Triad Guaranty : 2022 TGAC Annual Statement

*10217202220100100*

PROPERTY AND CASUALTY COMPANIES-ASSOCIATION EDITION

ANNUAL STATEMENT

For the Year Ended December 31, 2022

OF THE CONDITION AND AFFAIRS OF THE

TRIAD GUARANTY ASSURANCE CORPORATION, IN REHABILITATION

NAIC Group Code

00421

,

00421

NAIC Company Code

10217

Employer's ID Number

56-1905825

(Current Period)

(Prior Period)

Organized under the Laws of

Illinois

, State of Domicile or Port of Entry

Illinois

Country of Domicile

United States

Incorporated/Organized

12/23/1994

Commenced Business

02/15/1995

Statutory Home Office

222 Merchandise Mart Plaza

,

Chicago, IL, US 60654

(Street and Number)

(City or Town, State, Country and Zip Code)

Main Administrative Office

101 South Stratford Road

Winston-Salem, NC, US 27104

336-723-1282

(Street and Number)

(City or Town, State, Country and Zip Code)

(Area Code)

(Telephone Number)

Mail Address

Post Office Box 2300

,

Winston-Salem, NC, US 27102

(Street and Number or P.O. Box)

(City or Town, State, Country and Zip Code)

Primary Location of Books and Records

101 South Stratford Road

Winston-Salem, NC, US 27104

336-723-1282-1155

(Street and Number)

(City or Town, State, Country and Zip Code)

(Area Code) (Telephone Number)

Internet Web Site Address

www.triadguaranty.com

Statutory Statement Contact

Randall Keith Shields

336-723-1282-1155

[e-mail]

(Name)

(Area Code) (Telephone Number) (Extension)

336-761-5174

(E-Mail Address)

(Fax Number)

OFFICERS

Name

Title

Name

Title

,

,

,

,

,

OTHER OFFICERS

,

DIRECTORS OR TRUSTEES

State of

ss

County of

The officers of this reporting entity, being duly sworn, each depose and say that they are the described officers of said reporting entity, and that on the reporting period stated above, all of the herein described assets were the absolute property of the said reporting entity, free and clear from any liens or claims thereon, except as herein stated, and that this statement, together with related exhibits, schedules and explanations therein contained, annexed or referred to, is a full and true statement of all the assets and liabilities and of the condition and affairs of the said reporting entity as of the reporting period stated above, and of its income and deductions therefrom for the period ended, and have been completed in accordance with the NAIC Annual Statement Instructions and Accounting Practices and Procedures manual except to the extent that: (1) state law may differ; or, (2) that state rules or regulations require differences in reporting not related to accounting practices and procedures, according to the best of their information, knowledge and belief, respectively. Furthermore, the scope of this attestation by the described officers also includes the related corresponding electronic filing with the NAIC, when required, that is an exact copy (except for formatting differences due to electronic filing) of the enclosed statement. The electronic filing may be requested by various regulators in lieu of or in addition to the enclosed statement.

				a. Is this an original filing?	Yes [ X ] No [ ]
Subscribed and sworn to before me		b. If no:
this		day of	,	1.	State the amendment number
				2.	Date filed
				3. Number of pages attached

