Note 9 - Losses and LAE (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Liability for Future Policy Benefits, by Product Segment [Table Text Block]

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



(In thousands)	March 31, 2016		December 31, 2015
Reserves for losses by category:
Prime	$	438,598	$	480,481
Alt-A	183,189		203,706
A minus and below	116,835		129,352
IBNR and other (1)	79,051		83,066
LAE	23,600		26,108
Reinsurance recoverable (2)	8,239		8,286
Total primary reserves	849,512		930,999
Pool	38,843		42,084
IBNR and other	1,050		1,118
LAE	1,227		1,335
Total pool reserves	41,120		44,537
Total First-lien reserves	890,632		975,536
Second-lien and other (3)	716		863
Total reserve for losses	$	891,348	$	976,399

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(1)	Primarily related to expected payments under the Freddie Mac Agreement.


(2)	Represents ceded losses on captive transactions, the QSR Transactions and the Single Premium QSR Transaction.


(3)	Does not include our Second-lien premium deficiency reserve 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 reserve for losses, including our IBNR reserve and LAE but excluding Second-lien premium deficiency reserve, for the periods indicated:



	Three Months Ended March 31,
(In thousands)	2016			2015
Balance at beginning of period	$	976,399		$	1,560,032
Less reinsurance recoverables (1)	8,286			26,665
Balance at beginning of period, net of reinsurance recoverables	968,113			1,533,367
Add losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	56,171			80,437
Prior years	(13,504		)	(35,360		)
Total incurred	42,667			45,077
Deduct paid claims and LAE related to:
Current year (2)	65			—
Prior years	127,606			207,095
Total paid	127,671			207,095
Balance at end of period, net of reinsurance recoverables	883,109			1,371,349
Add reinsurance recoverables (1)	8,239			13,365
Balance at end of period	$	891,348		$	1,384,714

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(1)	Related to ceded losses recoverable, on captive reinsurance transactions, the QSR Transactions and the Single Premium QSR Transaction, if any. 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.