Delaware | 001-36174 | 45-4914248 |
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
2100 Powell Street, 12th Floor, Emeryville, CA. |
(Address of Principal Executive Offices) |
94608 |
(Zip Code) |
Large accelerated filer o | Accelerated filer x | Non-accelerated filer o | Smaller reporting company o |
(Do not check if a smaller reporting company) | |||
Emerging growth company x |
Date: August 1, 2017 | By: | /s/ Nicole C. Sanchez |
Nicole C. Sanchez | ||
VP, Associate General Counsel |
• | As of June 30, 2017, the company had primary insurance-in-force of $38.6 billion, up 11% from $34.8 billion at the prior quarter end and up 64% over $23.6 billion as of June 30, 2016. |
• | Premiums earned for the quarter were $37.9 million, including $3.8 million attributable to cancellation of single premium policies, which compares with $33.2 million, including $2.5 million related to cancellations, in the prior quarter. Premiums earned in the second quarter of 2017 were up 46% over premium revenue of $26.0 million in the same quarter a year ago, which included $3.5 million related to cancellations. |
• | NIW mix was 81% monthly premium product, which compares with 81% in the prior quarter and 63% in the second quarter of 2016. |
• | Total underwriting and operating expenses in the second quarter were $28.0 million and include approximately $3.1 million of transaction costs related to the previously disclosed ILN issuance. This compares with total underwriting and operating expenses of $26.0 million, including financing-related transaction costs of $1.6 million in the prior quarter, and $23.2 million in the same quarter a year ago. |
• | Claims expense for the quarter was $1.4 million, resulting in a loss ratio of 3.6%. |
• | At quarter-end, cash and investments were $694 million, including $57 million at the holding company, and book equity was $495 million, equal to $8.27 per share. |
• | At quarter-end, the company had total PMIERs available assets of $485 million, which compares with risk-based required assets under PMIERs of $298 million. |
Quarter Ended | Quarter Ended | Quarter Ended | Change | Change | ||
6/30/2017 | 3/31/2017 | 6/30/2016 | Q/Q | Y/Y | ||
Primary Insurance-in-Force ($billions) | 38.63 | 34.78 | 23.62 | 11% | 64% | |
New Insurance Written - NIW ($billions) | ||||||
Monthly premium | 4.10 | 2.89 | 3.70 | 42% | 11% | |
Single premium | 0.94 | 0.67 | 2.14 | 40% | -56% | |
Total | 5.04 | 3.56 | 5.84 | 42% | -14% | |
Premiums Earned ($millions) | 37.92 | 33.23 | 26.04 | 14% | 46% | |
Underwriting & Operating Expense ($millions) | 28.05 | 25.99 | 23.23 | 8% | 21% | |
Claims Expense ($millions) | 1.37 | 0.64 | 0.47 | 114% | 191% | |
Loss Ratio | 3.6% | 1.9% | 1.8% | |||
Cash & Investments ($millions) | 694 | 671 | 654 | 3% | 6% | |
Book Equity ($millions) | 495 | 484 | 422 | 2% | 17% | |
Book Value per Share | 8.27 | 8.09 | 7.14 | 2% | 16% |
Consolidated statements of operations and comprehensive income | For the three months ended June 30, | For the six months ended June 30, | |||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues | (In Thousands, except for share data) | ||||||||||||||
