Note 10 - Losses and Loss Adjustment Expense (Tables)

3 Months Ended

Mar. 31, 2019

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



(In thousands)	March 31, 2019		December 31, 2018
Mortgage insurance loss reserves	$	385,361	$	397,891
Services loss reserves (1)	3,423		3,470
Total reserve for losses and LAE	$	388,784	$	401,361

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(1)

A majority of this amount is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheet, and relates to EnTitle Insurance. See Note 7 for information about our use of reinsurance in our title insurance business.

Mortgage Insurance Reserve for Losses and LAE by Category

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, 2019		December 31, 2018
Reserve for losses by category (1):
Prime	$	240,489	$	242,135
Alt-A and A minus and below	111,955		119,553
IBNR and other	13,008		13,864
LAE	8,994		10,271
Total primary reserves	374,446		385,823
Total pool reserves	10,621		11,640
Total First-lien reserves	385,067		397,463
Other (2)	294		428
Total reserve for losses	$	385,361	$	397,891

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(1)	Includes ceded losses on reinsurance transactions, which are expected to be recovered and are included in the reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. See Note 8.

(2)

Does not include our second-lien premium deficiency reserve that is included in other liabilities.

Mortgage Insurance Reserve for Losses and LAE Rollforward

The following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE, but excluding our second-lien mortgage loan premium deficiency reserve, for the periods indicated:



	Three Months Ended March 31,
(In thousands)	2019			2018
Balance at beginning of period	$	397,891		$	507,588
Less: Reinsurance recoverables (1)	11,009			8,350
Balance at beginning of period, net of reinsurance recoverables	386,882			499,238
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	38,922			36,516
Prior years	(18,173		)	391
Total incurred	20,749			36,907
Deduct: Paid claims and LAE related to:
Current year (2)	295			226
Prior years	34,294			59,700
Total paid	34,589			59,926
Balance at end of period, net of reinsurance recoverables	373,042			476,219
Add: Reinsurance recoverables (1)	12,319			8,973
Balance at end of period	$	385,361		$	485,192

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(1)	Related to ceded losses recoverable, if any, on 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.