Note 10 - Losses and LAE (Tables)

9 Months Ended

Sep. 30, 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)	September 30, 2016		December 31, 2015
Reserves for losses by category:
Prime	$	409,438	$	480,481
Alt-A	166,349		203,706
A minus and below	106,678		129,352
IBNR and other (1)	73,057		83,066
LAE	21,255		26,108
Reinsurance recoverable (2)	6,448		8,286
Total primary reserves	783,225		930,999
Pool	36,065		42,084
IBNR and other	823		1,118
LAE	1,112		1,335
Reinsurance recoverable (2)	36		—
Total pool reserves	38,036		44,537
Total First-lien reserves	821,261		975,536
Second-lien and other (3)	673		863
Total reserve for losses	$	821,934	$	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 our Second-lien premium deficiency reserve, for the periods indicated:



	Nine Months Ended September 30,
(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)	152,320			184,490
Prior years	(3,906		)	(42,158		)
Total incurred	148,414			142,332
Deduct: Paid claims and LAE related to:
Current year (2)	2,725			3,417
Prior years	298,352			584,783
Total paid	301,077			588,200
Balance at end of period, net of reinsurance recoverables	815,450			1,087,499
Add: Reinsurance recoverables (1)	6,484			11,071
Balance at end of period	$	821,934		$	1,098,570

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