Net premiums earned | $ | 37,917 | $ | 26,041 | $ | 71,142 | $ | 45,848 | |||||||
Net investment income | 3,908 | 3,342 | 7,715 | 6,573 | |||||||||||
Net realized investment gains (losses) | 188 | 61 | 130 | (824 | ) | ||||||||||
Other revenues | 185 | 37 | 265 | 69 | |||||||||||
Total revenues | 42,198 | 29,481 | 79,252 | 51,666 | |||||||||||
Expenses | |||||||||||||||
Insurance claims and claims expenses | 1,373 | 470 | 2,008 | 928 | |||||||||||
Underwriting and operating expenses | 28,048 | 23,234 | 54,037 | 45,906 | |||||||||||
Total expenses | 29,421 | 23,704 | 56,045 | 46,834 | |||||||||||
Other (expense) income | |||||||||||||||
Gain (loss) from change in fair value of warrant liability | 19 | (59 | ) | (177 | ) | 611 | |||||||||
Interest expense | (3,300 | ) | (3,707 | ) | (6,794 | ) | (7,339 | ) | |||||||
Total other expense | (3,281 | ) | (3,766 | ) | (6,971 | ) | (6,728 | ) | |||||||
Income (loss) before income taxes | 9,496 | 2,011 | 16,236 | (1,896 | ) | ||||||||||
Income tax expense | 3,484 | — | 4,732 | — | |||||||||||
Net income (loss) | $ | 6,012 | $ | 2,011 | $ | 11,504 | $ | (1,896 | ) | ||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | 0.10 | $ | 0.03 | $ | 0.19 | $ | (0.03 | ) | ||||||
Diluted | $ | 0.10 | $ | 0.03 | $ | 0.18 | $ | (0.03 | ) | ||||||
Weighted average common shares outstanding | |||||||||||||||
Basic | 59,823,396 | 59,105,613 | 59,576,747 | 59,005,983 | |||||||||||
Diluted | 63,010,362 | 59,830,899 | 62,688,563 | 59,005,983 | |||||||||||
Loss Ratio(1) | 3.6% | 1.8% | 2.8% | 2.0% | |||||||||||
Expense Ratio(2) | 74.0 | 89.2 | 76.0 | 100.1 | |||||||||||
Combined ratio | 77.6% | 91.0% | 78.8% | 102.1% | |||||||||||
Net income (loss) | $ | 6,012 | $ | 2,011 | $ | 11,504 | $ | (1,896 | ) | ||||||
Other comprehensive income, net of tax: | |||||||||||||||
Net unrealized gains in accumulated other comprehensive income, net of tax expense of $1,388 and $0 for the three months ended June 30, 2017 and 2016, respectively, and $2,073 and $0 for the six months ended June 30,2017 and 2016 | 2,822 | 8,670 | 4,017 | 17,771 | |||||||||||
Reclassification adjustment for losses (gains) included in net income, net of tax expense of $66 and $0 for the three months ended June 30, 2017 and 2016, respectively, and $45 and $0 for the six months ended June 30,2017 and 2016 | (122 | ) | (61 | ) | (84 | ) | 824 | ||||||||
Other comprehensive income, net of tax | 2,700 | 8,609 | 3,933 | 18,595 | |||||||||||
Comprehensive income | $ | 8,712 | $ | 10,620 | $ | 15,437 | $ | 16,699 |
Consolidated balance sheets | June 30, 2017 | December 31, 2016 (1) | |||||
Assets | (In Thousands, except for share data) | ||||||
Fixed maturities, available-for-sale, at fair value (amortized cost of $669,363 and $630,688 as of June 30, 2017 and December 31, 2016, respectively) | $ | 673,695 | $ | 628,969 | |||
Cash and cash equivalents | 20,035 | 47,746 | |||||
