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Reserve for Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended
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Dec. 31, 2024
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) |  | 2024 |  | 2023 |  | 2022
Reserve for losses and LAE at beginning of year |  | $ | 260,095 |  |  | $ | 216,464 |  |  | $ | 407,445 |
Less: Reinsurance recoverables |  | 24,104 |  |  | 14,618 |  |  | 25,940 |
Net reserve for losses and LAE at beginning of year |  | 235,991 |  |  | 201,846 |  |  | 381,505 |
Net reserves acquired during the period |  | — |  |  | 14,049 |  |  | — |
Add provision for losses and LAE, net of reinsurance, occurring in: |  |  |  |  |  |
Current year |  | 177,037 |  |  | 141,191 |  |  | 99,372 |
Prior years |  | (95,817) |  |  | (109,649) |  |  | (274,076) |
Net incurred losses and LAE during the current year |  | 81,220 |  |  | 31,542 |  |  | (174,704) |
Deduct payments for losses and LAE, net of reinsurance, occurring in: |  |  |  |  |  |
Current year |  | 3,356 |  |  | 694 |  |  | 224 |
Prior years |  | 21,743 |  |  | 10,752 |  |  | 4,731 |
Net loss and LAE payments during the current year |  | 25,099 |  |  | 11,446 |  |  | 4,955 |
Net reserve for losses and LAE at end of year |  | 292,112 |  |  | 235,991 |  |  | 201,846 |
Plus: Reinsurance recoverables |  | 36,754 |  |  | 24,104 |  |  | 14,618 |
Reserve for losses and LAE at end of year |  | $ | 328,866 |  |  | $ | 260,095 |  |  | $ | 216,464 |
The following table summarizes mortgage insurance 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, 2015 to 2023 is presented as supplementary information.
|  | Incurred Loss and Allocated LAE, For the Years Ended December 31, |  | As of December 31, 2024
(In thousands) |  |  |  |  |  | Total of IBNR plus Expected Development on Reported Defaults |  | Cumulative Number of Reported Defaults (1)
|  | Unaudited |  |  |  |
Accident Year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  |
2015 |  | $ | 14,956 |  |  | $ | 9,625 |  |  | $ | 8,893 |  |  | $ | 8,439 |  |  | $ | 8,461 |  |  | $ | 8,323 |  |  | $ | 8,410 |  |  | $ | 8,434 |  |  | $ | 8,435 |  |  | $ | 8,435 |  |  | $ | 7 |  |  | 124 |
2016 |  |  |  | 21,889 |  |  | 11,890 |  |  | 9,455 |  |  | 9,219 |  |  | 8,972 |  |  | 8,614 |  |  | 8,861 |  |  | 8,709 |  |  | 8,643 |  |  | 8 |  |  | 264 |
2017 |  |  |  |  |  | 38,178 |  |  | 16,261 |  |  | 12,202 |  |  | 11,488 |  |  | 11,249 |  |  | 11,550 |  |  | 11,196 |  |  | 11,101 |  |  | 28 |  |  | 362 |
2018 |  |  |  |  |  |  |  | 36,438 |  |  | 23,168 |  |  | 19,536 |  |  | 17,402 |  |  | 17,249 |  |  | 16,535 |  |  | 15,895 |  |  | 64 |  |  | 511 |
2019 |  |  |  |  |  |  |  |  |  | 50,562 |  |  | 39,085 |  |  | 23,649 |  |  | 24,223 |  |  | 19,455 |  |  | 17,395 |  |  | 153 |  |  | 689 |
2020 |  |  |  |  |  |  |  |  |  |  |  | 317,516 |  |  | 269,410 |  |  | 53,045 |  |  | 23,297 |  |  | 15,561 |  |  | 405 |  |  | 696 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  | 97,256 |  |  | 38,551 |  |  | 16,567 |  |  | 9,485 |  |  | 357 |  |  | 445 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 99,372 |  |  | 48,593 |  |  | 29,158 |  |  | 1,535 |  |  | 627 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 138,617 |  |  | 78,940 |  |  | 5,476 |  |  | 2,085 |
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 171,947 |  |  | 13,413 |  |  | 15,647 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 366,560 |  |  |  |  |
(1) Cumulative number of reported defaults includes cumulative paid claims plus loans in default by accident year as of December 31, 2024.
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, 2015 through 2023 is presented as supplementary information.
(In thousands) |  | Cumulative Paid Losses and Allocated LAE For the Years Ended December 31,
|  | Unaudited |  |
Accident Year |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  | 2024
2015 |  | $ | 544 |  |  | $ | 3,610 |  |  | $ | 6,960 |  |  | $ | 7,535 |  |  | $ | 7,961 |  |  | $ | 8,055 |  |  | $ | 8,226 |  |  | $ | 8,335 |  |  | $ | 8,337 |  |  | $ | 8,337 |
2016 |  |  |  | 927 |  |  | 4,896 |  |  | 6,947 |  |  | 7,864 |  |  | 8,270 |  |  | 8,205 |  |  | 8,468 |  |  | 8,542 |  |  | 8,540 |
2017 |  |  |  |  |  | 633 |  |  | 5,370 |  |  | 9,156 |  |  | 10,257 |  |  | 10,536 |  |  | 10,620 |  |  | 10,704 |  |  | 10,705 |
2018 |  |  |  |  |  |  |  | 1,310 |  |  | 8,067 |  |  | 13,406 |  |  | 13,927 |  |  | 14,536 |  |  | 14,781 |  |  | 14,971 |
2019 |  |  |  |  |  |  |  |  |  | 1,288 |  |  | 8,049 |  |  | 10,717 |  |  | 12,392 |  |  | 14,064 |  |  | 15,183 |
2020 |  |  |  |  |  |  |  |  |  |  |  | 1,018 |  |  | 2,499 |  |  | 4,022 |  |  | 6,921 |  |  | 9,875 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  | 388 |  |  | 856 |  |  | 2,916 |  |  | 4,740 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 224 |  |  | 3,209 |  |  | 8,633 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 517 |  |  | 9,375 |
2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,686 |
Total |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 93,045 |
All outstanding liabilities before 2015, net of reinsurance |  | — |
Reserve for losses and LAE, net of reinsurance |  | $ | 273,552 |
The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the mortgage insurance reserve for losses and LAE at December 31, 2024:
(In thousands) |  | December 31, 2024
Reserve for losses and LAE, net of reinsurance |  | $ | 273,552 |
Reinsurance recoverables on unpaid claims |  | 36,655 |
Total gross reserve for losses and LAE |  | $ | 310,207 |
The above table excludes title insurance reserves as of December 31, 2024, which were $18.7 million. For our mortgage insurance portfolio, our average annual payout of losses as of December 31, 2024 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 |  | 10 | % |  | 42 | % |  | 28 | % |  | 10 | % |  | 7 | % |  | 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://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-3 + Details
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