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Note 11 - Losses and LAE Level 3 (Tables) | 12 Months Ended
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Dec. 31, 2019
Insurance Loss Reserves [Abstract] |
Schedule of Liability for Unpaid Claims and Claim Adjustment Expenses, by Segment [Table Text Block] | Our reserve for losses and LAE, at the end of each period indicated, consisted of:
| Year Ended December 31,
(In thousands) | 2019 |  | 2018
Mortgage Insurance loss reserves (1) | $ | 401,273 |  |  | $ | 397,891 |
Services loss reserves (2) | 3,492 |  |  | 3,470 |
Total reserve for losses and LAE | $ | 404,765 |  |  | $ | 401,361 |
______________________
(1) | Primarily comprises first lien primary case reserves of $339.8 million and $361.7 million at December 31, 2019 and 2018, respectively.
(2) A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our consolidated balance sheet, and relates to Radian Title Insurance. For all periods presented, total incurred losses and paid claims for Radian Title Insurance were not material.
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block] | the following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan PDR:
| Year Ended December 31, |
(In thousands) | 2019 |  | 2018 |  | 2017 |
Balance at January 1, | $ | 397,891 |  |  | $ | 507,588 |  |  | $ | 760,269 |  |
Less: Reinsurance recoverables (1) | 11,009 |  |  | 8,350 |  |  | 6,851 |  |
Balance at January 1, net of reinsurance recoverables | 386,882 |  |  | 499,238 |  |  | 753,418 |  |
Add: Losses and LAE incurred in respect of default notices reported and unreported in: |  |  |  |  |  |
Current year (2) | 146,733 |  |  | 135,291 |  |  | 185,486 |  |
Prior years | (14,709 | ) |  | (31,699 | ) |  | (49,286 | ) |
Total incurred | 132,024 |  |  | 103,592 |  |  | 136,200 |  |
Deduct: Paid claims and LAE related to: |  |  |  |  |  |
Current year (2) | 4,220 |  |  | 5,856 |  |  | 25,011 |  |
Prior years | 128,007 |  |  | 210,092 |  |  | 365,369 |  |
Total paid | 132,227 |  |  | 215,948 |  |  | 390,380 |  | (3)
Balance at end of period, net of reinsurance recoverables | 386,679 |  |  | 386,882 |  |  | 499,238 |  |
Add: reinsurance recoverables (1) | 14,594 |  |  | 11,009 |  |  | 8,350 |  |
Balance at December 31, | $ | 401,273 |  |  | $ | 397,891 |  |  | $ | 507,588 |  |
______________________
(1) | Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 8 for additional information.
(2) | Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default. For 2017, includes payments made on pool commutations, in some cases for loans not previously in default.
(3) Includes the payment of $54.8 million made in connection with the scheduled final settlement of the Freddie Mac Agreement in the third quarter of 2017.
Schedule of Default to Claim Rates on Primary Portfolio [Table Text Block] | The following table shows our gross Default to Claim Rates on our primary portfolio based on the Time in Default and as of the dates indicated:
| December 31,
| 2019 |  | 2018 |  | 2017
Default to Claim Rate on: |  |  |  |  |
New defaults (1) | 7.5 | % |  | 8.0 | % |  | 10.0 | %
Defaults not in Foreclosure Stage: |  |  |  |  |
Time in Default: <= 5 years (1) (2) | 23.9 | % |  | 25.8 | % |  | 28.3 | %
Time in Default: > 5 years | 63.0 | % |  | 68.0 | % |  | 62.0 | %
Foreclosure Stage Defaults | 70.0 | % |  | 75.0 | % |  | 81.0 | %
______________________
(1) | A 3% Default to Claim Rate assumption was assigned to the new primary defaults from FEMA Designated Areas associated with Hurricanes Harvey and Irma that were reported subsequent to those two natural disasters in 2017 and through February 2018.
(2) Represents the weighted average Default to Claim Rate for all defaults not in foreclosure stage that have been in default for up to five years, including new defaults. The estimated Default to Claim Rates applied to defaults within this population vary by Time in Default, and range from the Default to Claim Rates on new defaults shown above, up to 55.6%, 57.4% and 62.0% for more aged defaults in this category as of December 31, 2019, 2018, and 2017, respectively.
Short-duration Insurance Contracts, Claims Development [Table Text Block] | The information about net incurred losses and paid claims development for the years ended prior to 2019 is presented as supplementary information.
