Losses and LAE (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Reserve for Losses and LAE by Segment

Our reserve for losses and LAE consists of the following as of the dates indicated.


Reserve for losses and LAE



(In thousands)	March 31, 2026		December 31, 2025
Mortgage reserve for losses and LAE	$	406,938	$	399,946
Specialty
Reserve for losses and LAE		1,379,208	N/A
VOBA liability - reserves		36,473	N/A
Total Specialty reserve for losses and LAE		1,415,681	N/A
Total reserve for losses and LAE	$	1,822,619	$	399,946

Schedule of Provision for Losses

Our provision for losses consists of the following for the periods indicated.


Provision for losses


	Three Months Ended March 31,

(In thousands)	2026			2025


Mortgage provision for losses	$	24,276		$	15,340
Specialty provision for losses (1)		86,268		N/A
VOBA liability - reserves (2)		(2,611	)	N/A
Total provision for losses	$	107,933		$	15,340

N/A – Not applicable

(1)

Includes Inigo results from the Closing Date of the acquisition through March 31, 2026.

(2)

Represents positive amortization of the VOBA intangible asset attributable to reserves.

Schedule of Reserve for Losses and LAE Rollforward

Mortgage

For the periods indicated, the following table presents information relating to our mortgage insurance reserve for losses, including IBNR reserves and LAE.


Rollforward of reserve for losses


	Three Months Ended March 31,

(In thousands)	2026			2025


Balance at beginning of period	$	399,946		$	354,431
Less: Reinsurance recoverables (1)		47,019			34,144
Balance at beginning of period, net of reinsurance recoverables		352,927			320,287
Add: Losses and LAE incurred in respect of default notices reported and unreported in:
Current year (2)		59,839			53,740
Prior years		(35,563	)		(38,400	)
Total incurred		24,276			15,340
Deduct: Paid claims and LAE related to:
Current year (2)		3			—
Prior years		19,888			4,233
Total paid		19,891			4,233
Balance at end of period, net of reinsurance recoverables		357,312			331,394
Add: Reinsurance recoverables (1)		49,626			37,696
Balance at end of period	$	406,938		$	369,090

(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.

Specialty

For the period indicated, the following table presents information relating to our specialty insurance reserve for losses, including IBNR reserves and LAE.


Rollforward of reserve for losses


(In thousands)	From Closing Date to March 31, 2026



Balance at beginning of period	$	—
Acquired balance at Closing Date		1,325,171
Less: Reinsurance recoverables (1)		269,418
Balance at Closing Date, net of reinsurance recoverables		1,055,753
Add: Net incurred losses and LAE relating to losses occurring in:
Current year		98,846
Prior years		(12,578	)
Total incurred		86,268
Deduct: Net paid losses and LAE relating to losses occurring in:
Current year		1,639
Prior years		30,589
Total claims paid		32,228
Add: Acquisition-date fair value adjustment (2)		36,472
Add: Net foreign exchange (gains) / losses (3)		(2,703	)
Balance at end of period, net of reinsurance recoverables		1,143,562
Add: Reinsurance recoverables (1)		272,119
Balance at end of period	$	1,415,681

(1)

Related to ceded losses recoverable, if any, on reinsurance transactions. See Note 8 for additional information.

(2)

Acquisition-date fair value adjustment includes the VOBA reserves intangible asset, net of any amortization, related to Inigo’s acquired net reserve for losses.

(3)

Foreign exchange (gains) losses are related to foreign currency denominated loss reserves associated with international insurance exposures in the Specialty segment. Foreign exchange (gains) losses on foreign currency denominated loss reserves are reflected through net income (loss) as a component of net gains (losses) on financial instruments and foreign exchange in the condensed consolidated statements of operations.