Note 11 - Losses and Loss Adjustment Expense (Tables)

9 Months Ended

Sep. 30, 2020

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


(In thousands)	September 30, 2020		December 31, 2019
Mortgage insurance loss reserves (1)	$	821,708	$	401,273
Title insurance loss reserves	4,084		3,492
Total reserve for losses and LAE	$	825,792	$	404,765

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(1)Primarily comprises first lien primary case reserves of $744.6 million and $339.8 million at September 30, 2020 and December 31, 2019, respectively.

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)	2020		2019
Balance at beginning of period	$	401,273	$	397,891
Less: Reinsurance recoverables (1)	14,594		11,009
Balance at beginning of period, net of reinsurance recoverables	386,679		386,882
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	448,584		107,866
Prior years	(21,494)		(10,579)
Total incurred	427,090		97,287
Deduct: Paid claims and LAE related to:
Current year (2)	2,841		1,784
Prior years	54,167		101,927
Total paid	57,008		103,711
Balance at end of period, net of reinsurance recoverables	756,761		380,458
Add: Reinsurance recoverables (1)	64,947		13,629
Balance at end of period	$	821,708	$	394,087

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(1)Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 8 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.