Reserve for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2016

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

Schedule of reconciliation of beginning and ending reserve balances for losses and loss adjustment expenses (LAE)

The following table summarizes incurred loss and allocated loss adjustment expense development, IBNR plus expected development on reported defaults and the cumulative number of reported defaults. The information about incurred loss development for the years ended December 31, 2010 to 2015 is presented as supplementary information.

($ in thousands)	Incurred Loss and Allocated LAE, For the Years Ended December 31,														As of December 31, 2016
Accident Year	2010 Unaudited		2011 Unaudited		2012 Unaudited		2013 Unaudited		2014 Unaudited		2015 Unaudited		2016		Total of IBNR plus Expected Development on Reported Defaults		Cumulative Number of Reported Defaults (1)
2010	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	—
2011			57		—		—		—		—		—		—		1
2012					1,523		858		814		781		748		6		19
2013							2,986		2,461		2,008		1,997		16		52
2014									6,877		4,312		3,323		60		104
2015											14,956		9,625		416		300
2016													21,889		1,434		1,559
Total													$	37,582
(1) Cumulative number of reported defaults includes cumulative paid claims plus loans in default by accident year as of December 31, 2016.

The following table summarizes cumulative paid losses and allocated loss adjustment expenses, net of reinsurance. The information about paid loss development for the years ended December 31, 2010 through 2015 is presented as supplementary information.

($ in thousands)	Cumulative Paid Losses and Allocated LAE For the Years Ended December 31,
Accident Year	2010 Unaudited		2011 Unaudited		2012 Unaudited		2013 Unaudited		2014 Unaudited		2015 Unaudited		2016
2010	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2011			—		—		—		—		—		—
2012					24		535		659		665		665
2013							239		928		1,501		1,775
2014									138		1,587		2,463
2015											544		3,610
2016													927
Total													$	9,440
All outstanding liabilities before 2010, net of reinsurance													—
Reserve for losses and LAE, net of reinsurance													$	28,142

For our mortgage insurance portfolio, our average annual payout of losses as of December 31, 2016 is as follows:

Average Annual Percentage Payout of Incurred Losses and Allocated LAE by Year
Year	1		2		3		4		5
Average Payout	6	%	45	%	24	%	7	%	0	%

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)	2016			2015
Reserve for losses and LAE at beginning of year	$	17,760		$	8,427
Less: Reinsurance recoverables	—			—
Net reserve for losses and LAE at beginning of year	17,760			8,427
Add provision for losses and LAE, net of reinsurance, occurring in:
Current year	21,889			14,956
Prior years	(6,364		)	(3,051		)
Net incurred losses during the current year	15,525			11,905
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current year	927			544
Prior years	4,216			2,028
Net loss and LAE payments during the current year	5,143			2,572
Net reserve for losses and LAE at end of year	28,142			17,760
Plus: Reinsurance recoverables	—			—
Reserve for losses and LAE at end of year	$	28,142		$	17,760
Loans in default at end of year	1,757			1,028