ANNUAL STATEMENT FOR THE YEAR 2022 OF THE TRIAD GUARANTY ASSURANCE CORPORATION, IN

REHABILITATION

ASSETS

						Current Year		Prior Year
					1	2	3	4
							Net Admitted Assets	Net Admitted
					Assets	Nonadmitted Assets	(Cols. 1 - 2)	Assets
1.	Bonds (Schedule D)			11,452,480		11,452,480	11,068,022
2.	Stocks (Schedule D):
	2.1 Preferred stocks
	2.2 Common stocks
3.	Mortgage loans on real estate (Schedule B):
	3.1 First liens
	3.2 Other than first liens
4.	Real estate (Schedule A):
	4.1 Properties occupied by the company (less
	$	encumbrances)
	4.2 Properties held for the production of income
	(less $	encumbrances)
	4.3 Properties held for sale (less
	$	encumbrances)
5.	Cash ($	76,388 , Schedule E-Part 1), cash equivalents
	($	855,287 , Schedule E-Part 2) and short-term
	investments ($		, Schedule DA)	931,674		931,674	1,139,856
6.	Contract loans (including $	premium notes)
7.	Derivatives (Schedule DB)
8.	Other invested assets (Schedule BA)
9.	Receivables for securities
10.	Securities lending reinvested collateral assets (Schedule DL)
11.	Aggregate write-ins for invested assets
12.	Subtotals, cash and invested assets (Lines 1 to 11)	12,384,154		12,384,154	12,207,878
13.	Title plants less $		charged off (for Title insurers
	only)
14.	Investment income due and accrued	83,825		83,825	76,886
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of
	collection			1,730		1,730	(7,989)
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including	$	earned
	but unbilled premiums)
	15.3 Accrued retrospective premiums ($	) and
	contracts subject to redetermination	($	)

1. Reinsurance:
2. 1. Amounts recoverable from reinsurers
   2. Funds held by or deposited with reinsured companies
   3. Other amounts receivable under reinsurance contracts
3. Amounts receivable relating to uninsured plans

1. Current federal and foreign income tax recoverable and interest thereon
2. Net deferred tax asset

1. Guaranty funds receivable or on deposit
2. Electronic data processing equipment and software
3. Furniture and equipment, including health care delivery assets

($

)

22. Net adjustment in assets and liabilities due to foreign exchange rates

23.	Receivables from parent, subsidiaries and affiliates	1,527	1,527	659
24.	Health care ($	) and other amounts receivable

1. Aggregate write-ins for other-than-invested assets
2. Total assets excluding Separate Accounts, Segregated Accounts and

	Protected Cell Accounts (Lines 12 to 25)	12,471,236	12,471,236	12,277,434
27.	From Separate Accounts, Segregated Accounts and Protected
	Cell Accounts
28.	Total (Lines 26 and 27)	12,471,236	12,471,236	12,277,434

DETAILS OF WRITE-INS

1101.

1102.

1103.

1198. Summary of remaining write-ins for Line 11 from overflow page

1199. Totals (Lines 1101 through 1103 plus 1198) (Line 11 above)

2501.

2502.

2503.

2598. Summary of remaining write-ins for Line 25 from overflow page

2599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)

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ANNUAL STATEMENT FOR THE YEAR 2022 OF THE TRIAD GUARANTY ASSURANCE CORPORATION, IN

REHABILITATION

LIABILITIES, SURPLUS AND OTHER FUNDS

		1	2
		Current Year	Prior Year
1.	Losses (Part 2A, Line 35, Column 8)	416,732	633,451
2.	Reinsurance payable on paid losses and loss adjustment expenses (Schedule F, Part 1, Column 6)	2,360	(180)
3.	Loss adjustment expenses (Part 2A, Line 35, Column 9)
4.	Commissions payable, contingent commissions and other similar charges	519	(2,398)

1. Other expenses (excluding taxes, licenses and fees)
2. Taxes, licenses and fees (excluding federal and foreign income taxes)

7.1	Current federal and foreign income taxes (including $	on realized capital gains (losses))	32,446	32,446
7.2	Net deferred tax liability
8.	Borrowed money $	and interest thereon $
9.	Unearned premiums (Part 1A, Line 38, Column 5) (after deducting unearned premiums for ceded reinsurance of
	$	and including warranty reserves of $	and accrued accident and
	health experience rating refunds including $	for medical loss ratio rebate per the Public Health
	Service Act)			1,315	1,466

1. Advance premium
2. Dividends declared and unpaid:
3. 1. Stockholders
   2. Policyholders
4. Ceded reinsurance premiums payable (net of ceding commissions)
5. Funds held by company under reinsurance treaties (Schedule F, Part 3, Column 20)
6. Amounts withheld or retained by company for account of others
7. Remittances and items not allocated

16. Provision for reinsurance (including $

certified) (Schedule F, Part 3, Column 78)

1. Net adjustments in assets and liabilities due to foreign exchange rates
2. Drafts outstanding
3. Payable to parent, subsidiaries and affiliates
4. Derivatives
5. Payable for securities
6. Payable for securities lending
7. Liability for amounts held under uninsured plans

