Triad Guaranty : TGIC Third Quarter 2022 Quarterly Statement

*24350202220100103*

PROPERTY AND CASUALTY COMPANIES-ASSOCIATION EDITION

QUARTERLY STATEMENT

AS OF SEPTEMBER 30, 2022

OF THE CONDITION AND AFFAIRS OF THE

TRIAD GUARANTY INSURANCE CORPORATION, IN REHABILITATION

NAIC Group Code	00421	,	00421	NAIC Company Code	24350	Employer's ID Number	56-1570971
	(Current Period)		(Prior Period)

Organized under the Laws of Country of Domicile Incorporated/Organized Statutory Home Office

	Illinois	, State of Domicile or Port of Entry	Illinois
		United States
	07/30/1987	Commenced Business		08/07/1987
	222 Merchandise Mart Plaza, Suite 960	,		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 27102-2300

(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

(Name)

(Area Code) (Telephone Number) (Extension)

[e-mail]

336-761-5174-1155

(E-Mail Address)

(Fax Number)

OFFICERS

Name		Title		Name		Title
	,				,
	,				,

	OTHER OFFICERS
,				,

DIRECTORS OR TRUSTEES

State of

County of

ss

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 [ ] No [ ]
Subscribed and sworn to before me this		b. If no:
	day of	,	1.	State the amendment number
				2.	Date filed
				3. Number of pages attached

STATEMENT AS OF SEPTEMBER 30, 2022 OF THE TRIAD GUARANTY INSURANCE CORPORATION, IN

REHABILITATION

ASSETS

	Current Statement Date		4
1	2	3	December 31
		Net Admitted Assets	Prior Year Net
Assets	Nonadmitted Assets	(Cols. 1 - 2)	Admitted Assets

1.	Bonds	78,850,884	78,850,884	74,080,586
2.	Stocks:
	2.1	Preferred stocks
	2.2	Common stocks	11,931,736	11,931,736	11,612,650

1. Mortgage loans on real estate:
2. 1. First liens
   2. Other than first liens
3. Real estate:
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 ($	4,081,037	),
	cash equivalents ($		1,932,132 )
	and short-term investments ($	)	6,013,169	6,013,169	11,148,211
6.	Contract loans (including $	premium notes)

1. Derivatives
2. Other invested assets

9.	Receivables for securities		106	106	136
10.	Securities lending reinvested collateral assets
11.	Aggregate write-ins for invested assets
12.	Subtotals, cash and invested assets (Lines 1 to 11)	96,795,895	96,795,895	96,841,583
13.	Title plants less $	charged off (for Title insurers
	only)
14.	Investment income due and accrued		476,983	476,983	500,525
15.	Premiums and considerations:
	15.1 Uncollected premiums and agents' balances in the course of
	collection		427,068	427,068	515,726
	15.2 Deferred premiums, agents' balances and installments booked but
	deferred and not yet due (including $		earned
	but unbilled premiums)		156,372	156,372	1,053,575
	15.3 Accrued retrospective premiums	($	) and
	contracts subject to redetermination ($	)
16.	Reinsurance:
	16.1 Amounts recoverable from reinsurers	18,909	18,909	(180)

1. Funds held by or deposited with reinsured companies
2. Other amounts receivable under reinsurance contracts

17. Amounts receivable relating to uninsured plans

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

19.	Guaranty funds receivable or on deposit
20.	Electronic data processing equipment and software	26,171	26,171	43,973
21.	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	(1,258)	(1,258)	(658)
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)	97,900,140	97,900,140	98,954,544
27.	From Separate Accounts, Segregated Accounts and Protected
	Cell Accounts
28.	Total (Lines 26 and 27)	97,900,140	97,900,140	98,954,544

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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STATEMENT AS OF SEPTEMBER 30, 2022 OF THE TRIAD GUARANTY INSURANCE CORPORATION, IN

