 391 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 224.10000000000002 m 449 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 224.10000000000002 m 509 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 224.10000000000002 m 391 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 212.10000000000002 m 391 212.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 391 224.10000000000002 m 397 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 224.10000000000002 m 449 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 212.10000000000002 m 449 212.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 449 224.10000000000002 m 455 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 224.10000000000002 m 509 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 212.10000000000002 m 509 212.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 339 212.10000000000002 m 391 212.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 212.10000000000002 m 449 212.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 455 212.10000000000002 m 509 212.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.25 228.18 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 104.5 214.93007812500002 m 146.5078125 214.93007812500002 l s q 0 0 0 rg BT 104.50 216.18 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 356.50 216.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.50 216.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 473.50 216.18 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 202.72 Td (Statutory net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.00 202.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.50 202.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.65 202.72 Td (273.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 202.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.30 202.72 Td (\(23.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.15 202.72 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.50 202.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 479.30 202.72 Td (\(175.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 202.72 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 190.72 Td (Statutory policyholders surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.00 190.72 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.15 190.72 Td (1,325.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.15 190.72 Td (1,317.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.65 190.72 Td (926.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.50 178.72 Td (Contingency reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.00 178.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.65 178.72 Td (389.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.65 178.72 Td (23.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.15 178.72 Td () Tj ET Q BT /F1 10.00 Tf ET endstream endobj 351 0 obj <> endobj 352 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 144.31 708.60 Td (s Risk-to-capital calculation appears in the table below) Tj ET Q q 0 0 0 rg BT 362.75 708.60 Td (. For purposes of the Risk-to-capital requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (imposed by certain states, statutory capital is defined as the sum of statutory policyholders) Tj ET Q q 0 0 0 rg BT 413.67 696.60 Td ( surplus \(i.e., statutory capital and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (surplus\) plus statutory contingency reserves.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 659.1 m 386.5 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 386.5 659.1 m 394.5 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 659.1 m 449.5 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 659.1 m 386.5 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 649.1 m 386.5 649.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 659.1 m 449.5 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 649.1 m 449.5 649.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 626.1 m 386.5 626.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 624.1 m 386.5 624.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 626.1 m 449.5 626.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 624.1 m 449.5 624.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 591.1 m 386.5 591.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 591.1 m 449.5 591.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 591.1 m 386.5 591.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 580.1 m 386.5 580.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 331.5 578.1 m 386.5 578.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 591.1 m 449.5 591.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 580.1 m 449.5 580.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 394.5 578.1 m 449.5 578.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 366.75 661.23 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 350.50 651.23 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 413.50 651.23 Td (2013) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 164 639.930078125 m 211.1171875 639.930078125 l s q 0 0 0 rg BT 164.00 641.18 Td (\($ in millions\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 627.72 Td (RIF, net \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.50 627.72 Td (. . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.00 627.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 347.60 627.72 Td (30,615.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.00 627.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.60 627.72 Td (26,128.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 605.72 Td (Statutory policyholders surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 295.50 605.72 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.00 605.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.65 605.72 Td (1,325.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.00 605.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 605.72 Td (1,317.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 593.72 Td (Contingency reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.50 593.72 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.15 593.72 Td (389.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.15 593.72 Td (23.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 581.72 Td (Statutory capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.50 581.72 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.00 581.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.65 581.72 Td (1,714.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.00 581.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.65 581.72 Td (1,340.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.00 559.72 Td (Risk-to-capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.50 559.72 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.70 559.72 Td (17.9:1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.70 559.72 Td (19.5:1) Tj ET Q BT /F1 10.00 Tf ET BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 545.60 Td (_______________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 533.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 533.60 Td (Excludes risk ceded through reinsurance contracts \(to third parties and af) Tj ET Q q 0 0 0 rg BT 363.93 533.60 Td (filiates\) and RIF on defaulted loans.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 516.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 516.60 Td (e actively manage Radian Guaranty) Tj ET Q q 0 0 0 rg BT 225.63 516.60 Td (s capital position in various ways, including: \(1\) through internal and external ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 504.60 Td (reinsurance arrangements; \(2\) by seeking opportunities to reduce our risk exposure through commutations and other negotiated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 492.60 Td (transactions; and \(3\) by contributing additional capital from Radian Group. Given our financial projections for Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 480.60 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 86.06 480.60 Td (, which are subject to risks and uncertainties, we expect Radian Guaranty) Tj ET Q q 0 0 0 rg BT 381.79 480.60 Td (s Risk-to-capital to decrease over time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 468.60 Td (without the need for any additional capital contributions from Radian Group to satisfy current applicable state insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.60 Td (regulatory requirements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 439.60 Td (Radian Guaranty was in compliance with the Statutory RBC Requirements or MPP) Tj ET Q q 0 0 0 rg BT 404.14 439.60 Td ( Requirements, as applicable, in each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 427.60 Td (of the RBC States ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.94 427.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.19 427.60 Td (. See Note 1 for information regarding the Statutory RBC Requirements and MPP) Tj ET Q q 0 0 0 rg BT 551.27 427.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 415.60 Td (Requirements as well as the new) Tj ET Q q 0 0 0 rg BT 179.65 415.60 Td (, proposed GSE eligibility requirements that were issued in the form of the proposed PMIERs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 403.60 Td (for public comment on July 10, 2014. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 386.60 Td (The reduction in Radian Guaranty) Tj ET Q q 0 0 0 rg BT 210.90 386.60 Td (s Risk-to-capital in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.50 386.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.50 386.60 Td ( was primarily due to increases in statutory net income and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.60 Td (contingency reserves, as well as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.95 374.60 Td ($100 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.34 374.60 Td ( capital contribution from Radian Group, partially of) Tj ET Q q 0 0 0 rg BT 448.66 374.60 Td (fset by an increase in net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.60 Td (RIF at Radian Guaranty and a reduction in Radian Guaranty) Tj ET Q q 0 0 0 rg BT 293.04 362.60 Td (s carrying value of Radian ) Tj ET Q q 0 0 0 rg BT 400.51 362.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 424.68 362.60 Td (Assurance to its estimated fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.60 Td (value less costs to sell.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 333.60 Td (RGRI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 316.60 Td (RGRI is a monoline insurer restricted to writing only mortgage guaranty insurance or reinsurance. RGRI is not licensed or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.60 Td (authorized to write direct mortgage guaranty insurance in any states other than Pennsylvania and ) Tj ET Q q 0 0 0 rg BT 438.64 304.60 Td (T) Tj ET Q q 0 0 0 rg BT 444.05 304.60 Td (exas. RGRI is required to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (maintain a minimum statutory surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.04 292.60 Td ($20 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.43 292.60 Td ( to remain an authorized reinsurer in all states.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 275.60 Td (RGRI) Tj ET Q q 0 0 0 rg BT 98.67 275.60 Td (s statutory net income, statutory policyholders) Tj ET Q q 0 0 0 rg BT 286.22 275.60 Td ( surplus and contingency reserve as of and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.27 275.60 Td (years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.60 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 263.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.08 263.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.08 263.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.52 263.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 263.60 Td ( were as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 236.10000000000002 m 393.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393.5 236.10000000000002 m 399.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 236.10000000000002 m 448.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 448.5 236.10000000000002 m 452.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 236.10000000000002 m 509.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 236.10000000000002 m 393.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 224.10000000000002 m 393.5 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 236.10000000000002 m 448.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 224.10000000000002 m 448.5 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 236.10000000000002 m 509.5 236.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 224.10000000000002 m 509.5 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 345.5 224.10000000000002 m 393.5 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399.5 224.10000000000002 m 448.5 224.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452.5 224.10000000000002 m 509.5 224.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 403.75 240.18 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 104 226.93007812500002 m 146.0078125 226.93007812500002 l s q 0 0 0 rg BT 104.00 228.18 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.00 228.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.50 228.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.50 228.18 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 214.72 Td (Statutory net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.50 214.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.00 214.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 214.72 Td (62.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.00 214.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 214.72 Td (55.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.00 214.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 214.72 Td (16.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 202.72 Td (Statutory policyholders surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.50 202.72 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 202.72 Td (78.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 202.72 Td (59.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.15 202.72 Td (42.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 190.72 Td (Contingency reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.50 190.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.15 190.72 Td (81.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.15 190.72 Td (38.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.65 190.72 Td () Tj ET Q BT /F1 10.00 Tf ET endstream endobj 353 0 obj <> endobj 354 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (Radian Group) Tj ET Q q 0 0 0 rg BT 131.16 708.60 Td (s U.S. consolidated federal income tax returns, which include RGRI) Tj ET Q q 0 0 0 rg BT 406.09 708.60 Td (s federal income tax returns, have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (under examination by the IRS for tax years 2000 through 2007. ) Tj ET Q q 0 0 0 rg BT 305.38 696.60 Td (W) Tj ET Q q 0 0 0 rg BT 314.02 696.60 Td (e are currently contesting proposed adjustments resulting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (from the IRS examination of these tax years. Ef) Tj ET Q q 0 0 0 rg BT 240.10 684.60 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.80 684.60 Td (December31, 201) Tj ET Q q 0 0 0 rg BT 343.01 684.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.01 684.60 Td (, Radian Group and RGRI entered into an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (Assumption and Indemnification ) Tj ET Q q 0 0 0 rg BT 183.09 672.60 Td (Agreement with regard to RGRI) Tj ET Q q 0 0 0 rg BT 315.28 672.60 Td (s portion of the Deficiency ) Tj ET Q q 0 0 0 rg BT 424.42 672.60 Td (Amounts. ) Tj ET Q q 0 0 0 rg BT 465.54 672.60 Td (As of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (2014, approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.76 660.60 Td ($163 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.15 660.60 Td ( would be indemnified under this agreement if the Deficiency ) Tj ET Q q 0 0 0 rg BT 434.40 660.60 Td (Amounts are ultimately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (sustained. ) Tj ET Q q 0 0 0 rg BT 91.54 648.60 Td (This indemnification agreement was made in lieu of an immediate capital contribution to RGRI that otherwise would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (have been required for RGRI to maintain its minimum statutory policyholders) Tj ET Q q 0 0 0 rg BT 364.25 636.60 Td ( surplus requirements in light of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (remeasurement as of December 31, 201) Tj ET Q q 0 0 0 rg BT 207.95 624.60 Td (1 of uncertain tax positions related to the portfolio of REMIC residual interests. ) Tj ET Q q 0 0 0 rg BT 528.81 624.60 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (remains significant uncertainty with regard to the amount and timing of any resolution with the IRS. See Note 13 for further ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.60 Td (information regarding the examination by the IRS for the 2000 through 2007 tax years.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 583.60 Td (Radian Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 566.60 Td (RadianInsurance is domiciled and licensed in Pennsylvania as astock casualty insurance company authorized to carry on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.60 Td (the business of credit insurance, which includes the authority to write mortgage guaranty and financial guaranty insurance and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 542.60 Td (the authority to reinsure policies of mortgage guaranty insurance. Radian Insurance is not licensed or authorized to write direct ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 530.60 Td (credit insurance in any locality other than Pennsylvania and Hong Kong.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 513.60 Td (Radian Insurance is required to maintain a minimum statutory surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.99 513.60 Td ($20 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.38 513.60 Td ( to remain an authorized reinsurer in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 501.60 Td (all states. Radian Insurance) Tj ET Q q 0 0 0 rg BT 161.68 501.60 Td (s statutory net income, statutory policyholders) Tj ET Q q 0 0 0 rg BT 349.24 501.60 Td ( surplus and contingency reserve as of and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 489.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 489.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.06 489.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.06 489.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.50 489.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 489.60 Td ( were as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 462.1 m 393 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 393 462.1 m 397 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 462.1 m 446 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 446 462.1 m 450 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 462.1 m 499 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 462.1 m 393 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 450.1 m 393 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 462.1 m 446 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 450.1 m 446 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 462.1 m 499 462.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 450.1 m 499 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 344 450.1 m 393 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 450.1 m 446 450.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 450 450.1 m 499 450.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.25 466.18 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 114.5 452.930078125 m 156.5078125 452.930078125 l s q 0 0 0 rg BT 114.50 454.18 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 361.50 454.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.50 454.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.50 454.18 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.50 440.72 Td (Statutory net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 440.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.50 440.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 440.72 Td (32.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.50 440.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 440.72 Td (26.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.50 440.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 440.72 Td (58.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.50 428.72 Td (Statutory policyholders surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 243.00 428.72 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.65 428.72 Td (256.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.65 428.72 Td (230.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.65 428.72 Td (218.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 114.50 416.72 Td (Contingency reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.00 416.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.65 416.72 Td (46.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 416.72 Td (35.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.65 416.72 Td (20.6) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 393.60 Td (Radian Mortgage Insurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 376.60 Td (Radian Mortgage Insurance is domiciled and licensed in Pennsylvania as a stock casualty insurance company authorized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.60 Td (to carry on the business of credit insurance, which includes the authority to reinsure policies of mortgage guaranty insurance, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.60 Td (and is only licensed or authorized to write direct mortgage guaranty insurance in Pennsylvania and ) Tj ET Q q 0 0 0 rg BT 446.33 352.60 Td (Arizona.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 335.60 Td (Radian Mortgage Insurance is required to maintain a minimum statutory surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.87 335.60 Td ($20 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.26 335.60 Td ( to remain an authorized ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 323.60 Td (reinsurer in all states. Radian Mortgage Insurance) Tj ET Q q 0 0 0 rg BT 251.38 323.60 Td (s statutory net income, statutory policyholders) Tj ET Q q 0 0 0 rg BT 438.93 323.60 Td ( surplus and contingency ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 311.60 Td (reserve as of and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.34 311.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.90 311.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.90 311.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.90 311.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.34 311.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.34 311.60 Td ( were as follows: ) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 284.1 m 401 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 284.1 m 405 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 284.1 m 454 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 454 284.1 m 458 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 284.1 m 507 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 284.1 m 401 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 272.1 m 401 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 284.1 m 454 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 272.1 m 454 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 284.1 m 507 284.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 272.1 m 507 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 352 272.1 m 401 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 405 272.1 m 454 272.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458 272.1 m 507 272.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.75 288.18 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 106.5 274.930078125 m 148.5078125 274.930078125 l s q 0 0 0 rg BT 106.50 276.18 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.00 276.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.00 276.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.00 276.18 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 262.72 Td (Statutory net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.00 262.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 354.50 262.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 262.72 Td (18.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.50 262.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 262.72 Td (18.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.50 262.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.65 262.72 Td (1.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 250.72 Td (Statutory policyholders surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.00 250.72 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 374.65 250.72 Td (121.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.65 250.72 Td (98.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 250.72 Td (81.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.50 238.72 Td (Contingency reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.00 238.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 238.72 Td (12.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.65 238.72 Td (6.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.15 238.72 Td () Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 215.60 Td (RMAI) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 198.60 Td (RMAI is domiciled and licensed in Pennsylvania as astock casualty insurance company authorized to carry on the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 186.60 Td (business of credit insurance, which includes the authority to write mortgage guaranty insurance. It is a monoline insurer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.60 Td (restricted to writing only residential mortgage guaranty insurance. RMAI is not currently writing mortgage guaranty insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.60 Td (and had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 83.38 162.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 93.38 162.60 Td ( RIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.94 162.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.18 162.60 Td (.) Tj ET Q endstream endobj 355 0 obj <> endobj 356 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (177) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (As a Pennsylvania domiciled insurer) Tj ET Q q 0 0 0 rg BT 219.74 708.60 Td (, RMAI is required to maintain statutory-basis capital and surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 495.24 708.60 Td ($1.125 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.13 708.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (Radian Group and RMAI are parties to a guaranty agreement, which provides that Radian Group will make suf) Tj ET Q q 0 0 0 rg BT 493.64 696.60 Td (ficient funds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (available to RMAI to ensure that RMAI has a minimum of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.96 684.60 Td ($5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.35 684.60 Td ( of statutory policyholders) Tj ET Q q 0 0 0 rg BT 436.19 684.60 Td ( surplus evaluated quarterly) Tj ET Q q 0 0 0 rg BT 546.34 684.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (RMAI) Tj ET Q q 0 0 0 rg BT 78.39 672.60 Td (s statutory net \(loss\) income and statutory policyholders) Tj ET Q q 0 0 0 rg BT 305.11 672.60 Td ( surplus as of and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.47 672.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.03 672.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.03 672.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.03 672.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 660.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 660.60 Td ( were as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 633.1 m 399 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 399 633.1 m 404 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 633.1 m 452 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 633.1 m 457 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 633.1 m 505 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 621.1 m 399 621.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 633.1 m 452 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 621.1 m 452 621.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 633.1 m 505 633.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 621.1 m 505 621.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 351 621.1 m 399 621.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 404 621.1 m 452 621.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 457 621.1 m 505 621.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 405.25 637.18 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 108.5 623.930078125 m 150.5078125 623.930078125 l s q 0 0 0 rg BT 108.50 625.18 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 367.50 625.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 419.50 625.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.50 625.18 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 611.72 Td (Statutory net \(loss\) income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.00 611.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.50 611.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.30 611.72 Td (\(0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.15 611.72 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.50 611.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.30 611.72 Td (\(0.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 611.72 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.50 611.72 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 611.72 Td (2.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 599.72 Td (Statutory policyholders surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.00 599.72 Td (. . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.65 599.72 Td (17.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 599.72 Td (18.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 599.72 Td (18.5) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 576.60 Td (Radian Investor Sur) Tj ET Q q 0 0 0 rg BT 143.18 576.60 Td (ety Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 559.60 Td (In July 2014, we invested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.99 559.60 Td ($20 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 223.38 559.60 Td ( to capitalize a newly formed, Pennsylvania domiciled wholly-owned insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (subsidiary of Radian Group. ) Tj ET Q q 0 0 0 rg BT 165.13 547.60 Td (The strategic objective of this investment is to of) Tj ET Q q 0 0 0 rg BT 360.46 547.60 Td (fer various mortgage credit-related products, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (which are currently in a developmental stage. ) Tj ET Q q 0 0 0 rg BT 233.69 535.60 Td (Their statutory policyholders) Tj ET Q q 0 0 0 rg BT 352.36 535.60 Td ( surplus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.25 535.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.50 535.60 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 523.60 Td ($20 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.15 523.60 Td ( and there is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.24 523.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.24 523.60 Td ( RIF ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.81 523.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.05 523.60 Td (.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 506.60 Td (Radian ) Tj ET Q q 0 0 0 rg BT 94.21 506.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 117.63 506.60 Td (Assurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 489.60 Td (Radian ) Tj ET Q q 0 0 0 rg BT 103.77 489.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 127.94 489.60 Td (Assurance is domiciled and licensed in New ) Tj ET Q q 0 0 0 rg BT 307.25 489.60 Td (Y) Tj ET Q q 0 0 0 rg BT 313.47 489.60 Td (ork as a monoline financial guaranty insurer) Tj ET Q q 0 0 0 rg BT 489.52 489.60 Td (. It is also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 477.60 Td (licensed under the New ) Tj ET Q q 0 0 0 rg BT 145.76 477.60 Td (Y) Tj ET Q q 0 0 0 rg BT 151.98 477.60 Td (ork insurance laws to write some types of surety insurance and credit insurance. On December 22, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 465.60 Td (2014, Radian Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 240.00 465.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 264.17 465.60 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 371.65 465.60 Td (Agreement to sell Radian ) Tj ET Q q 0 0 0 rg BT 475.51 465.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 499.68 465.60 Td (Assurance. See ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 453.60 Td (Note 3 for additional information related to discontinued operations.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 436.60 Td (Radian ) Tj ET Q q 0 0 0 rg BT 103.77 436.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 127.94 436.60 Td (Assurance) Tj ET Q q 0 0 0 rg BT 172.37 436.60 Td (s ability to pay dividends to its parent, Radian Guaranty) Tj ET Q q 0 0 0 rg BT 395.01 436.60 Td (, is restricted by certain provisions of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 424.60 Td (insurance laws of New ) Tj ET Q q 0 0 0 rg BT 142.99 424.60 Td (Y) Tj ET Q q 0 0 0 rg BT 149.21 424.60 Td (ork. Under the New ) Tj ET Q q 0 0 0 rg BT 230.75 424.60 Td (Y) Tj ET Q q 0 0 0 rg BT 236.98 424.60 Td (ork insurance laws, Radian ) Tj ET Q q 0 0 0 rg BT 347.22 424.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 371.39 424.60 Td (Assurance may only pay dividends from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 412.60 Td (statutory earned surplus. ) Tj ET Q q 0 0 0 rg BT 149.85 412.60 Td (W) Tj ET Q q 0 0 0 rg BT 158.89 412.60 Td (ithout the prior approval from the NYSDFS, Radian ) Tj ET Q q 0 0 0 rg BT 369.14 412.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 393.31 412.60 Td (Assurance can only pay a dividend, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 400.60 Td (when totaled with all other dividends declared or distributed by it during the preceding 12 months, is the lesser of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.78 400.60 Td (10%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.11 400.60 Td ( of its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 388.60 Td (statutory policyholders) Tj ET Q q 0 0 0 rg BT 144.02 388.60 Td ( surplus, as shown by its last statement on file with the NYSDFS, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.01 388.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 442.34 388.60 Td ( of statutory adjusted net ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 376.60 Td (investment income during such period. In addition, the NYSDFS, in its discretion, may approve an Extraordinary Dividend. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.60 Td (July ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.67 364.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.67 364.60 Td (, July ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.84 364.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.84 364.60 Td ( and July ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.45 364.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.45 364.60 Td (, Radian ) Tj ET Q q 0 0 0 rg BT 226.72 364.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 250.89 364.60 Td (Assurance paid dividends of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.98 364.60 Td ($150.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.87 364.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.87 364.60 Td ($36.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.76 364.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.20 364.60 Td ($54.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.09 364.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 352.60 Td (, to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 179.82 352.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.27 352.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.30 352.60 Td (, Radian ) Tj ET Q q 0 0 0 rg BT 322.57 352.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 346.74 352.60 Td (Assurance maintained claims paying resources of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.60 Td ($1.4 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 95.61 340.60 Td (, which consists of statutory policyholders) Tj ET Q q 0 0 0 rg BT 267.07 340.60 Td ( surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.79 340.60 Td ($1.1 billion) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 357.90 340.60 Td (, plus contingency reserves, Unearned Premium ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 328.60 Td (Reserves, the present value of installment premiums and loss and LAE reserves. ) Tj ET Q q 0 0 0 rg BT 372.20 328.60 Td (As a result of the pending sale of Radian ) Tj ET Q q 0 0 0 rg BT 536.88 328.60 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 316.60 Td (Assurance to ) Tj ET Q q 0 0 0 rg BT 103.38 316.60 Td (Assured, which is expected to occur in the first half of 2015, we do not expect Radian ) Tj ET Q q 0 0 0 rg BT 448.56 316.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 472.73 316.60 Td (Assurance to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.60 Td (distribute any additional ordinary dividends to Radian Guaranty or to request any further NYSDFS approval for an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (Extraordinary Dividend prior to the completion of the sale.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 275.60 Td (New ) Tj ET Q q 0 0 0 rg BT 94.51 275.60 Td (Y) Tj ET Q q 0 0 0 rg BT 100.73 275.60 Td (ork insurance law also establishes aggregate risk limits on the basis of aggregate net liability as compared with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 263.60 Td (statutory capital. Aggregate net liability is a risk-based calculation based on outstanding principal and interest of guaranteed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.60 Td (obligations insured, net of qualifying reinsurance and collateral. Under these limits, statutory policyholders) Tj ET Q q 0 0 0 rg BT 480.59 251.60 Td ( surplus and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 239.60 Td (contingency reserves must not be less than a percentage of aggregate net liability equal to the sum of various percentages of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.60 Td (aggregate net liability for various categories of specified obligations. ) Tj ET Q q 0 0 0 rg BT 327.00 227.60 Td (The percentage varies from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.17 227.60 Td (0.33%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.00 227.60 Td ( for certain municipal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.60 Td (obligations to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.72 215.60 Td (4%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.05 215.60 Td ( for certain non-investment grade obligations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 304.72 215.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.75 215.60 Td (, the aggregate net liability of Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 73.67 203.60 Td (Assurance was significantly below the applicable limit.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 186.60 Td (New ) Tj ET Q q 0 0 0 rg BT 94.51 186.60 Td (Y) Tj ET Q q 0 0 0 rg BT 100.73 186.60 Td (ork insurance law requires financial guaranty insurers to maintain minimum statutory policyholders) Tj ET Q q 0 0 0 rg BT 501.83 186.60 Td ( surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.55 186.60 Td ($65 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 174.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 174.60 Td (. ) Tj ET Q q 0 0 0 rg BT 83.21 174.60 Td (When added to the minimum statutory policyholders) Tj ET Q q 0 0 0 rg BT 296.87 174.60 Td ( surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.59 174.60 Td ($1.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.48 174.60 Td ( separately required for the other lines of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 162.60 Td (insurance that Radian ) Tj ET Q q 0 0 0 rg BT 138.08 162.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 162.25 162.60 Td (Assurance is licensed to write, Radian ) Tj ET Q q 0 0 0 rg BT 316.94 162.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 341.11 162.60 Td (Assurance is required to maintain an aggregate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 150.60 Td (minimum statutory policyholders) Tj ET Q q 0 0 0 rg BT 185.41 150.60 Td ( surplus of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.13 150.60 Td ($66.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.02 150.60 Td (.) Tj ET Q endstream endobj 357 0 obj <> endobj 358 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (In accordance with New ) Tj ET Q q 0 0 0 rg BT 171.58 708.60 Td (Y) Tj ET Q q 0 0 0 rg BT 177.80 708.60 Td (ork insurance law) Tj ET Q q 0 0 0 rg BT 248.24 708.60 Td (, financial guaranty insurance companies are required to establish a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (contingency reserve equal to the greater of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.47 696.60 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.80 696.60 Td ( of premiums written or a stated percentage of the principal guaranteed, ratably ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.77 684.60 Td (15) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.77 684.60 Td ( to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.55 684.60 Td (20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.55 684.60 Td ( years dependent upon the category of obligation insured. Contingency reserves may be discontinued if the total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (reserve established for all categories of obligations exceeds the sum of the stated percentages for such categories multiplied by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (the unpaid principal guaranteed. ) Tj ET Q q 0 0 0 rg BT 180.66 660.60 Td (The contingency reserve may be released with regulatory approval to the extent that losses in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (any calendar year exceed a pre-determined percentage of earned premiums for such year) Tj ET Q q 0 0 0 rg BT 403.35 648.60 Td (, with the percentage threshold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (dependent upon the category of obligation insured. Such reserves may also be released, subject to regulatory approval in certain ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (instances, upon demonstration that the reserve amount is excessive in relation to the outstanding obligations. Reinsurers are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (required to establish a contingency reserve equal to their proportionate share of the reserve established by the ceding company) Tj ET Q q 0 0 0 rg BT 554.22 612.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 600.60 Td (Also under SAP) Tj ET Q q 0 0 0 rg BT 113.40 600.60 Td (, case reserves are required to be established in the year in which a default occurs based on the guarantor) Tj ET Q q 0 0 0 rg BT 531.93 600.60 Td () Tj ET Q q 0 0 0 rg BT 534.71 600.60 Td (s best ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 588.60 Td (estimate of ultimate loss payment, rather than when the probability weighted expected net cash out flows exceed unearned ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 576.60 Td (premium reserves.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 559.60 Td (Radian ) Tj ET Q q 0 0 0 rg BT 103.77 559.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 127.94 559.60 Td (Assurance) Tj ET Q q 0 0 0 rg BT 172.37 559.60 Td (s statutory net income, statutory policyholders) Tj ET Q q 0 0 0 rg BT 359.93 559.60 Td ( surplus and contingency reserve as of and for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 547.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.06 547.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.06 547.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.50 547.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 547.60 Td ( were as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 520.1 m 397 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 520.1 m 402 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 520.1 m 456 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 520.1 m 461 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 520.1 m 515 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 520.1 m 397 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 508.1 m 397 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 520.1 m 456 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 508.1 m 456 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 520.1 m 515 520.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 508.1 m 515 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343 508.1 m 397 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 402 508.1 m 456 508.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 508.1 m 515 508.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.25 524.18 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 98.5 510.930078125 m 140.5078125 510.930078125 l s q 0 0 0 rg BT 98.50 512.18 Td (\(In millions\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 362.50 512.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 421.50 512.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 480.50 512.18 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.50 498.67 Td (Statutory net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.00 498.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.50 498.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 498.67 Td (12.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.50 498.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.65 498.67 Td (24.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 463.50 498.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 498.67 Td (103.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.50 484.72 Td (Statutory policyholders surplus) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.00 484.72 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 363.15 484.72 Td (1,138.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.15 484.72 Td (1,198.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.15 484.72 Td (1,144.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.50 472.72 Td (Contingency reserve) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.00 472.72 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 472.72 Td (189.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 472.72 Td (264.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 472.72 Td (300.1) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 449.60 Td (The dif) Tj ET Q q 0 0 0 rg BT 102.47 449.60 Td (ferences between the statutory financial statements and financial statements presented on a GAAP) Tj ET Q q 0 0 0 rg BT 494.74 449.60 Td ( basis represent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 437.60 Td (dif) Tj ET Q q 0 0 0 rg BT 60.43 437.60 Td (ferences between GAAP) Tj ET Q q 0 0 0 rg BT 158.90 437.60 Td ( and SAP) Tj ET Q q 0 0 0 rg BT 196.32 437.60 Td ( for the following reasons:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 420.60 Td (\(a\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 420.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 420.60 Td (, mortgage guaranty insurance companies are required each year to establish a contingency reserve equal to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 408.60 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.83 408.60 Td ( of premiums earned in such year) Tj ET Q q 0 0 0 rg BT 236.56 408.60 Td (. Such amount must be maintained in the contingency reserve for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.27 408.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.27 408.60 Td ( years, after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 396.60 Td (which time it is released to unassigned surplus. Prior to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.08 396.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.08 396.60 Td ( years, the contingency reserve may be reduced with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 384.60 Td (regulatory approval to the extent that losses in any calendar year exceed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.93 384.60 Td (35%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.26 384.60 Td ( of earned premiums for such year) Tj ET Q q 0 0 0 rg BT 530.88 384.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 367.60 Td (\(b\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 367.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 367.60 Td (, insurance policy acquisition costs are char) Tj ET Q q 0 0 0 rg BT 304.15 367.60 Td (ged against operations in the year incurred. Under GAAP) Tj ET Q q 0 0 0 rg BT 532.70 367.60 Td (, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 355.60 Td (costs, other than those incurred in connection with the origination of derivative contracts, are deferred and amortized.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 338.60 Td (\(c\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 338.