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Variable Interest Entities

12 Months Ended

Dec. 31, 2025

Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract]

Variable Interest Entity

Bellemeade Re

The Company has entered into aggregate excess of loss mortgage reinsurance agreements with various special purpose reinsurance companies domiciled in Bermuda (the “Bellemeade Agreements”). At the time the Bellemeade Agreements were entered into, the applicability of the accounting guidance that addresses VIEs was evaluated. As a result of the evaluation of the Bellemeade Agreements, the Company concluded that these entities are VIEs. However, given that the ceding insurers do not have the unilateral power to direct those activities that are significant to their economic performance, the Company does not consolidate such entities in its consolidated financial statements. The reinsurance premium paid in regard to the Bellemeade Agreements is calculated by multiplying the outstanding

reinsurance coverage amount at the beginning of the period by the coupon rate, which is the SOFR plus a contractual risk margin, less the actual investment income collected during the preceding month on the assets included in the underlying reinsurance trusts. In the event the assets included in the underlying reinsurance trusts became severely impaired or worthless and the special purpose reinsurance companies were unable to meet their future obligations, the Company’s mortgage insurance subsidiaries would be liable to fulfill claim payments to policyholders. The Company’s maximum exposure to loss associated with these VIEs is determined as the amount of mortgage insurance claim payments on the insured policies, net of aggregate reinsurance payments previously received, up to the full aggregate excess of loss reinsurance coverage amounts.

The following table summarizes the total assets of the Bellemeade entities:

			December 31, 2025												December 31, 2024
Bellemeade Entities  (Issue Date)			Total VIE Assets																								Coverage Remaining from Reinsurers (1)						Total VIE Assets
2021-3 Ltd. (Sep-21)			$	21																							$	14					$	363
2022-1 Ltd. (Jan-22)			42																								12						202
2022-2 Ltd. (Sep-22)			43																								91						180
2023-1 Ltd. (Oct-23)			149																								37						186
2024-1 Ltd. (Aug-24)			130																								33						163
2025-1 Ltd. (Nov-25)			191																								48						—
Total			$	576																							$	235					$	1,094

(1) Coverage from a separate panel of reinsurers remaining at December 31, 2025.

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- Definition

The entire disclosure for a variable interest entity (VIE), including but not limited to, judgments and assumptions in determining whether to consolidate and in identifying the primary beneficiary, gain (loss) recognized on the initial consolidation of the VIE, terms of arrangements, amounts and classification of the VIE's assets and liabilities, and the entity's maximum exposure to loss.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 810
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/810/tableOfContent

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- References

No definition available.

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