Loss Reserves (Tables)

6 Months Ended

Jun. 30, 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 six months ended June 30, 2024 and 2023.

Development of reserves for losses and loss adjustment expenses
Table	11.1
		Six Months Ended June 30,
(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		102,553		89,465
Prior years (1)		(116,270)		(100,710)
Total losses incurred		(13,717)		(11,245)
Losses paid:
Losses and LAE paid in respect of delinquency notices received in:
Current year		52		25
Prior years		23,040		22,272
Total losses paid		23,092		22,297
Net reserve at end of period		435,268		496,206
Plus reinsurance recoverable		42,346		34,475
Reserve at end of period		$	477,614	$	530,681

(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 six months ended June 30, 2024 and 2023 is shown in table 11.2 below.

Reserve development on previously received delinquencies
Table	11.2
		Six Months Ended June 30,
(In thousands)		2024		2023
Increase (decrease) in estimated claim rate on primary defaults		$	(101,008)	$	(99,148)
Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other		(15,262)		(1,562)
Total prior year loss development (1)		$	(116,270)	$	(100,710)

(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.