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 338.60 Td (, income tax expense is calculated on the basis of amounts currently payable. Generally) Tj ET Q q 0 0 0 rg BT 479.18 338.60 Td (, DT) Tj ET Q q 0 0 0 rg BT 496.71 338.60 Td (As are recorded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 326.60 Td (under both SAP) Tj ET Q q 0 0 0 rg BT 149.02 326.60 Td ( and GAAP) Tj ET Q q 0 0 0 rg BT 195.31 326.60 Td ( when it is more likely than not that the DT) Tj ET Q q 0 0 0 rg BT 367.26 326.60 Td (A) Tj ET Q q 0 0 0 rg BT 373.93 326.60 Td ( will be realized. However) Tj ET Q q 0 0 0 rg BT 479.31 326.60 Td (, SAP) Tj ET Q q 0 0 0 rg BT 502.29 326.60 Td ( standards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 314.60 Td (impose additional admissibility requirements whereby DT) Tj ET Q q 0 0 0 rg BT 317.71 314.60 Td (As are only recorded to the extent they are expected to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 302.60 Td (recovered within a one- to three-year period subject to a capital and surplus limitation. Changes in DT) Tj ET Q q 0 0 0 rg BT 493.18 302.60 Td (As and DTLs are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 290.60 Td (recognized as a direct benefit or char) Tj ET Q q 0 0 0 rg BT 233.01 290.60 Td (ge to unassigned surplus, whereas under GAAP) Tj ET Q q 0 0 0 rg BT 423.44 290.60 Td ( changes in DT) Tj ET Q q 0 0 0 rg BT 483.46 290.60 Td (As and DTLs, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 278.60 Td (except for changes in unrealized gains and losses on available-for) Tj ET Q q 0 0 0 rg BT 347.70 278.60 Td (-sale securities, are recorded as a component of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 266.60 Td (income tax expense.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 249.60 Td (\(d\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 249.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 249.60 Td (, investment grade fixed-maturity investments are valued at amortized cost and below-investment grade ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 237.60 Td (securities are carried at the lower of amortized cost or market value. Under GAAP) Tj ET Q q 0 0 0 rg BT 413.70 237.60 Td (, those investments that the statutory ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 225.60 Td (insurance entities do not have the ability or intent to hold to maturity are considered to be either available for sale or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 213.60 Td (trading securities and are recorded at fair value, with the unrealized gain or loss recognized, net of tax, as an increase ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 201.60 Td (or decrease to stockholders) Tj ET Q q 0 0 0 rg BT 196.66 201.60 Td ( equity or current operations, as applicable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 184.60 Td (\(e\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 184.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 184.60 Td (, certain assets, designated as non-admitted assets, are char) Tj ET Q q 0 0 0 rg BT 365.24 184.60 Td (ged directly against statutory surplus. Such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 172.60 Td (assets are reflected on our GAAP) Tj ET Q q 0 0 0 rg BT 218.69 172.60 Td ( financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 155.60 Td (\(f\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 155.60 Td (Prior to January 1, 2013, under SAP) Tj ET Q q 0 0 0 rg BT 229.38 155.60 Td (, the accounting standard regarding share-based payments was not applicable, with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 143.60 Td (regard to the recognition and measurement of stock option issuances. However) Tj ET Q q 0 0 0 rg BT 400.84 143.60 Td (, ef) Tj ET Q q 0 0 0 rg BT 413.42 143.60 Td (fective January 1, 2013, the NAIC ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 131.60 Td (adopted SSAP) Tj ET Q q 0 0 0 rg BT 143.19 131.60 Td ( No. 104, ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 182.91 131.60 Td (Shar) Tj ET Q q 0 0 0 rg BT 201.43 131.60 Td (e-Based Payments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.02 131.60 Td ( \(SSAP) Tj ET Q q 0 0 0 rg BT 308.82 131.60 Td ( 104\), on a prospective basis. ) Tj ET Q q 0 0 0 rg BT 431.94 131.60 Td (Therefore, expenses related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 119.60 Td (stock options granted subsequent to the date of adoption of SSAP) Tj ET Q q 0 0 0 rg BT 347.32 119.60 Td ( 104 are recognized under SAP) Tj ET Q q 0 0 0 rg BT 471.63 119.60 Td ( but expenses related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 107.60 Td (to stock options granted prior to the date of adoption continue to not be recognized under SAP) Tj ET Q q 0 0 0 rg BT 461.53 107.60 Td (. Expenses related to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 95.60 Td (stock options, regardless of the date of grant, are reflected on our GAAP) Tj ET Q q 0 0 0 rg BT 375.04 95.60 Td ( financial statements in accordance with this ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 83.60 Td (standard.) Tj ET Q endstream endobj 359 0 obj <> endobj 360 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (179) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (\(g\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 708.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 708.60 Td (, certain financial guaranty contracts are not considered derivative instruments and any fair value ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 696.60 Td (adjustments are not recognized in the financial statements, except for changes associated with known credit losses. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 684.60 Td (Under GAAP) Tj ET Q q 0 0 0 rg BT 139.11 684.60 Td (, derivative instruments that are considered credit default swaps are considered derivative instruments, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 672.60 Td (measured at fair value and recognized as either assets or liabilities in the financial statements with changes in the fair ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 660.60 Td (value recorded in current earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 643.60 Td (\(h\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 643.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 643.60 Td (, derivatives are measured at fair value, with changes in the fair value recorded directly to surplus. Under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 631.60 Td (GAAP) Tj ET Q q 0 0 0 rg BT 111.62 631.60 Td (, derivatives are measured at fair value and recognized as either assets or liabilities in the financial statements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 619.60 Td (with changes in the fair value recorded in current earnings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 602.60 Td (\(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 602.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 602.60 Td (, the accounting standard regarding accounting for transfers and servicing of financial assets and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 590.60 Td (extinguishment of liabilities and the accounting standard regarding consolidation of ) Tj ET Q q 0 0 0 rg BT 422.46 590.60 Td (VIEs are not applicable.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 573.60 Td (\(j\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 573.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 573.60 Td (, premiums written on a multi-year basis are initially deferred as unearned premiums. ) Tj ET Q q 0 0 0 rg BT 473.18 573.60 Td (A) Tj ET Q q 0 0 0 rg BT 479.85 573.60 Td ( portion of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 561.60 Td (premium written, which corresponds to the insurance policy acquisition costs, is earned immediately and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 549.60 Td (remaining premiums written are earned over the policy term. Under GAAP) Tj ET Q q 0 0 0 rg BT 385.13 549.60 Td (, these premiums written on a multi-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 537.60 Td (basis are initially deferred as unearned premiums and are earned over the policy term.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 520.60 Td (\(k\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 520.60 Td (Under SAP) Tj ET Q q 0 0 0 rg BT 130.23 520.60 Td (, capital contributions satisfied by receipt of cash or readily marketable securities subsequent to the balance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 508.60 Td (sheet date but prior to the filing of the statutory financial statement are treated as a recognized subsequent event and, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 496.60 Td (as such, are considered an admitted asset based on the evidence of collection and approval of the domiciliary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 484.60 Td (commissioner) Tj ET Q q 0 0 0 rg BT 141.05 484.60 Td (. Under GAAP) Tj ET Q q 0 0 0 rg BT 199.66 484.60 Td (, such capital contributions are treated as a nonrecognized subsequent event.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 451.60 Td (15. Shar) Tj ET Q q 0 0 0 rg BT 84.88 451.60 Td (eBased and Other) Tj ET Q q 0 0 0 rg BT 166.37 451.60 Td ( Compensation Pr) Tj ET Q q 0 0 0 rg BT 243.41 451.60 Td (ograms) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 430.60 Td (On May 14, 2014, our stockholders approved a new equity compensation plan, the 2014 Equity Plan, pursuant to which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 418.60 Td (we grant equity awards. ) Tj ET Q q 0 0 0 rg BT 147.34 418.60 Td (The 2014 Equity Plan replaced our prior equity plan, the 2008 Equity Compensation Plan. ) Tj ET Q q 0 0 0 rg BT 510.43 418.60 Td (W) Tj ET Q q 0 0 0 rg BT 519.07 418.60 Td (e also ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 406.60 Td (have awards outstanding under the 1995 Equity Plan, which preceded the 2008 Equity Plan. In adopting the 2014 Equity Plan, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 394.60 Td (we agreed not to grant any new awards under the 2008 Equity Plan. ) Tj ET Q q 0 0 0 rg BT 322.58 394.60 Td (The last awards granted pursuant to the 2008 and 1995 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 382.60 Td (Equity Plans were granted in 2014 and 2008, respectively) Tj ET Q q 0 0 0 rg BT 279.63 382.60 Td (. ) Tj ET Q q 0 0 0 rg BT 284.08 382.60 Td (All awards granted under the Equity Plans have been in the form of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.60 Td (non-qualified stock options, restricted stock, RSUs, SARs, phantom stock and performance share awards. ) Tj ET Q q 0 0 0 rg BT 474.23 370.60 Td (The maximum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.60 Td (contractual term for all awards under the Equity Plans is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 277.21 358.60 Td (10) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.21 358.60 Td ( years.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 341.60 Td (The 2014 Equity Plan authorizes the issuance of up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.79 341.60 Td (6,416,180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 331.79 341.60 Td ( shares of our common stock, plus such number of shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.60 Td (of common stock subject to outstanding awards that are payable in shares under the 2008 Equity Plan and which awards ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.60 Td (subsequently terminate, expire or are cancelled \(Prior Plan Shares\). ) Tj ET Q q 0 0 0 rg BT 330.04 317.60 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.79 317.60 Td (4,240,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.79 317.60 Td ( shares remaining available for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.60 Td (grant under the 2014 Equity Plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.48 305.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.72 305.60 Td ( \(the share reserve\). Each grant of restricted stock, RSUs, or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 293.60 Td (performance share awards under the 2014 Equity Plan \(other than those settled in cash\) reduces the reserve available for grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 281.60 Td (under the 2014 Equity Plan by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.93 281.60 Td (1.31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.43 281.60 Td ( shares for every share subject to such grant. ) Tj ET Q q 0 0 0 rg BT 370.81 281.60 Td (A) Tj ET Q q 0 0 0 rg BT 377.12 281.60 Td (wards under the 2014 Equity Plan that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 269.60 Td (provide for settlement solely in cash \(and not common shares\) do not count against the share reserve. ) Tj ET Q q 0 0 0 rg BT 456.05 269.60 Td (Absent this reserve ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.60 Td (adjustment for restricted stock, RSUs, phantom stock or performance share awards, our shares remaining available for grant ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.60 Td (under the 2014 Equity Plan would have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.68 245.60 Td (4,728,559) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 271.68 245.60 Td ( shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.67 245.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.92 245.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 228.60 Td (Unless otherwise described below) Tj ET Q q 0 0 0 rg BT 209.20 228.60 Td (, awards under the Equity Plans include the following terms:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 211.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 211.60 Td (Generally) Tj ET Q q 0 0 0 rg BT 142.27 211.60 Td (, stock options and SARs vest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.22 211.60 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.55 211.60 Td ( on each of the third and fourth anniversaries of the grant date, while ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 199.60 Td (restricted stock, RSUs and performance share awards vest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.14 199.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.47 199.60 Td ( on the third anniversary of the grant date. ) Tj ET Q q 0 0 0 rg BT 531.42 199.60 Td (All ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 187.60 Td (awards require the grantee to remain in service with us through the vesting period, except in the event of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 175.60 Td (grantee) Tj ET Q q 0 0 0 rg BT 135.70 175.60 Td (s death, disability) Tj ET Q q 0 0 0 rg BT 205.32 175.60 Td (, retirement or upon a change of control. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 158.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 158.60 Td (Generally) Tj ET Q q 0 0 0 rg BT 142.27 158.60 Td (, the awards vest upon a grantee) Tj ET Q q 0 0 0 rg BT 273.06 158.60 Td (s death, disability or retirement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 141.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 141.60 Td (A) Tj ET Q q 0 0 0 rg BT 109.80 141.60 Td (wards granted prior to May13, 2009 generally vest upon a change of control, defined as: \(i\) the acquisition by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 129.60 Td (any third party of the beneficial ownership of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.33 129.60 Td (40%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.66 129.60 Td ( or more of our outstanding common stock \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.29 129.60 Td (20%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.62 129.60 Td ( or more of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 117.60 Td (outstanding common stock for awards under the 1995 Equity Plan\); \(ii\) the purchase by any third party of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 105.60 Td (substantially all of our assets; or \(iii\) during any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.19 105.60 Td (24) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 308.19 105.60 Td (-month period, a change in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 105.60 Td (75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.48 105.60 Td ( of the members of the Board ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 93.60 Td (with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.78 93.60 Td (75%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.11 93.60 Td ( of the prior members of the Board not approving such change.) Tj ET Q endstream endobj 361 0 obj <> endobj 362 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 708.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 708.60 Td (A) Tj ET Q q 0 0 0 rg BT 109.80 708.60 Td (wards granted under the Equity Plans provide for double trigger vesting in the event of a change of control, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 696.60 Td (meaning that awards will vest in connection with a change of control only in the event the grantee) Tj ET Q q 0 0 0 rg BT 498.10 696.60 Td (s employment ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 684.60 Td (is terminated by us without cause or the grantee terminates employment for good reason, in each case within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.19 684.60 Td (90 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 672.60 Td (days) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 121.83 672.60 Td ( before or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.20 672.60 Td (one year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.34 672.60 Td ( after the change of control.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 655.60 Td (In ) Tj ET Q q 0 0 0 rg BT 82.46 655.60 Td (the ) Tj ET Q q 0 0 0 rg BT 96.80 655.60 Td (event ) Tj ET Q q 0 0 0 rg BT 120.58 655.60 Td (of ) Tj ET Q q 0 0 0 rg BT 131.04 655.60 Td (a ) Tj ET Q q 0 0 0 rg BT 137.60 655.60 Td (hypothetical ) Tj ET Q q 0 0 0 rg BT 189.16 655.60 Td (change ) Tj ET Q q 0 0 0 rg BT 219.60 655.60 Td (of ) Tj ET Q q 0 0 0 rg BT 230.06 655.60 Td (control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.51 655.60 Td (as ) Tj ET Q q 0 0 0 rg BT 270.96 655.60 Td (of ) Tj ET Q q 0 0 0 rg BT 281.42 655.60 Td (December ) Tj ET Q q 0 0 0 rg BT 324.63 655.60 Td (31, ) Tj ET Q q 0 0 0 rg BT 339.26 655.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.26 655.60 Td (, ) Tj ET Q q 0 0 0 rg BT 363.88 655.60 Td (we ) Tj ET Q q 0 0 0 rg BT 377.67 655.60 Td (estimate ) Tj ET Q q 0 0 0 rg BT 413.12 655.60 Td (that ) Tj ET Q q 0 0 0 rg BT 430.24 655.60 Td (the ) Tj ET Q q 0 0 0 rg BT 444.58 655.60 Td (vesting ) Tj ET Q q 0 0 0 rg BT 475.60 655.60 Td (of ) Tj ET Q q 0 0 0 rg BT 486.05 655.60 Td (awards ) Tj ET Q q 0 0 0 rg BT 516.50 655.60 Td (would ) Tj ET Q q 0 0 0 rg BT 543.63 655.60 Td (have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (resulted ) Tj ET Q q 0 0 0 rg BT 82.99 643.60 Td (in ) Tj ET Q q 0 0 0 rg BT 92.60 643.60 Td (a ) Tj ET Q q 0 0 0 rg BT 98.87 643.60 Td (pretax ) Tj ET Q q 0 0 0 rg BT 125.69 643.60 Td (accounting ) Tj ET Q q 0 0 0 rg BT 171.39 643.60 Td (char) Tj ET Q q 0 0 0 rg BT 188.42 643.60 Td (ge ) Tj ET Q q 0 0 0 rg BT 199.69 643.60 Td (to ) Tj ET Q q 0 0 0 rg BT 209.30 643.60 Td (us ) Tj ET Q q 0 0 0 rg BT 220.02 643.60 Td (of ) Tj ET Q q 0 0 0 rg BT 230.19 643.60 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.78 643.60 Td ($17.5 ) Tj ET Q q 0 0 0 rg BT 314.11 643.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.00 643.60 Td (, ) Tj ET Q q 0 0 0 rg BT 347.33 643.60 Td (representing ) Tj ET Q q 0 0 0 rg BT 398.59 643.60 Td (the ) Tj ET Q q 0 0 0 rg BT 412.64 643.60 Td (acceleration ) Tj ET Q q 0 0 0 rg BT 462.77 643.60 Td (of ) Tj ET Q q 0 0 0 rg BT 472.93 643.60 Td (compensation ) Tj ET Q q 0 0 0 rg BT 530.31 643.60 Td (expense ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (assuming ) Tj ET Q q 0 0 0 rg BT 89.78 631.60 Td (all ) Tj ET Q q 0 0 0 rg BT 102.27 631.60 Td (double ) Tj ET Q q 0 0 0 rg BT 136.43 631.60 Td (trigger ) Tj ET Q q 0 0 0 rg BT 170.02 631.60 Td (vesting ) Tj ET Q q 0 0 0 rg BT 201.41 631.60 Td (occurred.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 614.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 614.60 Td (e use the Monte Carlo valuation model to determine the fair value of all cash-settled awards where stock price is a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 602.60 Td (factor in determining the vesting, as well as for cash- or equity-settled performance awards where there exists a similar stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 590.60 Td (price-based market condition \(we refer to these awards as Market Condition ) Tj ET Q q 0 0 0 rg BT 360.22 590.60 Td (A) Tj ET Q q 0 0 0 rg BT 366.53 590.60 Td (wards\). ) Tj ET Q q 0 0 0 rg BT 403.00 590.60 Td (The Monte Carlo valuation model ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 578.60 Td (incorporates multiple input variables, including expected life, volatility) Tj ET Q q 0 0 0 rg BT 333.49 578.60 Td (, risk-free rate of return and dividend yield for each ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 566.60 Td (award to estimate the probability that a vesting condition will be achieved. In determining these assumptions for the Monte ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 554.60 Td (Carlo valuations, we consider historic and observable market data.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 537.60 Td (Depending on certain characteristics of the awards granted under the various Equity Plans noted above, they are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.60 Td (accounted for as either liabilities or equity instruments. ) Tj ET Q q 0 0 0 rg BT 272.31 525.60 Td (The following table summarizes awards outstanding and compensation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.60 Td (expense recognized for each type of share-based award as of and for the years ended:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 485.1 m 247 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 485.1 m 251 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 485.1 m 308 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 308 485.1 m 312 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 485.1 m 362 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 485.1 m 366 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 485.1 m 423 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 423 485.1 m 427 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 485.1 m 477 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 485.1 m 481 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 485.1 m 538 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 485.1 m 247 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 472.1 m 247 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 247 472.1 m 251 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 472.1 m 308 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 485.1 m 362 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 472.1 m 362 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 362 472.1 m 366 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 472.1 m 423 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 485.1 m 477 485.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 472.1 m 477 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 477 472.1 m 481 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 472.1 m 538 472.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 50 427.1 m 193 427.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 427.1 m 247 427.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 427.1 m 308 427.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 427.1 m 362 427.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 427.1 m 423 427.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 427.1 m 477 427.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 427.1 m 538 427.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 382.1 m 247 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 368.1 m 247 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 197 366.1 m 247 366.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 382.1 m 308 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 367.1 m 308 367.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 382.1 m 362 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 368.1 m 362 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 312 366.1 m 362 366.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 382.1 m 423 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 367.1 m 423 367.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 382.1 m 477 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 368.1 m 477 368.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 427 366.1 m 477 366.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 382.1 m 538 382.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 367.1 m 538 367.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 277.1 m 308 277.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 277.1 m 423 277.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 277.1 m 538 277.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 262.1 m 308 262.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 262.1 m 423 262.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 262.1 m 538 262.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 248.10000000000002 m 308 248.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 251 246.10000000000002 m 308 246.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 248.10000000000002 m 423 248.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 366 246.10000000000002 m 423 246.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 248.10000000000002 m 538 248.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 481 246.10000000000002 m 538 246.10000000000002 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 489.35 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.75 489.33 Td (December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 475.080078125 m 107.1875 475.080078125 l s q 0 0 0 rg BT 52.50 476.33 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 244.00 476.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 359.00 476.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.00 476.33 Td (2012) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 52.50 431.33 Td (Share-Based Compensation Programs) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 206.80 463.33 Td (Liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 203.90 455.33 Td (Recorded/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 209.90 447.33 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 200.60 439.33 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 200.15 431.33 Td (Outstanding) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 254.30 447.33 Td (Compensation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.20 439.33 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.75 431.33 Td (Recognized\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 321.80 463.33 Td (Liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 318.90 455.33 Td (Recorded/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 324.90 447.33 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.60 439.33 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 315.15 431.33 Td (Outstanding) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 369.30 447.33 Td (Compensation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 386.20 439.33 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 368.75 431.33 Td (Recognized\(1\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 436.80 463.33 Td (Liability) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 433.90 455.33 Td (Recorded/) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 439.90 447.33 Td (Equity) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.60 439.33 Td (Instruments) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 430.15 431.33 Td (Outstanding) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 484.30 447.33 Td (Compensation) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 501.20 439.33 Td (Cost) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 483.75 431.33 Td (Recognized\(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 416.77 Td (Liabilities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 401.77 Td (RSUs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.84 401.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.74 401.77 Td (Cash-Settled) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.00 401.67 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.50 401.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.65 401.77 Td (65,157) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.50 401.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.65 401.77 Td (31,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 401.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.60 401.77 Td (104,114) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.50 401.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 401.77 Td (79,322) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 401.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 401.77 Td (26,164) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 401.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 401.77 Td (21,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.50 386.77 Td (SARs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 95.84 386.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.74 386.77 Td (Cash-Settled) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.00 386.67 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.15 386.77 Td (595) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 386.77 Td (915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.65 386.77 Td (8,195) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 386.77 Td (8,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 386.77 Td (4,602) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 386.77 Td (3,498) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 371.77 Td (Liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 371.67 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.50 371.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.65 371.77 Td (65,752) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.65 371.77 Td (32,749) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.50 371.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.60 371.77 Td (112,309) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 371.77 Td (87,866) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.50 371.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 445.65 371.77 Td (30,766) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 371.77 Td (24,799) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 356.77 Td (Equity:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 341.77 Td (Stock Options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 341.67 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.10 341.77 Td (3,029,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.65 341.77 Td (2,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.10 341.77 Td (3,989,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 341.77 Td (2,488) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.10 341.77 Td (4,402,344) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 341.77 Td (1,787) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 326.77 Td (Phantom Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 326.67 Td (. . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 210.60 326.77 Td (284,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.15 326.77 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 325.60 326.77 Td (284,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.15 326.77 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.60 326.77 Td (343,094) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.15 326.77 Td (4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 311.77 Td (RSUs) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 93.84 311.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.74 311.77 Td (Equity Settled) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.00 311.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.10 311.77 Td (2,056,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.65 311.77 Td (7,461) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.10 311.77 Td (1,273,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 311.77 Td (4,336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.60 311.77 Td (990,881) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 311.77 Td (1,466) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 296.77 Td (Restricted Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.00 296.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.15 296.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.15 296.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.15 296.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.15 296.77 Td (21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 440.60 296.77 Td (131,374) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.15 296.77 Td (57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.50 281.77 Td (ESPP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 281.67 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.15 281.77 Td (267) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 281.77 Td (267) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 281.77 Td (253) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.50 266.77 Td (Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.00 266.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.65 266.77 Td (10,262) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.65 266.77 Td (7,115) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 266.77 Td (3,567) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 251.77 Td (Total all share-based plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.00 251.67 Td (. . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.50 251.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.65 251.77 Td (43,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 368.50 251.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.65 251.77 Td (94,981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.50 251.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 251.77 Td (28,366) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 235.60 Td (______________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 223.60 Td (For purposes of calculating compensation cost recognized, we generally consider time-vested awards ef) Tj ET Q q 0 0 0 rg BT 486.95 223.60 Td (fectively vested ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 211.60 Td (\(and we recognize the full compensation costs\) when grantees become retirement eligible. However) Tj ET Q q 0 0 0 rg BT 471.17 211.60 Td (, under the terms of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 199.60 Td (our stock option awards granted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 213.08 199.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.08 199.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.08 199.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.08 199.60 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.02 199.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.02 199.60 Td (, legal vesting for retirement occurs when the grantee actually ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 187.60 Td (separates from service, with the exception of certain senior executives for whom vesting remains dependent on the stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 175.60 Td (price hurdle being met regardless of when the executive separates from service. Performance-based RSU awards granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 163.60 Td (in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.28 163.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.28 163.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.28 163.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.28 163.60 Td (, and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.22 163.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.22 163.60 Td ( provide that vesting remains dependent on the Company) Tj ET Q q 0 0 0 rg BT 400.28 163.60 Td (s performance for the full term of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 151.60 Td (awards notwithstanding the grantee) Tj ET Q q 0 0 0 rg BT 216.68 151.60 Td (s earlier retirement.) Tj ET Q endstream endobj 363 0 obj <> endobj 364 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (181) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (The following table reflects additional information regarding all share-based awards for the years indicated:) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 622.60 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.25 680.1 m 428.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.25 680.1 m 432.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.25 680.1 m 487.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.25 680.1 m 491.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.25 680.1 m 546.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.25 680.1 m 428.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.25 667.1 m 428.25 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 428.25 680.1 m 432.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.25 680.1 m 487.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.25 667.1 m 487.25 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.25 680.1 m 546.25 680.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.25 667.1 m 546.25 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.25 667.1 m 428.25 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.25 667.1 m 487.25 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.25 667.1 m 546.25 667.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.25 637.1 m 428.25 637.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.25 637.1 m 487.25 637.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.25 637.1 m 546.25 637.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.25 623.1 m 428.25 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 373.25 621.1 m 428.25 621.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.25 623.1 m 487.25 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 432.25 621.1 m 487.25 621.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.25 623.1 m 546.25 623.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.25 621.1 m 546.25 621.1 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 54.75 684.35 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 414.95 684.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 54.75 670.080078125 m 198.98046875 670.080078125 l s q 0 0 0 rg BT 54.75 671.33 Td (\($ in thousands except per-share amounts\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 392.25 671.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 451.25 671.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 510.25 671.33 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 657.67 Td (Total compensation cost recognized) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.25 657.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.75 656.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.90 656.77 Td (43,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.75 656.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.90 656.77 Td (94,981) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.75 656.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.90 656.77 Td (28,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 642.67 Td (Less: Costs deferred as acquisition costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.25 642.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.90 641.77 Td (1,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.90 641.77 Td (1,769) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.40 641.77 Td (465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 54.75 626.77 Td (Stock-based compensation expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.25 626.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.75 626.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.90 626.77 Td (41,964) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.75 626.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.90 626.77 Td (93,212) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.75 626.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.90 626.77 Td (27,901) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 596.60 Td (RSUs \(Cash-Settled\) ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 575.60 Td (Performance-Based RSUs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.20 575.60 Td ( In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.53 575.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.53 575.60 Td (, the Compensation Committee granted a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.98 575.60 Td (2,21) Tj ET Q q 0 0 0 rg BT 436.11 575.60 Td (1,640) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.61 575.60 Td ( performance-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.60 Td (RSUs \(to be settled in cash\) to eligible of) Tj ET Q q 0 0 0 rg BT 214.29 563.60 Td (ficers under the 2008 Equity Plan. ) Tj ET Q q 0 0 0 rg BT 353.25 563.60 Td (These performance-based RSUs entitle grantees to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.60 Td (a cash amount equal to the fair market value of RSUs that have vested at the end of a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.88 551.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.87 551.60 Td (-year performance period. ) Tj ET Q q 0 0 0 rg BT 518.29 551.60 Td (There ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.60 Td (were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.43 539.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 81.43 539.60 Td ( cash-settled performance-based RSUs granted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 281.36 539.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.36 539.60 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 314.69 539.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.69 539.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 522.60 Td (V) Tj ET Q q 0 0 0 rg BT 79.61 522.60 Td (esting of awards granted to executive of) Tj ET Q q 0 0 0 rg BT 239.37 522.60 Td (ficers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.36 522.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.36 522.60 Td ( is dependent upon \(1\) Radian Group) Tj ET Q q 0 0 0 rg BT 445.44 522.60 Td (s absolute ) Tj ET Q q 0 0 0 rg BT 487.47 522.60 Td (TSR compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.60 Td (the relative ) Tj ET Q q 0 0 0 rg BT 96.52 510.60 Td (TSR of the companies listed on the NASDAQ 100 Financial Index and our most directly comparable mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.60 Td (insurance peer) Tj ET Q q 0 0 0 rg BT 107.12 498.60 Td (, and \(2\) Radian Group) Tj ET Q q 0 0 0 rg BT 202.38 498.60 Td (s relative ) Tj ET Q q 0 0 0 rg BT 241.07 498.60 Td (TSR \(2012 Relative ) Tj ET Q q 0 0 0 rg BT 327.82 498.60 Td (TSR Measure\), in each case measured over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.68 498.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.66 498.60 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.60 Td (performance period. ) Tj ET Q q 0 0 0 rg BT 132.89 486.60 Td (The maximum payout at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.62 486.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.61 486.60 Td (-year performance period is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 423.88 486.60 Td (200%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.21 486.60 Td ( of a grantee) Tj ET Q q 0 0 0 rg BT 499.69 486.60 Td (s tar) Tj ET Q q 0 0 0 rg BT 516.44 486.60 Td (get number ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.60 Td (of RSUs. If Radian Group) Tj ET Q q 0 0 0 rg BT 156.99 474.60 Td (s absolute ) Tj ET Q q 0 0 0 rg BT 199.03 474.60 Td (TSR during the performance period is negative, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 392.30 474.60 Td (none) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.74 474.60 Td ( of the performance-based RSUs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.60 Td (granted to executive of) Tj ET Q q 0 0 0 rg BT 141.22 462.60 Td (ficers will vest. If Radian Group) Tj ET Q q 0 0 0 rg BT 273.41 462.60 Td (s absolute ) Tj ET Q q 0 0 0 rg BT 315.45 462.60 Td (TSR is positive, the payout will be determined based on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.60 Td (analysis of Radian Group) Tj ET Q q 0 0 0 rg BT 154.20 450.60 Td (s relative ) Tj ET Q q 0 0 0 rg BT 192.89 450.60 Td (TSR and absolute ) Tj ET Q q 0 0 0 rg BT 266.32 450.60 Td (TSR. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 433.60 Td (V) Tj ET Q q 0 0 0 rg BT 79.61 433.60 Td (esting of awards granted to non-executive of) Tj ET Q q 0 0 0 rg BT 257.70 433.60 Td (ficers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.69 433.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.69 433.60 Td ( is subject to the same terms as the executive of) Tj ET Q q 0 0 0 rg BT 502.45 433.60 Td (ficer awards, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.60 Td (except that the non-executive of) Tj ET Q q 0 0 0 rg BT 177.60 421.60 Td (ficer awards are not subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.04 421.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.04 421.60 Td ( ) Tj ET Q q 0 0 0 rg BT 336.99 421.60 Td (Absolute ) Tj ET Q q 0 0 0 rg BT 375.41 421.60 Td (TSR Measure.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 404.60 Td (In general, pursuant to the terms of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.95 404.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.95 404.60 Td ( award agreement, in the event of a grantee) Tj ET Q q 0 0 0 rg BT 426.14 404.60 Td (s retirement, the award will ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 392.60 Td (continue to vest and be paid in accordance with the achievement of the Company) Tj ET Q q 0 0 0 rg BT 376.89 392.60 Td (s ) Tj ET Q q 0 0 0 rg BT 383.10 392.60 Td (TSR performance goals as of the stated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 380.60 Td (vesting date. Each RSU was granted at full value with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 268.05 380.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 380.60 Td ( exercise price. ) Tj ET Q q 0 0 0 rg BT 340.61 380.60 Td (The RSUs do not entitle the grantees to voting or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 368.60 Td (dividend rights.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 351.60 Td (V) Tj ET Q q 0 0 0 rg BT 79.61 351.60 Td (esting of awards granted to both non-executives and executives in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.64 351.60 Td (201) Tj ET Q q 0 0 0 rg BT 360.27 351.60 Td (1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.27 351.60 Td ( was dependent upon the performance of Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 339.60 Td (Group) Tj ET Q q 0 0 0 rg BT 77.83 339.60 Td (s ) Tj ET Q q 0 0 0 rg BT 84.04 339.60 Td (TSR compared to ) Tj ET Q q 0 0 0 rg BT 156.90 339.60 Td (TSRs of the Peer Groups, and resulted in a maximum payout at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.89 339.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 489.88 339.60 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 327.60 Td (performance period of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.40 327.60 Td (200%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.73 327.60 Td ( of a grantee) Tj ET Q q 0 0 0 rg BT 217.20 327.60 Td (s tar) Tj ET Q q 0 0 0 rg BT 233.96 327.60 Td (get number of RSUs.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 306.60 Td (T) Tj ET Q q 0 0 0 rg BT 78.51 306.60 Td (imed-V) Tj ET Q q 0 0 0 rg BT 106.28 306.60 Td (ested RSUs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 160.44 306.60 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.27 306.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.27 306.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.27 306.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.27 306.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.71 306.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.71 306.60 Td (, the Compensation Committee awarded to certain non-executives ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.02 306.60 Td (1,470) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.52 306.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 294.60 Td (7,670) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 294.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.44 294.60 Td (151,154) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.94 294.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 176.60 294.60 Td (, of cash-settled time-vested RSUs under the 2008 Equity Plan) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 426.56 294.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.56 294.60 Td (The estimated fair value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 282.60 Td (time-vested RSUs is based on the closing price of our common stock on the measurement date. ) Tj ET Q q 0 0 0 rg BT 432.29 282.60 Td (These RSU awards entitle ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 270.60 Td (award recipients to a cash amount equal to the closing price of our common stock on the NYSE on the vesting date for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 258.60 Td (employees or the conversion date for non-employee directors \(generally defined as a director) Tj ET Q q 0 0 0 rg BT 421.94 258.60 Td () Tj ET Q q 0 0 0 rg BT 424.72 258.60 Td (s termination of service with us\). ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 246.60 Td (These RSU awards vest in their entirety ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 211.40 246.60 Td (three years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 254.99 246.60 Td ( from the date of grant, or earlier) Tj ET Q q 0 0 0 rg BT 385.64 246.60 Td (, upon retirement, death or disability) Tj ET Q q 0 0 0 rg BT 530.78 246.60 Td (. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 63.00 225.60 Td (SARs \(Cash-Settled\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 208.60 Td (In 2010 and 2009, the Compensation Committee awarded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.06 208.60 Td (192,100) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.56 208.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.00 208.60 Td (1,623,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.00 208.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 451.66 208.60 Td (, of cash-settled SARs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.60 Td (under the 2008 Equity Plan. ) Tj ET Q q 0 0 0 rg BT 163.75 196.60 Td (The award of SARs entitles grantees to receive a cash amount equal to the excess of the closing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 184.60 Td (share price of our common stock on the date of exercise over the grant price \(the closing share price of our common stock on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.60 Td (the date of grant\). ) Tj ET Q q 0 0 0 rg BT 122.90 172.60 Td (The exercise prices of the SARs awarded in 2010 and 2009 were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.48 172.60 Td ($10.42) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.98 172.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.42 172.60 Td ($2.68) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 453.92 172.60 Td ( per share, respectively) Tj ET Q q 0 0 0 rg BT 545.45 172.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.90 172.60 Td (As ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.60 Td (of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.91 160.60 Td (, the estimated fair value of the SARs awarded in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.02 160.60 Td (2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 358.02 160.60 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.57 160.60 Td ($6.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 401.07 160.60 Td ( per share. ) Tj ET Q q 0 0 0 rg BT 444.76 160.60 Td (The SARs have a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 516.97 160.60 Td (five) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.51 160.60 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.60 Td (term and vest ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 105.87 148.60 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.20 148.60 Td ( on the third and fourth anniversaries of the date of grant. ) Tj ET Q q 0 0 0 rg BT 354.96 148.60 Td (Any SARs remaining at the end of the five-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 136.60 Td (period will be automatically exercised and paid to the grantee. ) Tj ET Q q 0 0 0 rg BT 300.24 136.60 Td (At ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.74 136.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.33 136.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.33 136.60 Td (102,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.83 136.60 Td ( of cash-settled SARs awarded in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 124.60 Td (2010 remained outstanding. ) Tj ET Q endstream endobj 365 0 obj <> endobj 366 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (182) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 708.60 Td (Non-Qualified Stock Options) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 691.60 Td (Information with regard to stock options for the periods indicated is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 640.1 m 448 640.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 640.1 m 515 640.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 640.1 m 448 640.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 640.1 m 515 640.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 570.1 m 448 570.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 557.1 m 448 557.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 555.1 m 448 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 555.1 m 448 555.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 557.1 m 448 557.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 543.1 m 448 543.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 541.1 m 448 541.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 529.1 m 448 529.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 368 527.1 m 448 527.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 389.00 652.33 Td (Number) Tj ET Q q 0 0 0 rg BT 417.30 652.33 Td (of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 396.00 644.33 Td (Shar) Tj ET Q q 0 0 0 rg BT 412.30 644.33 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.75 668.18 Td (W) Tj ET Q q 0 0 0 rg BT 476.31 668.18 Td (eighted) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 471.05 660.18 Td (A) Tj ET Q q 0 0 0 rg BT 476.23 660.18 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.75 652.18 Td (Exer) Tj ET Q q 0 0 0 rg BT 477.04 652.18 Td (cisePrice) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.15 644.18 Td (Per) Tj ET Q q 0 0 0 rg BT 479.99 644.18 Td ( Shar) Tj ET Q q 0 0 0 rg BT 498.30 644.18 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 630.67 Td (Outstanding, December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.00 630.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 630.67 Td (3,989,641) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 630.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 630.67 Td (10.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 616.67 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 616.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 616.67 Td (289,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 616.67 Td (15.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 602.67 Td (Exercised) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 602.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 602.72 Td (\(29,765) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 602.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 602.67 Td (8.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 588.67 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 588.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 413.30 588.72 Td (\(47,170) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 588.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 588.67 Td (9.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 574.67 Td (Expired) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 87.00 574.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.80 574.72 Td (\(1,172,858) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.15 574.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 488.65 574.67 Td (25.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 560.67 Td (Outstanding, December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.00 560.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 560.67 Td (3,029,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 560.67 Td (5.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 546.67 Td (Exercisable, December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.00 546.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.65 546.67 Td (938,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 493.65 546.67 Td (4.64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 532.67 Td (Available for grant, December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.00 532.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.15 532.67 Td (4,258,907) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 507.60 Td (In 2014, 2013, and 2012, the Compensation Committee awarded ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 333.06 507.60 Td (289,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.56 507.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.56 507.60 Td (279,650) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.06 507.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.50 507.60 Td (1,312,590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.50 507.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 515.16 507.60 Td (, of non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.60 Td (qualified stock options to executive and certain non-executive of) Tj ET Q q 0 0 0 rg BT 308.12 495.60 Td (ficers. ) Tj ET Q q 0 0 0 rg BT 335.14 495.60 Td (The weighted average grant date fair value per share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.60 Td (the stock options granted during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.87 483.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.87 483.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.87 483.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.87 483.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.31 483.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.31 483.60 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.86 483.60 Td ($12.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 313.36 483.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.36 483.60 Td ($10.95) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.86 483.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.30 483.60 Td ($1.92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.80 483.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 440.46 483.60 Td (. ) Tj ET Q q 0 0 0 rg BT 445.28 483.60 Td (The amount of cash received ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (from the exercise of stock options for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.67 471.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 345.23 471.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.67 471.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.67 471.60 Td ( was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.48 471.60 Td ($0.26 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.37 471.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.81 471.60 Td ($0.06 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 459.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 131.05 459.60 Td (. ) Tj ET Q q 0 0 0 rg BT 135.87 459.60 Td (The total intrinsic value of options exercised \(measured as of the date of exercise\) during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.07 459.60 Td (years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 447.60 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 447.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.52 447.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.52 447.60 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.07 447.60 Td ($0.19 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.97 447.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 261.40 447.60 Td ($0.17 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 315.30 447.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 367.96 447.60 Td (, and the related tax benefits were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 435.60 Td (approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 435.60 Td ($0.07 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.65 435.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.09 435.60 Td ($0.06 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 236.98 435.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 289.64 435.60 Td (. ) Tj ET Q q 0 0 0 rg BT 294.46 435.60 Td (There were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 342.21 435.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 352.21 435.60 Td ( stock options exercised in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.79 435.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.79 435.60 Td (. ) Tj ET Q q 0 0 0 rg BT 485.61 435.60 Td (The total intrinsic ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 423.60 Td (value of the stock options outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.92 423.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.22 423.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.22 423.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.22 423.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.66 423.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.66 423.60 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.21 423.60 Td ($34.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.11 423.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.11 423.60 Td ($27.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 490.00 423.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.44 423.60 Td ($7.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.33 423.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.60 Td (respectively) Tj ET Q q 0 0 0 rg BT 97.16 411.60 Td (, based on the closing price of our common stock as of such dates relative to the exercise prices for such stock ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.60 Td (options.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.60 Td (Upon the exercise of stock options, we generally issue shares from the authorized, unissued share reserves when the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.60 Td (exercise price is less than the treasury stock repurchase price and from treasury stock when the exercise price is greater than the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.60 Td (treasury stock repurchase price.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 341.60 Td (The table below summarizes information regarding fully vested stock options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.20 341.60 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.44 341.60 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 306.1 m 542 306.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 462 306.1 m 542 306.1 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 309.080078125 m 190.6484375 309.080078125 l s q 0 0 0 rg BT 52.50 310.33 Td (\($ in millions, except per share amounts\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 472.70 318.18 Td (Outstandingand) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.75 310.18 Td (Exer) Tj ET Q q 0 0 0 rg BT 498.04 310.18 Td (cisable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 296.67 Td (Number of options vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.00 296.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.65 296.67 Td (938,740) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 282.67 Td (Fair value of options vested during the year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.00 282.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.50 282.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.65 282.67 Td (1.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 268.67 Td (Weighted-average exercise price per share) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 226.00 268.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.50 268.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 268.67 Td (4.64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 254.67 Td (Aggregate intrinsic value \(excess market price over exercise price\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.00 254.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 464.50 254.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 520.65 254.67 Td (11.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 240.67 Td (Weighted-average remaining contractual term of options \(in years\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.00 240.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.40 240.67 Td (2.1 years) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 215.60 Td (The following table summarizes information concerning outstanding and exercisable options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.29 215.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.59 215.60 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 188.10000000000002 m 244 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 244 188.10000000000002 m 248 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 188.10000000000002 m 321 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 321 188.10000000000002 m 325 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 188.10000000000002 m 397 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 188.10000000000002 m 461 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 461 188.10000000000002 m 465 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 188.10000000000002 m 533 188.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 152.10000000000002 m 244 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 152.10000000000002 m 321 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 152.10000000000002 m 397 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 152.10000000000002 m 461 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 152.10000000000002 m 533 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 152.10000000000002 m 244 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 248 152.10000000000002 m 321 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 325 152.10000000000002 m 397 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 152.10000000000002 m 461 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 465 152.10000000000002 m 533 152.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 110.10000000000002 m 244 110.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 110.10000000000002 m 461 110.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 97.10000000000002 m 244 97.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 184 95.10000000000002 m 244 95.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 97.10000000000002 m 461 97.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 95.10000000000002 m 461 95.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 254.05 192.18 Td (OptionsOutstanding) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 432.20 192.18 Td (Options Exercisable) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 155.080078125 m 136.546875 155.080078125 l s q 0 0 0 rg BT 52.50 156.33 Td (RangeofExercisePrices) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 199.35 164.33 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 192.15 156.33 Td (Outstanding) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 253.05 180.18 Td (W) Tj ET Q q 0 0 0 rg BT 260.61 180.18 Td (eighted) Tj ET Q q 0 0 0 rg BT 287.05 180.18 Td (A) Tj ET Q q 0 0 0 rg BT 292.24 180.18 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 265.30 172.18 Td (Remaining) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 255.40 164.18 Td (ContractualLife) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 271.75 156.18 Td (\(Y) Tj ET Q q 0 0 0 rg BT 279.30 156.18 Td (ears\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 329.55 164.33 Td (W) Tj ET Q q 0 0 0 rg BT 337.11 164.33 Td (eighted) Tj ET Q q 0 0 0 rg BT 363.55 164.33 Td (A) Tj ET Q q 0 0 0 rg BT 368.74 164.33 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 336.25 156.33 Td (Exer) Tj ET Q q 0 0 0 rg BT 352.54 156.33 Td (cise Price) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.35 164.33 Td (Number) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 410.75 156.33 Td (Exer) Tj ET Q q 0 0 0 rg BT 427.04 156.33 Td (cisable) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 467.55 164.33 Td (W) Tj ET Q q 0 0 0 rg BT 475.11 164.33 Td (eighted) Tj ET Q q 0 0 0 rg BT 501.55 164.33 Td (A) Tj ET Q q 0 0 0 rg BT 506.74 164.33 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 474.25 156.33 Td (Exer) Tj ET Q q 0 0 0 rg BT 490.54 156.33 Td (cise Price) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 142.67 Td ($2.45 - $3.58) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 142.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.10 142.67 Td (2,228,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.00 142.67 Td (5.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 327.50 142.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 142.67 Td (2.73) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 142.67 Td (712,610) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.50 142.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 142.67 Td (2.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 128.67 Td ($5.76 - $7.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.00 128.67 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.65 128.67 Td (60,778) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.00 128.67 Td (3.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 128.67 Td (6.89) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.65 128.67 Td (23,200) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 511.65 128.67 Td (6.92) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 114.67 Td ($10.42 - $15.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.00 114.67 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.65 114.67 Td (740,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.00 114.67 Td (7.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.65 114.67 Td (13.56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 114.67 Td (202,930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.65 114.67 Td (10.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.10 100.67 Td (3,029,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.00 100.67 Td (4.32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.65 100.67 Td (938,740) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 367 0 obj <> endobj 368 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (183) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 708.60 Td (e use the Monte Carlo valuation model in determining the grant date fair value of performance-based stock options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (issued to executives and non-executives using the assumptions noted in the following table:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 669.1 m 408 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 408 669.1 m 412 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 669.1 m 482 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 669.1 m 486 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 669.1 m 556 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 669.1 m 408 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 657.1 m 408 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 669.1 m 482 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 657.1 m 482 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 669.1 m 556 669.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 657.1 m 556 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 338 657.1 m 408 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 412 657.1 m 482 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 486 657.1 m 556 657.1 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 673.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.20 673.18 Td (Year Ended December 31,) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 76.50 661.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 364.50 661.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 438.50 661.18 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 512.50 661.18 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 647.67 Td (Derived service period \(years\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 202.00 647.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 361.15 647.67 Td (2.99 - 3.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.15 647.67 Td (3.02 - 4.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.15 647.67 Td (3.14 - 4.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 633.67 Td (Risk-free interest rate \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.00 633.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 633.67 Td (2.57) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 633.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 633.67 Td (1.96) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 633.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 633.67 Td (1.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.15 633.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 619.67 Td (Volatility \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.00 619.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.65 619.67 Td (94.26) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 619.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 619.67 Td (94.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 619.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.65 619.67 Td (96.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.15 619.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 605.67 Td (Dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.00 605.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.65 605.67 Td (0.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.15 605.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 605.67 Td (0.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.15 605.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.65 605.67 Td (0.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.15 605.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.60 Td (______________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 577.60 Td (The risk-free interest rate is based on the U.S. ) Tj ET Q q 0 0 0 rg BT 257.59 577.60 Td (T) Tj ET Q q 0 0 0 rg BT 263.35 577.60 Td (reasury yield curve in ef) Tj ET Q q 0 0 0 rg BT 360.34 577.60 Td (fect at the time of grant.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 565.60 Td (V) Tj ET Q q 0 0 0 rg BT 77.93 565.60 Td (olatility is determined at the date of grant using historical share price volatility and expected life of each award.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 548.60 Td (For stock option awards granted in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.14 548.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.14 548.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.14 548.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 260.14 548.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 279.58 548.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.58 548.60 Td (, in addition to the time-based vesting requirements, the options ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 536.60 Td (contain a performance hurdle whereby the options will only vest if the closing price of our common stock on the NYSE exceeds ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 524.60 Td ($19.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 524.60 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 82.83 524.60 Td (125%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.16 524.60 Td ( of the option exercise price\), ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.83 524.60 Td ($17.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.33 524.60 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 259.16 524.60 Td (125%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 282.49 524.60 Td ( of the option exercise price\) and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.60 524.60 Td ($4.90) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 439.10 524.60 Td ( \() Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.93 524.60 Td (200%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.26 524.60 Td ( of the option exercise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 512.60 Td (price\), respectively) Tj ET Q q 0 0 0 rg BT 125.48 512.60 Td (, for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.64 512.60 Td (ten) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.85 512.60 Td ( consecutive trading days ending on or after the third anniversary of the date of grant. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 495.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 495.60 Td (e elected to apply the short-cut method in accounting for the windfall tax benefits under the accounting standard ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.60 Td (regarding share-based payment. Should future of) Tj ET Q q 0 0 0 rg BT 244.81 483.60 Td (fsets to the windfall resulting from cancellations, expirations or exercise ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 471.60 Td (shortfalls exceed the balance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.05 471.60 Td ($17.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.94 471.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.44 471.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.74 471.60 Td (, the excess would be reflected in the consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 459.60 Td (statements of operations.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 442.60 Td (Phantom Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 425.60 Td (In the past, the Compensation Committee has granted phantom stock awards to non-employee directors under the Equity ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.60 Td (Plans, which entitle grantees to receive shares of our common stock on the conversion date \(generally defined as a grantee) Tj ET Q q 0 0 0 rg BT 541.55 413.60 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.60 Td (termination of service with us\). ) Tj ET Q q 0 0 0 rg BT 177.06 401.60 Td (The estimated fair value of phantom stock is based on the closing share price of our common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.60 Td (stock as reported by the NYSE on the date of grant. ) Tj ET Q q 0 0 0 rg BT 257.78 389.60 Td (All outstanding shares of phantom stock are fully vested. Each share of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.60 Td (phantom stock was granted at full value with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.68 377.60 Td (no) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.68 377.60 Td ( exercise price and accrues dividend equivalents until the conversion \(as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.60 Td (defined above\). Upon conversion, all phantom stock will be paid in whole shares of our common stock, with fractional shares ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.60 Td (paid in cash. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.71 353.60 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.80 353.60 Td (, there were approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.47 353.60 Td (4,452) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.97 353.60 Td ( dividend-equivalent phantom shares accrued that were not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.60 Td (included in the total number of our outstanding shares. ) Tj ET Q q 0 0 0 rg BT 270.38 341.60 Td (The cost recognized for these awards was recognized on a straight-line ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.60 Td (basis over the vesting period. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 312.60 Td (RSUs \(Equity Settled\)) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 295.60 Td (Performance-Based RSUs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.20 295.60 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.03 295.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.03 295.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 238.47 295.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 258.47 295.60 Td (, the Compensation Committee granted to executive and non-executive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 283.60 Td (of) Tj ET Q q 0 0 0 rg BT 57.65 283.60 Td (ficers a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.40 283.60 Td (702,180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.90 283.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.34 283.60 Td (435,970) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 204.84 283.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 257.50 283.60 Td (, performance-based RSUs to be settled in common stock. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.17 283.60 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.39 283.60 Td ( equity-settled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 271.60 Td (performance-based RSUs were awarded in 2012. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 254.60 Td (V) Tj ET Q q 0 0 0 rg BT 78.11 254.60 Td (esting of awards granted to executive of) Tj ET Q q 0 0 0 rg BT 237.87 254.60 Td (ficers in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.86 254.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.86 254.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.30 254.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 332.30 254.60 Td ( is dependent upon \(1\) Radian Group) Tj ET Q q 0 0 0 rg BT 483.38 254.60 Td (s ) Tj ET Q q 0 0 0 rg BT 489.59 254.60 Td (TSR compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.60 Td (the relative ) Tj ET Q q 0 0 0 rg BT 96.52 242.60 Td (TSR of the companies listed on the NASDAQ Financial Index and our most directly comparable mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.60 Td (insurance peers as of the date of grant \(the Relative ) Tj ET Q q 0 0 0 rg BT 261.45 230.60 Td (TSR Measure\), and \(2\) Radian Group) Tj ET Q q 0 0 0 rg BT 419.74 230.60 Td (s absolute ) Tj ET Q q 0 0 0 rg BT 461.78 230.60 Td (TSR \(Absolute ) Tj ET Q q 0 0 0 rg BT 528.81 230.60 Td (TSR ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.60 Td (Measure\), in each case measured over a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.52 218.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.51 218.60 Td (-year performance period. ) Tj ET Q q 0 0 0 rg BT 341.93 218.60 Td (The maximum payout at the end of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 499.67 218.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.65 218.60 Td (-year ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.60 Td (performance period is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.74 206.60 Td (200%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.07 206.60 Td ( of a grantee) Tj ET Q q 0 0 0 rg BT 215.54 206.60 Td (s tar) Tj ET Q q 0 0 0 rg BT 232.30 206.60 Td (get number of RSUs, subject to a maximum cap of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.54 206.60 Td (six) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 449.21 206.60 Td ( times the value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.60 Td (grantee) Tj ET Q q 0 0 0 rg BT 81.70 194.60 Td (s award on the grant date. If Radian Group) Tj ET Q q 0 0 0 rg BT 255.26 194.60 Td (s absolute ) Tj ET Q q 0 0 0 rg BT 297.29 194.60 Td (TSR during the performance period is negative, the maximum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.60 Td (payout percentage will be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.01 182.60 Td (50%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.34 182.60 Td ( of tar) Tj ET Q q 0 0 0 rg BT 197.04 182.60 Td (get. If Radian Group) Tj ET Q q 0 0 0 rg BT 282.57 182.60 Td (s absolute ) Tj ET Q q 0 0 0 rg BT 324.61 182.60 Td (TSR is positive, the payout will be determined based on an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 170.60 Td (analysis of Radian Group) Tj ET Q q 0 0 0 rg BT 154.20 170.60 Td (s Relative ) Tj ET Q q 0 0 0 rg BT 196.23 170.60 Td (TSR Measure and ) Tj ET Q q 0 0 0 rg BT 270.39 170.60 Td (Absolute ) Tj ET Q q 0 0 0 rg BT 308.82 170.60 Td (TSR Measure, with executives only entitled to a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.05 170.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.38 170.60 Td ( vesting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 158.60 Td (if Radian Group) Tj ET Q q 0 0 0 rg BT 117.26 158.60 Td (s ) Tj ET Q q 0 0 0 rg BT 123.10 158.60 Td (Absolute ) Tj ET Q q 0 0 0 rg BT 161.53 158.60 Td (TSR is equal to at least ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 256.52 158.60 Td (25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.85 158.60 Td (.) Tj ET Q q 0 0 0 rg BT 279.67 158.60 Td (V) Tj ET Q q 0 0 0 rg BT 285.78 158.60 Td (esting of awards granted to non-executive of) Tj ET Q q 0 0 0 rg BT 463.87 158.60 Td (ficers in 2014 and 2013 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 146.60 Td (is subject to the same terms as the executive of) Tj ET Q q 0 0 0 rg BT 236.76 146.60 Td (ficer awards, except that the non-executive of) Tj ET Q q 0 0 0 rg BT 418.99 146.60 Td (ficer awards are not subject to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 134.60 Td (Absolute ) Tj ET Q q 0 0 0 rg BT 87.93 134.60 Td (TSR Measure.) Tj ET Q endstream endobj 369 0 obj <> endobj 370 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (184) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (The grant date fair value of performance-based RSUs is determined using the Monte Carlo valuation model. ) Tj ET Q q 0 0 0 rg BT 508.47 708.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (following are assumptions used in our calculation of the grant date fair value of performance-based RSUs to be settled in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (common stock:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 657.1 m 503 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 657.1 m 554 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 657.1 m 503 657.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 503 657.1 m 554 657.1 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.50 661.05 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.00 661.18 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 520.00 661.18 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 647.67 Td (Expected life) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 106.00 647.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.90 647.67 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.90 647.67 Td (3 years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 633.67 Td (Risk-free interest rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.00 633.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.65 633.67 Td (1.0) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 633.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.65 633.67 Td (0.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.15 633.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 619.67 Td (Volatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 91.00 619.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 619.67 Td (71.9) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 619.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 619.67 Td (81.8) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.15 619.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 605.67 Td (Dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.00 605.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 476.65 605.67 Td (0.06) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.15 605.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 605.67 Td (0.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.15 605.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 73.50 580.60 Td (T) Tj ET Q q 0 0 0 rg BT 78.51 580.60 Td (ime-V) Tj ET Q q 0 0 0 rg BT 101.28 580.60 Td (ested RSUs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.55 580.60 Td (In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.38 580.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.38 580.60 Td (, the Compensation Committee granted a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.83 580.60 Td (170,176) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.33 580.60 Td ( shares of time-vested RSUs to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 568.60 Td (settled in common stock, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.26 568.60 Td (85,133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.76 568.60 Td ( shares awarded to non-executive of) Tj ET Q q 0 0 0 rg BT 363.68 568.60 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 405.33 568.60 Td (85,043) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 432.83 568.60 Td ( shares awarded to non-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 556.60 Td (employee directors. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.69 556.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.69 556.60 Td (, the Compensation Committee granted a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 359.14 556.60 Td (102,618) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.64 556.60 Td ( shares of time-vested RSUs to be settled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 544.60 Td (in common stock, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.66 544.60 Td (13,260) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.16 544.60 Td ( shares awarded to non-executive of) Tj ET Q q 0 0 0 rg BT 335.08 544.60 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 376.73 544.60 Td (89,358) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.23 544.60 Td ( shares awarded to non-employee ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 532.60 Td (directors. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.32 532.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.32 532.60 Td (, the Compensation Committee granted a total of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.77 532.60 Td (558,216) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.27 532.60 Td ( shares of time-vested RSUs to be settled in common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 520.60 Td (stock, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 115.88 520.60 Td (7,812) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 138.38 520.60 Td ( shares awarded to non-executive of) Tj ET Q q 0 0 0 rg BT 282.31 520.60 Td (ficers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.95 520.60 Td (550,404) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.45 520.60 Td ( shares awarded to non-employee directors. ) Tj ET Q q 0 0 0 rg BT 532.60 520.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 508.60 Td (grant date fair value of the time-vested RSUs was calculated based on the closing price of our common stock on the NYSE on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 496.60 Td (the date of grant and is recognized as compensation expense over the vesting period. ) Tj ET Q q 0 0 0 rg BT 389.67 496.60 Td (All of these awards are subject to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.45 496.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 545.44 496.60 Td (-) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.60 Td (year clif) Tj ET Q q 0 0 0 rg BT 82.35 484.60 Td (f vesting.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 467.60 Td (Information with regard to RSUs to be settled in stock for the periods indicated is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 423.1 m 454.5 423.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 423.1 m 540.5 423.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 423.1 m 454.5 423.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 458.5 423.1 m 540.5 423.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 367.1 m 454.5 367.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 354.1 m 454.5 354.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 374.5 352.1 m 454.5 352.1 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 395.50 435.33 Td (Number) Tj ET Q q 0 0 0 rg BT 423.80 435.33 Td (of) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 402.50 427.33 Td (Shar) Tj ET Q q 0 0 0 rg BT 418.80 427.33 Td (es) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 468.05 443.33 Td (W) Tj ET Q q 0 0 0 rg BT 475.61 443.33 Td (eighted ) Tj ET Q q 0 0 0 rg BT 502.05 443.33 Td (A) Tj ET Q q 0 0 0 rg BT 507.24 443.33 Td (verage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 479.55 435.33 Td (Grant Date) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.15 427.33 Td (Fair) Tj ET Q q 0 0 0 rg BT 495.67 427.33 Td ( ) Tj ET Q q 0 0 0 rg BT 497.52 427.33 Td (V) Tj ET Q q 0 0 0 rg BT 502.56 427.33 Td (alue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 413.67 Td (Unvested, December 31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 413.67 Td (1,273,556) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.00 413.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 413.67 Td (7.75) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 399.67 Td (Granted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.50 399.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 418.15 399.67 Td (872,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 399.67 Td (14.97) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 385.67 Td (Vested) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 385.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.80 385.72 Td (\(31,599) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 385.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.15 385.67 Td (6.88) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 371.67 Td (Forfeited) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 113.50 371.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 419.80 371.72 Td (\(57,717) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.65 371.67 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 371.67 Td (14.22) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.00 357.67 Td (Unvested, December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.65 357.67 Td (2,056,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 514.15 357.67 Td (10.65) Tj ET Q BT /F1 10.00 Tf ET BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 332.60 Td (Restricted Stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 315.60 Td (In 2009, the Compensation Committee granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.74 315.60 Td (375,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.24 315.60 Td ( shares of restricted stock. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 402.88 315.60 Td (No) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.10 315.60 Td ( shares of restricted stock were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 303.60 Td (granted during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.59 303.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.59 303.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.59 303.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 155.59 303.60 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 168.92 303.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 188.92 303.60 Td ( and all restricted stock issued has vested. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 286.60 Td (Employee Stock Pur) Tj ET Q q 0 0 0 rg BT 142.21 286.60 Td (chase Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 269.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 269.60 Td (e have an ESPP) Tj ET Q q 0 0 0 rg BT 144.08 269.60 Td (, the 2008 ESPP) Tj ET Q q 0 0 0 rg BT 207.98 269.60 Td (, under which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.18 269.60 Td (2,000,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.18 269.60 Td ( shares of our authorized but unissued common stock have been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 257.60 Td (reserved for issuance. Under the 2008 ESPP) Tj ET Q q 0 0 0 rg BT 225.30 257.60 Td (, we sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.63 257.60 Td (67,743) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.13 257.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 296.13 257.60 Td (95,287) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 323.63 257.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 343.06 257.60 Td (204,834) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.56 257.60 Td ( shares to employees during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.42 257.60 Td (years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 245.60 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 245.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.08 245.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.08 245.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.52 245.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.52 245.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 245.18 245.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 228.60 Td (The 2008 ESPP) Tj ET Q q 0 0 0 rg BT 136.47 228.60 Td ( is designed to allow eligible employees to purchase shares of our common stock at a discount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.38 228.60 Td (15%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 544.71 228.60 Td ( of) Tj ET Q q 0 0 0 rg BT 555.36 228.60 Td (f ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 216.60 Td (the lower of the fair market value of our common stock at the beginning-of-period or end-of-period \(each period being the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 204.60 Td (and second six calendar months in a calendar year\).) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 187.60 Td (The following are assumptions used in our calculation of ESPP) Tj ET Q q 0 0 0 rg BT 326.15 187.60 Td ( compensation expense during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.00 187.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.00 187.60 Td (:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 160.10000000000002 m 464.5 160.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 160.10000000000002 m 536.5 160.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 392.5 160.10000000000002 m 464.5 160.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 468.5 160.10000000000002 m 536.5 160.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 400.75 164.18 Td (January1,2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 481.65 164.18 Td (July1,2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 150.67 Td (Expected life) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.50 150.