Reserves for Insurance Claims and Claim Expenses (Tables)

3 Months Ended

Mar. 31, 2020

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 three months ended March 31,
	2020		2019
	(In Thousands)
Beginning balance	$	23,752	$	12,811
Less reinsurance recoverables ⁽¹⁾	(4,939)		(3,001)
Beginning balance, net of reinsurance recoverables	18,813		9,810

Add claims incurred:
Claims and claim expenses incurred:
Current year ⁽²⁾	7,558		3,909
Prior years⁽³⁾	(1,861)		(1,166)
Total claims and claim expenses incurred	5,697		2,743

Less claims paid:
Claims and claim expenses paid:
Current year ⁽²⁾	—		—
Prior years ⁽³⁾	1,224		694

Total claims and claim expenses paid	1,224		694

Reserve at end of period, net of reinsurance recoverables	23,286		11,859
Add reinsurance recoverables ⁽¹⁾	6,193		3,678
Ending balance	$	29,479	$	15,537

⁽¹⁾ Related to ceded losses recoverable under 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 defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the 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 before the start of the current year. Amounts are presented net of reinsurance.