Premiums receivable | 17,795 | 13,728 | |||||
Accrued investment income | 3,867 | 3,421 | |||||
Prepaid expenses | 2,072 | 1,991 | |||||
Deferred policy acquisition costs, net | 34,206 | 30,109 | |||||
Software and equipment, net | 21,530 | 20,402 | |||||
Intangible assets and goodwill | 3,634 | 3,634 | |||||
Prepaid reinsurance premiums | 38,919 | 37,921 | |||||
Deferred tax asset, net | 45,771 | 51,434 | |||||
Other assets | 1,471 | 542 | |||||
Total assets | $ | 862,995 | $ | 839,897 | |||
Liabilities | |||||||
Term loan | $ | 143,990 | $ | 144,353 | |||
Unearned premiums | 157,152 | 152,906 | |||||
Accounts payable and accrued expenses | 21,349 | 25,297 | |||||
Reserve for insurance claims and claim expenses | 5,048 | 3,001 | |||||
Reinsurance funds withheld | 32,042 | 30,633 | |||||
Deferred ceding commission | 4,830 | 4,831 | |||||
Warrant liability, at fair value | 3,544 | 3,367 | |||||
Deferred tax liability, net | — | — | |||||
Total liabilities | 367,955 | 364,388 | |||||
Commitments and contingencies | |||||||
Shareholders' equity | |||||||
Common stock - class A shares, $0.01 par value; 59,858,418 and 59,145,161 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively (250,000,000 shares authorized) | 598 | 591 | |||||
Additional paid-in capital | 580,499 | 576,927 | |||||
Accumulated other comprehensive loss, net of tax | (1,354 | ) | (5,287 | ) | |||
Accumulated deficit | (84,703 | ) | (96,722 | ) | |||
Total shareholders' equity | 495,040 | 475,509 | |||||
Total liabilities and shareholders' equity | $ | 862,995 | $ | 839,897 |
Historical Quarterly Data | 2017 | 2016 | ||||||||||||||||||||||
June 30 | March 31 | December 31 (4) | September 30 | June 30 | March 31 | |||||||||||||||||||
Revenues | (In Thousands, except for share data) | |||||||||||||||||||||||
Net premiums earned | $ | 37,917 | $ | 33,225 | $ | 32,825 | $ | 31,808 | $ | 26,041 | $ | 19,807 | ||||||||||||
Net investment income | 3,908 | 3,807 | 3,634 | 3,544 | 3,342 | 3,231 | ||||||||||||||||||
Net realized investment (losses) gains | 188 | (58 | ) | 65 | 66 | 61 | (885 | ) | ||||||||||||||||
Other revenues | 185 | 80 | 105 | 102 | 37 | 32 | ||||||||||||||||||
Total revenues | 42,198 | 37,054 | 36,629 | 35,520 | 29,481 | 22,185 | ||||||||||||||||||
Expenses | ||||||||||||||||||||||||
Insurance claims and claims expenses | 1,373 | 635 | 800 | 664 | 470 | 458 | ||||||||||||||||||
Underwriting and operating expenses | 28,048 | 25,989 | 23,281 | 24,037 | 23,234 | 22,672 | ||||||||||||||||||
Total expenses | 29,421 | 26,624 | 24,081 | 24,701 | 23,704 | 23,130 | ||||||||||||||||||
Other expense | (3,281 | ) | (3,690 | ) | (5,490 | ) | (4,530 | ) | (3,766 | ) | (2,962 | ) | ||||||||||||
Income (loss) before income taxes | 9,496 | 6,740 | 7,058 | 6,289 | 2,011 | (3,907 | ) | |||||||||||||||||
Income tax expense (benefit) | 3,484 | 1,248 | (52,664 | ) | 114 | — | — | |||||||||||||||||
Net income (loss) | $ | 6,012 | $ | 5,492 | $ | 59,722 | $ | 6,175 | $ | 2,011 | $ | (3,907 | ) | |||||||||||