REHABILITATION

LIABILITIES, SURPLUS AND OTHER FUNDS

				1	2
				Current	December 31,
				Statement Date	Prior Year
1.	Losses (current accident year $	3,607,027 )		38,864,833	53,081,180
2.	Reinsurance payable on paid losses and loss adjustment expenses
3.	Loss adjustment expenses			3,500,000	3,508,473
4.	Commissions payable, contingent commissions and other similar charges
5.	Other expenses (excluding taxes, licenses and fees)		8,425,000	8,425,000
6.	Taxes, licenses and fees (excluding federal and foreign income taxes)		1,261
7.1Current federal and foreign income taxes (including $	on realized capital gains (losses))	358,282	358,282
7.2 Net deferred tax liability
8.	Borrowed money $	and interest thereon $
9.	Unearned premiums (after deducting unearned premiums for ceded reinsurance of $	1,315 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)	292,301	358,394

1. Advance premium
2. Dividends declared and unpaid:
3. 1. Stockholders
   2. Policyholders

12.	Ceded reinsurance premiums payable (net of ceding commissions)	108,505	95,927
13.	Funds held by company under reinsurance treaties
14.	Amounts withheld or retained by company for account of others		424,185	422,476
15.	Remittances and items not allocated		214,429	168,759
16.	Provision for reinsurance (including $	certified)

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		776,657,198	775,577,642
26.	Total liabilities excluding protected cell liabilities (Lines 1 through 25)	828,845,994	841,996,133
27.	Protected cell liabilities
28.	Total liabilities (Lines 26 and 27)		828,845,994	841,996,133
29.	Aggregate write-ins for special surplus funds
30.	Common capital stock		3,500,000	3,500,000

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

33.	Surplus notes			25,000,000	25,000,000
34.	Gross paid in and contributed surplus		105,215,928	105,215,928
35.	Unassigned funds (surplus)			(864,661,782)	(876,757,517)
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)			(730,945,854)	(743,041,589)
38.	Totals (Page 2, Line 28, Col. 3)		97,900,140	98,954,544
	DETAILS OF WRITE-INS
2501.	Deferred Premium Refund			5,222,873	5,025,689
2502.	Deferred Payment Obligation, including carry charges		771,358,996	770,416,036
2503.	Rescinded Premium Payable			75,329	135,917
2598.	Summary of remaining write-ins for Line 25 from overflow page
2599.	Totals (Lines 2501 through 2503 plus 2598) (Line 25 above)		776,657,198	775,577,642
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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STATEMENT AS OF SEPTEMBER 30, 2022 OF THE TRIAD GUARANTY INSURANCE CORPORATION, IN

REHABILITATION

STATEMENT OF INCOME

					1	2	3
						Current Year	Prior Year	Prior Year Ended
						to Date	to Date	December 31
1.	Premiums earned:	UNDERWRITING INCOME
	1.1	Direct (written $	7,006,986	)	7,073,230	9,353,455	12,249,198
	1.2	Assumed (written $		)
	1.3	Ceded (written $	73,342	)	73,493	104,631	111,879
	1.4	Net (written $	6,933,644	)	6,999,737	9,248,824	12,137,319
2.		DEDUCTIONS:
Losses incurred (current accident year $	3,477,537 ):
	2.1 Direct			(10,939,779)	8,801,306	(16,759,573)
	2.2 Assumed
	2.3 Ceded			(138,361)	12,717	(197,679)
3.	2.4 Net			(10,801,418)	8,788,589	(16,561,894)
Loss adjustment expenses incurred		1,157,209	3,076,041	2,982,189
4.	Other underwriting expenses incurred		5,998,629	6,727,944	8,836,959
5.	Aggregate write-ins for underwriting deductions
6.	Total underwriting deductions (Lines 2 through 5)	(3,645,580)	18,592,574	(4,742,746)
7.	Net income of protected cells
8.	Net underwriting gain (loss) (Line 1 minus Line 6 + Line 7)	10,645,317	(9,343,750)	16,880,065
9.	Net investment income earned	INVESTMENT INCOME	1,134,753	1,374,380	2,029,377
10.	Net realized capital gains (losses) less capital gains tax of $		(3,447)	168,044	30,538
11.	Net investment gain (loss) (Lines 9 + 10)		1,131,306	1,542,424	2,059,915
12.			OTHER INCOME
Net gain or (loss) from agents' or premium balances charged off
13.	(amount recovered $		amount charged off $	)
Finance and service charges not included in premiums
14.	Aggregate write-ins for miscellaneous income		24		800
15.	Total other income (Lines 12 through 14)			24		800
16.	Net income before dividends to policyholders, after capital gains tax and before all other federal
	and foreign income taxes (Lines 8 + 11 + 15)	11,776,647	(7,801,326)	18,940,780

