v3.25.2
Loss reserves
6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
Loss reserves Loss reserves
Our reserve for losses and loss adjustment expenses (“LAE”) consisted of the following as of the dates indicated:
(Amounts in thousands)June 30, 2025December 31, 2024
Domestic mortgage insurance$546,310 $520,032 
Other reserves5,630 4,683 
Total loss reserves$551,940 $524,715 
Activity for the liability for domestic mortgage insurance loss reserves for the six months ended June 30, is summarized as follows:
(Amounts in thousands)
20252024
Gross loss reserves, beginning balance$520,032 $517,515 
Reinsurance recoverable, beginning balance(2,909)(1,294)
Net loss reserves, beginning balance517,123 516,221 
Losses and LAE incurred related to current accident year144,624 135,053 
Losses and LAE incurred related to prior accident years(98,142)(133,232)
Total incurred
46,482 1,821 
Losses and LAE paid related to current accident year142 1,263 
Losses and LAE paid related to prior accident years(20,083)(13,943)
Total paid
(19,941)(12,680)
Net loss reserves, ending balance543,664 505,362 
Reinsurance recoverable, ending balance2,646 1,348 
Gross loss reserves, ending balance$546,310 $506,710 

The liability for loss reserves represents our current best estimate; however, there may be future adjustments to this estimate and related assumptions. Such adjustments, reflecting any variety of new and adverse trends, could possibly be significant, and result in future increases to reserves by amounts that could be material to our results of operations, financial condition and liquidity.
Losses incurred related to insured events of the current accident year relate to defaults that occurred in that year and represent the estimated ultimate amount of losses to be paid on such defaults. Losses incurred related to insured events of prior accident years represent the (favorable) or unfavorable development of reserves as a result of the actual rates at which delinquencies go to claim (“claim rates”) and claim amounts being different than those we estimated when originally establishing the reserves. These estimates are based on our historical experience, which we believe is representative of expected future losses at the time of estimation. As a result of the extended period of time that may exist between the reporting of a delinquency and the claim payment, as well as changes in economic conditions and the real estate market, significant uncertainty and variability exist on amounts ultimately paid.
For the six months ended June 30, 2025, losses and LAE incurred of $145 million related to insured events of the current accident year was primarily attributable to new delinquencies compared to $135 million for the six months ended June 30, 2024.
For the six months ended June 30, 2025, we also recorded favorable reserve adjustments of $95 million primarily on prior accident year reserves, driven by cure performance of delinquencies from early 2024 and prior.
During the six months ended June 30, 2024, we released $131 million of reserves primarily driven by cure performance of delinquencies from 2023 and prior