Earnings (loss) per share | ||||||||||||||||||||||||
Basic | $ | 0.10 | $ | 0.09 | $ | 1.01 | $ | 0.10 | $ | 0.03 | $ | (0.07 | ) | |||||||||||
Diluted | $ | 0.10 | $ | 0.09 | $ | 0.98 | $ | 0.10 | $ | 0.03 | $ | (0.07 | ) | |||||||||||
Weighted average common shares outstanding | ||||||||||||||||||||||||
Basic | 59,823,396 | 59,183,973 | 59,140,011 | 59,130,401 | 59,105,613 | 58,936,694 | ||||||||||||||||||
Diluted | 63,010,362 | 62,338,856 | 61,229,338 | 60,284,746 | 59,830,899 | 58,936,694 | ||||||||||||||||||
Other data | ||||||||||||||||||||||||
Loss Ratio (2) | 3.6 | % | 1.9 | % | 2.4 | % | 2.1 | % | 1.8 | % | 2.3 | % | ||||||||||||
Expense Ratio (3) | 74.0 | % | 78.2 | % | 70.9 | % | 75.6 | % | 89.2 | % | 114.5 | % | ||||||||||||
Combined ratio | 77.6 | % | 80.1 | % | 73.3 | % | 77.7 | % | 91.0 | % | 116.8 | % |
Primary NIW | Three months ended | ||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||||
(In Millions) | |||||||||||||||||||||||
Monthly | $ | 4,099 | $ | 2,892 | $ | 3,904 | $ | 4,162 | $ | 3,700 | $ | 2,492 | |||||||||||
Single | 938 | 667 | 1,336 | 1,695 | 2,138 | 1,762 | |||||||||||||||||
Primary | $ | 5,037 | $ | 3,559 | $ | 5,240 | $ | 5,857 | $ | 5,838 | $ | 4,254 |
Primary and pool IIF | As of | ||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||||
(In Millions) | |||||||||||||||||||||||
Monthly | $ | 24,865 | $ | 21,551 | $ | 19,205 | $ | 16,038 | $ | 12,529 | $ | 9,210 | |||||||||||
Single | 13,764 | 13,268 | 12,963 | 12,190 | 11,095 | 9,354 | |||||||||||||||||
Primary | 38,629 | 34,779 | 32,168 | 28,228 | 23,624 | 18,564 | |||||||||||||||||
Pool | 3,447 | 3,545 | 3,650 | 3,826 | 3,999 | 4,136 | |||||||||||||||||
Total | $ | 42,076 | $ | 38,324 | $ | 35,818 | $ | 32,054 | $ | 27,623 | $ | 22,700 |
For the three months ended | |||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | ||||||||||
(In Thousands) | |||||||||||||
Ceded risk-in-force | $ | 2,403,027 | $ | 2,167,745 | $ | 2,008,385 | $ | 1,778,235 | |||||
Ceded premiums written | (12,034 | ) | (10,292 | ) | (11,576 | ) | (38,977 | ) | |||||
Ceded premiums earned | (11,463 | ) | (9,865 | ) | (9,746 | ) | (2,885 | ) | |||||
Ceded claims and claims expenses | 342 | 268 | 206 | 90 | |||||||||
Ceding commission written | 2,407 | 2,058 | 2,316 | 7,795 | |||||||||
Ceding commission earned | 2,275 | 2,065 | 1,752 | 551 | |||||||||
Profit commission | 6,536 | 5,651 | 5,642 | 1,641 |
Primary portfolio trends | As of and for the three months ended | ||||||||||||||||||||||
June 30, 2017 | March 31, 2017 | December 31, 2016 | September 30, 2016 | June 30, 2016 | March 31, 2016 | ||||||||||||||||||
($ Values In Millions) | |||||||||||||||||||||||
New insurance written | $ | 5,037 | $ | 3,559 | $ | 5,240 | $ | 5,857 | $ | 5,838 | $ | 4,254 | |||||||||||
New risk written | 1,242 | 868 | 1,244 | 1,415 | 1,411 | 1,016 | |||||||||||||||||
Insurance in force (1) | 38,629 | 34,779 | 32,168 | 28,228 | 23,624 | 18,564 | |||||||||||||||||
Risk in force (1) | 9,417 | 8,444 | 7,790 | 6,847 | 5,721 | 4,487 | |||||||||||||||||