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 424.05 150.67 Td (6 months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.05 150.67 Td (6 months) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 136.67 Td (Risk-free interest rate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.50 136.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 136.67 Td (0.34) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 136.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 136.67 Td (0.32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 136.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 122.67 Td (Volatility) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 122.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.15 122.67 Td (46.99) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 122.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.15 122.67 Td (36.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 122.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 77.00 108.67 Td (Dividend yield) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 141.50 108.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 108.67 Td (0.04) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.65 108.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.15 108.67 Td (0.03) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 527.65 108.67 Td (%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 371 0 obj <> endobj 372 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (185) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 708.60 Td (Unr) Tj ET Q q 0 0 0 rg BT 77.24 708.60 Td (ecognized Compensation Expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 691.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.53 691.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.53 691.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.53 691.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.97 691.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.97 691.60 Td (, unrecognized compensation expense related to the unvested portion of all of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 679.60 Td (our share-based awards was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 224.16 679.60 Td ($17.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.05 679.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.05 679.60 Td ($31.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.94 679.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 356.38 679.60 Td ($22.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.27 679.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 462.93 679.60 Td (. ) Tj ET Q q 0 0 0 rg BT 467.38 679.60 Td (Absent a change of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.60 Td (control under the Equity Plans, this expense is expected to be recognized over a weighted average period of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.66 667.60 Td (two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.60 Td (years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.60 655.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 622.60 Td (16. Benefit Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 601.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 601.60 Td (e have a non-qualified restoration plan \(the Benefit Restoration Plan or BRP\). ) Tj ET Q q 0 0 0 rg BT 413.24 601.60 Td (The BRP) Tj ET Q q 0 0 0 rg BT 449.82 601.60 Td ( is intended to provide ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 589.60 Td (additional retirement benefits to each of our employees who is eligible to participate in the Radian Group Inc. Savings Incentive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 577.60 Td (Plan \(Savings Plan\) and whose benefits under the Savings Plan are limited by applicable IRS limits on eligible compensation. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 565.60 Td (The plan: \(1\)mandates a lump sum form of payment \(rather than of) Tj ET Q q 0 0 0 rg BT 320.34 565.60 Td (fering an annuity election\) for participants who separate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 553.60 Td (from service after 2007; \(2\)delinks discretionary contributions from Radian Group under the BRP) Tj ET Q q 0 0 0 rg BT 443.20 553.60 Td ( from discretionary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 541.60 Td (contributions from Radian Group under the Savings Plan; \(3\)provides us with flexibility to waive the eligibility requirements ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.60 Td (for participation in discretionary contributions from Radian Group under the BRP) Tj ET Q q 0 0 0 rg BT 376.28 529.60 Td ( to allow otherwise ineligible employees, such ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 517.60 Td (as those involuntarily terminated during the year) Tj ET Q q 0 0 0 rg BT 243.49 517.60 Td (, to participate in such contributions; and \(4\)conforms the BRP) Tj ET Q q 0 0 0 rg BT 497.24 517.60 Td ( to the final ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 505.60 Td (regulations under Section409A) Tj ET Q q 0 0 0 rg BT 175.87 505.60 Td ( of the Internal Revenue Code.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 488.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 488.60 Td (e surrendered certain of the split-dollar life insurance policies issued under our prior supplemental retirement plan to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 476.60 Td (fund the BRP) Tj ET Q q 0 0 0 rg BT 102.84 476.60 Td (. Each participant in the prior plan received an initial balance in the BRP) Tj ET Q q 0 0 0 rg BT 392.92 476.60 Td ( equal to the present value of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 464.60 Td (participant) Tj ET Q q 0 0 0 rg BT 95.04 464.60 Td (s benefit under the split-dollar life insurance policy as of January1, 2007. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.90 464.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.93 464.60 Td (, we had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.03 464.60 Td ($1) Tj ET Q q 0 0 0 rg BT 540.66 464.60 Td (1.2 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 452.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 452.60 Td ( of split-dollar life insurance policies outstanding. ) Tj ET Q q 0 0 0 rg BT 279.83 452.60 Td (The expense for our BRP) Tj ET Q q 0 0 0 rg BT 381.11 452.60 Td ( for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 412.48 452.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.04 452.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 440.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 440.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.94 440.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.94 440.60 Td ( was immaterial to our financial statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 423.60 Td (The assumed discount rate for our BRP) Tj ET Q q 0 0 0 rg BT 230.88 423.60 Td ( is based on assumptions intended to estimate the actual termination liability of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 411.60 Td (plan. ) Tj ET Q q 0 0 0 rg BT 71.54 411.60 Td (The discount rate is a composite rate used to approximate the actual termination liability comprised of lump sum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 399.60 Td (payments and an annuity purchase.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 382.60 Td (The Savings Plan covers substantially all of our full-time and our part-time employees. Participants can contribute up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 370.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.83 370.60 Td ( of their base earnings as pretax and/or after) Tj ET Q q 0 0 0 rg BT 248.11 370.60 Td (-tax \(Roth IRA\) contributions up to a maximum amount of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.85 370.60 Td ($17,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 518.35 370.60 Td ( for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.01 370.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 555.01 370.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 358.60 Td (The Plan also includes a catch-up contribution provision whereby participants who are or will be age 50 and above during the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 346.60 Td (Plan year) Tj ET Q q 0 0 0 rg BT 86.58 346.60 Td (, may contribute an additional contribution. ) Tj ET Q q 0 0 0 rg BT 262.47 346.60 Td (The maximum catch-up contribution for Plan ) Tj ET Q q 0 0 0 rg BT 445.95 346.60 Td (Y) Tj ET Q q 0 0 0 rg BT 452.17 346.60 Td (ear ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.87 346.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.87 346.60 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 507.42 346.60 Td ($5,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 534.92 346.60 Td (. ) Tj ET Q q 0 0 0 rg BT 539.74 346.60 Td (W) Tj ET Q q 0 0 0 rg BT 548.38 346.60 Td (e ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 334.60 Td (will match up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.27 334.60 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.60 334.60 Td ( of the first ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.25 334.60 Td (6%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.58 334.60 Td ( of base earnings contributed in any given year) Tj ET Q q 0 0 0 rg BT 387.19 334.60 Td (. Our expense for matching funds for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 322.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.06 322.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.06 322.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.06 322.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 222.50 322.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 322.60 Td ( was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 263.05 322.60 Td ($3.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.94 322.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.94 322.60 Td ($2.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.83 322.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 385.27 322.60 Td ($2.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 434.16 322.60 Td (, respectively) Tj ET Q q 0 0 0 rg BT 486.82 322.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 305.60 Td (Certain of the benefits of this plan are as follows:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 290.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 290.60 Td (allows for the immediate eligibility of new hire participation and provides for the automatic enrollment of eligible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 278.60 Td (employees;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 263.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 263.60 Td (provides for the immediate vesting of matching contributions \(including existing unvested matching contributions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 251.60 Td (attributable to prior periods\) and the elimination of all restrictions \(other than Radian Group) Tj ET Q q 0 0 0 rg BT 474.23 251.60 Td (s Policy Regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 239.60 Td (Securities ) Tj ET Q q 0 0 0 rg BT 145.25 239.60 Td (T) Tj ET Q q 0 0 0 rg BT 151.01 239.60 Td (rading\) on a participant) Tj ET Q q 0 0 0 rg BT 247.36 239.60 Td (s ability to diversify his/her position in matching contributions;) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 224.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 224.60 Td (permits Radian Group to make discretionary) Tj ET Q q 0 0 0 rg BT 280.86 224.60 Td (, pro rata \(based on eligible pay\) cash allocations to each eligible ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 212.60 Td (participant) Tj ET Q q 0 0 0 rg BT 149.04 212.60 Td (s account, with vesting upon completion of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.01 212.60 Td (three years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.59 212.60 Td ( of service with us; and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 197.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 197.60 Td (provided certain participants who were active in our pension plan with yearly cash transition credits \(initially ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 185.60 Td (for up to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 140.44 185.60 Td (five years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 179.58 185.60 Td (, if employed by us during this time\) under the Savings Plan equal to a fixed percentage of their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 173.60 Td (eligible pay) Tj ET Q q 0 0 0 rg BT 149.78 173.60 Td (, calculated based on a formula that takes into account their age and years of completed vesting service ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.50 161.60 Td (as of January1, 2007. ) Tj ET Q q 0 0 0 rg BT 193.58 161.60 Td (The last transition payment was made in January 2012.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 144.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 144.60 Td (e have a voluntary deferred compensation plan for senior of) Tj ET Q q 0 0 0 rg BT 321.03 144.60 Td (ficers and a voluntary deferred compensation plan for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 132.60 Td (directors. ) Tj ET Q q 0 0 0 rg BT 89.30 132.60 Td (The voluntary deferred compensation plans allow: \(1\)senior of) Tj ET Q q 0 0 0 rg BT 342.38 132.60 Td (ficers to defer receipt of all or a portion of their annual ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 120.60 Td (cash incentive award and/or the payment date of their equity compensation; and \(2\)directors to defer receipt of all or a portion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 108.60 Td (of their cash compensation and/or the payment date of their equity compensation. Under the plans, a participant must make a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 96.60 Td (binding written election before the year in which compensation is to be earned to defer compensation payouts for at least two ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 84.60 Td (full calendar years beyond the year in which such compensation would have been paid.) Tj ET Q endstream endobj 373 0 obj <> endobj 374 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (186) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 708.60 Td (Participants) Tj ET Q q 0 0 0 rg BT 123.30 708.60 Td ( accounts are distributed at the dates specified in their deferral election forms or) Tj ET Q q 0 0 0 rg BT 441.94 708.60 Td (, in certain cases, upon an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (earlier termination of employment or service.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 679.60 Td (The deferred compensation plan amounts are not funded and are not segregated from our general assets. ) Tj ET Q q 0 0 0 rg BT 491.40 679.60 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 540.74 679.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 667.60 Td (participants in each plan are general unsecured creditors of Radian Group with respect to the amounts due under the plans. ) Tj ET Q q 0 0 0 rg BT 541.65 667.60 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 655.60 Td (amount recorded as deferred compensation expense for the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.73 655.60 Td (years ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 416.29 655.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 421.29 655.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.29 655.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.73 655.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.73 655.60 Td ( was immaterial to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (our financial statements.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 61.50 626.60 Td (Other Contributions) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 609.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 609.60 Td (e contributed nominal amounts to other postretirement benefit plans in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.51 609.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.51 609.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 576.60 Td (17. Commitments and Contingencies) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 555.60 Td (Legal Pr) Tj ET Q q 0 0 0 rg BT 106.91 555.60 Td (oceedings) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 538.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 538.60 Td (e are routinely involved in a number of legal actions and proceedings, the outcome of which are uncertain. ) Tj ET Q q 0 0 0 rg BT 508.14 538.60 Td (The legal ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 526.60 Td (proceedings could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief that could require ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 514.60 Td (significant expenditures or have other ef) Tj ET Q q 0 0 0 rg BT 210.65 514.60 Td (fects on our business. In accordance with applicable accounting standards and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 502.60 Td (guidance, we establish accruals for a legal proceeding only when we determine both that it is probable that a loss has been ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 490.60 Td (incurred and the amount of the loss is reasonably estimable. ) Tj ET Q q 0 0 0 rg BT 291.20 490.60 Td (W) Tj ET Q q 0 0 0 rg BT 299.84 490.60 Td (e accrue the amount that represents our best estimate of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 478.60 Td (probable loss; however) Tj ET Q q 0 0 0 rg BT 141.85 478.60 Td (, if we can only determine a range of estimated losses, we accrue an amount within the range that, in our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 466.60 Td (judgment, reflects the most likely outcome, and if none of the estimates within the range is more likely) Tj ET Q q 0 0 0 rg BT 460.13 466.60 Td (, we accrue the minimum ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 454.60 Td (amount of the range.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 437.60 Td (In the course of our regular review of pending legal matters, we determine whether it is reasonably possible that a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 425.60 Td (potential loss relating to a legal proceeding may have a material impact on our liquidity) Tj ET Q q 0 0 0 rg BT 398.74 425.60 Td (, results of operations or financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 413.60 Td (condition. If we determine such a loss is reasonably possible, we disclose information relating to any such potential loss, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 401.60 Td (including an estimate or range of loss or a statement that such an estimate cannot be made. On a quarterly and annual basis, we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 389.60 Td (review relevant information with respect to legal loss contingencies and update our accruals, disclosures and estimates of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 377.60 Td (reasonably possible losses or range of losses based on such reviews. ) Tj ET Q q 0 0 0 rg BT 324.26 377.60 Td (W) Tj ET Q q 0 0 0 rg BT 332.90 377.60 Td (e are often unable to estimate the possible loss or range ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 365.60 Td (of loss until developments in such matters have provided suf) Tj ET Q q 0 0 0 rg BT 291.78 365.60 Td (ficient information to support an assessment of the range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 353.60 Td (possible loss, such as quantification of a damage demand from plaintif) Tj ET Q q 0 0 0 rg BT 331.19 353.60 Td (fs, discovery from other parties and investigation of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 341.60 Td (factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 329.60 Td (In addition, we generally make no disclosures for loss contingencies that are determined to be remote. For matters for which we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 317.60 Td (disclose an estimated loss, the disclosed estimate reflects the reasonably possible loss or range of loss in excess of the amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 305.60 Td (accrued, if any) Tj ET Q q 0 0 0 rg BT 107.98 305.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 288.60 Td (Loss estimates are inherently subjective, based on currently available information, and are subject to management) Tj ET Q q 0 0 0 rg BT 529.67 288.60 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 276.60 Td (judgment and various assumptions. Due to the inherently subjective nature of these estimates and the uncertainty and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 264.60 Td (unpredictability surrounding the outcome of legal proceedings, actual results may dif) Tj ET Q q 0 0 0 rg BT 389.50 264.60 Td (fer materially from any amounts that have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 252.60 Td (been accrued.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 235.60 Td (W) Tj ET Q q 0 0 0 rg BT 80.14 235.60 Td (e have been named as a defendant in a number of putative class action lawsuits alleging, among other things, that our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 223.60 Td (captive reinsurance agreements violate RESP) Tj ET Q q 0 0 0 rg BT 230.18 223.60 Td (A. On December 9, 201) Tj ET Q q 0 0 0 rg BT 325.34 223.60 Td (1, an action titled Samp v) Tj ET Q q 0 0 0 rg BT 426.89 223.60 Td (. JPMor) Tj ET Q q 0 0 0 rg BT 458.39 223.60 Td (gan \(the JPMor) Tj ET Q q 0 0 0 rg BT 524.30 223.60 Td (gan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 211.60 Td (Case\) was filed in the U.S. District Court for the Central District of California.) Tj ET Q q 0 0 0 rg BT 370.63 211.60 Td (The defendants were JPMor) Tj ET Q q 0 0 0 rg BT 482.92 211.60 Td (gan and several ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 199.60 Td (mortgage insurers, including Radian Guaranty) Tj ET Q q 0 0 0 rg BT 234.08 199.60 Td (. ) Tj ET Q q 0 0 0 rg BT 238.90 199.60 Td (The plaintif) Tj ET Q q 0 0 0 rg BT 285.65 199.60 Td (fs purported to represent a class of borrowers whose loans allegedly ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 187.60 Td (were referred to mortgage insurers by JPMor) Tj ET Q q 0 0 0 rg BT 229.26 187.60 Td (gan in exchange for reinsurance agreements between the mortgage insurers and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 175.60 Td (JPMor) Tj ET Q q 0 0 0 rg BT 75.99 175.60 Td (gan) Tj ET Q q 0 0 0 rg BT 93.21 175.60 Td (s captive reinsurer) Tj ET Q q 0 0 0 rg BT 165.96 175.60 Td (.Plaintif) Tj ET Q q 0 0 0 rg BT 200.22 175.60 Td (fs asserted violations of RESP) Tj ET Q q 0 0 0 rg BT 320.41 175.60 Td (A. On October 4, 2012, Radian Guaranty filed a motion to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 163.60 Td (dismiss on a number of grounds, and on May 7, 2013, the court granted the motion and dismissed the plaintif) Tj ET Q q 0 0 0 rg BT 485.92 163.60 Td (fs) Tj ET Q q 0 0 0 rg BT 495.73 163.60 Td ( claims with ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 151.60 Td (prejudice.) Tj ET Q q 0 0 0 rg BT 91.52 151.60 Td (The court ruled that the plaintif) Tj ET Q q 0 0 0 rg BT 216.58 151.60 Td (fs could not state a claim against Radian Guaranty because it did not insure their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 139.60 Td (loans, and, in addition, ruled that their claims were barred by the statute of limitations. On June 5, 2013, plaintif) Tj ET Q q 0 0 0 rg BT 496.72 139.60 Td (fs appealed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 127.60 Td (these rulings to the U.S. Court of ) Tj ET Q q 0 0 0 rg BT 183.66 127.60 Td (Appeals for the Ninth Circuit. On November 9, 2013, plaintif) Tj ET Q q 0 0 0 rg BT 428.99 127.60 Td (fs voluntarily dismissed their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 115.60 Td (appeal.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 375 0 obj <> endobj 376 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (187) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 708.60 Td (Each of the cases described below are putative class actions \(with alleged facts substantially similar to the facts alleged in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (the JPMor) Tj ET Q q 0 0 0 rg BT 90.71 696.60 Td (gan Case discussed above\) in which Radian Guaranty has been named as a defendant and has insured at least one ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (loan of one of the plaintif) Tj ET Q q 0 0 0 rg BT 151.23 684.60 Td (fs:) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 667.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 667.60 Td (On December 30, 201) Tj ET Q q 0 0 0 rg BT 195.43 667.60 Td (1, a putative class action under RESP) Tj ET Q q 0 0 0 rg BT 344.21 667.60 Td (A) Tj ET Q q 0 0 0 rg BT 350.88 667.60 Td ( titled ) Tj ET Q q 0 0 0 rg BT 376.25 667.60 Td (White v) Tj ET Q q 0 0 0 rg BT 407.53 667.60 Td (. PNC Financial Services Group \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 655.60 Td (White Case\) was filed in the U.S. District Court for the Eastern District of Pennsylvania. On September 29, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 643.60 Td (2012, plaintif) Tj ET Q q 0 0 0 rg BT 161.20 643.60 Td (fs filed an amended complaint. On November 26, 2012, Radian Guaranty filed a motion to dismiss ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 631.60 Td (the plaintif) Tj ET Q q 0 0 0 rg BT 150.92 631.60 Td (fs) Tj ET Q q 0 0 0 rg BT 160.73 631.60 Td ( claims as barred by the statute of limitations. On June 20, 2013, the court granted Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 619.60 Td (Guaranty) Tj ET Q q 0 0 0 rg BT 147.49 619.60 Td (s motion and dismissed plaintif) Tj ET Q q 0 0 0 rg BT 272.30 619.60 Td (fs) Tj ET Q q 0 0 0 rg BT 282.11 619.60 Td ( claims, but granted plaintif) Tj ET Q q 0 0 0 rg BT 392.18 619.60 Td (fs leave to file a second amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 607.60 Td (complaint. Plaintif) Tj ET Q q 0 0 0 rg BT 181.75 607.60 Td (fs filed their second amended complaint on July 5, 2013, reasserting a putative claim under ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 595.60 Td (RESP) Tj ET Q q 0 0 0 rg BT 130.48 595.60 Td (A) Tj ET Q q 0 0 0 rg BT 137.15 595.60 Td ( on substantially the same allegations. Radian Guaranty filed a motion to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 491.91 595.60 Td (fs) Tj ET Q q 0 0 0 rg BT 501.72 595.60 Td ( second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 583.60 Td (amended complaint on July 22, 2013. ) Tj ET Q q 0 0 0 rg BT 260.07 583.60 Td (The court denied Radian Guaranty) Tj ET Q q 0 0 0 rg BT 401.13 583.60 Td (s motion on ) Tj ET Q q 0 0 0 rg BT 450.31 583.60 Td (August 18, 2014, without ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 571.60 Td (prejudice to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 228.29 571.60 Td (s ability to raise the statute of limitations bar on a motion for summary judgment. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 559.60 Td (On January 20, 2015, plaintif) Tj ET Q q 0 0 0 rg BT 224.52 559.60 Td (fs in the ) Tj ET Q q 0 0 0 rg BT 259.06 559.60 Td (White Case filed a motion to strike certain of the af) Tj ET Q q 0 0 0 rg BT 464.36 559.60 Td (firmative defenses, but ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 547.60 Td (not the statute of limitations defense, that had been asserted by Radian Guaranty in its answer to plaintif) Tj ET Q q 0 0 0 rg BT 523.32 547.60 Td (fs) Tj ET Q q 0 0 0 rg BT 533.13 547.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 535.60 Td (second amended complaint. ) Tj ET Q q 0 0 0 rg BT 221.17 535.60 Td (The parties are continuing to file procedural motions in this litigation. However) Tj ET Q q 0 0 0 rg BT 539.02 535.60 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 523.60 Td (White Case is currently stayed pending a decision by the ) Tj ET Q q 0 0 0 rg BT 336.70 523.60 Td (Third Circuit Court of ) Tj ET Q q 0 0 0 rg BT 427.25 523.60 Td (Appeals in the case Cunningham ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 511.60 Td (v) Tj ET Q q 0 0 0 rg BT 111.85 511.60 Td (. M&T) Tj ET Q q 0 0 0 rg BT 139.45 511.60 Td ( Bank Corp., which is another putative class action under RESP) Tj ET Q q 0 0 0 rg BT 393.49 511.60 Td (A) Tj ET Q q 0 0 0 rg BT 400.16 511.60 Td ( in which Radian Guaranty is not a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 499.60 Td (party) Tj ET Q q 0 0 0 rg BT 127.40 499.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 482.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 482.60 Td (On January 13, 2012, a putative class action under RESP) Tj ET Q q 0 0 0 rg BT 334.59 482.60 Td (A) Tj ET Q q 0 0 0 rg BT 341.26 482.60 Td ( titled Menichino, et al. v) Tj ET Q q 0 0 0 rg BT 441.43 482.60 Td (. Citibank, N.A., et al. \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 470.60 Td (Menichino Case\), was filed in the U.S. District Court for the ) Tj ET Q q 0 0 0 rg BT 360.60 470.60 Td (W) Tj ET Q q 0 0 0 rg BT 369.23 470.60 Td (estern District of Pennsylvania. Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 458.60 Td (Guaranty was not named as a defendant in the original complaint. On December 4, 2012, plaintif) Tj ET Q q 0 0 0 rg BT 494.98 458.60 Td (fs amended their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 446.60 Td (complaint to add Radian Guaranty as an additional defendant. On February 4, 2013, Radian Guaranty filed a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 434.60 Td (motion to dismiss the claims against it as barred by the statute of limitations. On July 19, 2013, the court granted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 422.60 Td (Radian Guaranty) Tj ET Q q 0 0 0 rg BT 178.31 422.60 Td (s motion and dismissed plaintif) Tj ET Q q 0 0 0 rg BT 303.13 422.60 Td (fs) Tj ET Q q 0 0 0 rg BT 312.93 422.60 Td ( claims, but granted plaintif) Tj ET Q q 0 0 0 rg BT 423.00 422.60 Td (fs leave to file a second amended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 410.60 Td (complaint. Plaintif) Tj ET Q q 0 0 0 rg BT 181.75 410.60 Td (fs filed their second amended complaint on ) Tj ET Q q 0 0 0 rg BT 356.43 410.60 Td (August 16, 2013, reasserting a putative claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 398.60 Td (under RESP) Tj ET Q q 0 0 0 rg BT 155.75 398.60 Td (A) Tj ET Q q 0 0 0 rg BT 162.42 398.60 Td ( on substantially the same allegations. Radian Guaranty filed a motion to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 517.18 398.60 Td (fs) Tj ET Q q 0 0 0 rg BT 526.99 398.60 Td ( second ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 386.60 Td (amended complaint on September 17, 2013. ) Tj ET Q q 0 0 0 rg BT 286.17 386.60 Td (The court denied Radian Guaranty) Tj ET Q q 0 0 0 rg BT 427.23 386.60 Td (s motion on February 4, 2014, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 374.60 Td (without prejudice to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 261.35 374.60 Td (s ability to raise the statute of limitations bar on a motion for summary ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 362.60 Td (judgment. ) Tj ET Q q 0 0 0 rg BT 150.09 362.60 Td (The Menichino Case is currently stayed pending a decision by the ) Tj ET Q q 0 0 0 rg BT 416.23 362.60 Td (Third Circuit Court of ) Tj ET Q q 0 0 0 rg BT 506.78 362.60 Td (Appeals in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 350.60 Td (the case Cunningham v) Tj ET Q q 0 0 0 rg BT 200.44 350.60 Td (. M&T) Tj ET Q q 0 0 0 rg BT 228.04 350.60 Td ( Bank Corp., which is another putative class action under RESP) Tj ET Q q 0 0 0 rg BT 482.08 350.60 Td (A) Tj ET Q q 0 0 0 rg BT 488.75 350.60 Td ( in which Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 338.60 Td (Guaranty is not a party) Tj ET Q q 0 0 0 rg BT 198.49 338.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 89.50 321.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 321.60 Td (On ) Tj ET Q q 0 0 0 rg BT 121.67 321.60 Td (April 5, 2012, a putative class action under RESP) Tj ET Q q 0 0 0 rg BT 319.05 321.60 Td (A) Tj ET Q q 0 0 0 rg BT 325.72 321.60 Td ( titled Manners, et al. v) Tj ET Q q 0 0 0 rg BT 417.55 321.60 Td (. Fifth ) Tj ET Q q 0 0 0 rg BT 444.32 321.60 Td (Third Bank, et al \(the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 309.60 Td (Manners Case\) was filed in the U.S. District Court for the ) Tj ET Q q 0 0 0 rg BT 349.76 309.60 Td (W) Tj ET Q q 0 0 0 rg BT 358.40 309.60 Td (estern District of Pennsylvania. On November 28, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 297.60 Td (2012, Radian Guaranty moved to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 304.24 297.60 Td (fs) Tj ET Q q 0 0 0 rg BT 314.05 297.60 Td ( claims as barred by the statute of limitations. On July 19, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 285.60 Td (2013, the court granted Radian Guaranty) Tj ET Q q 0 0 0 rg BT 273.56 285.60 Td (s motion and dismissed plaintif) Tj ET Q q 0 0 0 rg BT 398.37 285.60 Td (fs) Tj ET Q q 0 0 0 rg BT 408.18 285.60 Td ( claims, but granted plaintif) Tj ET Q q 0 0 0 rg BT 518.25 285.60 Td (fs leave to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 273.60 Td (file a second amended complaint. Plaintif) Tj ET Q q 0 0 0 rg BT 273.38 273.60 Td (fs filed their second amended complaint on ) Tj ET Q q 0 0 0 rg BT 448.05 273.60 Td (August 16, 2013, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 261.60 Td (reasserting a putative claim under RESP) Tj ET Q q 0 0 0 rg BT 267.93 261.60 Td (A) Tj ET Q q 0 0 0 rg BT 274.60 261.60 Td ( on substantially the same allegations. Radian Guaranty filed a motion ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 249.60 Td (to dismiss plaintif) Tj ET Q q 0 0 0 rg BT 178.99 249.60 Td (fs) Tj ET Q q 0 0 0 rg BT 188.80 249.60 Td ( second amended complaint on September 17, 2013. ) Tj ET Q q 0 0 0 rg BT 400.23 249.60 Td (The court denied Radian Guaranty) Tj ET Q q 0 0 0 rg BT 541.29 249.60 Td (s ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 237.60 Td (motion on February 5, 2014, without prejudice to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 378.28 237.60 Td (s ability to raise the statute of limitations bar ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 225.60 Td (on a motion for summary judgment. ) Tj ET Q q 0 0 0 rg BT 254.24 225.60 Td (The Manners Case is currently stayed pending a decision by the ) Tj ET Q q 0 0 0 rg BT 512.05 225.60 Td (Third ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 213.60 Td (Circuit Court of ) Tj ET Q q 0 0 0 rg BT 173.33 213.60 Td (Appeals in the case Cunningham v) Tj ET Q q 0 0 0 rg BT 311.82 213.60 Td (. M&T) Tj ET Q q 0 0 0 rg BT 339.41 213.60 Td ( Bank Corp., which is another putative class action ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.50 201.60 Td (under RESP) Tj ET Q q 0 0 0 rg BT 155.75 201.60 Td (A) Tj ET Q q 0 0 0 rg BT 162.42 201.60 Td ( in which Radian Guaranty is not a party) Tj ET Q q 0 0 0 rg BT 323.96 201.60 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 184.60 Td (W) Tj ET Q q 0 0 0 rg BT 81.04 184.60 Td (ith respect to the putative class action cases discussed above, Radian Guaranty believes that the claims are without merit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 172.60 Td (and intends to vigorously defend itself against these claims. ) Tj ET Q q 0 0 0 rg BT 290.38 172.60 Td (W) Tj ET Q q 0 0 0 rg BT 299.02 172.60 Td (e are not able to estimate the reasonably possible loss or range of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 160.60 Td (loss, if any) Tj ET Q q 0 0 0 rg BT 92.46 160.60 Td (, for these matters because the proceedings are still in a preliminary stage and there is uncertainty as to the likelihood ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 148.60 Td (of a class being certified or the ultimate size of a class.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 131.60 Td (In addition to the litigation discussed above, we are involved in litigation that has arisen in the normal course of our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 119.60 Td (business. ) Tj ET Q q 0 0 0 rg BT 88.21 119.60 Td (W) Tj ET Q q 0 0 0 rg BT 96.85 119.60 Td (e are contesting the allegations in each such pending action and management believes, based on current knowledge ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 107.60 Td (and after consultation with counsel, that the outcome of such litigation will not have a material adverse ef) Tj ET Q q 0 0 0 rg BT 471.41 107.60 Td (fect on our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 95.60 Td (consolidated financial condition. However) Tj ET Q q 0 0 0 rg BT 219.05 95.60 Td (, the outcome of litigation and other legal and regulatory matters is inherently ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 83.60 Td (uncertain, and it is possible that one or more of the matters currently pending or threatened could have an unanticipated adverse ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 71.60 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 71.60 Td (fect on our liquidity) Tj ET Q q 0 0 0 rg BT 136.15 71.60 Td (, financial condition or results of operations for any particular period.) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 377 0 obj <> endobj 378 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 708.60 Td (In addition to the private lawsuits discussed above, we and other mortgage insurers have been subject to inquiries from the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td (Minnesota Department of Commerce requesting information relating to captive reinsurance. ) Tj ET Q q 0 0 0 rg BT 420.58 696.60 Td (W) Tj ET Q q 0 0 0 rg BT 429.22 696.60 Td (e have cooperated with these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (requests for information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.64 684.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.14 684.60 Td (In ) Tj ET Q q 0 0 0 rg BT 161.42 684.60 Td (August 2013, Radian Guaranty and other mortgage insurers first received a draft Consent Order ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (from the Minnesota Department of Commerce, containing proposed conditions and unspecified penalties, to resolve its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 660.60 Td (outstanding inquiries related to captive reinsurance arrangements involving mortgage insurance in Minnesota. ) Tj ET Q q 0 0 0 rg BT 491.69 660.60 Td (W) Tj ET Q q 0 0 0 rg BT 500.33 660.60 Td (e continue to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 648.60 Td (cooperate with the Minnesota Department of Commerce and are engaged in active discussions with them with respect to their ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 636.60 Td (inquiries, including the penalties they are seeking and various alternatives for resolving this matter) Tj ET Q q 0 0 0 rg BT 443.28 636.60 Td (. ) Tj ET Q q 0 0 0 rg BT 448.10 636.60 Td (W) Tj ET Q q 0 0 0 rg BT 456.74 636.60 Td (e cannot predict the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.60 Td (outcome of this matter or whether additional actions or proceedings may be brought against us. ) Tj ET Q q 0 0 0 rg BT 432.55 624.60 Td (W) Tj ET Q q 0 0 0 rg BT 441.19 624.60 Td (e have not entered into any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 612.60 Td (new captive reinsurance arrangements since 2007.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.53 612.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 595.60 Td (On September 4, 2014, we received Notices of Deficiency covering the 2000 through 2007 tax years that assert unpaid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (taxes and penalties related to the REMIC matters of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.42 583.60 Td ($157 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.81 583.60 Td ( and exclude any potential benefit related to our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (NOL) Tj ET Q q 0 0 0 rg BT 69.68 571.60 Td ( carryback ability) Tj ET Q q 0 0 0 rg BT 139.00 571.60 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.45 571.60 Td (As of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.47 571.60 Td (, there also would be interest of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 435.03 571.60 Td ($1) Tj ET Q q 0 0 0 rg BT 444.66 571.60 Td (15 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 486.05 571.60 Td ( related to these ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (matters. Depending on the outcome, additional state income taxes, penalties and interest \(estimated in the aggregate to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (approximately) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 107.26 547.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.76 547.60 Td ($30 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.15 547.60 Td ( as of December 31, 2014\) also may become due when a final resolution is reached. ) Tj ET Q q 0 0 0 rg BT 493.07 547.60 Td (The Notices of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (Deficiency also reflected additional amounts due of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 318.85 535.60 Td ($105 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.24 535.60 Td (, which are primarily associated with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (disallowance of the previously filed carryback of our 2008 NOL) Tj ET Q q 0 0 0 rg BT 306.55 523.60 Td ( to the 2006 and 2007 tax years. ) Tj ET Q q 0 0 0 rg BT 436.61 523.60 Td (W) Tj ET Q q 0 0 0 rg BT 445.25 523.60 Td (e currently believe that the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (disallowance of our 2008 NOL) Tj ET Q q 0 0 0 rg BT 173.54 511.60 Td ( carryback is a precautionary position by the IRS and that we will ultimately maintain the benefit ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (of this NOL) Tj ET Q q 0 0 0 rg BT 97.46 499.60 Td ( carryback claim.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 482.60 Td (On December 3, 2014, we petitioned the U.S. ) Tj ET Q q 0 0 0 rg BT 256.28 482.60 Td (T) Tj ET Q q 0 0 0 rg BT 261.69 482.60 Td (ax Court to litigate the Deficiency ) Tj ET Q q 0 0 0 rg BT 399.98 482.60 Td (Amount. ) Tj ET Q q 0 0 0 rg BT 437.57 482.60 Td (The litigation could take ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 470.60 Td (several years to resolve and may result in substantial legal expenses. ) Tj ET Q q 0 0 0 rg BT 325.34 470.60 Td (W) Tj ET Q q 0 0 0 rg BT 333.98 470.60 Td (e can provide no assurance regarding the outcome of any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 458.60 Td (such litigation or whether a compromised settlement with the IRS will ultimately be reached. ) Tj ET Q q 0 0 0 rg BT 423.95 458.60 Td (W) Tj ET Q q 0 0 0 rg BT 432.59 458.60 Td (e believe that an adequate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (provision for income taxes has been made for the potential liabilities that may result from this matter) Tj ET Q q 0 0 0 rg BT 452.17 446.60 Td (. However) Tj ET Q q 0 0 0 rg BT 493.42 446.60 Td (, if the ultimate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (resolution of this matter produces a result that dif) Tj ET Q q 0 0 0 rg BT 246.49 434.60 Td (fers materially from our current expectations, there could be a material impact ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td (on our ef) Tj ET Q q 0 0 0 rg BT 85.42 422.60 Td (fective tax rate, results of operations and cash flows.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 405.60 Td (Under our Master Policies, any suit or action arising from any right of an insured under the policy generally must be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 393.60 Td (commenced within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.37 393.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 143.37 393.60 Td ( years after such right first arose for primary insurance and within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.83 393.60 Td (three) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 428.82 393.60 Td ( years for certain other policies, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 381.60 Td (including certain pool insurance policies. ) Tj ET Q q 0 0 0 rg BT 216.49 381.60 Td (W) Tj ET Q q 0 0 0 rg BT 225.13 381.60 Td (e continue to face a number of challenges from certain lender and servicer ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 369.60 Td (customers regarding our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 214.75 369.60 Td (Activities, which have resulted in some reversals of our decisions regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 357.60 Td (rescissions, denials or claim curtailments. ) Tj ET Q q 0 0 0 rg BT 218.45 357.60 Td (W) Tj ET Q q 0 0 0 rg BT 227.08 357.60 Td (e are currently in discussions with customers regarding these Loss Mitigation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 345.60 Td (Activities and our claim payment practices, which if not resolved, could result in arbitration or additional judicial proceedings. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 333.60 Td (See Note 10 for further information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 316.60 Td (Further) Tj ET Q q 0 0 0 rg BT 100.54 316.60 Td (, we have identified a significant number of loans in our total defaulted portfolio \(in particular) Tj ET Q q 0 0 0 rg BT 476.13 316.60 Td (, our older defaulted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 304.60 Td (portfolio\) for which actions or proceedings such as foreclosure that provide the insured with title to the property\) may not have ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 292.60 Td (been commenced within the outermost deadline in our Prior Master Policy) Tj ET Q q 0 0 0 rg BT 347.11 292.60 Td (. ) Tj ET Q q 0 0 0 rg BT 351.93 292.60 Td (W) Tj ET Q q 0 0 0 rg BT 360.57 292.60 Td (e currently are in discussions with the servicers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.60 Td (for these loans regarding this potential violation and our corresponding rights under the Prior Master Policy) Tj ET Q q 0 0 0 rg BT 479.04 280.60 Td (. ) Tj ET Q q 0 0 0 rg BT 483.86 280.60 Td (While we can ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.60 Td (provide no assurance regarding the outcome of these discussions or the ultimate resolution of these issues, it is possible that ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.60 Td (these discussions could result in arbitration or legal proceedings.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 239.60 Td (The elevated levels of our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 243.40 239.60 Td (Activities \(related to servicer negligence\) have led to an increased risk of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 227.60 Td (litigation by lenders, policyholders and servicers challenging our right to rescind coverage, deny claims or curtail claim ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 215.60 Td (amounts. ) Tj ET Q q 0 0 0 rg BT 88.21 215.60 Td (W) Tj ET Q q 0 0 0 rg BT 96.84 215.60 Td (e believe that our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 234.04 215.60 Td (Activities are justified under our policies. However) Tj ET Q q 0 0 0 rg BT 438.86 215.60 Td (, in the event we are not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 203.60 Td (successful in defending our Loss Mitigation ) Tj ET Q q 0 0 0 rg BT 227.25 203.60 Td (Activities, we may need to reassume the risk on and increase loss reserves for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 191.60 Td (previously rescinded policies or pay additional claims on curtailed amounts. See Note 10 for further information.) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 71.50 174.60 Td (Other) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 157.60 Td (Securities regulations became ef) Tj ET Q q 0 0 0 rg BT 200.99 157.60 Td (fective in 2005 that impose enhanced disclosure requirements on issuers of ) Tj ET Q q 0 0 0 rg BT 502.85 157.60 Td (ABS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 145.60 Td (\(including mortgage-backed securities\).) Tj ET Q q 0 0 0 rg BT 210.93 145.60 Td (T) Tj ET Q q 0 0 0 rg BT 216.34 145.60 Td (o allow our customers to comply with these regulations at that time, wetypically were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 133.60 Td (required, depending on the amount of credit enhancement we were providing, to provide: \(1\)audited financial statements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 121.60 Td (the insurancesubsidiary participating in the transaction;or \(2\)a full and unconditional holding company-level guarantee for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 109.60 Td (insurance subsidiaries) Tj ET Q q 0 0 0 rg BT 140.12 109.60 Td ( obligations insuch transactions.Radian Group has guaranteed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.50 109.60 Td (two) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.50 109.60 Td ( Structured ) Tj ET Q q 0 0 0 rg BT 455.98 109.60 Td (T) Tj ET Q q 0 0 0 rg BT 461.74 109.60 Td (ransactions for Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 97.60 Td (Guaranty involving approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.30 97.60 Td ($128.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.19 97.60 Td ( of remaining credit exposure as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.09 97.60 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 469.67 97.60 Td (.) Tj ET Q endstream endobj 379 0 obj <> endobj 380 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (189) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 708.60 Td (As part of the non-investment-grade allocation component of our investment program, we had unfunded commitments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 696.60 Td ($7.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 696.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.89 696.