Loss Reserves (Tables)

9 Months Ended

Sep. 30, 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 nine months ended September 30, 2025 and 2024.

Development of reserves for losses and loss adjustment expenses
Table	11.1
		Nine Months Ended September 30,
(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		154,162		158,317
Prior years (1)		(136,478)		(181,876)
Total losses incurred		17,684		(23,559)
Losses paid:
Losses and LAE paid in respect of delinquency notices received in:
Current year		154		133
Prior years		38,316		33,138
Total losses paid		38,470		33,271
Net reserve at end of period		394,595		415,247
Plus reinsurance recoverable		57,565		45,327
Reserve at end of period		$	452,160	$	460,574

(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 nine months ended September 30, 2025 and 2024 is shown in table 11.2 below.

Reserve development on previously received delinquencies
Table	11.2
		Nine Months Ended September 30,
(In thousands)		2025		2024
Increase (decrease) in estimated claim rate on primary defaults		$	(126,145)	$	(162,609)
Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other		(10,333)		(19,267)
Total prior year loss development (1)		$	(136,478)	$	(181,876)

(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.