Reserves for Insurance Claims and Claim Expenses (Tables)

6 Months Ended

Jun. 30, 2019

Reconciliation of Liability for Insurance Claims and Claim Expenses

The following table provides a reconciliation of the beginning and ending reserve balances for primary insurance claims and claim expenses:



	For the six months ended June 30,
	2019			2018
	(In Thousands)
Beginning balance	$	12,811		$	8,761
Less reinsurance recoverables ⁽¹⁾	(3,001		)	(1,902		)
Beginning balance, net of reinsurance recoverables	9,810			6,859

Add claims incurred:
Claims and claim expenses incurred:
Current year ⁽²⁾	7,401			3,152
Prior years⁽³⁾	(1,735		)	(940		)
Total claims and claim expenses incurred	5,666			2,212

Less claims paid:
Claims and claim expenses paid:
Current year ⁽²⁾	—			—
Prior years ⁽³⁾	1,368			852
Reinsurance terminations ⁽⁴⁾	(549		)	—
Total claims and claim expenses paid	819			852

Reserve at end of period, net of reinsurance recoverables	14,657			8,219
Add reinsurance recoverables ⁽¹⁾	3,775			2,382
Ending balance	$	18,432		$	10,601


⁽¹⁾	Related to ceded losses recoverable on the QSR Transactions, included in "Other Assets" on the Condensed Consolidated Balance Sheets. See Note 5, "Reinsurance" for additional information.


⁽²⁾	Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan had defaulted in a prior year and subsequently cured and later re-defaulted in the current year, that default would be included in the current year. Amounts are presented net of reinsurance.


⁽³⁾	Related to insured loans with defaults occurring in prior years, which have been continuously in default since that time. Amounts are presented net of reinsurance.

⁽⁴⁾

Represents the settlement of reinsurance recoverables in conjunction with the termination of one reinsurer under the 2016 QSR Transaction on a cut-off basis. See Note 5, "Reinsurance" for additional information.