Loss Reserves (Tables)

6 Months Ended

Jun. 30, 2026

Reconciliation of beginning and ending loss reserves

Table 8.1 provides a reconciliation of beginning and ending loss reserves as of and for the six months ended June 30, 2026 and 2025.


Development of Reserves for Losses and Loss Adjustment Expenses
Table	8.1
		Six Months Ended June 30,
(In thousands)		2026		2025
Reserve at beginning of period		$	474,884	$	462,662
Less reinsurance recoverable		65,055		47,281
Net reserve at beginning of period		409,829		415,381

Losses incurred:
Losses and LAE incurred in respect of delinquency notices received in:
Current year		117,760		111,093
Prior years (1)		(73,532)		(104,337)
Total losses incurred		44,228		6,756

Losses paid:
Losses and LAE paid in respect of delinquency notices received in:
Current year		62		—
Prior years		38,138		23,764

Total losses paid		38,200		23,764
Net reserve at end of period		415,857		398,373
Plus reinsurance recoverable		76,144		53,781
Reserve at end of period		$	492,001	$	452,154

(1)A positive number for prior year loss reserve development indicates a deficiency of prior year reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves. See the following table for more information about prior year loss reserve development.

Prior year development of the reserves

The prior year loss reserve development for the six months ended June 30, 2026 and 2025 is shown in table 8.2 below.


Reserve Development on Previously Received Delinquencies
Table	8.2
		Six Months Ended June 30,
(In thousands)		2026		2025
Increase (decrease) in estimated claim rate on primary defaults		$	(65,125)	$	(98,645)

Change in estimates related to severity on primary defaults, pool reserves, LAE reserves, reinsurance, and other		(8,407)		(5,692)
Total prior year loss development (1)		$	(73,532)	$	(104,337)

(1)A positive number for prior year loss reserve development indicates a deficiency of prior year loss reserves. A negative number for prior year loss reserve development indicates a redundancy of prior year loss reserves.