Note 8 - Losses and LAE (Tables)

3 Months Ended

Mar. 31, 2013

Losses and LAE Mortgage Insurance [Abstract]

Loss Reserves By Segment [Table Text Block]

Our reserve for losses and LAE, as of the dates indicated, consisted of:

(In thousands)	March 31, 2013		December 31, 2012
Mortgage insurance reserves	$	2,894,500	$	3,083,608
Financial guaranty reserves	24,573		66,328
Total reserve for losses and LAE	$	2,919,073	$	3,149,936

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense [Table Text Block]

The following table presents information relating to our mortgage insurance reserves for losses, including our estimate of defaults incurred but not reported (“IBNR”), and LAE as of the dates indicated:

	Three Months Ended March 31,
(In thousands)	2013			2012
Mortgage Insurance
Balance at beginning of period	$	3,083,608		$	3,247,900
Less reinsurance recoverables (1)	83,238			151,569
Balance at beginning of period, net of reinsurance recoverables	3,000,370			3,096,331
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	182,534			218,345
Prior years	(50,578		)	16,384
Total incurred	131,956			234,729
Deduct paid claims and LAE related to:
Current year (2)	—			—
Prior years	309,927			218,193
Total paid	309,927			218,193
Balance at end of period, net of reinsurance recoverables	2,822,399			3,112,867
Add reinsurance recoverables (1)	72,101			118,071
Balance at end of period	$	2,894,500		$	3,230,938

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(1) Related to ceded losses on captive reinsurance transactions, capital markets reinsurance transactions (“Smart Home”) and quota share reinsurance transactions.

(2) Related to underlying defaulted loans with a most recent date of default notice in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.

Rescissions And Denials [Table Text Block]

The following table illustrates the amount of first-lien claims submitted to us for payment that were rescinded or denied, for the periods indicated, net of any reinstatements of previously rescinded policies or denied claims within each period:

	Three Months Ended March 31,
(In millions)	2013		2012
Rescissions	$	15.3	$	33.3
Denials	27.2		212.4
Total first-lien claims submitted for payment that were rescinded or denied (1)	$	42.5	$	245.7

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(1) Includes an amount related to a small number of submitted claims that were subsequently withdrawn by the insured.

Projected Rescission and Denial Rates [Table Text Block]

The following table shows the cumulative rescission/denial rates in our total first-lien portfolio, net of both actual and expected reinstatements, as of March 31, 2013, with respect to claims received in each quarter indicated below:

Claim Received Quarter	Cumulative Rescission/Denial Rate for Each Quarter (1)	Percentage of Total Claims Resolved (2)
Q3 2010	16.1%	100%
Q4 2010	17.5%	100%
Q1 2011	20.9%	99%
Q2 2011	25.8%	99%
Q3 2011	31.2%	99%
Q4 2011	27.6%	97%
Q1 2012	22.8%	91%
Q2 2012	19.2%	73%
Q3 2012	15.3%	55%

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(1) The cumulative rescission/denial rates represent the ratio of claims rescinded or denied to claims received (by claim count). Rescissions and denials are net of actual reinstatements, plus our current estimate for expected reinstatements of previously rescinded or denied claims. These amounts represent the cumulative rates for each quarter as of March 31, 2013. As discussed in footnote (2) below, these rates remain subject to change based on differences between estimated and actual reinstatements of previously rescinded policies or denied claims. Until all of the claims received during the periods shown have been internally resolved, the rescission/denial rates for each quarter are projections and remain subject to change.

(2) The percentage of claims resolved for each quarter presented in the table above, represents the number of claims that have been internally resolved as a percentage of the total number of claims received for that specific quarter. A claim is considered internally resolved when it is either paid or it is concluded that the claim should be denied or rescinded, though such denials or rescissions could be challenged and, potentially reinstated or overturned. For the fourth quarter of 2012 and first quarter of 2013, a significant portion of claims received for those quarters have not been internally resolved; therefore, we do not believe the cumulative rescission/denial rates for those periods are presently meaningful.