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.19 696.60 Td (, related to alternative investments that are primarily private equity structures. ) Tj ET Q q 0 0 0 rg BT 502.51 696.60 Td (These ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 684.60 Td (commitments have capital calls expected through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.43 684.60 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 269.43 684.60 Td (, with the possibility of additional calls through ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.36 684.60 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 481.36 684.60 Td (, and certain fixed ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 672.60 Td (expiration dates or other termination clauses.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 655.60 Td (Our mortgage insurance business provides contract underwriting, an outsourced service to its customers. In the past we ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 643.60 Td (had agreements with certain of our customers that if we made a material error in underwriting a loan, we would provide a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 631.60 Td (remedy to the customer) Tj ET Q q 0 0 0 rg BT 143.24 631.60 Td (, by purchasing the loan or placing additional mortgage insurance coverage on the loan, or by ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 619.60 Td (indemnifying the customer against loss up to a maximum specified amount. By providing these remedies, we assumed some ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 607.60 Td (credit risk and interest-rate risk if an error is found during the limited remedy period in the agreements governing our provision ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 595.60 Td (of contract underwriting services. Beginning in 2008, we limited the recourse available to our contract underwriting customers ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 583.60 Td (to apply only to those loans that are simultaneously underwritten for secondary market compliance and for potential mortgage ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 571.60 Td (insurance. Under our current contract underwriting program the remedy we of) Tj ET Q q 0 0 0 rg BT 361.70 571.60 Td (fer is limited indemnification to our contract ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 559.60 Td (underwriting customers only with respect to those loans that we simultaneously underwrite for both secondary market ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 547.60 Td (compliance and for potential mortgage insurance eligibility) Tj ET Q q 0 0 0 rg BT 285.99 547.60 Td (. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.82 547.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.82 547.60 Td (, we paid losses related to contract underwriting remedies ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 535.60 Td (of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 120.59 535.60 Td ($14.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.48 535.60 Td (, including ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 219.75 535.60 Td ($1) Tj ET Q q 0 0 0 rg BT 229.38 535.60 Td (1.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.27 535.60 Td ( related to settlement of remedies for services provided on legacy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 523.60 Td (business. Rising mortgage interest rates or further economic uncertainty may expose our mortgage insurance business to an ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 511.60 Td (increase in such costs. In ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.69 511.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.69 511.60 Td (, our provision for contract underwriting expenses was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.73 511.60 Td ($1) Tj ET Q q 0 0 0 rg BT 462.36 511.60 Td (1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 506.25 511.60 Td ( and our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 499.60 Td (reserve for contract underwriting obligations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 230.83 499.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.13 499.60 Td ( was approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.94 499.60 Td ($0.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.83 499.60 Td (. ) Tj ET Q q 0 0 0 rg BT 453.65 499.60 Td (W) Tj ET Q q 0 0 0 rg BT 462.29 499.60 Td (e monitor this risk and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 487.60 Td (negotiate our underwriting fee structure and recourse agreements on a client-by-client basis. ) Tj ET Q q 0 0 0 rg BT 420.01 487.60 Td (W) Tj ET Q q 0 0 0 rg BT 428.65 487.60 Td (e also routinely audit the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.60 Td (performance of our contract underwriters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 458.60 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 458.60 Td (e lease of) Tj ET Q q 0 0 0 rg BT 119.71 458.60 Td (fice space for use in our operations. ) Tj ET Q q 0 0 0 rg BT 264.48 458.60 Td (The lease agreements, which expire periodically through March 2024, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 446.60 Td (contain provisions for scheduled periodic rent increases. Net rental expense in connection with these leases totaled ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 510.18 446.60 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.07 446.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 434.60 Td (in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 59.78 434.60 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.78 434.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 84.78 434.60 Td ($4.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.67 434.60 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.45 434.60 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 166.45 434.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.89 434.60 Td ($5.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.78 434.60 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 247.56 434.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.56 434.60 Td (. ) Tj ET Q q 0 0 0 rg BT 272.38 434.60 Td (The 2014, 2013 and 2012 net rental expense includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 487.87 434.60 Td ($1.7 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.77 434.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.77 434.60 Td ($1.7 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 422.60 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 422.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.83 422.60 Td ($2.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.72 422.60 Td (, respectively related to Radian ) Tj ET Q q 0 0 0 rg BT 272.79 422.60 Td (Asset ) Tj ET Q q 0 0 0 rg BT 296.96 422.60 Td (Assurance, classified as a discontinued operations at December ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.60 Td (31, 2014. ) Tj ET Q q 0 0 0 rg BT 89.32 410.60 Td (The commitment for non-cancelable operating leases in future years is as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 298.1 m 485.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 298.1 m 485.5 298.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 285.1 m 485.5 285.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 396.5 283.1 m 485.5 283.1 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 152 385.080078125 m 201.578125 385.080078125 l s q 0 0 0 rg BT 152.00 386.33 Td (\(In thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 372.67 Td (2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 372.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.00 372.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 372.67 Td (10,849) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 358.67 Td (2016) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 358.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 358.67 Td (5,257) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 344.67 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 344.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 344.67 Td (3,860) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 330.67 Td (2018) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 330.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 330.67 Td (692) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 316.67 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.50 316.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 466.65 316.67 Td (620) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.00 302.67 Td (Thereafter) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.50 302.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 459.15 302.67 Td (3,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.00 288.67 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 454.15 288.67 Td (24,552) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET 1 1 1 rg /GS0 gs 73.50 270.53 6.11 -9.09 re f /GS0 gs q 0 0 0 rg BT 73.50 263.60 Td (T) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.61 263.60 Td (he commitment for non-cancelable operating leases in future years has not been reduced for future minimum receipts ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 251.60 Td (expected from sublease rental payments aggregating approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.90 251.60 Td ($3.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 370.79 251.60 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.29 251.60 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.59 251.60 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 218.60 Td (18. Net Income \(Loss\) Per) Tj ET Q q 0 0 0 rg BT 159.57 218.60 Td ( Shar) Tj ET Q q 0 0 0 rg BT 182.45 218.60 Td (e) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 197.60 Td (Basic net income \(loss\) per share is computed by dividing net income \(loss\) by the weighted-average number of common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 185.60 Td (shares outstanding, while diluted net income \(loss\) per share is computed by dividing net income \(loss\) attributable to common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.60 Td (shareholders by the sum of the weighted average number of common shares outstanding and all dilutive potential common ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 161.60 Td (shares outstanding. Dilutive potential common shares relate to our stock-based compensation arrangements and our outstanding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 149.60 Td (convertible senior notes. For all calculations, the determination of whether potential common shares are dilutive or anti-dilutive ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 137.60 Td (is based on net income \(loss\) from continuing operations.) Tj ET Q endstream endobj 381 0 obj <> endobj 382 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (190) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 708.60 Td (The calculation of the basic and diluted net income \(loss\) per share was as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 674.1 m 435.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 435.75 674.1 m 441.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 674.1 m 496.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 496.75 674.1 m 502.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 674.1 m 560.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 674.1 m 435.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 659.1 m 435.75 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 674.1 m 496.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 659.1 m 496.75 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 674.1 m 560.75 674.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 659.1 m 560.75 659.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 599.1 m 435.75 599.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 585.1 m 435.75 585.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 583.1 m 435.75 583.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 599.1 m 496.75 599.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 585.1 m 496.75 585.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 583.1 m 496.75 583.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 599.1 m 560.75 599.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 585.1 m 560.75 585.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 583.1 m 560.75 583.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 524.1 m 435.75 524.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 524.1 m 496.75 524.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 524.1 m 560.75 524.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 494.1 m 435.75 494.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 480.1 m 435.75 480.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 478.1 m 435.75 478.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 494.1 m 496.75 494.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 480.1 m 496.75 480.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 478.1 m 496.75 478.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 494.1 m 560.75 494.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 480.1 m 560.75 480.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 478.1 m 560.75 478.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 404.1 m 435.75 404.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 390.1 m 435.75 390.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 388.1 m 435.75 388.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 404.1 m 496.75 404.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 390.1 m 496.75 390.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 388.1 m 496.75 388.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 404.1 m 560.75 404.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 390.1 m 560.75 390.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 388.1 m 560.75 388.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 306.1 m 435.75 306.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 306.1 m 496.75 306.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 306.1 m 560.75 306.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 292.1 m 435.75 292.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 290.1 m 435.75 290.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 292.1 m 496.75 292.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 290.1 m 496.75 290.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 292.1 m 560.75 292.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 290.1 m 560.75 290.1 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 231.10000000000002 m 435.75 231.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 231.10000000000002 m 496.75 231.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 231.10000000000002 m 560.75 231.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 217.10000000000002 m 435.75 217.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 380.75 215.10000000000002 m 435.75 215.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 217.10000000000002 m 496.75 217.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 441.75 215.10000000000002 m 496.75 215.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 217.10000000000002 m 560.75 217.10000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 502.75 215.10000000000002 m 560.75 215.10000000000002 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 425.95 678.33 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 399.75 663.33 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 460.75 663.33 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 523.25 663.33 Td (2012) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 75.25 647.080078125 m 251.7890625 647.080078125 l s q 0 0 0 rg BT 75.25 648.33 Td (\(In thousands, except share and per-share amounts\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 633.77 Td (Net income \(loss\) from continuing operations:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 618.77 Td ( Net income \(loss\) from continuing operations - basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.75 618.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 618.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.85 618.77 Td (1,259,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 618.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.05 618.82 Td (\(141,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 618.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 618.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 618.82 Td (\(224,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 618.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 603.77 Td ( Adjustment for dilutive Convertible Senior Notes due 2019, net of tax \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 603.77 Td (14,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.90 603.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.90 603.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 588.77 Td ( Net income \(loss\) from continuing operations - diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.75 588.67 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 588.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.85 588.77 Td (1,273,946) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 588.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.05 588.82 Td (\(141,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 588.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 588.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 588.82 Td (\(224,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 588.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 558.77 Td (Net income \(loss\):) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 543.77 Td ( Net income \(loss\) from continuing operations - basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.75 543.67 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 543.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 391.85 543.77 Td (1,259,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 543.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.05 543.82 Td (\(141,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 543.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 543.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 543.82 Td (\(224,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 543.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 528.77 Td ( Loss from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 264.75 528.67 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.05 528.82 Td (\(300,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.90 528.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.05 528.82 Td (\(55,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 528.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 528.82 Td (\(227,363) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 528.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 513.77 Td ( Net income \(loss\) - basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 184.75 513.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 513.77 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.05 513.82 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 513.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 513.82 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 513.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 498.77 Td ( Adjustment for dilutive Convertible Senior Notes due 2019, net of tax \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 498.77 Td (14,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.90 498.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.90 498.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 483.77 Td ( Net income \(loss\) - diluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 199.75 483.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 483.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 483.77 Td (973,889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 483.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.05 483.82 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 483.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 483.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.05 483.82 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 483.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 453.77 Td (Average common shares outstanding-basic) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.75 453.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 453.77 Td (184,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.40 453.77 Td (166,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.40 453.77 Td (132,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 438.77 Td (Dilutive effect of Convertible Senior Notes due 2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.75 438.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.40 438.77 Td (8,465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.90 438.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.90 438.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 423.77 Td (Dilutive effect of Convertible Senior Notes due 2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.75 423.67 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.40 423.77 Td (37,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.90 423.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.90 423.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 408.77 Td (Dilutive effect of stock-based compensation arrangements \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 324.75 408.67 Td (. . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.40 408.77 Td (3,150) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 482.90 408.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 546.90 408.77 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 393.77 Td (Adjusted average common shares outstandingdiluted) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.75 393.67 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.40 393.77 Td (233,902) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 460.40 393.77 Td (166,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 524.40 393.77 Td (132,533) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 363.77 Td (Net income \(loss\) per share:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 340.77 Td ( Basic:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 325.77 Td ( Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.75 325.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 325.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.40 325.77 Td (6.83) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 325.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.05 325.82 Td (\(0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 325.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 325.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.05 325.82 Td (\(1.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 325.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 310.77 Td ( Loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.75 310.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.05 310.82 Td (\(1.63) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.90 310.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.05 310.82 Td (\(0.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 310.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.05 310.82 Td (\(1.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 310.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 295.77 Td ( Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.75 295.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 295.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.40 295.77 Td (5.20) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 295.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.05 295.82 Td (\(1.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 295.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 295.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.05 295.82 Td (\(3.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 295.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 265.77 Td ( Diluted:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 250.77 Td ( Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.75 250.67 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 250.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.40 250.77 Td (5.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 250.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.05 250.82 Td (\(0.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 250.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 250.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.05 250.82 Td (\(1.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 250.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 235.77 Td ( Loss from discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 229.75 235.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.05 235.82 Td (\(1.28) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 431.90 235.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.05 235.82 Td (\(0.33) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 235.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.05 235.82 Td (\(1.72) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 235.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.25 220.77 Td ( Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.75 220.67 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.25 220.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 414.40 220.77 Td (4.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 444.25 220.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.05 220.82 Td (\(1.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 492.90 220.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 505.25 220.77 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.05 220.82 Td (\(3.41) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 556.90 220.77 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 189.60 Td (________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 177.60 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 177.60 Td (As applicable, includes coupon interest, amortization of discount and fees, and other changes in income or loss that would ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 165.60 Td (result from the assumed conversion.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 153.60 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 153.60 Td (For the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.11 153.60 Td (year ended December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.78 153.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.78 153.60 Td (541,720) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 265.28 153.60 Td ( shares of our common stock equivalents issued under our stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 141.60 Td (compensation arrangements were not included in the calculation of diluted net income per share as of such date because ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 129.60 Td (they were anti-dilutive. ) Tj ET Q q 0 0 0 rg BT 166.97 129.60 Td (As a result of our net loss from continuing operations for the years ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.90 129.60 Td (December31, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.48 129.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 117.60 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 92.00 117.60 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.00 117.60 Td (43,287,966) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.00 117.60 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 161.44 117.60 Td (5,872,600) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.44 117.60 Td ( shares, respectively) Tj ET Q q 0 0 0 rg BT 281.59 117.60 Td (, of our common stock equivalents issued under our stock-based ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 105.60 Td (compensation arrangements and convertible debt were not included in the calculation of diluted net loss per share as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 93.60 Td (such dates because they were anti-dilutive.) Tj ET Q endstream endobj 383 0 obj <> endobj 384 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 748.75 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 748.75 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 181.95 736.75 Td (Notes to Consolidated Financial Statements - \(Continued\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (191) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 708.75 Td (19. Quarterly Financial Data \(Unaudited\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 687.75 Td (As a result of the Radian ) Tj ET Q q 0 0 0 rg BT 174.59 687.75 Td (Asset ) Tj ET Q q 0 0 0 rg BT 198.76 687.75 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 306.23 687.75 Td (Agreement to sell Radian ) Tj ET Q q 0 0 0 rg BT 410.10 687.75 Td (Asset ) Tj ET Q q 0 0 0 rg BT 434.27 687.75 Td (Assurance, we have reclassified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 675.75 Td (the operating results related to the pending disposition as discontinued operations for all periods presented in our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 663.75 Td (statements of operations. See Note 3 for additional information.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 636.25 m 342 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 636.25 m 346 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 636.25 m 397 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 636.25 m 401 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 636.25 m 452 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 636.25 m 456 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 636.25 m 507 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 636.25 m 511 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 636.25 m 563 636.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 624.25 m 342 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 624.25 m 397 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 624.25 m 452 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 624.25 m 507 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 624.25 m 563 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 624.25 m 342 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 624.25 m 397 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 624.25 m 452 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 624.25 m 507 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 624.25 m 563 624.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 436.25 m 342 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 342 436.25 m 346 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 436.25 m 397 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 397 436.25 m 401 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 436.25 m 452 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 452 436.25 m 456 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 436.25 m 507 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 507 436.25 m 511 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 436.25 m 563 436.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 424.25 m 342 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 424.25 m 397 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 424.25 m 452 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 424.25 m 507 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 424.25 m 563 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 291 424.25 m 342 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 346 424.25 m 397 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 401 424.25 m 452 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 456 424.25 m 507 424.25 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 511 424.25 m 563 424.25 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 639.080078125 m 204.65625 639.080078125 l s q 0 0 0 rg BT 52.50 640.33 Td (\(In thousands, except per share information\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.90 640.33 Td (2014 Quarters) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.75 628.33 Td (First) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.75 628.33 Td (Second) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.95 628.33 Td (Third) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.00 628.33 Td (Fourth) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.55 628.33 Td (Year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 614.87 Td (Net premiums earnedinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.00 614.87 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 614.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 614.87 Td (198,762) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.50 614.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.60 614.87 Td (203,646) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 614.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 614.87 Td (217,827) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 614.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 614.87 Td (224,293) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 614.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 614.87 Td (844,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 602.87 Td (Services revenue) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.00 602.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.15 602.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 602.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 602.87 Td (42,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 602.87 Td (34,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 602.87 Td (76,693) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 590.87 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.00 590.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 590.87 Td (15,318) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 590.87 Td (16,663) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 590.87 Td (17,143) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 590.87 Td (16,531) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 590.87 Td (65,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 578.87 Td (Net gains \(losses\) on investments \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 205.00 578.87 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 578.87 Td (43,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 578.87 Td (28,233) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 578.87 Td (\(6,308) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 578.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 578.87 Td (18,658) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 578.87 Td (83,869) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 566.87 Td (Net \(losses\) gains on other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.00 566.87 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 319.80 566.87 Td (\(318) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 566.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 367.30 566.87 Td (\(2,901) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 566.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 438.15 566.87 Td (14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 484.80 566.87 Td (\(675) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 566.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 566.87 Td (\(3,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 566.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 554.87 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.00 554.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 554.87 Td (49,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 554.87 Td (64,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 554.87 Td (48,942) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 554.87 Td (82,867) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 554.87 Td (246,083) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 542.87 Td (Policy acquisition and other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 542.87 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 542.87 Td (61,524) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 542.87 Td (67,497) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 542.87 Td (55,465) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 542.87 Td (92,243) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 542.87 Td (276,729) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 530.87 Td (Direct cost of services) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 145.00 530.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.15 530.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 530.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 530.87 Td (23,896) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 530.87 Td (19,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 530.87 Td (43,605) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 518.87 Td (Amortization and impairment of intangible assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.00 518.87 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 328.15 518.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 518.87 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 425.65 518.87 Td (3,294) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.65 518.87 Td (5,354) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 536.65 518.87 Td (8,648) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 506.87 Td (Net income from continuing operations \(2\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 225.00 506.87 Td (. . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 506.87 Td (145,980) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.60 506.87 Td (103,537) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 506.87 Td (132,031) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 506.87 Td (878,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 519.10 506.87 Td (1,259,574) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 494.87 Td (Income \(loss\) from discontinued operations, net of tax \(3\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 285.00 494.87 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 494.87 Td (56,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 494.87 Td (71,296) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 494.87 Td (21,559) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 467.30 494.87 Td (\(449,691) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 494.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 494.87 Td (\(300,057) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 494.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 482.87 Td (Net income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 100.00 482.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 482.87 Td (202,759) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.60 482.87 Td (174,833) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 482.87 Td (153,590) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 482.87 Td (428,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 482.87 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 470.87 Td (Diluted net income per share \(4\)\(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.00 470.87 Td (. . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 470.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.65 470.87 Td (0.94) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.50 470.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.65 470.87 Td (0.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 470.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.65 470.87 Td (0.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 470.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 470.87 Td (1.78) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 470.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 541.65 470.87 Td (4.16) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 458.87 Td (Weighted average shares outstanding-diluted \(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.00 458.87 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 458.87 Td (222,668) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.60 458.87 Td (230,779) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 458.87 Td (238,067) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 458.87 Td (242,801) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 458.87 Td (233,902) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.90 440.33 Td (2013 Quarters) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 307.75 428.33 Td (First) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 358.75 428.33 Td (Second) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 415.95 428.33 Td (Third) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 469.00 428.33 Td (Fourth) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 528.55 428.33 Td (Year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 414.87 Td (Net premiums earnedinsurance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 190.00 414.87 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 414.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 414.87 Td (182,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.50 414.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.60 414.87 Td (197,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 414.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 414.87 Td (200,120) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 414.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 414.87 Td (200,356) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 414.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 414.87 Td (781,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 402.87 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.00 402.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 402.87 Td (16,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 402.87 Td (17,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 402.87 Td (16,351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 402.87 Td (17,722) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.65 402.87 Td (68,121) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 390.87 Td (Net losses on investments \(1\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.00 390.87 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.30 390.87 Td (\(3,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 390.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 390.87 Td (\(86,808) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 390.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 422.30 390.87 Td (\(6,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 390.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.30 390.87 Td (\(2,631) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 390.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 390.87 Td (\(98,945) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 390.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 378.87 Td (Net \(losses\) gains on other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.00 378.87 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.30 378.87 Td (\(5,239) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 378.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.15 378.87 Td (60) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 429.80 378.87 Td (\(193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 378.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.30 378.87 Td (\(2,208) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 378.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 378.87 Td (\(7,580) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 378.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 366.87 Td (Provision for losses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 135.00 366.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 366.87 Td (131,327) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.60 366.87 Td (137,661) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 366.87 Td (149,687) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 366.87 Td (144,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 366.87 Td (562,747) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 354.87 Td (Policy acquisition and other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 245.00 354.87 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 310.65 354.87 Td (84,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 354.87 Td (62,487) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 354.87 Td (70,324) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 354.87 Td (68,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 354.87 Td (285,887) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 342.87 Td (Net loss from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 200.00 342.87 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.30 342.87 Td (\(20,214) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 342.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 342.87 Td (\(77,579) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 342.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.30 342.87 Td (\(28,011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 342.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 472.30 342.87 Td (\(16,047) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 503.15 342.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 342.87 Td (\(141,851) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 342.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 330.87 Td (\(Loss\) income from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 275.00 330.87 Td (. . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.30 330.87 Td (\(167,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 330.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 365.65 330.87 Td (44,407) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.65 330.87 Td (15,329) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 330.87 Td (52,416) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.30 330.87 Td (\(55,134) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 330.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 318.87 Td (Net \(loss\) income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 125.00 318.87 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.30 318.87 Td (\(187,500) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 318.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 362.30 318.87 Td (\(33,172) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 318.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 417.30 318.87 Td (\(12,682) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 318.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 475.65 318.87 Td (36,369) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.30 318.87 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 318.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 306.87 Td (Diluted net \(loss\) income per share \(4\)\(5\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 220.00 306.87 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.50 306.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 317.30 306.87 Td (\(1.30) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 338.15 306.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 348.50 306.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 372.30 306.87 Td (\(0.19) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 393.15 306.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 403.50 306.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.30 306.87 Td (\(0.07) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 448.15 306.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 458.50 306.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 485.65 306.87 Td (0.21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 513.50 306.87 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 538.30 306.87 Td (\(1.18) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.15 306.87 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 294.87 Td (Weighted average shares outstanding-diluted \(4\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.00 294.87 Td (. . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 305.60 294.87 Td (144,355) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 360.60 294.87 Td (171,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 415.60 294.87 Td (171,830) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 470.60 294.87 Td (173,099) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.60 294.87 Td (166,366) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 280.75 Td (______________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 268.75 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 268.75 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 90.05 268.75 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.05 268.75 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.49 268.75 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 149.49 268.75 Td ( amounts reflect unrealized gains \(losses\), respectively) Tj ET Q q 0 0 0 rg BT 367.37 268.75 Td (, on our trading securities.