Note 10 - Losses and Loss Adjustment Expense (Tables)

9 Months Ended

Sep. 30, 2019

Insurance Loss Reserves [Abstract]

Reserve for Losses and LAE by Segment

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

(In thousands)	September 30, 2019		December 31, 2018
Mortgage Insurance loss reserves	$	394,087	$	397,891
Services loss reserves (1)	4,054		3,470
Total reserve for losses and LAE	$	398,141	$	401,361

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(1)

The Services loss reserves relate to Radian Title Insurance and the majority is subject to reinsurance, with the related reinsurance recoverables reported in other assets in our condensed consolidated balance sheets. For all periods presented, total incurred losses and paid claims for Radian Title Insurance were not material. See Note 8 of Notes to Consolidated Financial Statements in our 2018 Form 10-K for additional information about our use of reinsurance in our title insurance business.

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:

	Nine Months Ended September 30,
(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)	107,866			100,047
Prior years	(10,579		)	(24,075		)
Total incurred	97,287			75,972
Deduct: Paid claims and LAE related to:
Current year (2)	1,784			2,316
Prior years	101,927			173,911
Total paid	103,711			176,227
Balance at end of period, net of reinsurance recoverables	380,458			398,983
Add: Reinsurance recoverables (1)	13,629			9,997
Balance at end of period	$	394,087		$	408,980

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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.