Loss Reserves (Tables)

3 Months Ended

Mar. 31, 2025

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, 2025 and 2024.

Development of reserves for losses and loss adjustment expenses
Table	11.1
		Three Months Ended March 31,
(In thousands)		2025		2024
Reserve at beginning of period		$	462,662	$	505,379
Less reinsurance recoverable		47,281		33,302
Net reserve at beginning of period		415,381		472,077
Losses incurred:
Losses and LAE incurred in respect of delinquency notices received in:
Current year		59,497		53,436
Prior years (1)		(49,906)		(48,881)
Total losses incurred		9,591		4,555
Losses paid:
Losses and LAE paid in respect of delinquency notices received in:
Current year		—		—
Prior years		11,803		11,385
Total losses paid		11,803		11,385
Net reserve at end of period		413,169		465,247
Plus reinsurance recoverable		51,864		39,200
Reserve at end of period		$	465,033	$	504,447

(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, 2025 and 2024 is shown in table 11.2 below.

Reserve development on previously received delinquencies
Table	11.2
		Three Months Ended March 31,
(In thousands)		2025		2024
Increase (decrease) in estimated claim rate on primary defaults		$	(46,497)	$	(41,079)
Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other		(3,409)		(7,802)
Total prior year loss development (1)		$	(49,906)	$	(48,881)

(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.