| Schedule of Reserve for Losses and LAE by Segment |
Our reserve for losses and LAE consists of the following as of the dates indicated.
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Reserve for losses and LAE |
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June 30, |
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December 31, |
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(In thousands) |
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2026 |
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2025 |
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Mortgage reserve for losses and LAE |
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$ |
418,388 |
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|
$ |
399,946 |
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Specialty |
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Reserve for losses and LAE |
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1,460,632 |
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N/A |
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VOBA liability – reserves |
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|
32,760 |
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N/A |
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Total Specialty reserve for losses and LAE |
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1,493,392 |
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N/A |
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Total reserve for losses and LAE |
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$ |
1,911,780 |
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|
$ |
399,946 |
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| Schedule of Provision for Losses |
Our provision for losses consists of the following for the periods indicated.
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Provision for losses |
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Three Months Ended
June 30, |
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Six Months Ended
June 30, |
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(In thousands) |
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2026 |
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2025 |
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2026 (1) |
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2025 |
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Mortgage provision for losses |
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$ |
29,418 |
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|
$ |
11,954 |
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$ |
53,694 |
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|
$ |
27,294 |
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Specialty provision for losses |
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169,239 |
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N/A |
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|
255,507 |
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N/A |
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Amortization of VOBA liability – reserves (2) |
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|
(3,712 |
) |
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N/A |
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|
|
(6,323 |
) |
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N/A |
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Total provision for losses |
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$ |
194,945 |
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$ |
11,954 |
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|
$ |
302,878 |
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$ |
27,294 |
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N/A – Not applicable (1)Includes Inigo results from the Closing Date of the acquisition through June 30, 2026. (2)Represents positive amortization of the VOBA intangible asset attributable to reserves.
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| 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.
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Rollforward of reserve for losses |
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Six Months Ended
June 30, |
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(In thousands) |
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2026 |
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2025 |
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Balance at beginning of period |
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$ |
399,946 |
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$ |
354,431 |
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Less: Reinsurance recoverables (1) |
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47,019 |
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34,144 |
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Balance at beginning of period, net of reinsurance recoverables |
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352,927 |
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320,287 |
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Add: Losses and LAE incurred in respect of default notices reported and unreported in: |
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Current year (2) |
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115,294 |
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103,750 |
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Prior years |
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(61,600 |
) |
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(76,456 |
) |
Total incurred |
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53,694 |
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27,294 |
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Deduct: Paid claims and LAE related to: |
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Current year (2) |
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168 |
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220 |
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Prior years |
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41,006 |
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|
11,001 |
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Total paid |
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41,174 |
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|
11,221 |
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Balance at end of period, net of reinsurance recoverables |
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365,447 |
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|
336,360 |
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Add: Reinsurance recoverables (1) |
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52,941 |
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|
40,872 |
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Balance at end of period |
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$ |
418,388 |
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$ |
377,232 |
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(1)Related to ceded losses recoverable, if any, on ceded 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.
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Rollforward of reserve for losses |
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(In thousands) |
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From Closing Date to June 30, 2026 |
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Balance at beginning of period |
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$ |
— |
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Acquired balance at Closing Date |
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1,325,171 |
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Add: Acquisition-date fair value adjustment (1) |
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39,083 |
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Less: Reinsurance recoverables (2) |
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269,418 |
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Balance at Closing Date, net of reinsurance recoverables |
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1,094,836 |
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Add: Net incurred losses and LAE relating to losses occurring in: |
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Current year |
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292,256 |
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Prior years |
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(36,749 |
) |
Total incurred |
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255,507 |
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Deduct: Net paid losses and LAE relating to losses occurring in: |
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Current year |
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12,962 |
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Prior years |
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105,384 |
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Total claims paid |
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118,346 |
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Add: Amortization of VOBA liability – reserves |
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(6,323 |
) |
Add: Net foreign exchange (gains) / losses (3) |
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(3,898 |
) |
Balance at end of period, net of reinsurance recoverables |
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1,221,776 |
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Add: Reinsurance recoverables (2) |
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|
271,616 |
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Balance at end of period |
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$ |
1,493,392 |
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(1)Acquisition-date fair value adjustment includes the VOBA reserves intangible asset related to Inigo’s acquired net reserve for losses. (2)Related to ceded losses recoverable, if any, on ceded reinsurance transactions. See Note 8 for additional information. (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.
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