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Reinsurance (Tables) | 6 Months Ended
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Jun. 30, 2025
Reinsurance Disclosures [Abstract] |
Effect of reinsurance transactions | The effect of all of our reinsurance transactions on our consolidated statement of operations is shown in table 4.1 below.
Reinsurance |  |  |  |
Table | 4.1 |  |  |  |  |  |  |  |
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) |  | 2025 |  | 2024 |  | 2025 |  | 2024
Premiums earned: |  |  |  |  |  |  |  |
Direct |  | $ | 284,123 |  |  | $ | 283,363 |  |  | $ | 568,944 |  |  | $ | 567,384 |
Assumed |  | 3,738 |  |  | 3,377 |  |  | 7,299 |  |  | 6,819 |
Ceded: |  |  |  |  |  |  |  |
Ceded - quota share reinsurance (1) |  | (28,101) |  |  | (26,643) |  |  | (58,044) |  |  | (55,358) |
Ceded - excess-of-loss reinsurance |  | (15,438) |  |  | (16,569) |  |  | (30,158) |  |  | (32,673) |
Total ceded |  | (43,539) |  |  | (43,212) |  |  | (88,202) |  |  | (88,031) |
Net premiums earned |  | $ | 244,322 |  |  | $ | 243,528 |  |  | $ | 488,041 |  |  | $ | 486,172 |
Losses incurred: |  |  |  |  |  |  |  |
Direct |  | $ | 1,146 |  |  | $ | (14,196) |  |  | $ | 17,163 |  |  | $ | (3,217) |
Assumed |  | (23) |  |  | (46) |  |  | (18) |  |  | (17) |
Ceded - quota share reinsurance |  | (3,958) |  |  | (4,030) |  |  | (10,389) |  |  | (10,483) |
Losses incurred, net |  | $ | (2,835) |  |  | $ | (18,272) |  |  | $ | 6,756 |  |  | $ | (13,717) |
Other Reinsurance Impacts: |  |  |  |  |  |  |  |
Profit commission on quota share reinsurance (1) |  | $ | 32,299 |  |  | $ | 27,301 |  |  | $ | 60,994 |  |  | $ | 51,885 |
Ceding commission on quota share reinsurance |  | 12,081 |  |  | 10,789 |  |  | 23,808 |  |  | 21,449 |
(1)Ceded premiums earned are shown net of profit commission.
Schedule of quota share reinsurance transactions | Table 4.2 below provides additional detail regarding our QSR Transactions.
Quota Share Reinsurance |
Table | 4.2 |  |  |  |  |  |  |  |  |
Quota Share Contract |  | Covered Policy Years | Quota Share % |  | Annual Loss Ratio to Exhaust Profit Commission (1) |  | Contractual Termination Date |
2020 QSR and 2021 QSR |  | 2021 |  | 14.8 | % |  | 69.0 | % |  | December 31, 2036 |
2021 QSR and 2022 QSR |  | 2021 | 11.1 | % |  | 69.0 | % |  | December 31, 2036 |
2021 QSR and 2022 QSR |  | 2022 | 15.0 | % |  | 57.5 | % |  | December 31, 2033 |
2022 QSR and 2023 QSR |  | 2022 | 15.0 | % |  | 62.0 | % |  | December 31, 2033 |
2022 QSR and 2023 QSR |  | 2023 | 15.0 | % |  | 62.0 | % |  | December 31, 2034 |
2023 QSR |  | 2023 | 10.0 | % |  | 58.5 | % |  | December 31, 2034 |
2024 QSR |  | 2024 | 30.0 | % |  | 56.0 | % |  | 'December 31, 2035 |
2025 QSR |  | 2025 | 40.0 | % |  | 63.0 | % |  | 'December 31, 2036 |
Credit Union QSR |  | 2020-2025 | 65.0 | % |  | 50.0 | % |  | December 31, 2039 |
(1) We will receive a profit commission provided the annual loss ratio on policies covered under the transaction remains below this ratio. Table 4.3 provides additional details regarding optional termination dates and optional reductions to our quota share percentage which can, in each case, be elected by us for a fee. Under the optional reduction to the quota share percentage, we may reduce our quota share percentage from the original percentage shown in table 4.2 to the percentage shown in table 4.3.
Quota Share Reinsurance
Table | 4.3 |  |  |  |  |  |
Quota Share Contract | Covered Policy Years | Optional Termination Date (1) |  | Optional Quota Share % Reduction Date (2) |  | Optional Reduced Quota Share %
2020 QSR and 2021 QSR | 2021 | December 31, 2027 |  | January 1, 2028 |  | 12.3% or 10%
2021 QSR and 2022 QSR | 2021 | December 31, 2027 |  | January 1, 2028 |  | 9.4% or 7%
2021 QSR and 2022 QSR | 2022 | July 1, 2025 |  | July 1, 2025 |  | 12.5% or 10%
2022 QSR and 2023 QSR | 2022 | July 1, 2025 |  | July 1, 2025 |  | 12.5% or 10%
2022 QSR and 2023 QSR | 2023 | December 31, 2025 |  | July 1, 2025 |  | 12.5% or 10%
2023 QSR | 2023 | December 31, 2025 |  | July 1, 2025 |  | 8% or 7%
2024 QSR | 2024 | December 31, 2027 |  | December 31, 2027 |  | 23% or 15%
2025 QSR | 2025 | December 31, 2027 |  | December 31, 2027 |  | 30% or 20%
(1) We can elect early termination of the QSR Transaction beginning on this date, and semi-annually thereafter. (2) We can elect to reduce the quota share percentage beginning on this date, and semi-annually thereafter.
