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Losses and LAE (Tables)
 12 Months Ended
Dec. 31, 2021
Insurance Loss Reserves [Abstract]  
Schedule of Liability for Unpaid Claims and Claim Adjustment Expenses, by Segment
Our reserve for losses and LAE, at the end of each period indicated, consisted of the following.
Reserve for losses and LAE
December 31,
(In thousands)20212020
Mortgage insurance loss reserves (1)
$823,136 $844,107 
Title insurance loss reserves5,506 4,306 
Total reserve for losses and LAE$828,642 $848,413 
(1)Primarily comprises first-lien primary case reserves of $790.4 million and $799.5 million at December 31, 2021 and 2020, respectively.
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense For the periods indicated, the following table presents information relating to our mortgage insurance reserve for losses, including our IBNR reserve and LAE.
Rollforward of mortgage insurance reserve for losses
Years Ended December 31,
(In thousands)202120202019
Balance at January 1,$844,107 $401,273 $397,891 
Less: Reinsurance recoverables (1)
71,769 14,594 11,009 
Balance at January 1, net of reinsurance recoverables772,338 386,679 386,882 
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)
160,565 517,807 146,733 
Prior years(141,126)(34,547)(14,709)
Total incurred19,439 483,260 132,024 
Deduct: Paid claims and LAE related to:
Current year (2)
1,112 4,148 4,220 
Prior years34,205 93,453 128,007 
Total paid35,317 97,601 132,227 
Balance at end of period, net of reinsurance recoverables756,460 772,338 386,679 
Add: reinsurance recoverables (1)
66,676 71,769 14,594 
Balance at December 31,$823,136 $844,107 $401,273 
(1)Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 8 for additional information.
(2)Related to underlying defaulted loans with a most recent default notice dated in the year indicated. For example, if a loan had defaulted in a prior year, but then subsequently cured and later re-defaulted in the current year, that default would be considered a current year default.
Schedule of Default to Claim Rates on Primary Portfolio
The following table shows our gross Default to Claim Rates on our primary portfolio based on the Time in Default and as of the dates indicated.
Default to Claim Rates
December 31,
202120202019
Default to Claim Rate on:
New defaults8.0 %8.5 %7.5 %
Defaults not in Foreclosure Stage
Time in Default: < 2 years (1)
41.6 %21.0 %22.0 %
Time in Default: 2 - 5 years75.0 %62.5 %48.0 %
Time in Default: > 5 years80.0 %70.0 %63.0 %
Foreclosure Stage Defaults85.0 %75.0 %70.0 %
(1)Represents the weighted average Default to Claim Rate for all defaults not in foreclosure stage that have been in default for up to two years, including new defaults. The estimated Default to Claim Rates applied to defaults within this population vary by Time in Default, and range from the Default to Claim Rates on new defaults shown above, up to 80.1%, 55.0% and 55.6% for more aged defaults in this category as of December 31, 2021, 2020 and 2019, respectively.
Short-duration Insurance Contracts, Claims Development
The information about net incurred losses and paid claims development for the years ended prior to 2021 is presented as supplementary information.
Incurred losses, net of reinsurance
Total of IBNR Liabilities Plus Expected Development on Reported Claims (1)
Cumulative Number of Reported Defaults (2)
($ in thousands)
Years Ended December 31,
Unaudited
Default Year2012201320142015201620172018201920202021As of December 31, 2021
2012$803,831 $763,969 $711,213 $720,502 $715,646 $714,783 $713,750 $713,839 $713,146 $713,057 $7 73,517 
2013505,732 405,334 401,444 404,333 402,259 400,243 399,356 399,317 398,820 6 58,577 
2014337,784 247,074 265,891 264,620 260,098 261,507 261,377 260,254 7 47,976 
2015222,555 198,186 178,042 183,952 183,546 184,066 182,647 12 42,607 
2016201,016 165,440 149,753 148,811 148,640 148,349 18 40,503 
2017180,851 151,802 133,357 130,274 126,989 28 42,888 
2018131,513 116,634 95,534 88,252 51 37,369 
2019143,475 136,860 109,416 150 40,985 
2020504,160 408,809 786 108,025 
2021156,328 1,771 37,470 
Total$2,592,921 
(1)Represents reserves as of December 31, 2021 related to IBNR liabilities.
(2)Represents total number of new primary default notices received in each calendar year as compiled monthly based on reports received from loan servicers. As reflected in our Default to Claim Rate assumptions, a significant portion of reported defaults generally do not result in a claim. In certain instances, a defaulted loan may cure, and then re-default in a later period. Consistent with our reserving practice, each new event of default is treated as a unique occurrence and therefore certain loans that cure and re-default may be included as a reported default in multiple periods.
Cumulative paid claims, net of reinsurance
(In thousands)Years Ended December 31,
Unaudited
Default Year2012201320142015201620172018201920202021
2012$19,200 $295,332 $528,744 $631,982 $672,271 $692,291 $702,136 $704,770 $708,528 $708,929 
201334,504 191,040 307,361 357,087 379,036 388,688 392,818 395,093 395,292 
201413,108 115,852 200,422 233,607 246,611 252,619 255,742 256,107 
201510,479 84,271 142,421 163,916 172,645 174,812 175,874 
201611,061 76,616 119,357 134,115 137,306 138,525 
201724,653 66,585 99,678 108,484 111,458 
20185,584 36,066 54,625 60,926 
20194,220 18,703 28,896 
20204,148 9,867 
20211,112 
 Total$1,886,986 
All outstanding liabilities before 2012, net of reinsurance30,421 
Liabilities for claims, net of reinsurance (1)
$736,356 
(1)Calculated as follows:
(In thousands)
Incurred losses, net of reinsurance$2,592,921 
All outstanding liabilities before 2012, net of reinsurance30,421 
Cumulative paid claims, net of reinsurance(1,886,986)
Liabilities for claims, net of reinsurance$736,356 
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability
The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the mortgage insurance reserve for losses and LAE at December 31, 2021.
Net outstanding liabilities - mortgage insurance
(In thousands)December 31, 2021
Reserve for losses and LAE, net of reinsurance$736,356 
Reinsurance recoverables on unpaid claims66,676 
Unallocated LAE20,104 
Total gross reserve for losses and LAE (1)
$823,136 
(1)Excludes title insurance reserve for losses and LAE of $5.5 million.
Short-duration Insurance Contracts, Schedule of Historical Claims Duration
The following is supplementary information about average historical claims duration as of December 31, 2021, representing the average distribution of when claims are paid relative to the year of default.
Average annual percentage payout of incurred losses by age, net of reinsurance (unaudited)
Years12345678910
Mortgage insurance6.1%31.6%26.4%10.8%4.2%1.9%1.0%0.4%0.3%0.1%