| Incurred Losses, Net of Reinsurance |  |  |  |
| Year Ended December 31, |  | As of December 31, 2019
($ in thousands) |  |  |  |  |  |  |  |  |  |  | Total of IBNR Liabilities Plus Expected Development on Reported Claims (1) |  | Cumulative Number of Reported Defaults (2)
| Unaudited |  |
Default Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
2010 | $ | 1,102,856 |  | $ | 1,215,136 |  | $ | 1,192,482 |  | $ | 1,195,056 |  | $ | 1,207,774 |  | $ | 1,220,289 |  | $ | 1,218,264 |  | $ | 1,219,469 |  | $ | 1,221,938 |  | $ | 1,225,474 |  |  | $ | 5,292 |  |  | 146,324 |
2011 |  | 1,058,625 |  | 1,152,016 |  | 1,052,277 |  | 1,050,555 |  | 1,062,579 |  | 1,061,161 |  | 1,059,116 |  | 1,060,376 |  | 1,064,054 |  |  | 5,020 |  |  | 118,972 |
2012 |  |  | 803,831 |  | 763,969 |  | 711,213 |  | 720,502 |  | 715,646 |  | 714,783 |  | 713,750 |  | 713,839 |  |  | 2,652 |  |  | 89,845 |
2013 |  |  |  | 505,732 |  | 405,334 |  | 401,444 |  | 404,333 |  | 402,259 |  | 400,243 |  | 399,356 |  |  | 1,172 |  |  | 71,749 |
2014 |  |  |  |  | 337,784 |  | 247,074 |  | 265,891 |  | 264,620 |  | 260,098 |  | 261,507 |  |  | 398 |  |  | 58,215 |
2015 |  |  |  |  |  | 222,555 |  | 198,186 |  | 178,042 |  | 183,952 |  | 183,546 |  |  | 160 |  |  | 49,825 |
2016 |  |  |  |  |  |  | 201,016 |  | 165,440 |  | 149,753 |  | 148,811 |  |  | 115 |  |  | 46,264 |
2017 |  |  |  |  |  |  |  | 180,851 |  | 151,802 |  | 133,357 |  |  | 264 |  |  | 47,283 |
2018 |  |  |  |  |  |  |  |  | 131,513 |  | 116,634 |  |  | 650 |  |  | 39,598 |
2019 |  |  |  |  |  |  |  |  |  | 143,475 |  |  | 3,117 |  |  | 42,884 |
|  |  |  |  |  |  |  |  | Total |  | $ | 4,390,053 |  |  |  |  |  |  |
______________________
(1) | Represents reserves as of December 31, 2019 related to IBNR liabilities.
(2) | Represents total number of new default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods.
| Cumulative Paid Claims, Net of Reinsurance
| Year Ended December 31,
(In thousands) |  |  |  |  |  |  |  |  |
| Unaudited |
Default Year | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019
2010 | $ | 11,810 |  | $ | 394,278 |  | $ | 700,316 |  | $ | 956,598 |  | $ | 1,055,935 |  | $ | 1,145,497 |  | $ | 1,178,546 |  | $ | 1,198,031 |  | $ | 1,210,281 |  | $ | 1,214,558 |
2011 |  | 40,392 |  | 323,216 |  | 756,820 |  | 892,959 |  | 982,830 |  | 1,016,855 |  | 1,038,582 |  | 1,048,966 |  | 1,052,688 |
2012 |  |  | 19,200 |  | 295,332 |  | 528,744 |  | 631,982 |  | 672,271 |  | 692,291 |  | 702,136 |  | 704,770 |
2013 |  |  |  | 34,504 |  | 191,040 |  | 307,361 |  | 357,087 |  | 379,036 |  | 388,688 |  | 392,818 |
2014 |  |  |  |  | 13,108 |  | 115,852 |  | 200,422 |  | 233,607 |  | 246,611 |  | 252,619 |
2015 |  |  |  |  |  | 10,479 |  | 84,271 |  | 142,421 |  | 163,916 |  | 172,645 |
2016 |  |  |  |  |  |  | 11,061 |  | 76,616 |  | 119,357 |  | 134,115 |
2017 |  |  |  |  |  |  |  | 24,653 |  | 66,585 |  | 99,678 |
2018 |  |  |  |  |  |  |  |  | 5,584 |  | 36,066 |
2019 |  |  |  |  |  |  |  |  |  | 4,220 |
|  |  |  |  |  |  |  |  | Total |  | $ | 4,064,177 |
|  |  |  |  | All outstanding liabilities before 2010, net of reinsurance |  | 51,883 |
|  |  |  |  | Liabilities for claims, net of reinsurance (1) |  | $ | 377,759 |
______________________
(1) | Calculated as follows:
(In thousands) |
Incurred losses, net of reinsurance | $ | 4,390,053 |
Add: All outstanding liabilities before 2010, net of reinsurance | 51,883 |
Less: Cumulative paid claims, net of reinsurance | 4,064,177 |
Liabilities for claims, net of reinsurance | $ | 377,759 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Table Text Block] | 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, 2019:
(In thousands) | December 31, 2019
Net outstanding liabilities - Mortgage Insurance: |
Reserve for losses and LAE, net of reinsurance | $ | 377,759 |
Reinsurance recoverables on unpaid claims | 14,594 |
Unallocated LAE | 8,920 |
Total gross reserve for losses and LAE (1) | $ | 401,273 |
______________________ (1) Excludes Services reserve for losses and LAE of $3.5 million.
Short-duration Insurance Contracts, Schedule of Historical Claims Duration [Table Text Block] | The following is supplementary information about average historical claims duration as of December 31, 2019, representing the average distribution of when claims are paid relative to the year of default:
| Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance (Unaudited)
Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10
Mortgage Insurance | 6.0% | 35.2% | 30.6% | 13.6% | 6.2% | 3.6% | 1.8% | 1.0% | 0.7% | 0.3%

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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 http://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 + Details
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