
(Amounts in thousands)	2026		2025
Gross loss reserves, beginning balance	$	566,809	$	520,032
Reinsurance recoverable, beginning balance	(3,326)		(2,909)
Net loss reserves, beginning balance	563,483		517,123

Losses and LAE incurred related to current accident year	79,309		77,842
Losses and LAE incurred related to prior accident years	(46,214)		(51,789)
Total incurred	33,095		26,053

Losses and LAE paid related to current accident year	(105)		(99)
Losses and LAE paid related to prior accident years	(16,915)		(8,395)
Total paid	(17,020)		(8,494)

Net loss reserves, ending balance	579,558		534,682
Reinsurance recoverable, ending balance	4,848		2,798
Gross loss reserves, ending balance	$	584,406	$	537,480

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 three months ended March 31, 2026, losses and LAE incurred of $79 million related to insured events of the current accident year was primarily attributable to new delinquencies compared to $78 million for the three months ended March 31, 2025.

For the three months ended March 31, 2026, we also recorded favorable reserve adjustments of $39 million primarily on prior accident year reserves, driven by cure performance and loss mitigation activities.

During the three months ended March 31, 2025, we recorded favorable reserve adjustments of $47 million primarily on prior accident year reserves, driven by cure performance and loss mitigation activities.