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Reserve for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

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		%

X

- References

No definition available.

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X

- 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

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