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 256.75 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 256.75 Td (This amount reflects a reversal of substantially all of our tax valuation allowance in the fourth quarter) Tj ET Q q 0 0 0 rg BT 477.98 256.75 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 244.75 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 244.75 Td (This amount reflects a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 163.64 244.75 Td ($468 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 215.03 244.75 Td ( loss on reclassification of Radian ) Tj ET Q q 0 0 0 rg BT 352.22 244.75 Td (Asset ) Tj ET Q q 0 0 0 rg BT 376.39 244.75 Td (Assurance as assets held for sale in the fourth ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 232.75 Td (quarter) Tj ET Q q 0 0 0 rg BT 99.76 232.75 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 220.75 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 220.75 Td (Diluted net income \(loss\) per share and average shares outstanding per the accounting standard regarding earnings per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 208.75 Td (share.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 196.75 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 196.75 Td (Diluted net income \(loss\) per share is computed independently for each period presented. Consequently) Tj ET Q q 0 0 0 rg BT 485.67 196.75 Td (, the sum of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 184.75 Td (quarters may not equal the total net income \(loss\) per share for the year) Tj ET Q q 0 0 0 rg BT 356.62 184.75 Td (. For all calculations, the determination of whether ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 172.75 Td (potential common shares are dilutive or anti-dilutive is based on net income \(loss\) from continuing operations.) Tj ET Q endstream endobj 385 0 obj <> endobj 386 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (192) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item9. ) Tj ET Q q 0 0 0 rg BT 103.50 731.25 Td (Changes in and Disagr) Tj ET Q q 0 0 0 rg BT 200.29 731.25 Td (eements with ) Tj ET Q q 0 0 0 rg BT 258.06 731.25 Td (Accountants on ) Tj ET Q q 0 0 0 rg BT 326.40 731.25 Td (Accounting and Financial Disclosur) Tj ET Q q 0 0 0 rg BT 478.74 731.25 Td (e.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 710.25 Td ( ) Tj ET Q q 0 0 0 rg BT 103.50 710.25 Td (None.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 677.25 Td (Item 9A.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.71 677.25 Td ( ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 103.50 677.25 Td (Contr) Tj ET Q q 0 0 0 rg BT 128.87 677.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 172.03 677.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 201.29 677.25 Td (es.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 656.25 Td (Disclosur) Tj ET Q q 0 0 0 rg BT 89.32 656.25 Td (e Contr) Tj ET Q q 0 0 0 rg BT 121.63 656.25 Td (ols and Pr) Tj ET Q q 0 0 0 rg BT 164.79 656.25 Td (ocedur) Tj ET Q q 0 0 0 rg BT 194.05 656.25 Td (es) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 639.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.14 639.25 Td (e maintain disclosure controls and procedures designed to ensure that information required to be disclosed in the reports ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 627.25 Td (we file or submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 201.40 627.25 Td (Act is recorded, processed, summarized and reported within the time periods specified in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 615.25 Td (the SEC) Tj ET Q q 0 0 0 rg BT 85.33 615.25 Td (s rules and forms and that such information is accumulated and communicated to our management, including our Chief ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 603.25 Td (Executive Of) Tj ET Q q 0 0 0 rg BT 102.35 603.25 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 214.91 603.25 Td (ficer) Tj ET Q q 0 0 0 rg BT 232.82 603.25 Td (, as appropriate, to allow timely decisions regarding required disclosure.) Tj ET Q BT /F1 1.00 Tf ET q 0 0 0 rg BT 49.50 602.05 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 585.05 Td (Our management, including our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 281.31 585.05 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 393.87 585.05 Td (ficer) Tj ET Q q 0 0 0 rg BT 411.78 585.05 Td (, conducted an evaluation of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 573.05 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 573.05 Td (fectiveness of our disclosure controls and procedures \(as defined in Rule 13a-15\(e\) of the Exchange ) Tj ET Q q 0 0 0 rg BT 458.34 573.05 Td (Act\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 478.61 573.05 Td (as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 561.05 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 561.05 Td ( pursuant to Rule 15d-15\(e\) under the Exchange ) Tj ET Q q 0 0 0 rg BT 263.89 561.05 Td (Act. Management necessarily applied its judgment in assessing the costs ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 549.05 Td (and benefits of such controls and procedures, which by their nature, can provide only reasonable assurance regarding ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 537.05 Td (management) Tj ET Q q 0 0 0 rg BT 103.37 537.05 Td (s control objectives. Management does not expect that our disclosure controls and procedures will prevent or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 525.05 Td (detect all errors and fraud. ) Tj ET Q q 0 0 0 rg BT 156.67 525.05 Td (A) Tj ET Q q 0 0 0 rg BT 163.34 525.05 Td ( control system, irrespective of how well it is designed and operated, can only provide reasonable ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 513.05 Td (assurance and cannot guarantee that it will succeed in its stated objectives.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 496.05 Td (Based upon that evaluation, our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 280.48 496.05 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 393.04 496.05 Td (ficer concluded that, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.44 496.05 Td (as of December 31, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 484.05 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 69.50 484.05 Td (, our disclosure controls and procedures were ef) Tj ET Q q 0 0 0 rg BT 260.92 484.05 Td (fective to provide reasonable assurance that the information required to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 472.05 Td (disclosed by us in the reports we file or submit under the Exchange ) Tj ET Q q 0 0 0 rg BT 320.27 472.05 Td (Act is recorded, processed, summarized and reported within ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 460.05 Td (the time periods specified in the SEC) Tj ET Q q 0 0 0 rg BT 201.14 460.05 Td (s rules and forms.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 439.05 Td (Management) Tj ET Q q 0 0 0 rg BT 108.56 439.05 Td (s Report on Internal Contr) Tj ET Q q 0 0 0 rg BT 223.37 439.05 Td (ol over) Tj ET Q q 0 0 0 rg BT 252.35 439.05 Td ( Financial Reporting) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 422.05 Td (Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 410.05 Td (such term is defined in Exchange ) Tj ET Q q 0 0 0 rg BT 184.46 410.05 Td (Act Rule 13a-15\(f\). Our internal control over financial reporting is a process designed to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 398.05 Td (provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 386.05 Td (external purposes in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 226.39 386.05 Td (. Our internal control over financial reporting includes those policies and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 374.05 Td (procedures that: \(1\)pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 362.05 Td (and dispositions of our assets; \(2\)provide reasonable assurance that transactions are recorded as necessary to permit preparation ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 350.05 Td (of financial statements in accordance with GAAP) Tj ET Q q 0 0 0 rg BT 247.40 350.05 Td ( and that our receipts and expenditures are being made only in accordance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 338.05 Td (with authorizations of our management and our directors; and \(3\)provide reasonable assurance regarding prevention or timely ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 326.05 Td (detection of unauthorized acquisition, use or disposition of our assets that could have a material ef) Tj ET Q q 0 0 0 rg BT 441.99 326.05 Td (fect on the financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 314.05 Td (statements.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 297.05 Td (Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 285.05 Td (Also, projections of any evaluation of ef) Tj ET Q q 0 0 0 rg BT 210.66 285.05 Td (fectiveness to future periods are subject to the risk that controls may become ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 273.05 Td (inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.) Tj ET Q endstream endobj 387 0 obj <> endobj 388 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (193) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Although existing event driven controls were followed related to the business combination accounting, management has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (excluded Clayton from the scope of management) Tj ET Q q 0 0 0 rg BT 248.88 719.10 Td (s assessment of the ef) Tj ET Q q 0 0 0 rg BT 335.34 719.10 Td (fectiveness of internal control over financial reporting as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 707.10 Td (of December 31, 2014, because it was acquired in a purchase business combination on June 30, 2014. ) Tj ET Q q 0 0 0 rg BT 458.38 707.10 Td (W) Tj ET Q q 0 0 0 rg BT 467.01 707.10 Td (e are in the process of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 695.10 Td (integrating Clayton) Tj ET Q q 0 0 0 rg BT 129.76 695.10 Td (s operations, processes and internal controls. Clayton represented approximately 4.9% of our consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 683.10 Td (assets at December 31, 2014 and approximately 7.2% of our consolidated revenues for the year ended December 31, 2014. ) Tj ET Q q 0 0 0 rg BT 542.76 683.10 Td (This ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 671.10 Td (exclusion is in accordance with the SEC) Tj ET Q q 0 0 0 rg BT 213.35 671.10 Td (s general guidance that an assessment of a recently acquired business may be omitted ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 659.10 Td (from our scope in the year of acquisition. See Note 1 of Notes to Consolidated Financial Statements for more information ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 647.10 Td (regarding our acquisition of Clayton.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 630.10 Td (Our management, with the participation of our Chief Executive Of) Tj ET Q q 0 0 0 rg BT 339.90 630.10 Td (ficer and Chief Financial Of) Tj ET Q q 0 0 0 rg BT 452.46 630.10 Td (ficer) Tj ET Q q 0 0 0 rg BT 470.37 630.10 Td (, assessed the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 618.10 Td (ef) Tj ET Q q 0 0 0 rg BT 57.09 618.10 Td (fectiveness of our internal control over financial reporting, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.94 618.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.19 618.10 Td (, using the criteria described in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 519.98 618.10 Td (Internal ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 49.50 606.10 Td (Contr) Tj ET Q q 0 0 0 rg BT 72.47 606.10 Td (ol-Integrated Framework) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 174.39 606.10 Td ( ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 176.89 606.10 Td (\(2013\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.05 606.10 Td (issued by the COSO. Based on our evaluation under the updated internal control ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 594.10 Td (framework in ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 106.15 594.10 Td (Internal Contr) Tj ET Q q 0 0 0 rg BT 163.83 594.10 Td (ol-Integrated Framework \(2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.92 594.10 Td (, management concluded that our internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.10 Td (reporting was ef) Tj ET Q q 0 0 0 rg BT 114.29 582.10 Td (fective ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 144.00 582.10 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 244.24 582.10 Td (. ) Tj ET Q q 0 0 0 rg BT 249.06 582.10 Td (The ef) Tj ET Q q 0 0 0 rg BT 274.70 582.10 Td (fectiveness of our internal control over financial reporting ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 509.05 582.10 Td (as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 570.10 Td (December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 570.10 Td ( has been audited by PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 330.81 570.10 Td (, an independent registered public accounting firm, as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 558.10 Td (stated in their report appearing in Item8 of this ) Tj ET Q q 0 0 0 rg BT 240.56 558.10 Td (Annual Report on Form 10-K.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 541.10 Td (There was no change in the internal control over financial reporting that occurred during the period covered by this report ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 529.10 Td (that has materially af) Tj ET Q q 0 0 0 rg BT 133.45 529.10 Td (fected, or is reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 314.87 529.10 Td (fect, our internal control over financial reporting.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 48.50 496.10 Td (Item 9B. ) Tj ET Q q 0 0 0 rg BT 103.50 496.10 Td (Other) Tj ET Q q 0 0 0 rg BT 128.87 496.10 Td ( Information.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 475.10 Td ( ) Tj ET Q q 0 0 0 rg BT 103.50 475.10 Td (None.) Tj ET Q endstream endobj 389 0 obj <> endobj 390 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (194) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.45 731.25 Td (Part III) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.25 Td (Item 10. ) Tj ET Q q 0 0 0 rg BT 103.50 707.25 Td (Dir) Tj ET Q q 0 0 0 rg BT 117.76 707.25 Td (ectors, Executive Officers and Corporate Governance.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 686.25 Td (The information required by this Item is incorporated by reference to, and will be contained in, our definitive proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 674.25 Td (statement, which will be filed within 120 days after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.78 674.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.37 674.25 Td (. ) Tj ET Q q 0 0 0 rg BT 340.81 674.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 390.15 674.25 Td (, we have omitted the information from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 662.25 Td (this Item pursuant to General Instruction G \(3\)of Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 629.25 Td (Item 1) Tj ET Q q 0 0 0 rg BT 76.44 629.25 Td (1. ) Tj ET Q q 0 0 0 rg BT 103.50 629.25 Td (Executive Compensation.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 608.25 Td (The information required by this Item is incorporated by reference to, and will be contained in, our definitive proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td (statement, which will be filed within 120 days after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.78 596.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.37 596.25 Td (. ) Tj ET Q q 0 0 0 rg BT 340.81 596.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 390.15 596.25 Td (, we have omitted the information from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (this Item pursuant to General Instruction G \(3\)of Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (Item 12. ) Tj ET Q q 0 0 0 rg BT 103.50 551.25 Td (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder) Tj ET Q q 0 0 0 rg BT 500.52 551.25 Td ( Matters.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 530.25 Td (The information required by this Item is incorporated by reference to, and will be contained in, our definitive proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 518.25 Td (statement, which will be filed within 120 days after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.78 518.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.37 518.25 Td (. ) Tj ET Q q 0 0 0 rg BT 340.81 518.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 390.15 518.25 Td (, we have omitted the information from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 506.25 Td (this Item pursuant to General Instruction G \(3\)of Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 67.50 485.25 Td (Equity Compensation Plans) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 71.50 468.25 Td (The following table sets forth certain information relating to the Company) Tj ET Q q 0 0 0 rg BT 371.42 468.25 Td (s equity compensation plans as of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 456.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.08 456.25 Td (. Each number of securities reflected in the table is a reference to shares of our common stock.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 372.75 m 303 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 372.75 m 390 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 372.75 m 498 372.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 322.75 m 303 322.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 322.75 m 390 322.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 322.75 m 498 322.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 308.75 m 303 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 226 306.75 m 303 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 322.75 m 390 322.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 308.75 m 390 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 322 306.75 m 390 306.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 308.75 m 498 308.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 409 306.75 m 498 306.75 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 375.730078125 m 112.9296875 375.730078125 l s q 0 0 0 rg BT 52.50 376.98 Td (Plan Category \(1\)) Tj ET Q BT /F1 8.00 Tf ET 0 0 0 RG /GS0 gs 0.39 w 0 i [] 0 d 1 J 1 j 3 M 112.9296875 375.915625 m 114.9296875 375.915625 l s q 0 0 0 rg BT 112.93 376.98 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 259.90 404.81 Td (\(a\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 229.15 397.81 Td (Number) Tj ET Q q 0 0 0 rg BT 253.91 397.81 Td (ofsecuritiesto) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 229.35 390.81 Td (be issued upon exer) Tj ET Q q 0 0 0 rg BT 287.76 390.81 Td (cise) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 229.85 383.81 Td (of outstanding options,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 234.20 376.81 Td (warrants and rights) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 351.20 411.81 Td (\(b\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 328.45 404.81 Td (W) Tj ET Q q 0 0 0 rg BT 335.06 404.81 Td (eighted-average) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 331.45 397.81 Td (exer) Tj ET Q q 0 0 0 rg BT 344.14 397.81 Td (cise price of) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 337.75 390.81 Td (outstanding) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 343.70 383.81 Td (options,) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 325.70 376.81 Td (warrantsandrights) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 449.10 418.81 Td (\(c\)) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 421.95 411.81 Td (Number) Tj ET Q q 0 0 0 rg BT 446.71 411.81 Td (ofsecurities) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 418.10 404.81 Td (r) Tj ET Q q 0 0 0 rg BT 421.08 404.81 Td (emainingavailablefor) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 420.65 397.81 Td (futur) Tj ET Q q 0 0 0 rg BT 436.08 397.81 Td (e issuance under) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 413.30 390.81 Td (equitycompensationplans) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 422.55 383.81 Td (\(excluding securities) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 419.00 376.81 Td (r) Tj ET Q q 0 0 0 rg BT 421.98 376.81 Td (eflectedincolumn\(a\)\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 361.21 Td (Equity compensation plans approved by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 352.21 Td (stockholders \(2\)) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 121.25 352.01 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.50 352.21 Td (5,370,589) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.50 352.00 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.50 351.70 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.50 352.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.75 352.21 Td (3.08) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 352.00 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.50 351.70 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.50 352.21 Td (5,475,554) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 352.00 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 351.70 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 52.50 336.21 Td (Equity compensation plans not approved by) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 61.50 327.21 Td (stockholders) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 107.75 327.01 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 290.50 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 377.50 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 485.50 327.21 Td () Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 100.50 312.21 Td (Total) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 121.25 312.01 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 263.50 312.21 Td (5,370,589) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 305.50 312.00 Td (\(3\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 316.50 311.70 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 324.50 312.21 Td ($) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 370.75 312.21 Td (3.08) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 392.50 312.00 Td (\(4\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 403.50 311.70 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 458.50 312.21 Td (5,475,554) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 500.50 312.00 Td (\(5\)) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 511.50 311.70 Td (.) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (__________________) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (\(1\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 284.25 Td (The table does not include information for equity compensation plans assumed by us in mer) Tj ET Q q 0 0 0 rg BT 439.51 284.25 Td (gers, under which we do not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 272.25 Td (grant additional awards.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 260.25 Td (\(2\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 260.25 Td (These plans consist of our 1995 Equity Plan, 2008 Equity Plan, 2014 Equity Plan and our 2008 ESPP) Tj ET Q q 0 0 0 rg BT 477.44 260.25 Td ( Plan.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 248.25 Td (\(3\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 248.25 Td (Represents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.38 248.25 Td (3,029,348) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 158.38 248.25 Td ( non-qualified stock options and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.74 248.25 Td (284,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.24 248.25 Td ( shares of phantom stock issued under our 1995 Equity Plan ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 236.25 Td (and our 2008 Equity Plan and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.65 236.25 Td (2,056,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.65 236.25 Td ( RSUs issued under our 2008 Equity Plan. Of the RSUs included herein, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.57 236.25 Td (654,140) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 558.07 236.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 224.25 Td (are performance-based stock-settled RSUs that could potentially pay out between 0% and 200% of this represented tar) Tj ET Q q 0 0 0 rg BT 545.55 224.25 Td (get.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 212.25 Td (\(4\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 212.25 Td (The shares of phantom stock and RSUs were granted at full value, and therefore, have a weighted average exercise price ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 200.25 Td (of $0. Excluding shares of phantom stock and RSUs from this calculation, the weighted average exercise price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 188.25 Td (outstanding non-qualified stock options was ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.15 188.25 Td ($5.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 273.65 188.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 276.15 188.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.45 188.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 176.25 Td (\(5\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 176.25 Td (Includes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.38 176.25 Td (4,240,002) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.38 176.25 Td ( shares available for issuance under our 2014 Equity Plan and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 397.47 176.25 Td (1,235,552) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 437.47 176.25 Td ( shares available for issuance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 164.25 Td (under our 2008 ESPP) Tj ET Q q 0 0 0 rg BT 158.02 164.25 Td ( Plan, in each case ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 234.10 164.25 Td (as of December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 334.34 164.25 Td (. In January 2015, we issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.43 164.25 Td (34,274) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.93 164.25 Td ( shares available for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 152.25 Td (issuance under our 2008 ESPP) Tj ET Q q 0 0 0 rg BT 194.40 152.25 Td ( Plan. ) Tj ET Q q 0 0 0 rg BT 219.12 152.25 Td (As a result, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.89 152.25 Td (1,201,278) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.89 152.25 Td ( shares currently remain available for issuance under the 2008 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 140.25 Td (ESPP) Tj ET Q q 0 0 0 rg BT 94.42 140.25 Td ( Plan. ) Tj ET Q q 0 0 0 rg BT 119.52 140.25 Td (When we obtained stockholder approval for our 2014 Equity Plan, we stated that we would not issue any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 128.25 Td (additional shares under our 2008 Equity Plan.) Tj ET Q endstream endobj 391 0 obj <> endobj 392 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (195) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Item13. ) Tj ET Q q 0 0 0 rg BT 103.50 731.25 Td (Certain Relationships and Related ) Tj ET Q q 0 0 0 rg BT 252.77 731.25 Td (T) Tj ET Q q 0 0 0 rg BT 258.70 731.25 Td (ransactions, and Dir) Tj ET Q q 0 0 0 rg BT 345.47 731.25 Td (ector) Tj ET Q q 0 0 0 rg BT 366.94 731.25 Td ( Independence.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (The information required by this Item is incorporated by reference to, and will be contained in, our definitive proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (statement, which will be filed within 120 days after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.78 698.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.37 698.25 Td (. ) Tj ET Q q 0 0 0 rg BT 340.81 698.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 390.15 698.25 Td (, we have omitted the information from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (this Item pursuant to General Instruction G \(3\)of Form 10-K.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 653.25 Td (Item 14. ) Tj ET Q q 0 0 0 rg BT 103.50 653.25 Td (Principal ) Tj ET Q q 0 0 0 rg BT 144.89 653.25 Td (Accountant Fees and Services.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 632.25 Td (The information required by this Item is incorporated by reference to, and will be contained in, our definitive proxy ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 620.25 Td (statement, which will be filed within 120 days after ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.78 620.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 336.37 620.25 Td (. ) Tj ET Q q 0 0 0 rg BT 340.81 620.25 Td (Accordingly) Tj ET Q q 0 0 0 rg BT 390.15 620.25 Td (, we have omitted the information from ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.25 Td (this Item pursuant to General Instruction G \(3\)of Form 10-K.) Tj ET Q endstream endobj 393 0 obj <> endobj 394 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (196) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 289.80 731.25 Td (Part IV) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 707.25 Td (Item 15. ) Tj ET Q q 0 0 0 rg BT 103.50 707.25 Td (Exhibits and Financial Statement Schedules.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 686.25 Td (\(a\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 665.25 Td (1. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 665.25 Td (Financial StatementsSee the Index to Consolidated Financial Statements included in Item8 of this report for a list ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 653.25 Td (of the financial statements filed as part of this report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 624.25 Td (2. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 624.25 Td (Financial Statement SchedulesSee the Index to Financial Statement Schedules on page ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 477.45 624.25 Td (of this report for a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 612.25 Td (list of the financial statement schedules filed as part of this report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 582.25 Td (3. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 85.50 582.25 Td (ExhibitsSee Index to Exhibits on page ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 284.91 582.25 Td (of this report for a list of exhibits filed as part of this report.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.45 624.37 Td (199) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.91 583.37 Td (208) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 395 0 obj <> endobj 396 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (197) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 273.85 731.25 Td (SIGNA) Tj ET Q q 0 0 0 rg BT 304.78 731.25 Td (TURES) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 710.25 Td (Pursuant to the requirements of Section13 or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 390.37 710.25 Td (Act of 1934, the registrant has duly caused ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 698.25 Td (this report to be signed on its behalf by the undersigned, thereunto duly authorized, on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.92 698.25 Td (March2, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 455.52 698.25 Td (.) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 49.50 687.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 323 633.95 m 561 633.95 l s BT /F1 10.00 Tf ET 0 0 0 RG /GS0 gs 0.49 w 0 i [] 0 d 1 J 1 j 3 M 301.5 666.1833984375 m 375.6455078125 666.1833984375 l s q 0 0 0 rg BT 301.50 667.52 Td (Radian Group Inc.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.50 638.52 Td (By:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.65 638.52 Td (/s/SANFORD A. IBRAHIM) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 406.80 626.03 Td (Sanford ) Tj ET Q q 0 0 0 rg BT 435.92 626.03 Td (A. Ibrahim,) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 401.35 618.03 Td (Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 397 0 obj <> endobj 398 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (198) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 731.10 Td (Pursuant to the requirements of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 299.55 731.10 Td (Act of 1934, this report has been signed below on ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 500.90 731.10 Td (March2, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 559.50 731.10 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 719.10 Td (by the following persons on behalf of the registrant and in the capacities indicated.) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 670.6 m 260 670.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 622.6 m 260 622.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 574.6 m 260 574.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 536.6 m 260 536.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 493.6 m 260 493.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 455.6 m 260 455.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 417.6 m 260 417.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 379.6 m 260 379.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 341.6 m 260 341.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 303.6 m 260 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 303.6 m 260 303.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 263.6 m 260 263.6 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 225.60000000000002 m 260 225.60000000000002 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 95 187.60000000000002 m 260 187.60000000000002 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 167 698.580078125 m 186.9921875 698.580078125 l s q 0 0 0 rg BT 167.00 699.83 Td (Name) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 362.05 698.580078125 m 377.9015625 698.580078125 l s q 0 0 0 rg BT 362.05 699.83 Td (Title) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 123.25 675.27 Td (/s/S) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 148.26 675.27 Td (ANFORD) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.15 675.27 Td ( ) Tj ET Q q 0 0 0 rg BT 183.10 675.27 Td (A. I) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 198.65 675.27 Td (BRAHIM) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 685.27 Td (Chief Executive Officer \(Principal) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 675.27 Td (Executive Officer\) and Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 143.30 661.83 Td (Sanford A. Ibrahim) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.30 627.27 Td (/s/J) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 153.64 627.27 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.64 627.27 Td (F) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 163.20 627.27 Td (RANKLIN ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 201.20 627.27 Td (H) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 208.42 627.27 Td (ALL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 638.17 Td (Executive Vice President, Chief Financial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 628.17 Td (Officer \(Principal Financial Officer\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 149.55 613.83 Td (J. Franklin Hall) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 118.50 579.27 Td (/s/C) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 144.62 579.27 Td (A) Tj ET Q q 0 0 0 rg BT 149.51 579.27 Td (THERINE ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 185.72 579.27 Td (M) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 194.62 579.27 Td (. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 198.62 579.27 Td (J) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.51 579.27 Td (ACKSON) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 235.40 579.27 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 589.27 Td (Senior ) Tj ET Q q 0 0 0 rg BT 308.93 589.27 Td (V) Tj ET Q q 0 0 0 rg BT 315.55 589.27 Td (ice President, Controller) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 579.27 Td (\(Principal ) Tj ET Q q 0 0 0 rg BT 321.88 579.27 Td (Accounting Of) Tj ET Q q 0 0 0 rg BT 381.41 579.27 Td (ficer\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 139.30 565.83 Td (Catherine M. Jackson) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.35 541.27 Td (/s/H) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 156.02 541.27 Td (ERBER) Tj ET Q q 0 0 0 rg BT 181.32 541.27 Td (T) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 186.21 541.27 Td ( ) Tj ET Q q 0 0 0 rg BT 188.53 541.27 Td (W) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 197.97 541.27 Td (ENDER) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 542.17 Td (Non-Executive Chairman of the Board) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 148.80 527.83 Td (Herbert Wender) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 130.10 498.27 Td (/s/D) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 156.77 498.27 Td (A) Tj ET Q q 0 0 0 rg BT 161.52 498.27 Td (VID) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.73 498.27 Td ( C. C) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 196.57 498.27 Td (ARNEY) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 499.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 148.20 484.83 Td (David C. Carney) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.55 460.27 Td (/s/H) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 151.22 460.27 Td (OW) Tj ET Q q 0 0 0 rg BT 163.66 460.27 Td (ARD) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.55 460.27 Td ( B. C) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 201.39 460.27 Td (ULANG) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 461.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 144.85 446.83 Td (Howard B. Culang) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 139.35 422.27 Td (/s/L) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 164.91 422.27 Td (ISA) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.80 422.27 Td ( ) Tj ET Q q 0 0 0 rg BT 180.12 422.27 Td (W) Tj ET Q q 0 0 0 rg BT 188.64 422.27 Td (. H) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 200.86 422.27 Td (ESS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 423.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 155.10 408.83 Td (Lisa W. Hess) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 124.75 384.27 Td (/s/S) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 149.76 384.27 Td (TEPHEN) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 180.42 384.27 Td ( ) Tj ET Q q 0 0 0 rg BT 182.74 384.27 Td (T) Tj ET Q q 0 0 0 rg BT 188.11 384.27 Td (. H) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 200.33 384.27 Td (OPKINS) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 385.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 143.45 370.83 Td (Stephen T. Hopkins) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 117.15 346.27 Td (/s/B) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 143.27 346.27 Td (RIAN) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.82 346.27 Td ( D. M) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 186.44 346.27 Td (ONTGOMER) Tj ET Q q 0 0 0 rg BT 231.33 346.27 Td (Y) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 347.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 139.10 332.83 Td (Brian D. Montgomery) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.25 308.27 Td (/s/G) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 158.92 308.27 Td (AET) Tj ET Q q 0 0 0 rg BT 173.83 308.27 Td (ANO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 191.16 308.27 Td ( M) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 202.55 308.27 Td (UZIO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 309.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 150.65 294.83 Td (Gaetano Muzio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 134.45 268.27 Td (/s/J) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 157.79 268.27 Td (AN) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.34 268.27 Td ( N) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 179.07 268.27 Td (ICHOLSON) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 269.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 152.85 254.83 Td (Jan Nicholson) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.70 230.27 Td (/s/G) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 155.37 230.27 Td (REGOR) Tj ET Q q 0 0 0 rg BT 182.04 230.27 Td (Y) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 187.82 230.27 Td ( ) Tj ET Q q 0 0 0 rg BT 190.14 230.27 Td (V) Tj ET Q q 0 0 0 rg BT 196.07 230.27 Td (. S) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 206.63 230.27 Td (ERIO) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 231.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 148.40 216.83 Td (Gregory V. Serio) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 133.75 192.27 Td (/s/N) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 160.42 192.27 Td (OEL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 175.97 192.27 Td ( J. S) Tj ET Q BT /F1 8.00 Tf ET q 0 0 0 rg BT 192.92 192.27 Td (PIEGEL) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 280.50 193.17 Td (Director) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 152.00 178.83 Td (Noel J. 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 591.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 591.47 Td (5,447) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 591.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 591.47 Td (5,240) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 577.37 Td (Short-term investmentsat fair value) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 221.50 577.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 576.47 Td (631,934) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 576.47 Td (633,178) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 562.37 Td (Cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 76.50 562.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 561.47 Td (1,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 561.47 Td (4,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 547.37 Td (Restricted cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 547.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 546.47 Td (124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 546.47 Td (123) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 532.37 Td (Investment in subsidiaries, at equity in net assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 251.50 532.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 531.47 Td (2,746,915) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 531.47 Td (1,419,360) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 517.37 Td (Debt issuance costs) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.50 517.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 516.47 Td (17,627) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 516.47 Td (15,741) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 502.37 Td (Due from affiliates, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.50 502.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 501.47 Td (13,110) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 501.47 Td (12,283) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 487.37 Td (Accounts and notes receivable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.50 487.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 486.47 Td (305,856) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 486.47 Td (8,105) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 472.37 Td (Property and equipment, at cost \(less accumulated depreciation of $50,648 and $49,632\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 406.50 472.37 Td (. .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 471.47 Td (1,624) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 471.47 Td (1,281) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 457.37 Td (Other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 457.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 456.47 Td (16,660) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 456.47 Td (12,880) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 442.37 Td (Assets held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.50 442.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 441.47 Td (18,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 441.47 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 427.37 Td (Total assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.50 427.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 426.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 426.47 Td (3,759,275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 426.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 426.47 Td (2,112,495) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 412.53 Td (Liabilities and Stockholders Equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 397.37 Td (Accrued interest payable) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 151.50 397.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 396.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 396.47 Td (6,796) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 396.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 396.47 Td (5,551) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 382.37 Td (Accrued compensation expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.50 382.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 381.47 Td (86,258) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 381.47 Td (132,848) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 367.37 Td (Long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 367.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 366.47 Td (1,209,926) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 366.47 Td (930,072) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 352.37 Td (Federal income taxescurrent and deferred) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.50 352.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 351.47 Td (262,583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 351.47 Td (98,476) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 337.37 Td (Other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 337.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 336.47 Td (3,935) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 336.47 Td (5,903) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 322.37 Td (Liabilities held for sale) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 146.50 322.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 321.47 Td (18,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 321.47 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 307.37 Td (Total liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 116.50 307.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 306.47 Td (1,587,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 306.47 Td (1,172,850) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 276.47 Td (Equity component of currently redeemable convertible senior notes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.50 276.37 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 276.47 Td (74,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 276.47 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 262.37 Td (Common stockholders equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 247.37 Td (Common stock: par value $.001 per share; 485,000,000 shares authorized at) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 237.37 Td (December 31, 2014 and 2013; 208,601,020 and 190,636,972 shares issued at) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 227.37 Td (December 31, 2014 and 2013, respectively; 191,053,530 and 173,099,515 shares) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 217.37 Td (outstanding at December31, 2014 and 2013, respectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 311.50 217.37 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 468.65 216.47 Td (209) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 216.47 Td (191) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 202.37 Td (Treasury stock, at cost: 17,547,490 and 17,537,457 shares at December31, 2014 and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 79.00 192.37 Td (2013, respectively) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 156.50 192.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 193.52 Td (\(892,961) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 193.47 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 193.52 Td (\(892,807) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 193.47 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 179.37 Td (Additional paid-in capital) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 176.50 179.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 178.47 Td (2,531,513) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 178.47 Td (2,347,104) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 164.37 Td (Retained earnings \(deficit\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 181.50 164.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 163.47 Td (406,814) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 163.52 Td (\(552,226) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 163.47 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 149.37 Td (Accumulated other comprehensive income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.50 149.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 148.47 Td (51,485) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 148.47 Td (37,383) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 134.37 Td (Total common stockholders equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 196.50 134.