Reserves for Insurance Claims and Claim Expenses (Tables)

9 Months Ended

Sep. 30, 2021

Reconciliation of liability for insurance claims and claim expenses

The following table provides a reconciliation of the beginning and ending gross reserve balances for primary insurance claims and claim expenses:


	For the nine months ended September 30,
	2021		2020
	(In Thousands)
Beginning balance	$	90,567	$	23,752
Less reinsurance recoverables (1)	(17,608)		(4,939)
Beginning balance, net of reinsurance recoverables	72,959		18,813

Add claims incurred:
Claims and claim expenses incurred:
Current year (2)	19,275		61,198
Prior years (3)	(6,469)		(5,500)
Total claims and claim expenses incurred	12,806		55,698

Less claims paid:
Claims and claim expenses paid:
Current year (2)	15		152
Prior years (3)	1,566		4,309

Total claims and claim expenses paid	1,581		4,461

Reserve at end of period, net of reinsurance recoverables	84,184		70,050
Add reinsurance recoverables (1)	20,420		17,180
Ending balance	$	104,604	$	87,230

(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 $14.0 million attributed to net case reserves and $4.8 million attributed to net IBNR reserves for the nine months ended September 30, 2021 and $55.4 million attributed to net case reserves and $4.8 million attributed to net IBNR reserves for the nine months ended September 30, 2020.

(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 $1.8 million attributed to net case reserves and $5.0 million attributed to net IBNR reserves for the nine months ended September 30, 2021 and $4.0 million attributed to net case reserves and $1.3 million attributed to net IBNR reserves for the nine months ended September 30, 2020.