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

19.	and foreign income taxes (Line 16 minus Line 17)	11,776,647	(7,801,326)	18,940,780
Federal and foreign income taxes incurred
20.	Net income (Line 18 minus Line 19)(to Line 22)	11,776,647	(7,801,326)	18,940,780
21.	CAPITAL AND SURPLUS ACCOUNT
Surplus as regards policyholders, December 31 prior year	(743,041,589)	(762,527,470)	(762,527,471)
22.	Net income (from Line 20)	11,776,647	(7,801,326)	18,940,780

1. Net transfers (to) from Protected Cell accounts
2. Change in net unrealized capital gains or (losses) less capital gains tax of

$

319,088

279,041

545,102

1. Change in net unrealized foreign exchange capital gain (loss)
2. Change in net deferred income tax
3. Change in nonadmitted assets
4. Change in provision for reinsurance
5. Change in surplus notes
6. Surplus (contributed to) withdrawn from protected cells
7. Cumulative effect of changes in accounting principles
8. Capital changes:
9. 1. Paid in
   2. Transferred from surplus (Stock Dividend)
   3. Transferred to surplus
10. Surplus adjustments:
11. 1. Paid in
    2. Transferred to capital (Stock Dividend)
    3. Transferred from capital
12. Net remittances from or (to) Home Office
13. Dividends to stockholders
14. Change in treasury stock
15. Aggregate write-ins for gains and losses in surplus

38.	Change in surplus as regards policyholders (Lines 22 through 37)	12,095,735	(7,522,285)	19,485,882
39.	Surplus as regards policyholders, as of statement date (Lines 21 plus 38)	(730,945,854)	(770,049,755)	(743,041,589)
0501.	DETAILS OF WRITE-INS
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.	MIsc. Income	24		800
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)	24		800
3701.
3702.
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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STATEMENT AS OF SEPTEMBER 30, 2022 OF THE TRIAD GUARANTY INSURANCE CORPORATION, IN

REHABILITATION

CASH FLOW

				1	2	3
				Current Year	Prior Year	Prior Year Ended
				To Date	To Date	December 31
1.		Cash from Operations
Premiums collected net of reinsurance		8,119,740	11,087,603	14,122,610
2.	Net investment income		1,544,770	1,883,641	2,667,256
3.	Miscellaneous income		24		800
4.	Total (Lines 1 to 3)		9,664,534	12,971,244	16,790,666
5.	Benefit and loss related payments		2,492,514	4,304,996	5,252,418
6.	Net transfers to Separate Accounts, Segregated Accounts and Protected Cell Accounts
7.	Commissions, expenses paid and aggregate write-ins for deductions		7,149,182	6,705,657	8,911,104
8.	Dividends paid to policyholders
9.	Federal and foreign income taxes paid (recovered) net of $	tax on capital
10.	gains (losses)
Total (Lines 5 through 9)		9,641,696	11,010,653	14,163,522
11.	Net cash from operations (Line 4 minus Line 10)		22,838	1,960,591	2,627,144
12.		Cash from Investments
Proceeds from investments sold, matured or repaid:
	12.1	Bonds		12,894,177	21,533,544	27,490,902
	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		30	440,275	7
13.	12.8	Total investment proceeds (Lines 12.1 to 12.7)		12,894,207	21,973,819	27,490,909
Cost of investments acquired (long-term only):
	13.1	Bonds		18,054,396	24,864,109	26,243,824
	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)		18,054,396	24,864,109	26,243,824
Net increase (or decrease) in contract loans and premium notes
15.	Net cash from investments (Line 12.8 minus Line 13.7 and Line 14)		(5,160,189)	(2,890,290)	1,247,085
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
	16.6	Other cash provided (applied)		2,309	(35,176)	(34,318)
17.	Net cash from financing and miscellaneous sources (Line 16.1 through Line 16.4 minus Line 16.5
	plus Line 16.6)		2,309	(35,176)	(34,318)
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)	(5,135,042)	(964,875)	3,839,911
19.	Cash, cash equivalents and short-term investments:
	19.1	Beginning of year		11,148,211	7,308,300	7,308,300
	19.2	End of period (Line 18 plus Line 19.1)		6,013,169	6,343,425	11,148,211

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