Segment Reporting
We manage our business activities on a consolidated basis under a single reportable operating segment and our Chief Executive Officer (CEO) serves as our Chief Operating Decision Maker (CODM).
Our Mortgage Insurance segment provides private mortgage insurance and ancillary loan review services and our CODM evaluates our performance and allocates resources based on our consolidated financial results, including consolidated revenue, expenses, net income, assets and shareholders' equity. Among these, consolidated net income is the measure used to evaluate segment profit and loss. Our CODM reviews these financial metrics to gauge our performance and make strategic decisions, such as whether to reinvest profits in our Mortgage Insurance segment or return capital to shareholders.
The significant revenue and expense categories that are regularly reviewed by our CODM align with those presented on our consolidated statements of operations and comprehensive income, and segment assets align with total assets as presented on our consolidated balance sheets. The accounting policies governing our Mortgage Insurance segment are the same as those described in Note 2, “Summary of Significant Accounting Policies.”
Investment income, also referred to as interest revenue, is reported within “Net Investment Income” on our consolidated statements of operations and was $104.2 million, $86.4 million and $68.2 million, respectively, for the years ended December 31, 2025, 2024 and 2023. Amortization and depreciation expense for software, equipment, and leasehold improvements was $11.3 million, $11.9 million and $11.5 million, respectively, for the years ended December 31, 2025, 2024 and 2023.
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.