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v3.22.4

Reserve for Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended
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Dec. 31, 2022
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] |
Schedule of Reconciliation of Beginning and Ending Reserve Balances for Losses and Loss Adjustment Expenses (LAE) | The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses ("LAE") for the years ended December 31:
(In thousands) |  | 2022 |  | 2021 |  | 2020
Reserve for losses and LAE at beginning of year |  | $ | 407,445 |  |  | $ | 374,941 |  |  | $ | 69,362 |
Less: Reinsurance recoverables |  | 25,940 |  |  | 19,061 |  |  | 71 |
Net reserve for losses and LAE at beginning of year |  | 381,505 |  |  | 355,880 |  |  | 69,291 |
Add provision for losses and LAE, net of reinsurance, occurring in: |  |  |  |  |  |
Current year |  | 99,372 |  |  | 97,256 |  |  | 317,516 |
Prior years |  | (274,076) |  |  | (66,199) |  |  | (16,223) |
Net incurred losses and LAE during the current year |  | (174,704) |  |  | 31,057 |  |  | 301,293 |
Deduct payments for losses and LAE, net of reinsurance, occurring in: |  |  |  |  |  |
Current year |  | 224 |  |  | 388 |  |  | 1,018 |
Prior years |  | 4,731 |  |  | 5,044 |  |  | 13,686 |
Net loss and LAE payments during the current year |  | 4,955 |  |  | 5,432 |  |  | 14,704 |
Net reserve for losses and LAE at end of year |  | 201,846 |  |  | 381,505 |  |  | 355,880 |
Plus: Reinsurance recoverables |  | 14,618 |  |  | 25,940 |  |  | 19,061 |
Reserve for losses and LAE at end of year |  | $ | 216,464 |  |  | $ | 407,445 |  |  | $ | 374,941 |
The following table summarizes incurred loss and allocated loss adjustment expense development, net of reinsurance, IBNR plus expected development on reported defaults and the cumulative number of reported defaults. The information about incurred loss development for the years ended December 31, 2013 to 2021 is presented as supplementary information.
|  | Incurred Loss and Allocated LAE, For the Years Ended December 31, |  | As of December 31, 2022
(In thousands) |  |  |  |  |  | Total of IBNR plus Expected Development on Reported Defaults |  | Cumulative Number of Reported Defaults (1)
|  | Unaudited |  |  |  |
Accident Year |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  |
2013 |  | $ | 2,986 |  |  | $ | 2,461 |  |  | $ | 2,008 |  |  | $ | 1,997 |  |  | $ | 2,060 |  |  | $ | 2,058 |  |  | $ | 2,058 |  |  | $ | 2,058 |  |  | $ | 2,058 |  |  | $ | 2,058 |  |  | $ | — |  |  | 51 |
2014 |  |  |  | 6,877 |  |  | 4,312 |  |  | 3,323 |  |  | 2,984 |  |  | 2,930 |  |  | 2,897 |  |  | 2,882 |  |  | 2,869 |  |  | 2,870 |  |  | 1 |  |  | 92 |
2015 |  |  |  |  |  | 14,956 |  |  | 9,625 |  |  | 8,893 |  |  | 8,439 |  |  | 8,461 |  |  | 8,323 |  |  | 8,410 |  |  | 8,434 |  |  | 7 |  |  | 213 |
2016 |  |  |  |  |  |  |  | 21,889 |  |  | 11,890 |  |  | 9,455 |  |  | 9,219 |  |  | 8,972 |  |  | 8,614 |  |  | 8,861 |  |  | 27 |  |  | 244 |
2017 |  |  |  |  |  |  |  |  |  | 38,178 |  |  | 16,261 |  |  | 12,202 |  |  | 11,488 |  |  | 11,249 |  |  | 11,550 |  |  | 64 |  |  | 327 |
2018 |  |  |  |  |  |  |  |  |  |  |  | 36,438 |  |  | 23,168 |  |  | 19,536 |  |  | 17,402 |  |  | 17,249 |  |  | 188 |  |  | 492 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  | 50,562 |  |  | 39,085 |  |  | 23,649 |  |  | 24,223 |  |  | 823 |  |  | 693 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 317,516 |  |  | 269,410 |  |  | 53,045 |  |  | 3,550 |  |  | 1,156 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 97,256 |  |  | 38,551 |  |  | 2,866 |  |  | 1,349 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 99,372 |  |  | 7,430 |  |  | 10,768 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 266,213 |  |  |  |  |
(1) Cumulative number of reported defaults includes cumulative paid claims plus loans in default by accident year as of December 31, 2022.
The following table summarizes cumulative paid losses and allocated loss adjustment expenses, net of reinsurance. The information about paid loss development for the years ended December 31, 2013 through 2021 is presented as supplementary information.
(In thousands) |  | Cumulative Paid Losses and Allocated LAE For the Years Ended December 31,
|  | Unaudited |  |
Accident Year |  | 2013 |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022
2013 |  | $ | 239 |  |  | $ | 928 |  |  | $ | 1,501 |  |  | $ | 1,775 |  |  | $ | 1,880 |  |  | $ | 2,058 |  |  | $ | 2,058 |  |  | $ | 2,058 |  |  | $ | 2,058 |  |  | $ | 2,058 |
2014 |  |  |  | 138 |  |  | 1,587 |  |  | 2,463 |  |  | 2,787 |  |  | 2,897 |  |  | 2,882 |  |  | 2,867 |  |  | 2,856 |  |  | 2,856 |
2015 |  |  |  |  |  | 544 |  |  | 3,610 |  |  | 6,960 |  |  | 7,535 |  |  | 7,961 |  |  | 8,055 |  |  | 8,226 |  |  | 8,335 |
2016 |  |  |  |  |  |  |  | 927 |  |  | 4,896 |  |  | 6,947 |  |  | 7,864 |  |  | 8,270 |  |  | 8,205 |  |  | 8,468 |
2017 |  |  |  |  |  |  |  |  |  | 633 |  |  | 5,370 |  |  | 9,156 |  |  | 10,257 |  |  | 10,536 |  |  | 10,620 |
2018 |  |  |  |  |  |  |  |  |  |  |  | 1,310 |  |  | 8,067 |  |  | 13,406 |  |  | 13,927 |  |  | 14,536 |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,288 |  |  | 8,049 |  |  | 10,717 |  |  | 12,392 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,018 |  |  | 2,499 |  |  | 4,022 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 388 |  |  | 856 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 224 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 64,367 |
All outstanding liabilities before 2013, net of reinsurance |  | — |
Reserve for losses and LAE, net of reinsurance |  | $ | 201,846 |
The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the reserve for losses and LAE at December 31, 2022:
(In thousands) |  | December 31, 2022
Reserve for losses and LAE, net of reinsurance |  | $ | 201,846 |
Reinsurance recoverables on unpaid claims |  | 14,618 |
Total gross reserve for losses and LAE |  | $ | 216,464 |
For our mortgage insurance portfolio, our average annual payout of losses as of December 31, 2022 is as follows:
Average Annual Percentage Payout of Incurred Losses and Allocated LAE by Year
Year |  | 1 |  | 2 |  | 3 |  | 4 |  | 5 |  | 6 |  | 7 |  | 8 |  | 9 |  | 10
Average Payout |  | 5 | % |  | 31 | % |  | 25 | % |  | 9 | % |  | 4 | % |  | 2 | % |  | 1 | % |  | 0 | % |  | 0 | % |  | 0 | %

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- Definition Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI https://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 + Details
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