Note 11 - Losses and LAE (Tables)

9 Months Ended

Sep. 30, 2021

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


Reserve for losses and LAE

(In thousands)	September 30, 2021		December 31, 2020
Mortgage insurance loss reserves (1)	$	888,021	$	844,107
Title insurance loss reserves	5,134		4,306
Total reserve for losses and LAE	$	893,155	$	848,413

(1)Primarily comprises first lien primary case reserves of $851.2 million and $799.5 million at September 30, 2021 and December 31, 2020, 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.


Rollforward of mortgage insurance reserve for losses

	Nine Months Ended September 30,
(In thousands)	2021		2020
Balance at beginning of period	$	844,107	$	401,273
Less: Reinsurance recoverables (1)	71,769		14,594
Balance at beginning of period, net of reinsurance recoverables	772,338		386,679
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)	119,823		448,584
Prior years	(53,947)		(21,494)
Total incurred	65,876		427,090
Deduct: Paid claims and LAE related to:
Current year (2)	499		2,841
Prior years	24,431		54,167
Total paid	24,930		57,008
Balance at end of period, net of reinsurance recoverables	813,284		756,761
Add: Reinsurance recoverables (1)	74,737		64,947
Balance at end of period	$	888,021	$	821,708

(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.