24.	Capital notes $	and interest thereon $
25.	Aggregate write-ins for liabilities
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)	453,372	664,785
27.	Protected cell liabilities
28.	Total liabilities (Lines 26 and 27)		453,372	664,785
29.	Aggregate write-ins for special surplus funds
30.	Common capital stock		2,500,000	2,500,000

1. Preferred capital stock
2. Aggregate write-ins for other-than-special surplus funds
3. Surplus notes

34.	Gross paid in and contributed surplus		2,535,982	2,535,982
35.	Unassigned funds (surplus)			6,981,882	6,576,667
36.	Less treasury stock, at cost:
	36.1	shares common (value included in Line 30	$	)
	36.2	shares preferred (value included in Line 31	$	)
37.	Surplus as regards policyholders (Lines 29 to 35, less 36) (Page 4, Line 39)			12,017,864	11,612,649
38.	Totals (Page 2, Line 28, Col. 3)			12,471,236	12,277,434

DETAILS OF WRITE-INS

2501.

2502.

2503.

2598. Summary of remaining write-ins for Line 25 from overflow page

2599. Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)

2901.

2902.

2903.

2998. Summary of remaining write-ins for Line 29 from overflow page

2999. Totals (Lines 2901 through 2903 plus 2998) (Line 29 above)

3201.

3202.

3203.

3298. Summary of remaining write-ins for Line 32 from overflow page

3299. Totals (Lines 3201 through 3203 plus 3298) (Line 32 above)

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ANNUAL STATEMENT FOR THE YEAR 2022 OF THE TRIAD GUARANTY ASSURANCE CORPORATION, IN

REHABILITATION

STATEMENT OF INCOME

				1	2
				Current Year	Prior Year
1.		UNDERWRITING INCOME
Premiums earned (Part 1, Line 35, Column 4)		94,697	111,878
	DEDUCTIONS:
2.	Losses incurred (Part 2, Line 35, Column 7)		(154,869)	(197,679)
3.	Loss adjustment expenses incurred (Part 3, Line 25, Column 1)
4.	Other underwriting expenses incurred (Part 3, Line 25, Column 2)		54,321	57,573
5.	Aggregate write-ins for underwriting deductions
6.	Total underwriting deductions (Lines 2 through 5)		(100,548)	(140,106)
7.	Net income of protected cells
8.	Net underwriting gain (loss) (Line 1 minus Line 6 plus Line 7)		195,245	251,984
		INVESTMENT INCOME
9.	Net investment income earned (Exhibit of Net Investment Income, Line 17)		235,934	268,479
10.	Net realized capital gains (losses) less capital gains tax of $	(Exhibit of Capital Gains (Losses))	(25,964)	24,639
11.	Net investment gain (loss) (Lines 9 + 10)		209,970	293,118
		OTHER INCOME
12.	Net gain (loss) from agents' or premium balances charged off (amount recovered $	amount
	charged off $	)

1. Finance and service charges not included in premiums
2. Aggregate write-ins for miscellaneous income
3. Total other income (Lines 12 through 14)
4. Net income before dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes

(Lines 8 + 11 + 15)

405,215

545,102

1. Dividends to policyholders
2. Net income, after dividends to policyholders, after capital gains tax and before all other federal and foreign income taxes

	(Line 16 minus Line 17)	405,215	545,102
19.	Federal and foreign income taxes incurred
20.	Net income (Line 18 minus Line 19) (to Line 22)	405,215	545,102
	CAPITAL AND SURPLUS ACCOUNT
21.	Surplus as regards policyholders, December 31 prior year (Page 4, Line 39, Column 2)	11,612,650	11,067,548
22.	Net income (from Line 20)	405,215	545,102

