v3.25.2
Reserves for Insurance Claims and Claim Expenses (Tables)
 6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
Schedule of Reconciliation of Liability for Insurance Claims and Claim Expenses
The following table provides a reconciliation of the beginning and ending gross reserve balances for insurance claims and claim expenses:
For the six months ended June 30,
20252024
(In Thousands)
Beginning balance$152,071 $123,974 
Less reinsurance recoverables (1)
(32,260)(27,514)
Beginning balance, net of reinsurance recoverables119,811 96,460 
Add claims incurred:
Claims and claim expenses incurred:
Current year (2)
61,356 50,372 
Prior years (3)
(43,766)(46,402)
Total claims and claim expenses incurred (4)
17,590 3,970 
Less claims paid:
Claims and claim expenses paid:
Current year (2)
110 — 
Prior years (3)
8,469 2,323 
Reinsurance terminations (5)
(1,506)— 
Total claims and claim expenses paid7,073 2,323 
Reserve at end of period, net of reinsurance recoverables130,328 98,107 
Add reinsurance recoverables (1)
32,705 27,336 
Ending balance$163,033 $125,443 
(1)    Related to ceded losses recoverable under the QSR Transactions. See Note 5, “Reinsurance” for additional information.
(2)    Related to insured loans with their most recent defaults occurring in the current year. For example, if a loan defaulted in a prior year and subsequently cured and later re-defaulted in the current year, the default would be included in the current year. Amounts are presented net of reinsurance and included $51.5 million attributed to net case reserves and $8.8 million attributed to net IBNR reserves for the six months ended June 30, 2025 and $43.1 million attributed to net case reserves and $6.4 million attributed to net IBNR reserves for the six months ended June 30, 2024.
(3)    Related to insured loans with defaults occurring in prior years, which have been continuously in default before the start of the current year. Amounts are presented net of reinsurance and included $34.9 million attributed to net case reserves and $8.1 million attributed to net IBNR reserves for the six months ended June 30, 2025 and $39.2 million attributed to net case reserves and $6.3 million attributed to net IBNR reserves for the six months ended June 30, 2024.
(4)    Excludes aggregate termination fees of $0.3 million for the six months ended June 30, 2025 incurred in connection with the respective amendments of the 2016, 2018 and 2021 QSR Transactions.
(5)    Represents the settlement of reinsurance recoverables in conjunction with the respective amendments of the 2016, 2018 and 2021 QSR Transactions. See Note 5, “Reinsurance” for additional information.