Reserve for Losses and Loss Adjustment Expenses

12 Months Ended

Dec. 31, 2015

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Reserve for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses ("LAE") for the years ended December 31:



($ in thousands)	2015			2014
Reserve for losses and LAE at beginning of year	$	8,427		$	3,070
Less: Reinsurance recoverables	—			—
Net reserve for losses and LAE at beginning of year	8,427			3,070
Add provision for losses and LAE, net of reinsurance, occurring in:
Current year	14,956			6,877
Prior years	(3,051		)	(569		)
Net incurred losses during the current year	11,905			6,308
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current year	544			138
Prior years	2,028			813
Net loss and LAE payments during the current year	2,572			951
Net reserve for losses and LAE at end of year	17,760			8,427
Plus: Reinsurance recoverables	—			—
Reserve for losses and LAE at end of year	$	17,760		$	8,427

Loans in default at end of year	1,028			457

For the year ended December 31, 2015, $2.0 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There has been a $3.1 million favorable prior year development during the year ended December 31, 2015. Reserves remaining as of December 31, 2015 for prior years are $3.3 million as a result of re- estimation of unpaid losses and loss adjustment expenses. For the year ended December 31, 2014, $0.8 million was paid for incurred claims and claim adjustment expenses attributable to insured events of prior years. There was a $0.6 million favorable prior-year development during the year ended December 31, 2014. Reserves remaining as of December 31, 2014 for prior years were $1.7 million as a result of re-estimation of unpaid losses and loss adjustment expenses. In both periods, the favorable prior years' loss development is the result of a re-estimation of amounts ultimately to be paid on prior year defaults in the default inventory, including the impact of previously identified defaults that cured. Original estimates are increased or decreased as additional information becomes known regarding individual claims.