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Losses and LAE | 9 Months Ended
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Sep. 30, 2025
Insurance Loss Reserves [Abstract] |
Losses and LAE | 11. Losses and LAE Our reserve for losses and LAE consists of the following as of the dates indicated.
Reserve for losses and LAE |
(In thousands) |  | September 30, 2025 |  |  | December 31, 2024 |
Primary case |  | $ | 366,893 |  |  | $ | 336,553 |
Primary IBNR and LAE |  |  | 15,081 |  |  |  | 13,399 |
Pool and other |  |  | 5,676 |  |  |  | 4,479 |
Total reserve for losses and LAE |  | $ | 387,650 |  |  | $ | 354,431 |
For the periods indicated, the following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE.
Rollforward of reserve for losses |
|  | Nine Months Ended September 30, |
(In thousands) |  | 2025 |  |  | 2024 |
Balance at beginning of period |  | $ | 354,431 |  |  | $ | 364,923 |
Less: Reinsurance recoverables (1) |  |  | 34,144 |  |  |  | 25,074 |
Balance at beginning of period, net of reinsurance recoverables |  |  | 320,287 |  |  |  | 339,849 |
Add: Losses and LAE incurred in respect of default notices reported and unreported in: |  |  |  |  |  |
Current year (2) |  |  | 159,968 |  |  |  | 151,497 |
Prior years |  |  | (114,788 | ) |  |  | (153,806 | )
Total incurred |  |  | 45,180 |  |  |  | (2,309 | )
Deduct: Paid claims and LAE related to: |  |  |  |  |  |
Current year (2) |  |  | 666 |  |  |  | 359 |
Prior years |  |  | 20,558 |  |  |  | 11,937 |
Total paid |  |  | 21,224 |  |  |  | 12,296 |
Balance at end of period, net of reinsurance recoverables |  |  | 344,243 |  |  |  | 325,244 |
Add: Reinsurance recoverables (1) |  |  | 43,407 |  |  |  | 31,710 |
Balance at end of period |  | $ | 387,650 |  |  | $ | 356,954 |
(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. Reserve Activity Incurred Losses Total incurred losses are driven by: (i) case reserves established for new default notices, which are primarily impacted by both the number of new primary default notices received in the period and our related gross Default to Claim Rate and Claim Severity assumptions applied to those new defaults and (ii) reserve developments on prior period defaults, which are primarily impacted by changes to our prior Default to Claim Rate and Claim Severity assumptions applied to these loans. New primary default notices totaled 37,350 for the nine months ended September 30, 2025, compared to 36,568 for the nine months ended September 30, 2024, representing an increase of 2%. Our gross Default to Claim Rate assumption applied to new defaults was 7.5% and 8.0% as of September 30, 2025, and September 30, 2024, respectively, based on our review of trends in Cures and claims paid for our default inventory and taking into consideration the risks and uncertainties associated with the current economic environment. Our provision for losses during both the first nine months of 2025 and 2024 was positively impacted by favorable reserve development on prior year defaults, primarily as a result of more favorable trends in Cures than originally estimated. These Cures have been due primarily to favorable outcomes resulting from positive trends in home price appreciation, which has also contributed to a higher rate of claims that result in no ultimate loss to us and that are withdrawn by servicers as a result. These favorable observed trends for prior year default notices resulted in reductions in our Default to Claim Rate and other reserve assumptions in both of the first nine months of 2025 and 2024, including our Claim Severity assumptions in 2024. Claims Paid Total claims paid were slightly higher for the nine months ended September 30, 2025, compared to the same period in 2024, consistent with the natural seasoning of our insured portfolio. For additional information about our Reserve for Losses and LAE, including our accounting policies, see Notes 2 and 11 of Notes to Consolidated Financial Statements in our 2024 Form 10-K.

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