Note 9 - Losses and LAE (Tables)

3 Months Ended

Mar. 31, 2015

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)	March 31, 2015		December 31, 2014
Reserves for losses by category:
Prime	$	640,919	$	700,174
Alt-A	278,350		292,293
A minus and below	163,390		179,103
IBNR and other	167,204		223,114
LAE	53,210		56,164
Reinsurance recoverable (1)	13,365		26,665
Total primary reserves	1,316,438		1,477,513
Pool	62,943		75,785
IBNR and other	1,227		1,775
LAE	3,051		3,542
Total pool reserves	67,221		81,102
Total First-lien reserves	1,383,659		1,558,615
Second-lien and other (2)	1,055		1,417
Total reserve for losses	$	1,384,714	$	1,560,032

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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 March 31,
(In thousands)	2015			2014
Mortgage Insurance
Balance at beginning of period	$	1,560,032		$	2,164,353
Less reinsurance recoverables (1)	26,665			38,363
Balance at beginning of period, net of reinsurance recoverables	1,533,367			2,125,990
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	80,437			108,849			(3)
Prior years	(35,360		)	(59,689		)	(3)
Total incurred	45,077			49,160
Deduct paid claims and LAE related to:
Current year (2)	—			—
Prior years	207,095			306,941
Total paid	207,095			306,941
Balance at end of period, net of reinsurance recoverables	1,371,349			1,868,209
Add reinsurance recoverables (1)	13,365			25,751
Balance at end of period	$	1,384,714		$	1,893,960

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(1)	Related to ceded losses on captive reinsurance transactions and the QSR Reinsurance Transactions. See Note 7 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.

(3)

Amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year and prior years have been reclassified to correct an error. There was no net change to total incurred losses in any period as a result of these reclassifications. For the three months ended March 31, 2014, the amounts previously reported for losses and LAE incurred in respect of default notices reported and unreported in current year have been revised downward by approximately $33.8 million, with an equal and offsetting adjustment to the amount previously reported for default notices reported and unreported in prior years. For the years ended December 31, 2014, 2013 and 2012, the amounts previously reported related to losses and LAE incurred from current year default notices should have been lower by approximately $71.8 million, $65.0 million and $75.7 million, respectively, with equal and offsetting adjustments to the incurred loss amounts related to prior years’ default notices.

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 previous Rescissions or Claim Denials within each period. Net (reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement prior to the February 1, 2015 Implementation Date represent such activities on loans that subsequently became subject to the BofA Settlement Agreement.



	Three Months Ended March 31,
(In millions)	2015			2014
Rescissions	$	3.8		$	6.4
Claim Denials	5.6			18.9
Net (reinstatements), Rescissions or Claim Denials related to the BofA Settlement Agreement	(24.1		)	3.0
Net First-lien claims submitted for payment that were (reinstated), rescinded or denied (1)	$	(14.7	)	$	28.3

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