Note 10 - Losses and LAE (Tables)

6 Months Ended

Jun. 30, 2018

Schedule of Liability for Unpaid Claims and Claim Adjustment Expenses, by Segment [Table Text Block]

Our reserve for losses and LAE, at the end of each period indicated, consisted of:



(In thousands)	June 30, 2018		December 31, 2017
Mortgage insurance loss reserves	$	448,094	$	507,588
Services loss reserves (1)	3,448		—
Total reserve for losses and LAE	$	451,542	$	507,588

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(1)	A majority of this amount is included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheet, and relates to the acquisition of EnTitle Direct, completed on March 27, 2018.

Schedule of Liability for Future Policy Benefits, by Product Segment [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)	June 30, 2018		December 31, 2017
Reserves for losses by category:
Prime	$	255,284	$	285,022
Alt-A and A minus and below	144,379		170,873
IBNR and other	14,246		16,021
LAE	12,228		13,349
Reinsurance recoverable (1)	9,317		8,315
Total primary reserves	435,454		493,580
Total pool reserves (2)	12,197		13,463
Total First-lien reserves	447,651		507,043
Other (3)	443		545
Total reserve for losses	$	448,094	$	507,588

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(1)	Represents ceded losses on captive reinsurance transactions, the QSR Program and the Single Premium QSR Program.


(2)	Includes reinsurance recoverable of $24 thousand and $35 thousand as of June 30, 2018 and December 31, 2017, respectively.


(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 mortgage insurance reserve for losses, including our IBNR reserve and LAE but excluding our Second-lien premium deficiency reserve, for the periods indicated:



	Six Months Ended June 30,
(In thousands)	2018			2017
Balance at beginning of period	$	507,588		$	760,269
Less: Reinsurance recoverables (1)	8,350			6,851
Balance at beginning of period, net of reinsurance recoverables	499,238			753,418
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	67,286			88,906
Prior years	(11,311		)	(24,721		)
Total incurred	55,975			64,185
Deduct: Paid claims and LAE related to:
Current year (2)	1,091			1,027
Prior years	115,369			172,356
Total paid	116,460			173,383
Balance at end of period, net of reinsurance recoverables	438,753			644,220
Add: Reinsurance recoverables (1)	9,341			7,371
Balance at end of period	$	448,094		$	651,591

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