Schedule of coverages and retention | The following tables 4.4a, 4.4b, and 4.4c provide a summary of our XOL Transactions as of June 30, 2025 and December 31, 2024. Tables 4.4b and 4.4c exclude the 2025 Traditional XOL Transaction which is still within its fill-up period.
Excess of Loss Reinsurance
Table 4.4a |  |  |  |
| Issue Date | Policy In force Dates | Optional Call Date (1) | Legal Maturity
2025 Traditional XOL (2) | June 1, 2025 | January 1, 2025 - December 31, 2025 | January 1, 2031 | 10 years
2024 Traditional XOL | April 1, 2024 | January 1, 2024 - December 31, 2024 | January 1, 2030 | 10 years
2023 Traditional XOL | April 1, 2023 | January 1, 2023 - December 29, 2023 | January 1, 2031 | 10 years
2022 Traditional XOL | April 1, 2022 | January 1, 2022 - December 30, 2022 | January 1, 2030 | 10 years
2020 Traditional XOL | March 1, 2025 | January 1, 2020 - December 31, 2020 | April 1, 2030 | 10 years
Home Re 2023-1, Ltd. | October 23, 2023 | June 1, 2022 - August 31, 2023 | October 25, 2028 | 10 years
Home Re 2022-1, Ltd. | April 26, 2022 | May 29, 2021 - December 31, 2021 | April 25, 2028 | 12.5 years
Home Re 2021-2, Ltd. | August 3, 2021 | January 1, 2021 - May 28, 2021 | July 25, 2028 | 12.5 years
Home Re 2021-1, Ltd. | February 2, 2021 | August 1, 2020 - December 31, 2020 | January 25, 2028 | 12.5 years
(1) We have the right to terminate the Home Re Transactions under certain circumstances, including an optional call feature that provides us the right to terminate if the outstanding principal balance of the related insurance-linked notes falls below 10% of the initial principal balance of the related insurance-linked notes, and on any payment date on or after the respective Optional Call Date. We can elect early termination of the Traditional XOL Transactions beginning on this date, and quarterly thereafter. (2) The 2025 Traditional XOL Transaction provides up to $160 million of reinsurance coverage on eligible NIW in 2025.
Table 4.4b |  | Remaining First Layer Retention
($ in thousands) | Initial First Layer Retention | June 30, 2025 | December 31, 2024
2024 Traditional XOL | $ | 125,016 |  | $ | 124,948 |  | $ | 125,016 |
2023 Traditional XOL | 70,578 |  | 70,006 |  | 70,401 |
2022 Traditional XOL | 82,523 |  | 79,712 |  | 81,112 |
2020 Traditional XOL | 68,343 |  | 68,343 |  | N/A
Home Re 2023-1, Ltd. | 272,961 |  | 270,109 |  | 272,269 |
Home Re 2022-1, Ltd. | 325,589 |  | 321,021 |  | 322,566 |
Home Re 2021-2, Ltd. | 190,159 |  | 187,496 |  | 188,211 |
Home Re 2021-1, Ltd. | 211,159 |  | 209,654 |  | 210,027 |
Table 4.4c |  |  |  | Remaining Excess of Loss Reinsurance Coverage (1)
($ in thousands) | Initial Excess of Loss Reinsurance Coverage (1) | Initial Funding Percentage (2) | Funding Percentage at 6/30/2025 (2) | June 30, 2025 | December 31, 2024
2024 Traditional XOL | $ | 187,220 |  | N/A | N/A | $ | 187,220 |  | $ | 187,220 |
2023 Traditional XOL | 96,942 |  | N/A | N/A | 79,196 |  | 91,404 |
2022 Traditional XOL | 142,642 |  | N/A | N/A | 109,115 |  | 124,344 |
2020 Traditional XOL | 250,592 |  | N/A | N/A | 250,592 |  | N/A
Home Re 2023-1, Ltd. | 330,277 |  | 97 | % | 96 | % | 267,327 |  | 299,325 |
Home Re 2022-1, Ltd. | 473,575 |  | 100 | % | 100 | % | 254,880 |  | 305,639 |
Home Re 2021-2, Ltd. (3) | 398,429 |  | 100 | % | 93 | % | 108,377 |  | 132,424 |
Home Re 2021-1, Ltd. | 398,848 |  | 100 | % | 100 | % | 59,327 |  | 92,019 |
(1)The initial and remaining excess of loss reinsurance coverage is reduced by the applicable funding percentage. (2)The funding percentage represents the aggregate outstanding note balances divided by the aggregate ending coverage amounts. (3)The funding percentage on the 2021-2 was reduced from 100% after the tender offers were conducted in the fourth quarter of 2023.
Schedule of total assets of Home Re | Table 4.5 presents the total assets of the Home Re Entities as of June 30, 2025 and December 31, 2024.
Home Re total assets |  |  |  |
Table | 4.5 |  |  |  |
(In thousands) |  | Total VIE Assets
Home Re Entity |  | June 30, 2025 |  | December 31, 2024
Home Re 2023-1 Ltd. |  | $ | 273,417 |  |  | $ | 303,733 |
Home Re 2022-1 Ltd. |  | 263,984 |  |  | 313,229 |
Home Re 2021-2 Ltd. |  | 111,937 |  |  | 136,486 |
Home Re 2021-1 Ltd. |  | 64,783 |  |  | 97,373 |

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