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 133.47 Td (2,097,060) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 133.47 Td (939,645) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 119.37 Td (Total liabilities and stockholders equity) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 216.50 119.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 118.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.65 118.47 Td (3,759,275) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 118.47 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 517.65 118.47 Td (2,112,495) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.85 90.30 Td (See Supplemental Notes.) Tj ET Q endstream endobj 405 0 obj <> endobj 406 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 39.60 Td (F-3) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 200.15 714.25 Td (Schedule IIFinancial Information of Registrant) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.80 702.25 Td (Statements of Operations) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.75 690.25 Td (Par) Tj ET Q q 0 0 0 rg BT 273.12 690.25 Td (ent Company Only) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 654.75 m 413.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 654.75 m 417.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 654.75 m 487.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 654.75 m 491.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 654.75 m 561.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 654.75 m 413.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 641.75 m 413.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 654.75 m 487.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 641.75 m 487.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 654.75 m 561.5 654.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 641.75 m 561.5 641.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 567.75 m 413.5 567.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 567.75 m 487.5 567.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 567.75 m 561.5 567.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 552.75 m 413.5 552.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 552.75 m 487.5 552.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 552.75 m 561.5 552.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 508.75 m 413.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 508.75 m 487.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 508.75 m 561.5 508.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 493.75 m 413.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 493.75 m 487.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 493.75 m 561.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 493.75 m 413.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 493.75 m 487.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 493.75 m 561.5 493.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 448.75 m 413.5 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 448.75 m 487.5 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 448.75 m 561.5 448.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 418.75 m 413.5 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 418.75 m 487.5 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 418.75 m 561.5 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 418.75 m 413.5 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 404.75 m 413.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 402.75 m 413.5 402.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 418.75 m 487.5 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 404.75 m 487.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 402.75 m 487.5 402.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 418.75 m 561.5 418.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 404.75 m 561.5 404.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 402.75 m 561.5 402.75 l s BT /F1 8.00 Tf ET q 0 0 0 rg BT 52.00 659.00 Td () Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.70 658.98 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 644.730078125 m 103.578125 644.730078125 l s q 0 0 0 rg BT 52.00 645.98 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.00 645.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.00 645.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 645.98 Td (2012) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 632.48 Td (Revenues:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 618.32 Td (Net investment income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 167.50 618.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 617.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 617.42 Td (9,515) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 617.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 617.42 Td (4,300) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 617.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 617.42 Td (9,093) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 603.32 Td (Net gains \(losses\) on investments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 207.50 603.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 394.65 602.42 Td (133) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 602.47 Td (\(930) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 602.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 602.42 Td (8,816) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 588.32 Td (Net \(losses\) gains on other financial instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.50 588.32 Td (. . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 587.47 Td (\(2,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 587.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 587.47 Td (\(6,026) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 587.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 587.42 Td (9,180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 573.32 Td (Other income) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.50 573.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 404.65 572.42 Td (7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 572.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 552.65 572.42 Td (3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 558.32 Td (Total revenues) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 558.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 557.42 Td (6,790) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 557.47 Td (\(2,656) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 557.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 557.42 Td (27,092) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 52.00 543.48 Td (Expenses:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 529.32 Td (Other operating expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.50 529.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 528.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 528.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 528.42 Td (2,690) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 514.32 Td (Interest expense) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.50 514.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 513.42 Td (57,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 513.42 Td (37,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 513.42 Td (17,756) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 499.32 Td (Total expenses) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 112.50 499.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 498.42 Td (57,366) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 498.42 Td (37,087) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 498.42 Td (20,446) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 484.32 Td (\(Loss\) income from continuing operations before income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 307.50 484.32 Td (. . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 483.47 Td (\(50,576) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 483.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 483.47 Td (\(39,743) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 483.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 483.42 Td (6,646) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 469.32 Td (Provision \(benefit\) for income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 197.50 469.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 468.42 Td (143,912) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 468.42 Td (9,234) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 468.47 Td (\(40,187) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 468.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 453.42 Td (Equity in net income \(loss\) of affiliates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.50 453.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 369.65 453.42 Td (1,172,032) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 453.47 Td (\(148,008) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 453.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 453.47 Td (\(498,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 453.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 438.42 Td (Net income \(loss\) from continuing operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.50 438.32 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 438.42 Td (977,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 438.47 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 438.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 438.47 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 438.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 424.32 Td (Loss from discontinued operations, net of taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 242.50 424.32 Td (. . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 423.47 Td (\(18,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 423.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 423.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 423.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 409.32 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.50 409.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 408.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 408.42 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 408.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 408.47 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 408.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 408.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 408.47 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 408.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.85 80.25 Td (See Supplemental Notes.) Tj ET Q endstream endobj 407 0 obj <> endobj 408 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 39.60 Td (F-4) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 200.15 714.25 Td (Schedule IIFinancial Information of Registrant) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 251.10 702.25 Td (Statements of Cash Flows) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.75 690.25 Td (Par) Tj ET Q q 0 0 0 rg BT 273.12 690.25 Td (ent Company Only) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 666.75 m 413.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 413.5 666.75 m 417.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 666.75 m 487.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 487.5 666.75 m 491.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 666.75 m 561.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 666.75 m 413.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 653.75 m 413.5 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 666.75 m 487.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 653.75 m 487.5 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 666.75 m 561.5 666.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 653.75 m 561.5 653.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 445.75 m 413.5 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 445.75 m 487.5 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 445.75 m 561.5 445.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 405.75 m 413.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 405.75 m 487.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 405.75 m 561.5 405.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 390.75 m 413.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 390.75 m 487.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 390.75 m 561.5 390.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 270.75 m 413.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 255.75 m 413.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 270.75 m 487.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 255.75 m 487.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 270.75 m 561.5 270.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 255.75 m 561.5 255.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 180.75 m 413.5 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 180.75 m 487.5 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 180.75 m 561.5 180.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 165.75 m 413.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 165.75 m 487.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 165.75 m 561.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 165.75 m 413.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 165.75 m 487.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 165.75 m 561.5 165.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 135.75 m 413.5 135.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 135.75 m 487.5 135.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 135.75 m 561.5 135.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 135.75 m 413.5 135.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 121.75 m 413.5 121.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 343.5 119.75 m 413.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 121.75 m 487.5 121.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 417.5 119.75 m 487.5 119.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 121.75 m 561.5 121.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 491.5 119.75 m 561.5 119.75 l s BT /F2 8.00 Tf ET q 0 0 0 rg BT 407.70 670.98 Td (Year Ended December 31,) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52 656.730078125 m 101.578125 656.730078125 l s q 0 0 0 rg BT 52.00 657.98 Td (\(In thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 370.00 657.98 Td (2014) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 444.00 657.98 Td (2013) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 518.00 657.98 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 644.32 Td (Cash flows from operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 629.32 Td (Net income \(loss\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 142.50 629.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 628.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 628.42 Td (959,517) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 628.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 628.47 Td (\(196,985) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 628.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 628.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 628.47 Td (\(451,468) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 628.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 614.32 Td (Loss from discontinued operations, net of tax) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.50 614.32 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 613.42 Td (18,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 613.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 599.32 Td (Adjustments to reconcile net income \(loss\) to net cash \(used in\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 589.32 Td (provided by operating activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 574.32 Td (Net \(gains\) losses on investments and other financial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 564.32 Td (instruments) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 137.50 564.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 396.30 563.47 Td (\(53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 563.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 563.42 Td (3,004) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 563.47 Td (\(1,821) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 563.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 549.32 Td (Losses \(gains\) on the repurchase of long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.50 549.32 Td (. . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 548.42 Td (2,785) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 548.42 Td (3,952) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 548.47 Td (\(16,175) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 548.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 534.32 Td (Equity in undistributed net \(income\) loss of subsidiaries and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 524.32 Td (affiliates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 127.50 524.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 366.30 525.47 Td (\(1,172,005) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 525.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 525.42 Td (150,090) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 525.42 Td (505,267) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 511.32 Td (\(Decrease\) increase in federal income taxes) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.50 511.32 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 510.47 Td (\(6,626) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 510.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 510.42 Td (6,583) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 510.47 Td (\(7,145) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 510.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 496.32 Td (Deferred income tax provision) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.50 496.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 495.42 Td (170,757) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 495.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 495.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 481.32 Td (Depreciation and other amortization, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.50 481.32 Td (. . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 480.42 Td (34,213) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 480.42 Td (30,286) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 480.42 Td (18,603) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 466.32 Td (Change in other assets) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 182.50 466.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 382.15 465.42 Td (13,768) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 465.42 Td (23,301) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.80 465.47 Td (\(17,708) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 465.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 88.00 451.32 Td (Change in other liabilities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 451.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 450.47 Td (\(47,536) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 450.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 450.42 Td (85,450) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 450.42 Td (25,336) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 436.32 Td (Net cash \(used in\) provided by operating activities, continuing) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 426.32 Td (operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 97.50 426.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 425.47 Td (\(27,153) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 425.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 425.42 Td (105,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 425.42 Td (54,889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 411.32 Td (Net cash used in operating activities, discontinued operations) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 297.50 411.32 Td (. . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 410.47 Td (\(18,027) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 410.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 410.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 410.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 396.32 Td (Net cash \(used in\) provided by operating activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.50 396.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 395.47 Td (\(45,180) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 395.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 395.42 Td (105,681) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 395.42 Td (54,889) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 381.32 Td (Cash flows from investing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 366.32 Td (Sales/redemptions of trading securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 227.50 366.32 Td (. . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 365.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 365.42 Td (9,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 365.42 Td (153,992) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 351.32 Td (Purchases of trading securities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 351.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 350.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 350.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 549.30 350.47 Td (\(3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 350.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 336.32 Td (Sales \(purchases\) of short-term investments, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 262.50 336.32 Td (. . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 335.42 Td (1,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 335.47 Td (\(496,979) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 335.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 530.15 335.42 Td (41,042) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 321.32 Td (Sales of other assets, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 172.50 321.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 399.65 320.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 456.15 320.42 Td (21,473) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 320.42 Td (8,709) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 306.32 Td (Purchases of property and equipment, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.50 306.32 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 305.47 Td (\(1,351) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 305.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 465.30 305.47 Td (\(647) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 305.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 305.47 Td (\(1,124) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 305.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 291.32 Td (Capital contributions to subsidiaries and affiliates) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 272.50 291.32 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.80 290.47 Td (\(139,103) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 290.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 290.47 Td (\(233,391) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 290.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 290.47 Td (\(100,384) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 290.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 276.32 Td (Issuance of note receivable from affiliate) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.50 276.32 Td (. . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.80 275.47 Td (\(300,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 275.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 473.65 275.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 275.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 261.32 Td (Net cash \(used in\) provided by investing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.50 261.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 373.80 260.47 Td (\(439,082) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 260.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 447.80 260.47 Td (\(700,544) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 260.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 525.15 260.42 Td (102,232) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 246.32 Td (Cash flows from financing activities:) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 231.32 Td (Dividends paid) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 132.50 231.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 230.47 Td (\(1,865) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 230.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 457.80 230.47 Td (\(1,632) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 230.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 531.80 230.47 Td (\(1,335) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 230.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 216.32 Td (Proceeds/payments related to issuance or exchange of debt, net) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 322.50 216.32 Td (. . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 215.42 Td (293,809) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 215.42 Td (377,783) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 215.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 201.32 Td (Redemption of long-term debt) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.50 201.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 378.80 200.47 Td (\(57,223) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 200.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.80 200.47 Td (\(79,372) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 483.65 200.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 200.47 Td (\(153,261) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 200.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 70.00 186.32 Td (Issuance of common stock) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 177.50 186.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 185.42 Td (247,188) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 185.42 Td (299,410) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 547.65 185.42 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 171.32 Td (Net cash provided by \(used in\) financing activities) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 257.50 171.32 Td (. . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 377.15 170.42 Td (481,909) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 451.15 170.42 Td (596,189) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 521.80 170.47 Td (\(154,596) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 557.65 170.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 156.32 Td (\(Decrease\) increase in cash) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 162.50 156.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 383.80 155.47 Td (\(2,353) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 409.65 155.42 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 155.42 Td (1,326) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 155.42 Td (2,525) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 141.32 Td (Cash, beginning of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.50 141.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 140.42 Td (4,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 140.42 Td (2,978) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 542.65 140.42 Td (453) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 126.32 Td (Cash, end of year) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.50 126.32 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.00 125.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 387.15 125.42 Td (1,951) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.00 125.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 461.15 125.42 Td (4,304) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.00 125.42 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.15 125.42 Td (2,978) Tj ET Q BT /F1 10.00 Tf ET BT /F1 10.00 Tf ET q 0 0 0 rg BT 255.85 85.25 Td (See Supplemental Notes.) Tj ET Q endstream endobj 409 0 obj <> endobj 410 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 39.60 Td (F-5) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 200.15 714.25 Td (Schedule IIFinancial Information of Registrant) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 257.75 702.25 Td (Par) Tj ET Q q 0 0 0 rg BT 273.12 702.25 Td (ent Company Only) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 263.35 690.25 Td (Supplemental Notes) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 669.25 Td (Note ) Tj ET Q q 0 0 0 rg BT 71.44 669.25 Td (A) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 652.25 Td (The Radian Group Inc. \(the Parent Company, we or our\) financial statements represent the stand-alone financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 640.25 Td (statements of the Parent Company) Tj ET Q q 0 0 0 rg BT 186.04 640.25 Td (. ) Tj ET Q q 0 0 0 rg BT 190.86 640.25 Td (These financial statements have been prepared on the same basis and using the same ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 628.25 Td (accounting policies as described in the consolidated financial statements included herein, except that the Parent Company uses ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 616.25 Td (the equity-method of accounting for its majority-owned subsidiaries. Refer to the Parent Company) Tj ET Q q 0 0 0 rg BT 446.35 616.25 Td (s consolidated financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 604.25 Td (statements for additional information. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 587.25 Td (On December 22, 2014, Radian Guaranty entered into the Radian ) Tj ET Q q 0 0 0 rg BT 335.81 587.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 359.98 587.25 Td (Assurance Stock Purchase ) Tj ET Q q 0 0 0 rg BT 467.45 587.25 Td (Agreement to sell ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 575.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.83 575.25 Td ( of the issued and outstanding shares of Radian ) Tj ET Q q 0 0 0 rg BT 263.07 575.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 287.24 575.25 Td (Assurance, our financial guaranty insurance subsidiary) Tj ET Q q 0 0 0 rg BT 505.96 575.25 Td (, and as a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 563.25 Td (result we have reclassified the operating results related to the pending disposition as discontinued operations for all periods ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 551.25 Td (presented in our consolidated statements of operations and no longer present a financial guaranty segment. See Note 3 of Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 539.25 Td (to Consolidated Financial Statements for additional information related to discontinued operations. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 522.25 Td (Under our current tax-sharing agreement between the Parent Company and its subsidiaries, we are required to refund to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 510.25 Td (each subsidiary any amount that the subsidiary could utilize through existing carryback provisions of the Internal Revenue ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.25 Td (Code had such subsidiary filed its federal tax return on a separate company basis.Pursuant to this, we have paid Radian ) Tj ET Q q 0 0 0 rg BT 530.21 498.25 Td (Asset ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (Assurance for losses and foreign tax credits it has generated and Radian ) Tj ET Q q 0 0 0 rg BT 338.85 486.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 363.02 486.25 Td (Assurance has recorded the DT) Tj ET Q q 0 0 0 rg BT 487.72 486.25 Td (A) Tj ET Q q 0 0 0 rg BT 494.39 486.25 Td ( for the related ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (consolidated carryforward on its balance sheet.However) Tj ET Q q 0 0 0 rg BT 276.51 474.25 Td (, the Internal Revenue Code consolidation provisions do not allocate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (consolidated carryovers based on tax-sharing agreements, but based on an allocation to all subsidiaries that generated the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 450.25 Td (carryforward. Upon a stock sale of a subsidiary) Tj ET Q q 0 0 0 rg BT 238.23 450.25 Td (, any consolidated attributes allocated to a subsidiary under these regulations ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 438.25 Td (transfer to the subsidiary and are no longer part of the consolidated carryforward.) Tj ET Q q 0 0 0 rg BT 376.60 438.25 Td (As such, the Parent Company has classified ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 426.25 Td (the DT) Tj ET Q q 0 0 0 rg BT 76.75 426.25 Td (As pertaining to Radian ) Tj ET Q q 0 0 0 rg BT 173.95 426.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 198.12 426.25 Td (Assurance) Tj ET Q q 0 0 0 rg BT 242.55 426.25 Td (s foreign tax credit and allocated NOL) Tj ET Q q 0 0 0 rg BT 396.01 426.25 Td ( as assets held for sale and recorded a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 414.25 Td (related loss from discontinued operations.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 393.25 Td (Note B) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 376.25 Td (Included in short-term investments ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 214.19 376.25 Td (at December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.49 376.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 321.93 376.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 341.93 376.25 Td ( is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.60 376.25 Td ($45.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.49 376.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 426.93 376.25 Td ($41.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 480.82 376.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 533.48 376.25 Td (, of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 364.25 Td (restricted funds required to support potential tax payments to Radian ) Tj ET Q q 0 0 0 rg BT 326.10 364.25 Td (Asset ) Tj ET Q q 0 0 0 rg BT 350.27 364.25 Td (Assurance under the terms of our current tax-sharing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 352.25 Td (agreement. ) Tj ET Q q 0 0 0 rg BT 95.96 352.25 Td (W) Tj ET Q q 0 0 0 rg BT 104.60 352.25 Td (e also had ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 147.08 352.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.97 352.25 Td ( at both December 31, 2014 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 326.49 352.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 346.49 352.25 Td (, of restricted cash held as collateral for our insurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 340.25 Td (trust agreement for our health insurance policy) Tj ET Q q 0 0 0 rg BT 236.00 340.25 Td (.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 319.25 Td (Note C) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 302.25 Td (The Parent Company provides certain services to its subsidiaries. ) Tj ET Q q 0 0 0 rg BT 335.09 302.25 Td (The Parent Company allocates to its subsidiaries ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 290.25 Td (corporate expense it incurs in the capacity of supporting those subsidiaries, based on either an allocated percentage of time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 278.25 Td (spent or internally allocated capital. Substantially all operating expenses and interest expense, except for discount amortization ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 266.25 Td (on our long-term debt, as well as coupon interest attributable to the Convertible Senior Notes due 2019, have been allocated to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 254.25 Td (the subsidiaries for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 128.09 254.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.09 254.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.09 254.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 173.09 254.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 192.53 254.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 212.53 254.25 Td (. ) Tj ET Q q 0 0 0 rg BT 217.35 254.25 Td (T) Tj ET Q q 0 0 0 rg BT 222.76 254.25 Td (otal operating expenses and interest expense allocated to subsidiaries for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 515.44 254.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 535.44 254.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 540.44 254.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 560.44 254.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 242.25 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 242.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 242.25 Td ( were ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 110.87 242.25 Td ($92.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.76 242.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 169.76 242.25 Td ($140.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 228.65 242.25 Td ( and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 248.09 242.25 Td ($93.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 301.98 242.25 Td (, respectively) Tj ET Q q 0 0 0 rg BT 354.64 242.25 Td (, and are presented net of reimbursements in the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 230.25 Td (Statements of Operations. ) Tj ET Q q 0 0 0 rg BT 155.04 230.25 Td (Amounts char) Tj ET Q q 0 0 0 rg BT 211.23 230.25 Td (ged to the subsidiaries for operating expenses are based on actual cost, without any ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 218.25 Td (mark-up, except for the amounts char) Tj ET Q q 0 0 0 rg BT 199.26 218.25 Td (ged to subsidiaries outside the U.S. for which a reasonable mark-up is char) Tj ET Q q 0 0 0 rg BT 498.45 218.25 Td (ged. ) Tj ET Q q 0 0 0 rg BT 517.70 218.25 Td (The Parent ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 206.25 Td (Company considers these char) Tj ET Q q 0 0 0 rg BT 171.23 206.25 Td (ges fair and reasonable. ) Tj ET Q q 0 0 0 rg BT 267.95 206.25 Td (The subsidiaries reimburse the Parent Company for these costs in a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 194.25 Td (timely manner) Tj ET Q q 0 0 0 rg BT 107.14 194.25 Td (, which has the impact of temporarily improving the cash flows of the Parent Company) Tj ET Q q 0 0 0 rg BT 455.02 194.25 Td (, if accrued expenses are ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 182.25 Td (reimbursed prior to actual payment. ) Tj ET Q endstream endobj 411 0 obj <> endobj 412 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 39.60 Td (F-6) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Note D) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 714.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.83 714.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 714.25 Td (, the Parent Company made total capital contributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.66 714.25 Td ($139.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.55 714.25 Td ( to its subsidiaries. ) Tj ET Q q 0 0 0 rg BT 487.32 714.25 Td (This amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (included contributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 152.54 702.25 Td ($100 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.93 702.25 Td ( to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 284.09 702.25 Td (, ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 289.09 702.25 Td ($20 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 335.48 702.25 Td ( to Radian MI Services Inc., ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 450.45 702.25 Td ($19 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 496.84 702.25 Td ( to Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (Clayton Holdings Inc. and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 157.54 690.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 206.43 690.25 Td ( to Radian Mortgage Reinsurance Company) Tj ET Q q 0 0 0 rg BT 381.58 690.25 Td (. ) Tj ET Q q 0 0 0 rg BT 386.02 690.25 Td (An additional ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 443.24 690.25 Td ($100 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.63 690.25 Td ( capital ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (contribution was made by the Parent Company to Radian Guaranty in February 2015. ) Tj ET Q q 0 0 0 rg BT 394.25 678.25 Td (The Parent Company also received tax ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 101.16 666.25 Td ($8.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 150.05 666.25 Td ( from its subsidiaries in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.43 666.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.43 666.25 Td ( under our tax-sharing agreement.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 649.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.83 649.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 649.25 Td (, the Parent Company received dividends from its subsidiaries of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 384.16 649.25 Td ($7.6 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 433.05 649.25 Td (. ) Tj ET Q q 0 0 0 rg BT 437.87 649.25 Td (The Parent Company did not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 637.25 Td (receive any dividends from its subsidiaries in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 233.07 637.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.07 637.25 Td ( or ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 266.40 637.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.40 637.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 620.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.83 620.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 620.25 Td (, the Parent Company made total capital contributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.66 620.25 Td ($313.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.55 620.25 Td ( to its subsidiaries. ) Tj ET Q q 0 0 0 rg BT 487.32 620.25 Td (This amount ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 608.25 Td (included cash contributions totaling ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 195.03 608.25 Td ($230 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 246.42 608.25 Td ( to Radian Guaranty) Tj ET Q q 0 0 0 rg BT 326.58 608.25 Td (, a contribution of investments and accrued interest of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 596.25 Td ($80.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 103.39 596.25 Td ( to RDN Investments, Inc., a cash contribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 302.80 596.25 Td ($2.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.69 596.25 Td ( to Radian MI Services Inc. and a cash contribution ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 60.33 584.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.22 584.25 Td ( to Radian Mortgage Reinsurance Company) Tj ET Q q 0 0 0 rg BT 284.36 584.25 Td (. ) Tj ET Q q 0 0 0 rg BT 289.18 584.25 Td (The amount of total capital contributions also includes a cash ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (reimbursement to Radian Guaranty of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 203.62 572.25 Td ($0.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 252.51 572.25 Td ( in interest expense payments made to the Parent Company by RMAI ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (pursuant to the interest expense-sharing arrangement. ) Tj ET Q q 0 0 0 rg BT 265.63 560.25 Td (The Parent Company also received tax payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 474.46 560.25 Td ($0.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 523.35 560.25 Td ( from its ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (subsidiaries in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 109.50 548.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 129.50 548.25 Td ( under our tax-sharing agreement. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 531.25 Td (During ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 102.83 531.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 122.83 531.25 Td (, the Parent Company made total capital contributions of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 351.66 531.25 Td ($100.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 410.55 531.25 Td ( to its subsidiaries. ) Tj ET Q q 0 0 0 rg BT 487.32 531.25 Td (This included a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 519.25 Td (cash contribution of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 131.98 519.25 Td ($100 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 183.37 519.25 Td ( to Radian Guaranty and a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.56 519.25 Td ($0.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 339.45 519.25 Td ( cash contribution to Radian Mortgage Reinsurance ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 507.25 Td (Company) Tj ET Q q 0 0 0 rg BT 87.74 507.25 Td (. ) Tj ET Q q 0 0 0 rg BT 92.56 507.25 Td (The amount of total capital contributions also includes the cash reimbursement to Radian Guaranty of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 502.17 507.25 Td ($0.3 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 551.06 507.25 Td ( in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 495.25 Td (interest expense payments made to the Parent Company by RMAI pursuant to the interest expense sharing arrangement. ) Tj ET Q q 0 0 0 rg BT 531.97 495.25 Td (The ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 483.25 Td (Parent Company also received tax payments of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 240.28 483.25 Td ($36.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 294.17 483.25 Td ( from its subsidiaries in 2012 under our tax-sharing agreement.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 462.25 Td (Note E) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 445.25 Td (In June 2005, the Parent Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.81 445.25 Td ($250 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 293.20 445.25 Td ( of the Senior Notes due 2015. During 2013, the Parent Company ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 433.25 Td (exchanged ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 94.75 433.25 Td ($195.5 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.65 433.25 Td ( of the Senior Notes due 2015 for a new series of Senior Notes due June2017 for the purpose of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 421.25 Td (improving its debt maturity profile. ) Tj ET Q q 0 0 0 rg BT 193.19 421.25 Td (These transactions, which are accounted for as extinguishments of debt, resulted in a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 409.25 Td ($4.0 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 98.39 409.25 Td ( in 2013, primarily as a result of the requirement to record the Senior Notes due 2017 at fair value. During 2014, in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 397.25 Td (accordance with the optional redemption provisions of the notes, the Parent Company redeemed all of the remaining ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 385.25 Td (outstanding principal amount of the Senior Notes due 2015 at a price established in accordance with the indenture governing ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 373.25 Td (these senior notes. ) Tj ET Q q 0 0 0 rg BT 125.41 373.25 Td (The Parent Company paid ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.61 373.25 Td ($57.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.50 373.25 Td ( to holders of the notes at redemption and recorded a loss of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 528.38 373.25 Td ($2.8 ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 361.25 Td (million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.39 361.25 Td ( in 2014. ) Tj ET Q BT /F3 10.00 Tf ET q 0 0 0 rg BT 72.00 344.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.50 344.25 Td (In May 2014, in anticipation of the Clayton acquisition, the Parent Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.39 344.25 Td ($300 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 462.78 344.25 Td ( principal amount of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 332.25 Td (Senior Notes due 2019 and received net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.52 332.25 Td ($293.