The following table shows information regarding our reserve for losses and PDR as of the dates indicated: (1)  Primarily represents ceded losses on captive transactions and Smart Home. (2)  Does not include second-lien premium deficiency reserve. Our mortgage insurance total loss reserve as a percentage of our mortgage insurance total RIF was  8.5% at December 31,  2012, compared to 9.8% at December 31, 2011 and 10.2% at December 31, 2010. The following table reconciles our mortgage insurance segment’ s beginning and ending reserves for losses and LAE for  the years indicated: (1)  Primarily related to ceded losses on captive reinsurance transactions and Smart Home. __________________ __________________ December 31, (In thousands) 2012 2011 2010 Reserves for losses by category: Prime . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,739,968 $ 1,748,412 $ 1,607,741 Alt-A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 564,719 612,423 687,960 A minus and below. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361,533 370,806 413,137 Reinsurance recoverable (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,238 151,569 223,254 Total primary reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,749,458 2,883,210 2,932,092 Pool insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 323,403 353,583 566,565 Total first-lien reserves. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,072,861 3,236,793 3,498,657 Second-lien and other (2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,747 11,107 26,314 Total reserve for losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,083,608 $ 3,247,900 $ 3,524,971 PDR on second-liens. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,685 $ 3,644 $ 10,736 (In thousands) 2012 2011 2010 Mortgage Insurance Balance at January 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,247,900 $ 3,524,971 $ 3,450,538 Less reinsurance recoverables (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151,569 223,254 621,644 Balance at January 1, net of reinsurance recoverables. . . . . . . . . . . . . . . . . . . . 3,096,331 3,301,717 2,828,894 Add total losses and LAE incurred in respect of default notices reported and unreported . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 921,507 1,293,857 1,730,801 Deduct paid claims and LAE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,017,468 1,499,243 1,257,978 Balance at December 31, net of reinsurance recoverables. . . . . . . . . . . . . . . . . 3,000,370 3,096,331 3,301,717 Add reinsurance recoverables (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,238 151,569 223,254 Balance at December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,083,608 $ 3,247,900 $ 3,524,971 112