1. Net transfers (to) from Protected Cell accounts
2. Change in net unrealized capital gains or (losses) less capital gains tax of $
3. Change in net unrealized foreign exchange capital gain (loss)
4. Change in net deferred income tax
5. Change in nonadmitted assets (Exhibit of Nonadmitted Assets, Line 28, Col. 3)
6. Change in provision for reinsurance (Page 3, Line 16, Column 2 minus Column 1)
7. Change in surplus notes
8. Surplus (contributed to) withdrawn from protected cells
9. Cumulative effect of changes in accounting principles
10. Capital changes:
11. 1. Paid in
    2. Transferred from surplus (Stock Dividend)
    3. Transferred to surplus
12. Surplus adjustments:
13. 1. Paid in
    2. Transferred to capital (Stock Dividend)
    3. Transferred from capital
14. Net remittances from or (to) Home Office
15. Dividends to stockholders
16. Change in treasury stock (Page 3, Lines 36.1 and 36.2, Column 2 minus Column 1)
17. Aggregate write-ins for gains and losses in surplus

38.	Change in surplus as regards policyholders for the year (Lines 22 through 37)	405,215	545,102
39.	Surplus as regards policyholders, December 31 current year (Line 21 plus Line 38) (Page 3, Line 37)	12,017,865	11,612,650

DETAILS OF WRITE-INS0501.

0502.

0503.

0598. Summary of remaining write-ins for Line 5 from overflow page

0599. Totals (Lines 0501 through 0503 plus 0598) (Line 5 above)

1401.

1402.

1403.

1498. Summary of remaining write-ins for Line 14 from overflow page

1499. Totals (Lines 1401 through 1403 plus 1498) (Line 14 above)

3701. Increase in contingency reserve

3702. Decrease in contingency reserve

3703.

3798. Summary of remaining write-ins for Line 37 from overflow page

3799. Totals (Lines 3701 through 3703 plus 3798) (Line 37 above)

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ANNUAL STATEMENT FOR THE YEAR 2022 OF THE TRIAD GUARANTY ASSURANCE CORPORATION, IN

REHABILITATION

CASH FLOW

				1	2
				Current Year	Prior Year
1.		Cash from Operations
Premiums collected net of reinsurance		84,827	130,920
2.	Net investment income		315,774	348,353
3.	Miscellaneous income
4.	Total (Lines 1 through 3)		400,601	479,273
5.	Benefit and loss related payments		59,310	95,907
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts
7.	Commissions, expenses paid and aggregate write-ins for deductions		51,404	63,382
8.	Dividends paid to policyholders
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital gains (losses)
10.	Total (Lines 5 through 9)		110,714	159,289
11.	Net cash from operations (Line 4 minus Line 10)		289,887	319,984
12.		Cash from Investments
Proceeds from investments sold, matured or repaid:
	12.1	Bonds		2,880,183	4,792,669
	12.2	Stocks
	12.3	Mortgage loans
	12.4	Real estate
	12.5	Other invested assets
	12.6	Net gains or (losses) on cash, cash equivalents and short-term investments
	12.7	Miscellaneous proceeds
13.	12.8	Total investment proceeds (Lines 12.1 to 12.7)		2,880,183	4,792,669
Cost of investments acquired (long-term only):
	13.1	Bonds		3,377,384	4,332,173
	13.2	Stocks
	13.3	Mortgage loans
	13.4	Real estate
	13.5	Other invested assets
	13.6	Miscellaneous applications
14.	13.7	Total investments acquired (Lines 13.1 to 13.6)		3,377,384	4,332,173
Net increase (decrease) in contract loans and premium notes
15.	Net cash from investments (Line 12.8 minus Line 13.7 minus Line 14)		(497,201)	460,496
16.		Cash from Financing and Miscellaneous Sources
Cash provided (applied):
	16.1	Surplus notes, capital notes
	16.2	Capital and paid in surplus, less treasury stock
	16.3	Borrowed funds
	16.4	Net deposits on deposit-type contracts and other insurance liabilities
	16.5	Dividends to stockholders
17.	16.6	Other cash provided (applied)		(868)	(659)
Net cash from financing and miscellaneous sources (Lines 16.1 to 16.4 minus Line 16.5 plus Line 16.6)	(868)	(659)
18.		RECONCILIATION OF CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
Net change in cash, cash equivalents and short-term investments (Line 11, plus Lines 15 and 17)	(208,182)	779,821
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year		1,139,856	360,035
	19.2	End of year (Line 18 plus Line 19.1)		931,674	1,139,856

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