Reserve for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Schedule of Reconciliation of Beginning and Ending Reserve Balances for Losses and Loss Adjustment Expenses (LAE)

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses ("LAE") for the years ended December 31:

(In thousands)	2022		2021		2020
Reserve for losses and LAE at beginning of year	$	407,445	$	374,941	$	69,362
Less: Reinsurance recoverables	25,940		19,061		71
Net reserve for losses and LAE at beginning of year	381,505		355,880		69,291
Add provision for losses and LAE, net of reinsurance, occurring in:
Current year	99,372		97,256		317,516
Prior years	(274,076)		(66,199)		(16,223)
Net incurred losses and LAE during the current year	(174,704)		31,057		301,293
Deduct payments for losses and LAE, net of reinsurance, occurring in:
Current year	224		388		1,018
Prior years	4,731		5,044		13,686
Net loss and LAE payments during the current year	4,955		5,432		14,704
Net reserve for losses and LAE at end of year	201,846		381,505		355,880
Plus: Reinsurance recoverables	14,618		25,940		19,061
Reserve for losses and LAE at end of year	$	216,464	$	407,445	$	374,941

The following table summarizes incurred loss and allocated loss adjustment expense development, net of reinsurance, IBNR plus expected development on reported defaults and the cumulative number of reported defaults. The information about incurred loss development for the years ended December 31, 2013 to 2021 is presented as supplementary information.

	Incurred Loss and Allocated LAE, For the Years Ended December 31,																				As of December 31, 2022
(In thousands)																					Total of IBNR plus Expected Development on Reported Defaults		Cumulative Number of Reported Defaults (1)
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	2,986	$	2,461	$	2,008	$	1,997	$	2,060	$	2,058	$	2,058	$	2,058	$	2,058	$	2,058	$	—	51
2014			6,877		4,312		3,323		2,984		2,930		2,897		2,882		2,869		2,870		1		92
2015					14,956		9,625		8,893		8,439		8,461		8,323		8,410		8,434		7		213
2016							21,889		11,890		9,455		9,219		8,972		8,614		8,861		27		244
2017									38,178		16,261		12,202		11,488		11,249		11,550		64		327
2018											36,438		23,168		19,536		17,402		17,249		188		492
2019													50,562		39,085		23,649		24,223		823		693
2020															317,516		269,410		53,045		3,550		1,156
2021																	97,256		38,551		2,866		1,349
2022																			99,372		7,430		10,768
Total																			$	266,213
(1) Cumulative number of reported defaults includes cumulative paid claims plus loans in default by accident year as of December 31, 2022.

The following table summarizes cumulative paid losses and allocated loss adjustment expenses, net of reinsurance. The information about paid loss development for the years ended December 31, 2013 through 2021 is presented as supplementary information.

(In thousands)	Cumulative Paid Losses and Allocated LAE For the Years Ended December 31,
	Unaudited
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
2013	$	239	$	928	$	1,501	$	1,775	$	1,880	$	2,058	$	2,058	$	2,058	$	2,058	$	2,058
2014			138		1,587		2,463		2,787		2,897		2,882		2,867		2,856		2,856
2015					544		3,610		6,960		7,535		7,961		8,055		8,226		8,335
2016							927		4,896		6,947		7,864		8,270		8,205		8,468
2017									633		5,370		9,156		10,257		10,536		10,620
2018											1,310		8,067		13,406		13,927		14,536
2019													1,288		8,049		10,717		12,392
2020															1,018		2,499		4,022
2021																	388		856
2022																			224
Total																			$	64,367
All outstanding liabilities before 2013, net of reinsurance																			—
Reserve for losses and LAE, net of reinsurance																			$	201,846

The following table provides a reconciliation of the net incurred losses and paid claims development tables above to the reserve for losses and LAE at December 31, 2022:

(In thousands)	December 31, 2022
Reserve for losses and LAE, net of reinsurance	$	201,846
Reinsurance recoverables on unpaid claims	14,618
Total gross reserve for losses and LAE	$	216,464

For our mortgage insurance portfolio, our average annual payout of losses as of December 31, 2022 is as follows:

Average Annual Percentage Payout of Incurred Losses and Allocated LAE by Year
Year	1		2		3		4		5		6		7		8		9		10
Average Payout	5	%	31	%	25	%	9	%	4	%	2	%	1	%	0	%	0	%	0	%