NMI Holdings, Inc. - 10-Q filing on 2016-11-03

Reserves for Insurance Claims and Claim Expenses (Tables)

9 Months Ended

Sep. 30, 2016

Reconciliation of Liability for Insurance Claims and Claims Expenses

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



	For the nine months ended September 30,
	2016			2015
	(In Thousands)
Beginning balance	$	679		$	83
Less reinsurance recoverables ⁽¹⁾	—
Beginning balance, net of reinsurance recoverables	679			83

Add claims incurred:
Claims and claim expenses incurred:
Current year ⁽²⁾	1,803			358
Prior years⁽³⁾	(214		)	(79		)
Total claims and claims expenses incurred	1,589			279

Less claims paid:
Claims and claim expenses paid:
Current year ⁽²⁾	—			—
Prior years ⁽³⁾	225			4
Total claims and claim expenses paid	225			4

Reserve at end of period, net of reinsurance recoverables	2,043			358
Add reinsurance recoverables ⁽¹⁾	90			—
Balance, September 30	$	2,133		$	358

⁽¹⁾ Related to ceded losses recoverable on the 2016 QSR Transaction. To date, ceded losses have been immaterial. See Note 5 for additional information.

⁽²⁾ Related to defaults occurring in the current year.

⁽³⁾ Related to defaults occurring in prior years.