Policies in force (count) (1) | 161,195 | 145,632 | 134,662 | 119,002 | 100,547 | 79,700 | |||||||||||||||||
Weighted-average coverage (2) | 24.4 | % | 24.3 | % | 24.2 | % | 24.3 | % | 24.2 | % | 24.2 | % | |||||||||||
Loans in default (count) | 249 | 207 | 179 | 115 | 79 | 55 | |||||||||||||||||
Percentage of loans in default | 0.2 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||
Risk in force on defaulted loans | $ | 14 | $ | 12 | $ | 10 | $ | 6 | $ | 4 | $ | 3 | |||||||||||
Average premium yield (3) | 0.41 | % | 0.40 | % | 0.44 | % | 0.48 | % | 0.47 | % | 0.45 | % | |||||||||||
Earnings from cancellations | $ | 3.8 | $ | 2.5 | $ | 5.1 | $ | 5.8 | $ | 3.5 | 2.3 | % | |||||||||||
Annual persistency | 83.1 | % | 81.3 | % | 80.7 | % | 81.8 | % | 83.3 | % | 82.7 | % | |||||||||||
Quarterly run-off (4) | 3.4 | % | 2.9 | % | 4.6 | % | 5.3 | % | 4.2 | % | 3.5 | % |
(1) | Reported as of the end of the period. |
(2) | Calculated as end of period risk in force (RIF) divided by IIF. |
(3) | Calculated as net primary and pool premiums earned, net of reinsurance, divided by average gross IIF for the period, annualized. |
(4) | Defined as the percentage of IIF that remains on our books after any 12-month period. |
(5) | Defined as the percentage of IIF that are no longer on our books after any 3-month period |
Primary NIW by FICO | For the three months ended | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
($ In Millions) | |||||||||||
>= 760 | $ | 2,376 | $ | 1,683 | $ | 3,160 | |||||
740-759 | 793 | 551 | 961 | ||||||||
720-739 | 626 | 456 | 672 | ||||||||
700-719 | 568 | 396 | 541 | ||||||||
680-699 | 368 | 264 | 308 | ||||||||
<=679 | 306 | 209 | 196 | ||||||||
Total | $ | 5,037 | $ | 3,559 | $ | 5,838 | |||||
Weighted average FICO | 749 | 749 | 756 |
Primary NIW by LTV | For the three months ended | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In Millions) | |||||||||||
95.01% and above | $ | 474 | $ | 274 | $ | 362 | |||||
90.01% to 95.00% | 2,297 | 1,612 | 2,633 | ||||||||
85.01% to 90.00% | 1,506 | 1,101 | 1,732 | ||||||||
85.00% and below | 760 | 572 | 1,111 | ||||||||
Total | $ | 5,037 | $ | 3,559 | $ | 5,838 | |||||
Weighted average LTV | 92.18 | % | 92.00 | % | 91.73 | % |
Primary NIW by purchase/refinance mix | For the three months ended | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In Millions) | |||||||||||
Purchase | $ | 4,518 | $ | 2,984 | $ | 4,199 | |||||
Refinance | 519 | 575 | 1,639 | ||||||||
Total | $ | 5,037 | $ | 3,559 | $ | 5,838 |
Primary IIF and RIF | As of June 30, 2017 | ||||||
IIF | RIF | ||||||
(In Millions) | |||||||
June 30, 2017 | $ | 8,460 | $ | 2,078 | |||
2016 | 19,288 | 4,650 | |||||
2015 | 9,243 | 2,284 | |||||
2014 | 1,596 | 395 | |||||
2013 | 42 | 10 | |||||
Total | $ | 38,629 | $ | 9,417 |
Primary IIF by FICO | As of | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In Millions) | |||||||||||
>= 760 | $ | 19,224 | $ | 17,408 | $ | 11,929 | |||||
740-759 | 6,269 | 5,658 | 3,876 | ||||||||
720-739 | 4,927 | 4,460 | 3,082 | ||||||||
