Loss Reserves (Tables)

3 Months Ended

Mar. 31, 2024

Insurance Loss Reserves [Abstract]

Reconciliation of beginning and ending loss reserves

Table 11.1 provides a reconciliation of beginning and ending loss reserves as of and for the three months ended March 31, 2024 and 2023.

Development of reserves for losses and loss adjustment expenses
Table	11.1
		Three Months Ended March 31,
(In thousands)		2024		2023
Reserve at beginning of period		$	505,379	$	557,988
Less reinsurance recoverable		33,302		28,240
Net reserve at beginning of period		472,077		529,748
Losses incurred:
Losses and LAE incurred in respect of delinquency notices received in:
Current year		53,436		47,212
Prior years (1)		(48,881)		(40,766)
Total losses incurred		4,555		6,446
Losses paid:
Losses and LAE paid in respect of delinquency notices received in:
Current year		—		—
Prior years		11,385		10,440
Total losses paid		11,385		10,440
Net reserve at end of period		465,247		525,754
Plus reinsurance recoverable		39,200		32,761
Reserve at end of period		$	504,447	$	558,515

(1)A positive number for prior year loss reserve development indicates a deficiency of prior year reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss reserve development.

Prior year development of the reserves

The prior year loss reserve development for the three months ended March 31, 2024 and 2023 is shown in table 11.2 below.

Reserve development on previously received delinquencies
Table	11.2
		Three Months Ended March 31,
(In thousands)		2024		2023
Increase (decrease) in estimated claim rate on primary defaults		$	(41,079)	$	(43,431)
Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other		(7,802)		2,665
Total prior year loss development (1)		$	(48,881)	$	(40,766)

(1)A positive number for prior year loss reserve development indicates a deficiency of prior year loss reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves.