Reserves for Insurance Claims and Claim Expenses (Tables)

6 Months Ended

Jun. 30, 2026

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,
	2026		2025
	(In Thousands)
Beginning balance	$	196,429	$	152,071
Less reinsurance recoverables (1)	(38,577)		(32,260)
Beginning balance, net of reinsurance recoverables	157,852		119,811

Add claims incurred:
Claims and claim expenses incurred:
Current year (2)	74,453		61,356
Prior years (3)	(40,645)		(43,766)
Total claims and claim expenses incurred (4)	33,808		17,590

Less claims paid:
Claims and claim expenses paid:
Current year (2)	39		110
Prior years (3)	19,142		8,469
Reinsurance terminations (5)	(1,670)		(1,506)
Total claims and claim expenses paid	17,511		7,073

Reserve at end of period, net of reinsurance recoverables	174,149		130,328
Add reinsurance recoverables (1)	40,434		32,705
Ending balance	$	214,583	$	163,033

(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 $61.4 million attributed to net case reserves and $11.8 million attributed to net IBNR reserves for the six months ended June 30, 2026 and $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.

(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 $28.8 million attributed to net case reserves and $10.8 million attributed to net IBNR reserves for the six months ended June 30, 2026 and $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.

(4) Excludes aggregate termination fees of $0.3 million for the six months ended June 30, 2025 incurred in connection with the amendment of certain QSR Transactions.

(5) Represents the settlement of reinsurance recoverables in conjunction with the termination or amendment of certain QSR Transactions.