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 379.41 332.25 Td (. ) Tj ET Q q 0 0 0 rg BT 384.23 332.25 Td (The notes bear interest at a rate of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 522.50 332.25 Td (5.500%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 553.33 332.25 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 320.25 Td (per annum, payable semi-annually on June 1 and December 1 of each year) Tj ET Q q 0 0 0 rg BT 347.03 320.25 Td (, commencing on December 1, 2014. ) Tj ET Q q 0 0 0 rg BT 497.09 320.25 Td (These notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 308.25 Td (mature on June 1, 2019. ) Tj ET Q q 0 0 0 rg BT 147.91 308.25 Td (The Parent Company has the option to redeem these notes, in whole or in part, at any time or from time ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 296.25 Td (to time prior to maturity at a redemption price equal to the greater of: \(i\) ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 340.78 296.25 Td (100%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 364.11 296.25 Td ( of the aggregate principal amount of the notes to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 284.25 Td (be redeemed; and \(ii\) the make-whole amount, which is the present value of the notes discounted at the applicable treasury rate ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 272.25 Td (plus ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 68.67 272.25 Td (50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 78.67 272.25 Td ( basis points, plus, in each case, accrued interest thereon to the redemption date.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 255.25 Td (In May 2014, the Parent Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 231.98 255.25 Td (17.825 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.87 255.25 Td ( shares of common stock at a public of) Tj ET Q q 0 0 0 rg BT 445.10 255.25 Td (fering price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.79 255.25 Td ($14.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 532.29 255.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 243.25 Td (share and received aggregate net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 291.60 243.25 Td ($247.2 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 350.50 243.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 226.25 Td (In March 2013, the Parent Company issued ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 249.58 226.25 Td ($400 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.97 226.25 Td ( principal amount of the Convertible Senior Notes due 2019 and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 214.25 Td (received proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 194.99 214.25 Td ($389.8 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 253.88 214.25 Td (, net of underwriting expenses. ) Tj ET Q q 0 0 0 rg BT 379.50 214.25 Td (The ef) Tj ET Q q 0 0 0 rg BT 405.13 214.25 Td (fective interest rate for the liability ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 202.25 Td (component of this debt is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 153.10 202.25 Td (6.25%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 178.93 202.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 185.25 Td (In March2013, the Parent Company sold ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 241.25 185.25 Td (39.1 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.14 185.25 Td ( shares of common stock at a public of) Tj ET Q q 0 0 0 rg BT 444.36 185.25 Td (fering price of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 504.06 185.25 Td ($8.00) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 526.56 185.25 Td ( per ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 173.25 Td (share and received net proceeds of approximately ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 250.24 173.25 Td ($299.4 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 309.13 173.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 73.50 156.25 Td (At December 31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 164.58 156.25 Td (, the maturities of the principal amount of our long-term debt in future years are as follows:) Tj ET Q 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.25 104.75 m 464.25 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.25 104.75 m 464.25 104.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.25 93.75 m 464.25 93.75 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 384.25 91.75 m 464.25 91.75 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 171.75 131.580078125 m 221.328125 131.580078125 l s q 0 0 0 rg BT 171.75 132.83 Td (\(In thousands\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.75 119.37 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.25 119.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.75 119.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.90 119.37 Td (645,501) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 171.75 107.37 Td (2019) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 193.25 107.37 Td (. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 427.90 107.37 Td (700,000) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 386.75 95.37 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 420.40 95.37 Td (1,345,501) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 413 0 obj <> endobj 414 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 39.60 Td (F-7) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 731.25 Td (Note F) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 714.25 Td (Net investment income increased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 217.79 714.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 237.79 714.25 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 292.49 714.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 312.49 714.25 Td ( primarily due to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 381.92 714.25 Td ($8.9 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 430.81 714.25 Td ( of interest earned on the note ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 702.25 Td (receivable from Radian Clayton Holdings Inc. \(See Note G for additional information\), of) Tj ET Q q 0 0 0 rg BT 409.22 702.25 Td (fset by lower market yields for our ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 690.25 Td (investments during 2014. Net investment income decreased in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 300.83 690.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 320.83 690.25 Td ( compared to ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 375.53 690.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 395.53 690.25 Td (, primarily due to the continuation of the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 678.25 Td (lower interest rate environment, which resulted in lower market yields for our investments, as well as a reduction in total ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 666.25 Td (investment balances.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 649.25 Td (The net losses on other financial instruments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 267.51 649.25 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 287.51 649.25 Td ( primarily reflects losses from the redemption of the Senior Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 637.25 Td (due 2015. ) Tj ET Q q 0 0 0 rg BT 91.26 637.25 Td (The net losses on other financial instruments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 286.77 637.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 306.77 637.25 Td ( primarily reflects losses on the exchange of the Senior Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 625.25 Td (due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 625.25 Td (2017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 625.25 Td (. ) Tj ET Q q 0 0 0 rg BT 91.26 625.25 Td (The net gains on other financial instruments for ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 283.98 625.25 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 303.98 625.25 Td ( primarily reflects gains on the repurchase of the Senior Notes ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 613.25 Td (due ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.44 613.25 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.44 613.25 Td (.) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 596.25 Td (Interest expense reflects the discount amortization on our long-term debt, as well as coupon interest attributable to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 584.25 Td (Convertible Senior Notes due 2019 and the Senior Notes due 2019, which are not allocated to our subsidiaries. ) Tj ET Q q 0 0 0 rg BT 494.78 584.25 Td (The issuance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 572.25 Td (the Senior Notes due 2019 and a full year of interest expense and discount amortization attributable to the Convertible Senior ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 560.25 Td (Notes due 2019 were the primary reasons for the increase in interest expense in 2014. ) Tj ET Q q 0 0 0 rg BT 394.21 560.25 Td (The debt exchange and the issuance of ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 548.25 Td (the Convertible Senior Notes due 2019 were the primary reasons for the increase in interest expense in 2013.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 49.50 527.25 Td (Note G) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 72.00 510.25 Td (Accounts and notes receivable includes a ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 239.16 510.25 Td ($300 million) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 290.55 510.25 Td ( note receivable from Radian Clayton Holdings Inc. ) Tj ET Q q 0 0 0 rg BT 500.03 510.25 Td (This represents ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 498.25 Td (the principal amount related to the Senior Notes due 2019, which funded the acquisition of Clayton. Interest on the note is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 486.25 Td (payable semi-annually on June 1 and December 1, beginning December 1, 2014. ) Tj ET Q q 0 0 0 rg BT 374.50 486.25 Td (The interest payment represents coupon ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.50 474.25 Td (interest plus issuance costs \(amortized on a straight line basis over the term of the note\). ) Tj ET Q q 0 0 0 rg BT 403.94 474.25 Td (The principal is due on June 1, 2019. ) Tj ET Q endstream endobj 415 0 obj <> endobj 416 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 299.05 39.60 Td (F-8) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 265.65 731.25 Td (Radian Gr) Tj ET Q q 0 0 0 rg BT 311.31 731.25 Td (oup Inc.) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 248.35 714.25 Td (Schedule IVReinsurance) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 244.40 702.25 Td (Insurance Pr) Tj ET Q q 0 0 0 rg BT 300.05 702.25 Td (emiums Earned) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 206.30 690.25 Td (Y) Tj ET Q q 0 0 0 rg BT 212.41 690.25 Td (ear) Tj ET Q q 0 0 0 rg BT 226.11 690.25 Td ( Ended December) Tj ET Q q 0 0 0 rg BT 302.03 690.25 Td ( 31, 2014) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 339.53 690.25 Td (, ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 344.53 690.25 Td (2013) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 364.53 690.25 Td ( and ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 385.65 690.25 Td (2012) Tj ET Q BT /F2 10.00 Tf ET 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 619.95 m 226 619.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 619.95 m 310 619.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 619.95 m 394 619.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 619.95 m 478 619.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 482 619.95 m 563 619.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 606.95 m 226 606.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 604.95 m 226 604.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 606.95 m 310 606.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 604.95 m 310 604.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 606.95 m 394 606.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 604.95 m 394 604.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 606.95 m 478 606.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 604.95 m 478 604.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 592.95 m 226 592.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 590.95 m 226 590.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 592.95 m 310 592.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 590.95 m 310 590.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 592.95 m 394 592.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 590.95 m 394 590.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 592.95 m 478 592.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 590.95 m 478 590.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 578.95 m 226 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 146 576.95 m 226 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 578.95 m 310 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 230 576.95 m 310 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 578.95 m 394 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 314 576.95 m 394 576.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 578.95 m 478 578.95 l s 0 0 0 RG /GS0 gs 1.00 w 0 i [] 0 d 0 J 0 j 3 M 398 576.95 m 478 576.95 l s BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 52.5 622.930078125 m 107.1875 622.930078125 l s q 0 0 0 rg BT 52.50 624.18 Td (\($ in thousands\)) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 175.55 632.18 Td (Gr) Tj ET Q q 0 0 0 rg BT 185.18 632.18 Td (oss) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 171.45 624.18 Td (Amount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 254.25 640.18 Td (Ceded to) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 259.35 632.18 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 250.35 624.18 Td (Companies) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 337.90 648.18 Td (Assumed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 345.10 640.18 Td (fr) Tj ET Q q 0 0 0 rg BT 351.17 640.18 Td (om) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 343.35 632.18 Td (Other) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 334.35 624.18 Td (Companies) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 416.70 624.18 Td (NetAmount) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 506.40 656.03 Td (Assumed) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 496.95 648.03 Td (Pr) Tj ET Q q 0 0 0 rg BT 505.24 648.03 Td (emiumsasa) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 503.15 640.03 Td (Per) Tj ET Q q 0 0 0 rg BT 514.99 640.03 Td (centage) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 511.65 632.03 Td (ofNet) Tj ET Q BT /F2 8.00 Tf ET q 0 0 0 rg BT 504.50 624.03 Td (Pr) Tj ET Q q 0 0 0 rg BT 512.79 624.03 Td (emiums) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 610.52 Td (2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 610.52 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.50 610.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.65 610.52 Td (905,502) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.50 610.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.65 610.52 Td (61,017) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.50 610.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 610.52 Td (43) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 610.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 610.52 Td (844,528) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 610.52 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 610.52 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 596.52 Td (2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 596.52 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.50 596.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.65 596.52 Td (848,655) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.50 596.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.65 596.52 Td (67,291) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.50 596.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 380.15 596.52 Td (56) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 596.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 596.52 Td (781,420) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 533.30 596.52 Td (0.01) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 554.15 596.52 Td (%) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.50 582.52 Td (2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 75.00 582.52 Td (. . . . . . . . . . . . . .) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 148.50 582.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 189.65 582.52 Td (743,736) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 232.50 582.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 278.65 582.52 Td (40,398) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 316.50 582.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 371.80 582.57 Td (\(953) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 390.15 582.52 Td (\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 400.50 582.52 Td ($) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 441.65 582.52 Td (702,385) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 529.95 582.52 Td (\(0.14) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 550.80 582.52 Td (\)%) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 417 0 obj <> endobj 418 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (208) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 256.15 731.25 Td (INDEX ) Tj ET Q q 0 0 0 rg BT 290.70 731.25 Td (T) Tj ET Q q 0 0 0 rg BT 297.19 731.25 Td (O EXHIBITS) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 60.3 699.580078125 m 85.64375 699.580078125 l s q 0 0 0 rg BT 60.30 700.83 Td (Exhibit) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 58.85 691.580078125 m 87.219140625 691.580078125 l s q 0 0 0 rg BT 58.85 692.83 Td (Number) Tj ET Q BT /F2 8.00 Tf ET 0 0 0 RG /GS0 gs 0.76 w 0 i [] 0 d 1 J 1 j 3 M 312.3 699.580078125 m 337.64375 699.580078125 l s q 0 0 0 rg BT 312.30 700.83 Td (Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 678.32 Td (2.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 678.32 Td (Unit Purchase Agreement, dated as of May 6, 2014, by and among \(i\) the Registrant, \(ii\) Clayton Holdings LLC) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 668.32 Td (and \(iii\) Cobra Green LLC, a Delaware limited liability company, and Paul T. Bossidy \(incorporated by reference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 658.32 Td (to Exhibit 2 to the Registrants Quarterly Report on Form 10-Q \(file no. 1-11356\) for the period ended March 31,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 648.32 Td (2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 627.32 Td (2.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 627.32 Td (Stock Purchase Agreement dated as of December 22, 2014, between Radian Guaranty Inc. and Assured Guaranty) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 617.32 Td (Corp. \(incorporated by reference to Exhibit 2.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 607.32 Td (dated December 23, 2014, and filed on December 23, 2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 586.32 Td (3.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 586.32 Td (Third Amended and Restated Certificate of Incorporation of the Registrant \(incorporated by reference to Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 576.32 Td (3.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated May11, 2004 and filed on May12,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 566.32 Td (2004\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 545.32 Td (3.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 545.32 Td (Certificate of Amendment to the Amended and Restated Certificate of Incorporation of the Registrant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 535.32 Td (\(incorporated by reference to Exhibit 3.1 to the Registrants Current Report on Form8-K \(file no. 1-11356\) dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 525.32 Td (May 22, 2008 and filed on May29, 2008\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 504.32 Td (3.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 504.32 Td (Second Amendment to the Amended and Restated Certificate of Incorporation of the Registrant \(incorporated by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 494.32 Td (reference to Exhibit 3.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated May 12, 2010) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 484.32 Td (and filed on May 18, 2010\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 463.32 Td (3.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 463.32 Td (Certificate of Amendment of Certificate of Incorporation of the Registrant effective as of May 15, 2013) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 453.32 Td (\(incorporated by reference to Exhibit 3.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 443.32 Td (May 14, 2013 and filed on May 20, 2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 422.32 Td (3.5) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 422.32 Td (Certificate of Change of Registered Agent and Registered Office of the Registrant \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 412.32 Td (Exhibit 3.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated November 10, 2010 and filed) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 402.32 Td (on November 16, 2010\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 381.32 Td (3.6) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 381.32 Td (Certificate of Designation of Series A Junior Participating Preferred Stock \(incorporated by reference to Exhibit) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 371.32 Td (3.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated October 9, 2009 and filed on October) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 361.32 Td (13, 2009\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 340.32 Td (3.7) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 340.32 Td (Amended and Restated By-Laws of the Registrant \(incorporated by reference to Exhibit 3.1 to the Registrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 330.32 Td (Current Report on Form 8-K \(file no. 1-11356\) dated November 12, 2014 and filed on November 18, 2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 309.32 Td (4.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 309.32 Td (Specimen certificate for Common Stock \(incorporated by reference to Exhibit 4.1 to the Registrants Annual) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 299.32 Td (Report on Form10-K \(file no. 1-11356\) for the year ended December 31, 1999\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 278.32 Td (4.2) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 278.32 Td (Amended and Restated Tax Benefit Preservation Plan, dated as of February 12, 2010, between the Registrant and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 268.32 Td (The Bank of New York Mellon \(incorporated by reference to Exhibit 4.1 to the Registrants Current Report on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 258.32 Td (Form 8-K \(file no. 1-11356\) dated February 12, 2010 and filed on February 17, 2010\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 237.32 Td (4.3) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 237.32 Td (First Amendment to the Amended and Restated Tax Benefit Preservation Plan, dated as of May 3, 2010, between) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 227.32 Td (the Registrant and The Bank of New York Mellon \(incorporated by reference to Exhibit 4.1 to the Registrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 217.32 Td (Current Report on Form 8-K \(file no. 1-11356\) dated May 3, 2010 and filed on May 4, 2010\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 66.75 196.32 Td (4.4) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 196.32 Td (Senior Indenture, dated as of June 7, 2005, between the Registrant and Wells Fargo Bank, National Association,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 186.32 Td (as Trustee \(incorporated by reference to Exhibit 4.1 to the Registrants Current Report on Form 8-K \(file no.) 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Voluntary Deferred Compensation Plan for Directors) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 56.40 342.07 Td (*+10.35) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 342.07 Td (Amended and Restated Radian Voluntary Deferred Compensation Plan for Officers) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 321.07 Td (+10.36) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 321.07 Td (Radian Group Inc. 2008 Employee Stock Purchase Plan, as amended and restated on December 11, 2012) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 311.07 Td (\(incorporated by reference to Exhibit 10.42 to the Registrants Annual Report on Form 10-K \(file no. 1-11356\) for) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 301.07 Td (the year ended December 31, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 280.07 Td (+10.37) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 280.07 Td (Radian Group Inc. 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Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 712.07 Td (and Radian Insurance Inc. \(incorporated by reference to Exhibit 10.26 to the Registrants Annual Report on Form) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 702.07 Td (10-K \(file no. 1-11356\) for the year ended December31, 2002\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.75 681.07 Td (10.44) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 681.07 Td (Form of Expense Allocation and Services Agreement between the Registrant and each of Radian Guaranty Inc.,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 671.07 Td (Radian Insurance Inc., Radian Asset Assurance Inc. and Amerin Guaranty Corporation \(incorporated by reference) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 661.07 Td (to Exhibit 10.2 to the Registrants Quarterly Report on Form 10-Q \(file no. 1-11356\) for the period ended June 30,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 651.07 Td (2005\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.75 630.07 Td (10.45) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 630.07 Td (Form Amendment to Expense Allocation and Services Agreement between the Registrant and each of Radian) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 620.07 Td (Guaranty Inc. Radian Insurance Inc., Radian Asset Assurance Inc. and Amerin Guaranty Corporation) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 610.07 Td (\(incorporated by reference to Exhibit 10.3 to the Registrants Quarterly Report on form 10-Q \(file no. 1-11356\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 600.07 Td (for the period ended March 31, 2009\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.75 579.07 Td (10.46) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 579.07 Td (Radian Group Inc. Allocation of Consolidated Tax Liability Agreement between the Registrant and each of its) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 569.07 Td (subsidiaries, dated January1, 2002, including Addendums 1 through 6 dated between January1, 2002 and) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 559.07 Td (July10, 2008 \(incorporated by reference to Exhibit 10.49 to the Registrants Annual Report on Form 10-K \(file) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 549.07 Td (no. 1-11356\) for the year ended December31, 2008\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.75 528.07 Td (10.47) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 528.07 Td (Capped Call Confirmation \(Reference No. 99AMQGZY8\) dated as of November 8, 2010 \(incorporated by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 518.07 Td (reference to Exhibit 10.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated November 8,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 508.07 Td (2010 and filed on November 10, 2010\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.75 487.07 Td (10.48) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 487.07 Td (Capped Call Confirmation \(Reference No. 99AMQM627\) dated as of November 10, 2010 \(incorporated by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 477.07 Td (reference to Exhibit 10.2 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated November 8,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 467.07 Td (2010 and filed on November 10, 2010\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.75 446.07 Td (10.49) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 446.07 Td (Securities Purchase Agreement, dated as of May 3, 2010, by and between Radian Guaranty Inc. and Sherman) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 436.07 Td (Financial Group LLC \(incorporated by reference to Exhibit 10.1 to the Registrants Current Report on Form 8-K) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 426.07 Td (\(file no. 1-11356\) dated April 30, 2010 and filed on May 4, 2010\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 405.07 Td (+10.50) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 405.07 Td (Amendment to Incentive Awards under 2008 Executive Long-Term Incentive Cash Plan, dated April 5, 2011) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 395.07 Td (\(incorporated by reference to Exhibit 99.2 to the Registrants Current Report on Form 8-K \(file no. 1-11356\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 385.07 Td (dated April 5, 2011 and filed on April 7, 2011\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 364.07 Td (+10.51) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 364.07 Td (Form of 2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 354.07 Td (\(incorporated by reference to Exhibit 10.5 to the Registrants Quarterly Report on Form 10-Q \(file no. 1-11356\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 344.07 Td (for the period ended June 30, 2011\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 323.07 Td (+10.52) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 323.07 Td (Form of 2011 Stock Option Agreement under the 2008 Equity Compensation Plan \(incorporated by reference to) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 313.07 Td (Exhibit 10.6 to the Registrants Quarterly Report on Form 10-Q \(file no. 1-11356\) for the period ended June 30,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 303.07 Td (2011\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 282.07 Td (+10.53) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 282.07 Td (2011 Performance Based Restricted Stock Unit Agreement under the 2008 Equity Compensation Plan, dated June) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 272.07 Td (9, 2011, between the Registrant and Sanford A. 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Robert Quint \(incorporated by reference to Exhibit 10.3 to the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 483.07 Td (Registrants Quarterly Report on Form 10-Q \(file no. 1-11356\) for the period ended June 30, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 462.07 Td (+10.64) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 462.07 Td (2012 Stock Option Agreement under the 2008 Equity Compensation Plan, dated as of June 6, 2012, between the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 452.07 Td (Registrant and Sanford A. Ibrahim \(incorporated by reference to Exhibit 10.2 to the Registrants Quarterly Report) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 442.07 Td (on Form 10-Q \(file no. 1-11356\) for the period ended June 30, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 421.07 Td (+10.65) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 421.07 Td (2012 Stock Option Agreement under the 2008 Equity Compensation Plan, dated as of June 6, 2012, between the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 411.07 Td (Registrant and C. Robert Quint \(incorporated by reference to Exhibit 10.4 to the Registrants Quarterly Report on) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 401.07 Td (Form 10-Q \(file no. 1-11356\) for the period ended June 30, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 380.07 Td (+10.66) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 380.07 Td (Waiver Letter, dated May 30, 2012, under Employment Agreement between the Registrant and S.A. Ibrahim,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 370.07 Td (dated April 5, 2011 \(incorporated by reference to Exhibit 10.7 to the Registrants Quarterly Report on Form 10-Q) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 360.07 Td (\(file no. 1-11356\) for the period ended June 30, 2012\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 339.07 Td (+10.67) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 339.07 Td (Letter Agreement, dated May 16, 2013, between the Registrant and S.A. 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Ibrahim \(incorporated by reference to Exhibit 10.1 to the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 278.07 Td (Registrants Quarterly Report on Form 10-Q \(file no. 1-11356\) for the period ended June 30, 2013\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 257.07 Td (+10.69) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 257.07 Td (2013 Stock Option Agreement under the 2008 Equity Compensation Plan, dated as of May 14, 2013, between the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 247.07 Td (Registrant and Sanford A. 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Franklin Hall \(including) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 323.07 Td (Attachment A - Severance Agreement and Attachment B - Restrictive Covenant Agreement\) \(incorporated by) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 313.07 Td (reference to Exhibit 10.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\) dated December 10,) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 303.07 Td (2014, and filed on December 15, 2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 282.07 Td (+10.84) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 282.07 Td (Consulting Services Agreement, dated December 16, 2014, between the Registrant and C. Robert Quint) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 272.07 Td (\(incorporated by reference to Exhibit 10.1 to the Registrants Current Report on Form 8-K \(file no. 1-11356\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 262.07 Td (dated December 16, 2014, and filed on December 18, 2014\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 58.90 241.07 Td (+10.85) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 241.07 Td (Radian Group Inc. 2014 Equity Compensation Plan \(incorporated by reference to Appendix A to the Registrants) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 231.07 Td (Definitive Proxy Statement on Schedule 14A \(file no. 1-11356\) filed on April 7, 2014 for the 2014 Annual) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 221.07 Td (Meeting of Stockholders\)) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 200.07 Td (*12) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 200.07 Td (Ratio of Earnings to Fixed Charges and to Combined Fixed Charges and Preferred Stock Dividends) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 179.07 Td (*21) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 179.07 Td (Subsidiaries of the Registrant) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 61.75 158.07 Td (*23.1) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 158.07 Td (Consent of PricewaterhouseCoopers LLP) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 65.50 137.07 Td (*31) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 137.07 Td (Rule 13a-14\(a\) Certifications) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.00 116.07 Td (**32) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 116.07 Td (Section 1350 Certifications) Tj ET Q endstream endobj 431 0 obj <> endobj 432 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 298.50 39.60 Td (215) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 63.00 727.07 Td (*101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 727.07 Td (The following financial information from Radian Group Inc.s Annual Report on Form 10-K for the year ended) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 717.07 Td (December31, 2014, is formatted in XBRL \(eXtensible Business Reporting Language\): \(i\) Consolidated Balance) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 707.07 Td (Sheets as of December31, 2014 and December31, 2013, \(ii\) Consolidated Statements of Operations for the years) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 697.07 Td (ended December31, 2014, 2013 and 2012, \(iii\) Consolidated Statements of Comprehensive Income \(Loss\) for the) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 687.07 Td (years ended December31, 2014, 2013 and 2012, \(iv\) Consolidated Statements of Changes in Common) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 677.07 Td (Stockholders Equity for the years ended December31, 2014, 2013 and 2012, \(v\) Consolidated Statements of) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 667.07 Td (Cash Flows for the years ended December31, 2014, 2013 and 2012, and \(vi\) the Notes to Consolidated Financial) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 96.00 657.07 Td (Statements.) 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Tj ET Q endstream endobj 433 0 obj <> endobj 434 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 510.30 742.25 Td (Exhibit 23.1 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 131.85 721.25 Td (CONSENT) Tj ET Q q 0 0 0 rg BT 180.01 721.25 Td ( OF) Tj ET Q q 0 0 0 rg BT 196.03 721.25 Td ( INDEPENDENT) Tj ET Q q 0 0 0 rg BT 271.14 721.25 Td ( REGISTERED PUBLIC ) Tj ET Q q 0 0 0 rg BT 381.44 721.25 Td (ACCOUNTING FIRM ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 700.25 Td (W) Tj ET Q q 0 0 0 rg BT 82.64 700.25 Td (e hereby consent to the incorporation by reference in the Registration Statements on Form S-8 \(Nos.333-98106; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 688.25 Td (333-120519; 333-156279; 333-154275; 333-152624; 333-160266; 333-167009; 333-174428; and 333-195934\) and the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 676.25 Td (Registration Statement on Form S-3 \(No. 333-195738\) of Radian Group Inc. of our report dated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 436.31 676.25 Td (March2, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 494.91 676.25 Td ( relating to the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 664.25 Td (financial statements, financial statement schedules and the ef) Tj ET Q q 0 0 0 rg BT 293.61 664.25 Td (fectiveness of internal control over financial reporting, which ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 652.25 Td (appears in this Form 10-K. ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 626.75 Td (/s/ PricewaterhouseCoopers LLP) Tj ET Q q 0 0 0 rg BT 181.27 626.75 Td ( ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 614.75 Td (Philadelphia, Pennsylvania ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 602.75 Td (March2, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 108.60 602.75 Td ( ) Tj ET Q endstream endobj 435 0 obj <> endobj 436 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.85 735.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 549.46 735.25 Td ( 31 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 262.90 714.25 Td (CER) Tj ET Q q 0 0 0 rg BT 283.66 714.25 Td (TIFICA) Tj ET Q q 0 0 0 rg BT 317.92 714.25 Td (TIONS ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 693.25 Td (I, Sanford ) Tj ET Q q 0 0 0 rg BT 91.94 693.25 Td (A. Ibrahim, certify that: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 676.75 Td (1. ) Tj ET Q q 0 0 0 rg BT 74.00 676.75 Td (I have reviewed this ) Tj ET Q q 0 0 0 rg BT 156.75 676.75 Td (Annual Report on Form 10-K of Radian Group Inc.; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 660.25 Td (2. ) Tj ET Q q 0 0 0 rg BT 74.00 660.25 Td (Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 648.25 Td (fact necessary to make the statements made, in light of the circumstances under which such statements were made, not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 636.25 Td (misleading with respect to the period covered by this report; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 619.75 Td (3. ) Tj ET Q q 0 0 0 rg BT 74.00 619.75 Td (Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 607.75 Td (all material respects the financial condition, results of operations and cash flows of the registrant as of, and for) Tj ET Q q 0 0 0 rg BT 515.12 607.75 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 595.75 Td (periods presented in this report; 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and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 259.75 Td (\(b\) ) Tj ET Q q 0 0 0 rg BT 99.61 259.75 Td (Any fraud, whether or not material, that involves management or other employees who have a significant role in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 247.75 Td (the registrant's internal control over financial reporting. ) Tj ET Q BT /F1 18.00 Tf ET q 0 0 0 rg BT 50.00 226.15 Td () Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 161.64999999999998 m 561.5 161.64999999999998 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 166.22 Td (Date: March 2, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 398.35 166.22 Td (/s/S) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 423.36 166.22 Td (ANFORD) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 452.14 166.22 Td ( ) Tj ET Q q 0 0 0 rg BT 454.09 166.22 Td (A. I) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 469.64 166.22 Td (BRAHIM) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 147.03 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 418.50 154.41 Td (Sanford ) Tj ET Q q 0 0 0 rg BT 443.98 154.41 Td (A. Ibrahim) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.85 147.41 Td (Chief Executive Officer) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 437 0 obj <> endobj 438 0 obj <> stream BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 711.10 Td (I, J. Franklin Hall, certify that: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 694.60 Td (1. ) Tj ET Q q 0 0 0 rg BT 74.00 694.60 Td (I have reviewed this ) Tj ET Q q 0 0 0 rg BT 156.75 694.60 Td (Annual Report on Form 10-K of Radian Group Inc.; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 678.10 Td (2. ) Tj ET Q q 0 0 0 rg BT 74.00 678.10 Td (Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 666.10 Td (fact necessary to make the statements made, in light of the circumstances under which such statements were made, not ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 654.10 Td (misleading with respect to the period covered by this report; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 637.60 Td (3. ) Tj ET Q q 0 0 0 rg BT 74.00 637.60 Td (Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 625.60 Td (all material respects the financial condition, results of operations and cash flows of the registrant as of, and for) Tj ET Q q 0 0 0 rg BT 515.12 625.60 Td (, the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 613.60 Td (periods presented in this report; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 597.10 Td (4. ) Tj ET Q q 0 0 0 rg BT 74.00 597.10 Td (The registrant) Tj ET Q q 0 0 0 rg BT 132.59 597.10 Td (s other certifying of) Tj ET Q q 0 0 0 rg BT 211.55 597.10 Td (ficer and I are responsible for establishing and maintaining disclosure controls and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 585.10 Td (procedures \(as defined in Exchange ) Tj ET Q q 0 0 0 rg BT 218.66 585.10 Td (Act Rules 13a-15\(e\) and 15d-15\(e\)\) and internal control over financial reporting \(as ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 573.10 Td (defined in Exchange ) Tj ET Q q 0 0 0 rg BT 158.14 573.10 Td (Act Rules 13a-15\(f\) and 15d-15\(f\)\) for the registrant and have: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 556.60 Td (\(a\) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 544.60 Td (designed under our supervision, to ensure that material information relating to the registrant, including its consolidated ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 532.60 Td (subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 520.60 Td (being prepared; 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and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 411.10 Td (\(d\) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 399.10 Td (the registrant's most recent fiscal quarter \(the registrant's fourth fiscal quarter in the case of an annual report\) that has ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 387.10 Td (materially af) Tj ET Q q 0 0 0 rg BT 136.63 387.10 Td (fected, or is reasonably likely to materially af) Tj ET Q q 0 0 0 rg BT 318.04 387.10 Td (fect, the registrant's internal control over financial reporting; ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 375.10 Td (and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 49.00 358.60 Td (5. ) Tj ET Q q 0 0 0 rg BT 74.00 358.60 Td (The registrant) Tj ET Q q 0 0 0 rg BT 132.59 358.60 Td (s other certifying of) Tj ET Q q 0 0 0 rg BT 211.55 358.60 Td (ficer and I have disclosed, based on our most recent evaluation of internal control over ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 346.60 Td (financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors \(or persons ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 74.00 334.60 Td (performing the equivalent functions\): ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 318.10 Td (\(a\) ) Tj ET Q q 0 0 0 rg BT 99.05 318.10 Td (All significant deficiencies and material weaknesses in the design or operation of internal control over financial ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 306.10 Td (reporting which are reasonably likely to adversely af) Tj ET Q q 0 0 0 rg BT 296.57 306.10 Td (fect the registrant's ability to record, process, summarize and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 294.10 Td (report financial information; and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 277.60 Td (\(b\) ) Tj ET Q q 0 0 0 rg BT 99.61 277.60 Td (Any fraud, whether or not material, that involves management or other employees who have a significant role in ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 86.00 265.60 Td (the registrant's internal control over financial reporting. ) Tj ET Q BT /F1 18.00 Tf ET q 0 0 0 rg BT 86.00 244.00 Td () Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 179.5 m 561.5 179.5 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 184.07 Td (Date: March 2, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 407.00 184.07 Td (/s/J. Franklin Hall) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 164.88 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 423.95 172.26 Td (J. Franklin Hall) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 413.45 165.26 Td (Chief Financial Officer) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 439 0 obj <> endobj 440 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 506.85 735.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 549.46 735.25 Td ( 32 ) Tj ET Q BT /F2 10.00 Tf ET q 0 0 0 rg BT 248.75 714.25 Td (Section 1350 Certifications ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 693.25 Td (I, Sanford ) Tj ET Q q 0 0 0 rg BT 91.94 693.25 Td (A. Ibrahim, Chief Executive Of) Tj ET Q q 0 0 0 rg BT 218.38 693.25 Td (ficer of Radian Group Inc., and I, J. Franklin Hall, Chief Financial Of) Tj ET Q q 0 0 0 rg BT 496.74 693.25 Td (ficer of Radian ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 681.25 Td (Group Inc., certify) Tj ET Q q 0 0 0 rg BT 123.76 681.25 Td (, pursuant to Section906 of the Sarbanes-Oxley ) Tj ET Q q 0 0 0 rg BT 317.34 681.25 Td (Act of 2002, that: ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 660.25 Td (\(1\) the ) Tj ET Q q 0 0 0 rg BT 78.33 660.25 Td (Annual Report on Form 10-K for the year ended ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 274.66 660.25 Td (December31, 2014) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 353.25 660.25 Td ( \(the Periodic Report\) fully complies with the ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 648.25 Td (requirements of Section13\(a\) or 15\(d\) of the Securities Exchange ) Tj ET Q q 0 0 0 rg BT 315.47 648.25 Td (Act of 1934 \(15 U.S.C. 78m or 78o\(d\)\); and ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 627.25 Td (\(2\) ) Tj ET Q q 0 0 0 rg BT 63.98 627.25 Td (The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results ) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 50.00 615.25 Td (of operations of Radian Group Inc. ) Tj ET Q BT /F1 9.00 Tf ET q 0 0 0 rg BT 50.00 604.45 Td () Tj ET Q 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 538.95 m 561.5 538.95 l s 0 0 0 RG /GS0 gs 2.00 w 0 i [] 0 d 0 J 0 j 3 M 335.5 495.95 m 561.5 495.95 l s BT /F1 10.00 Tf ET q 0 0 0 rg BT 52.00 543.62 Td (Date: March 2, 2015) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 411.45 544.52 Td (/s/S. ) Tj ET Q q 0 0 0 rg BT 440.91 544.52 Td (A. I) Tj ET Q BT /F1 7.00 Tf ET q 0 0 0 rg BT 456.46 544.52 Td (BRAHIM) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 525.33 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 418.50 531.71 Td (Sanford ) Tj ET Q q 0 0 0 rg BT 443.98 531.71 Td (A. Ibrahim) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 412.85 524.71 Td (Chief Executive Officer) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 499.33 Td () Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 408.25 500.52 Td (/s/J. Franklin Hall) Tj ET Q BT /F1 4.00 Tf ET q 0 0 0 rg BT 52.00 481.33 Td () Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 423.95 488.71 Td (J. Franklin Hall) Tj ET Q BT /F2 7.00 Tf ET q 0 0 0 rg BT 413.45 481.71 Td (Chief Financial Officer) Tj ET Q BT /F1 10.00 Tf ET endstream endobj 441 0 obj <> endobj 442 0 obj <> stream BT /F2 10.00 Tf ET q 0 0 0 rg BT 502.85 742.25 Td (EXHIBIT) Tj ET Q q 0 0 0 rg BT 545.46 742.25 Td ( 101) Tj ET Q BT /F1 10.00 Tf ET q 0 0 0 rg BT 104.00 676.25 Td (The following financial information from Radian Group Inc.) 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