Note 9 - Losses and LAE (Tables)

9 Months Ended

Sep. 30, 2014

Loss Reserves By Segment [Table Text Block]

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



(In thousands)	September 30, 2014		December 31, 2013
Mortgage insurance reserves	$	1,588,131	$	2,164,353
Financial guaranty reserves	32,220		21,068
Total reserve for losses and LAE	$	1,620,351	$	2,185,421

Reserve for Losses and LAE by category [Table Text Block]

The following table shows our mortgage insurance reserve for losses and LAE by category at the end of each period indicated:



(In thousands)	September 30, 2014		December 31, 2013
Reserves for losses by category:
Prime	$	721,811	$	937,307
Alt-A	308,283		384,841
A minus and below	182,885		215,545
IBNR and other	212,908		347,698
LAE	52,690		51,245
Reinsurance recoverable (1)	21,201		38,363
Total primary reserves	1,499,778		1,974,999
Pool	80,664		169,682
IBNR and other	2,468		8,938
LAE	3,434		5,439
Total pool reserves	86,566		184,059
Total First-lien reserves	1,586,344		2,159,058
Second-lien and other (2)	1,787		5,295
Total reserve for losses	$	1,588,131	$	2,164,353

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(1)	Primarily represents ceded losses on captive transactions and the QSR Reinsurance Transactions.


(2)	Does not include our Second-lien PDR that is included in other liabilities.

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 IBNR reserves and LAE but excluding Second-lien PDR, for the periods indicated:



	Three Months Ended September 30,					Nine Months Ended September 30,
(In thousands)	2014			2013		2014			2013
Mortgage Insurance
Balance at beginning of period	$	1,714,681		$	2,690,861	$	2,164,353		$	3,083,608
Less reinsurance recoverables (1)	22,458			58,427		38,363			83,238
Balance at beginning of period, net of reinsurance recoverables	1,692,223			2,632,434		2,125,990			3,000,370
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	106,927			140,015		339,496			477,155
Prior years	(58,370		)	11,997		(177,514		)	(56,777		)
Total incurred	48,557			152,012		161,982			420,378
Deduct paid claims and LAE related to:
Current year (2)	2,911			21,334		3,348			21,483
Prior years	170,939			498,002		717,694			1,134,155
Total paid	173,850			519,336		721,042			1,155,638
Balance at end of period, net of reinsurance recoverables	1,566,930			2,265,110		1,566,930			2,265,110
Add reinsurance recoverables (1)	21,201			49,675		21,201			49,675
Balance at end of period	$	1,588,131		$	2,314,785	$	1,588,131		$	2,314,785

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(1)	Related to ceded losses on captive reinsurance transactions and the QSR Reinsurance Transactions. See Note 8 for additional information.


(2)	Related to underlying defaulted loans with a most recent default notice dated 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 September 30,				Nine Months Ended September 30,
(In millions)	2014		2013		2014		2013
Rescissions	$	14.5	$	21.6	$	48.3	$	56.5
Denials	39.0		4.1		45.0		131.3
Total First-lien claims submitted for payment that were rescinded or denied (1)	$	53.5	$	25.7	$	93.3	$	187.8

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