Reserves for Insurance Claims and Claim Expenses (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Reconciliation of Liability for Insurance Claims and Claim Expenses

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


	For the nine months ended September 30,
	2025		2024
	(In Thousands)
Beginning balance	$	152,071	$	123,974
Less reinsurance recoverables (1)	(32,260)		(27,514)
Beginning balance, net of reinsurance recoverables	119,811		96,460

Add claims incurred:
Claims and claim expenses incurred:
Current year (2)	88,584		71,532
Prior years (3)	(52,440)		(57,241)
Total claims and claim expenses incurred (4)	36,144		14,291

Less claims paid:
Claims and claim expenses paid:
Current year (2)	280		180
Prior years (3)	12,607		4,265
Reinsurance terminations (5)	(1,964)		—
Total claims and claim expenses paid	10,923		4,445

Reserve at end of period, net of reinsurance recoverables	145,032		106,306
Add reinsurance recoverables (1)	35,315		29,214
Ending balance	$	180,347	$	135,520

(1) Related to ceded losses recoverable under the QSR Transactions. 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 and included $77.2 million attributed to net case reserves and $9.8 million attributed to net IBNR reserves for the nine months ended September 30, 2025 and $63.2 million attributed to net case reserves and $7.0 million attributed to net IBNR reserves for the nine months ended September 30, 2024.

(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 and included $43.2 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the nine months ended September 30, 2025 and $49.8 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the nine months ended September 30, 2024.

(4) Excludes aggregate termination fees of $0.3 million for the nine months ended September 30, 2025 incurred in connection with the termination of the 2016 QSR Transaction and amendment of the 2018 and 2021 QSR Transactions.

(5) Represents the settlement of reinsurance recoverables in conjunction with the termination of the 2016 QSR Transaction and amendment of the 2018 and 2021 QSR Transactions.