700-719 | 3,973 | 3,533 | 2,341 | ||||||||
680-699 | 2,615 | 2,336 | 1,561 | ||||||||
<=679 | 1,621 | 1,384 | 835 | ||||||||
Total | $ | 38,629 | $ | 34,779 | $ | 23,624 |
Primary RIF by FICO | As of | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In Millions) | |||||||||||
>= 760 | $ | 4,720 | $ | 4,253 | $ | 2,895 | |||||
740-759 | 1,535 | 1,383 | 951 | ||||||||
720-739 | 1,198 | 1,081 | 750 | ||||||||
700-719 | 960 | 851 | 566 | ||||||||
680-699 | 627 | 556 | 369 | ||||||||
<=679 | 377 | 320 | 190 | ||||||||
Total | $ | 9,417 | $ | 8,444 | $ | 5,721 |
Primary IIF by LTV | As of | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In Millions) | |||||||||||
95.01% and above | $ | 2,367 | $ | 1,931 | $ | 1,049 | |||||
90.01% to 95.00% | 17,441 | 15,601 | 10,574 | ||||||||
85.01% to 90.00% | 12,157 | 11,058 | 7,754 | ||||||||
85.00% and below | 6,664 | 6,189 | 4,247 | ||||||||
Total | $ | 38,629 | $ | 34,779 | $ | 23,624 |
Primary RIF by LTV | As of | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In Millions) | |||||||||||
95.01% and above | $ | 648 | $ | 533 | $ | 293 | |||||
90.01% to 95.00% | 5,120 | 4,585 | 3,116 | ||||||||
85.01% to 90.00% | 2,893 | 2,626 | 1,838 | ||||||||
85.00% and below | 756 | 700 | 474 | ||||||||
Total | $ | 9,417 | $ | 8,444 | $ | 5,721 |
Primary RIF by Loan Type | As of | |||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | ||||||
Fixed | 98 | % | 99 | % | 98 | % | ||
Adjustable rate mortgages: | ||||||||
Five years and longer | 2 | 1 | 2 | |||||
Total | 100 | % | 100 | % | 100 | % |
Primary IIF | For the three months ended | ||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In Millions) | |||||||||||
IIF, beginning of period | $ | 34,779 | $ | 32,168 | $ | 18,564 | |||||
NIW | 5,037 | 3,559 | 5,838 | ||||||||
Cancellations and other reductions | (1,187 | ) | (948 | ) | (778 | ) | |||||
IIF, end of period | $ | 38,629 | $ | 34,779 | $ | 23,624 |
Top 10 primary RIF by state | As of | |||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | ||||||
California | 13.8 | % | 13.8 | % | 13.0 | % | ||
Texas | 7.5 | 7.2 | 6.8 | |||||
Virginia | 6.0 | 6.3 | 6.4 | |||||
Florida | 4.4 | 4.4 | 5.0 | |||||
Arizona | 4.2 | 4.1 | 3.8 | |||||
Colorado | 3.9 | 3.9 | 4.1 | |||||
Maryland | 3.7 | 3.7 | 3.4 | |||||
Utah | 3.7 | 3.6 | 3.4 | |||||
Pennsylvania | 3.6 | 3.6 | 3.5 | |||||
Michigan | 3.6 | 3.7 | 4.1 | |||||
Total | 54.4 | % | 54.3 | % | 53.5 | % |
As of June 30, 2017 | ||||||||||||||||||||||||||||
Book year | Original Insurance Written | Remaining Insurance in Force | % Remaining of Original Insurance | Policies Ever in Force | Number of Policies in Force | Number of Loans in Default | # of Claims Paid | Incurred Loss Ratio (Inception to Date) (1) | Cumulative default rate (2) | |||||||||||||||||||
($ Values in Millions) | ||||||||||||||||||||||||||||
2013 | $ | 162 | $ | 42 | 26 | % | 655 | 212 | 1 | 1 | 0.2 | % | 0.3 | % | ||||||||||||||
2014 | 3,451 | 1,596 | 46 | % | 14,786 | 7,963 | 53 | 7 | 3.5 | % | 0.4 | % | ||||||||||||||||
2015 | 12,422 | 9,243 | 74 | % | 52,548 | 41,747 | 128 | 13 | 2.7 | % | 0.3 | % | ||||||||||||||||
2016 | 21,187 | 19,288 | 91 | % | 83,626 | 78,111 | 67 | 2 | 1.3 | % | 0.1 | % | ||||||||||||||||
2017 | $ | 8,596 | $ | 8,460 | 98 | % | 33,593 | 33,162 | — | — | — | % | — | % | ||||||||||||||
Total | $ | 45,818 | $ | 38,629 | 185,208 | 161,195 | 249 | 23 |
(1) | The ratio of claims incurred (paid and reserved) divided by cumulative premiums earned, net of reinsurance. |
(2) | The sum of claims paid ever to date and notices of default as of the end of the period divided by policies ever in force. |
For the three months ended | For the six months ended | ||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
(In Thousands) | |||||||||||||||
Beginning balance | $ | 3,761 | $ | 1,137 | $ | 3,001 | $ | 679 | |||||||
Less reinsurance recoverables (1) | (564 | ) | — | (297 | ) | — | |||||||||
Beginning balance, net of reinsurance recoverables | 3,197 | 1,137 | 2,704 | 679 | |||||||||||
Add claims incurred: | |||||||||||||||
Claims and claim expenses incurred: | |||||||||||||||
Current year (2) | 1,376 | 560 | 2,331 | 1,113 | |||||||||||
Prior years | (3 | ) | (90 | ) | (323 | ) | (185 | ) | |||||||
Total claims and claims expenses incurred | 1,373 | 470 | 2,008 | 928 | |||||||||||
Less claims paid: | |||||||||||||||
Claims and claim expenses paid: | |||||||||||||||
Current year (2) | — | — | — | — | |||||||||||
Prior years (3) | 421 | 132 | 563 | 132 | |||||||||||
Total claims and claim expenses paid | 421 | 132 | 563 | 132 | |||||||||||
Reserve at end of period, net of reinsurance recoverables | 4,149 | 1,475 | 4,149 | 1,475 | |||||||||||
Add reinsurance recoverables (1) | 899 | — | 899 | — | |||||||||||
Balance, June 30 | $ | 5,048 | $ | 1,475 | $ | 5,048 | $ | 1,475 |
Three months ended | Six months ended | ||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||
Beginning default inventory | 207 | 55 | 179 | 36 | |||||||
Plus: new defaults | 147 | 50 | 271 | 89 | |||||||
Less: cures | (97 | ) | (23 | ) | (189 | ) | (43 | ) | |||
Less: claims paid | (8 | ) | (3 | ) | (12 | ) | (3 | ) | |||
Ending default inventory | 249 | 79 | 249 | 79 |
For the three months ended | For the six months ended | ||||||||||||||
June 30, 2017 | June 30, 2016 | June 30, 2017 | June 30, 2016 | ||||||||||||
($ Values In Thousands) | |||||||||||||||
Number of claims paid | 8 | 3 | 12 | 3 | |||||||||||
Total amount paid for claims | $ | 429 | $ | 132 | $ | 571 | $ | 132 | |||||||
Average amount paid per claim | $ | 54 | $ | 44 | $ | 48 | $ | 44 | |||||||
Severity | 86 | % | 71 | % | 87 | % | 71 | % |
Average reserve per default: | As of June 30, 2017 | As of June 30, 2016 | |||||
(In Thousands) | |||||||
Case | $ | 19 | $ | 17 | |||
IBNR | 1 | 1 | |||||
Total | $ | 20 | $ | 18 |
As of | |||||||||||
June 30, 2017 | March 31, 2017 | June 30, 2016 | |||||||||
(In thousands) | |||||||||||
Available assets | $ | 485,019 | $ | 466,982 | $ | 432,074 | |||||
Risk-based required assets | 298,091 | 398,859 | 377,468 | ||||||||