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Loss And Loss Adjustment Expense Reserves
 12 Months Ended
Dec. 31, 2024
Insurance Loss Reserves [Abstract]  
Loss And Loss Adjustment Expense Reserves Loss and Loss Adjustment Expense Reserves
The following table presents the activity in loss and loss adjustment expense reserves:
 Year Ended December 31,
 202420232022
 (Amounts in thousands)
Gross reserves at January 1$2,785,702 $2,584,910 $2,226,430 
Reinsurance recoverables on unpaid losses(32,148)(25,323)(41,379)
Net reserves at January 12,753,554 2,559,587 2,185,051 
Incurred losses and loss adjustment expenses related to:
Current year3,659,724 3,553,801 3,314,938 
Prior years24,787 (35,948)47,281 
Total incurred losses and loss adjustment expenses3,684,511 3,517,853 3,362,219 
Loss and loss adjustment expense payments related to:
Current year1,963,076 2,080,690 1,862,006 
Prior years1,351,603 1,243,196 1,125,677 
Total payments3,314,679 3,323,886 2,987,683 
Net reserves at December 313,123,386 2,753,554 2,559,587 
Reinsurance recoverables on unpaid losses28,645 32,148 25,323 
Gross reserves at December 31$3,152,031 $2,785,702 $2,584,910 

During 2022, inflationary trends accelerated to their highest level in decades, which had a significant impact on the cost of automobile parts and labor as well as medical expenses for bodily injuries, and supply chain and labor shortage issues lengthened the time to repair vehicles. Bodily injury costs were also under pressure from social inflation. The severe inflationary trend continued into 2023, but moderated as the year progressed. During 2024, the inflation remained moderated for automobile parts and labor but it was at an elevated level for bodily injury costs.

The increase in the provision for insured events of prior years in 2024 of approximately $24.8 million primarily resulted from adverse development of approximately $13 million in private passenger and commercial automobile insurance (see the corresponding development table below), favorable development of approximately $5 million in homeowners insurance (see the corresponding development table below), and adverse development of approximately $15 million in commercial property insurance (see the corresponding development table below). The remaining net adverse development of approximately $2 million relates to other smaller lines of insurance business as well as unallocated loss adjustment expenses.

The decrease in the provision for insured events of prior years in 2023 of approximately $35.9 million primarily resulted from lower than estimated losses and loss adjustment expenses in the private passenger automobile and homeowners lines of insurance business, partially offset by unfavorable reserve development in the commercial property line of insurance business.
The moderating inflationary trend in 2023 relative to 2022 discussed above was the major contributor to the favorable reserve development in the private passenger automobile line of insurance business for 2023.

The increase in the provision for insured events of prior years in 2022 of approximately $47.3 million primarily resulted from higher than estimated losses and loss adjustment expenses in the automobile line of insurance business. The inflationary pressures and the supply chain and labor shortage issues discussed above were major contributors to the adverse reserve development in the automobile line of insurance business for 2022.

The Company recorded catastrophe losses net of reinsurance of approximately $277 million, $239 million, and $102 million in 2024, 2023, and 2022, respectively. Catastrophe losses due to the events that occurred in 2024 totaled approximately $268 million, with no reinsurance benefits used for these losses, resulting primarily from tornadoes, hailstorms and convective storms in Texas and Oklahoma, winter storms, rainstorms and wildfires in California, and the impact of Hurricane Helene in Florida and Georgia. In addition, the Company experienced unfavorable development of approximately $9 million on prior years' catastrophe losses in 2024. Catastrophe losses due to the events that occurred in 2023 totaled approximately $247 million, with no reinsurance benefits used for these losses, resulting primarily from rainstorms and hail in Texas and Oklahoma, winter storms and rainstorms in California, and the impact of Tropical Storm Hilary in California. In addition, the Company experienced favorable development of approximately $8 million on prior years' catastrophe losses in 2023. Catastrophe losses due to the events that occurred in 2022 totaled approximately $101 million, with no reinsurance benefits used for these losses, resulting primarily from the deep freeze of Winter Storm Elliott and other extreme weather events in Texas, Oklahoma and Georgia, winter storms in California, and the impact of Hurricane Ian in Florida. In addition, the Company experienced unfavorable development of approximately $1 million on prior years' catastrophe losses in 2022.

The following is information about incurred and paid claims development as of December 31, 2024, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for the three major categories of our product lines: private passenger and commercial automobile lines of insurance business, homeowners line of insurance business, and commercial property line of insurance business. As the information presented is for these three major categories of product lines only, the total incurred and paid claims development shown below does not correspond to the aggregate development presented in the table above, which is for all product lines and includes unallocated claims adjustment expenses. The cumulative number of reported claims represents open claims, claims closed with payment, and claims closed without payment. It does not include an estimated amount for unreported claims. The number of claims is measured by claim event (such as a car accident or storm damage) and an individual claim event may result in more than one reported claim. The Company considers a claim that does not result in a liability as a claim closed without payment. 

The information about incurred and paid claims development for the years ended December 31, 2015 to 2023 is presented as unaudited supplementary information.

Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Private Passenger and Commercial Automobile Insurance)As of December 31, 2024
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident YearFor the Years Ended December 31,
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
(Amounts in thousands)(Amounts in thousands)
2015$1,551,105 $1,588,443 $1,610,839 $1,634,435 $1,645,950 $1,649,170 $1,653,878 $1,654,843 $1,655,267 $1,654,800 $335 170
20161,672,853 1,669,642 1,713,696 1,731,997 1,732,410 1,740,807 1,743,417 1,745,513 1,744,803 1,974 155
20171,703,857 1,727,277 1,741,825 1,733,425 1,748,289 1,755,702 1,754,356 1,753,163 2,368 149
20181,781,817 1,773,502 1,785,071 1,806,240 1,807,297 1,811,302 1,814,240 7,291 147
20191,916,269 1,911,268 1,959,262 1,954,151 1,951,924 1,948,995 11,185 148
20201,514,551 1,448,083 1,452,343 1,430,973 1,419,119 15,497 91
20211,811,064 1,879,751 1,854,319 1,834,183 40,221 105
20222,255,032 2,264,193 2,262,432 103,677 116
20232,349,659 2,398,449 276,766 107
20242,420,766 791,846 91
Total$19,250,950 
__________ 
(1) The information for the years 2015 to 2023 is presented as unaudited supplemental information.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Private Passenger and Commercial Automobile Insurance)
For the Years Ended December 31,
Accident Year
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
(Amounts in thousands)
2015$1,040,253 $1,336,223 $1,466,368 $1,560,480 $1,614,188 $1,634,780 $1,643,443 $1,651,465 $1,654,069 $1,654,360 
20161,094,006 1,395,199 1,554,217 1,656,192 1,699,069 1,722,293 1,736,697 1,740,902 1,741,949 
20171,076,079 1,399,202 1,561,850 1,648,328 1,701,298 1,733,196 1,746,147 1,750,074 
20181,082,127 1,417,637 1,588,049 1,697,228 1,757,923 1,784,876 1,799,373 
20191,134,859 1,494,342 1,698,121 1,828,410 1,896,186 1,925,074 
2020825,398 1,089,096 1,242,000 1,328,686 1,375,466 
2021992,705 1,410,748 1,599,756 1,717,524 
20221,237,725 1,743,364 1,984,312 
20231,313,944 1,835,079 
20241,232,949 
Total$17,016,160 
All outstanding liabilities before 2015, net of reinsurance
(560)
Loss and allocated loss adjustment expense reserves, net of reinsurance$2,234,230 
__________ 
(1) The information for the years 2015 to 2023 is presented as unaudited supplemental information.


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners Insurance)As of December 31, 2024
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident YearFor the Years Ended December 31,
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
(Amounts in thousands)(Amounts in thousands)
2015$234,800 $234,881 $233,501 $236,855 $238,652 $239,941 $240,927 $237,872 $237,994 $237,701 $60 24
2016250,691 259,489 259,497 259,708 260,496 259,984 259,722 259,701 260,179 16 24
2017309,491 295,163 288,322 289,869 289,294 291,360 290,909 291,804 4 30
2018311,798 308,361 310,695 305,292 306,347 308,345 306,857 572 25
2019359,643 366,139 361,421 360,609 360,140 362,401 1,427 30
2020420,257 411,404 413,882 411,408 411,127 4,213 29
2021510,724 511,311 504,086 501,214 7,556 31
2022578,489 562,562 567,123 16,682 31
2023717,988 709,918 34,859 41
2024730,818 161,375 29
Total$4,379,142 
__________ 
(1) The information for the years 2015 to 2023 is presented as unaudited supplemental information.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners Insurance)
For the Years Ended December 31,
Accident Year
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
(Amounts in thousands)
2015$163,196 $213,994 $224,178 $230,480 $234,683 $235,971 $236,143 $236,983 $237,651 $237,468 
2016173,537 234,215 245,878 253,919 256,642 258,477 259,045 259,875 260,095 
2017217,900 269,254 278,341 283,311 286,531 290,291 290,984 291,595 
2018213,038 271,534 286,658 294,099 300,742 303,053 305,175 
2019240,240 324,953 340,237 350,288 355,697 359,466 
2020271,208 365,910 386,297 395,412 401,079 
2021316,314 458,124 473,644 485,001 
2022339,242 501,075 530,772 
2023474,713 636,330 
2024449,119 
Total$3,956,100 
All outstanding liabilities before 2015, net of reinsurance
1,179 
Loss and allocated loss adjustment expense reserves, net of reinsurance$424,221 
__________ 
(1) The information for the years 2015 to 2023 is presented as unaudited supplemental information.

Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Commercial Property Insurance)As of December 31, 2024
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident YearFor the Years Ended December 31,
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
(Amounts in thousands)(Amounts in thousands)
2015$33,015 $34,932 $36,641 $37,197 $37,052 $37,632 $38,822 $39,749 $40,490 $40,312 $38 1
201638,639 41,827 46,349 45,665 46,170 55,746 56,479 53,687 51,796 158 1
201746,410 50,378 53,829 55,288 57,658 59,800 64,645 63,207 1,312 1
201843,859 45,610 42,587 44,452 47,141 47,799 46,474 849 1
201945,574 42,756 43,167 46,845 51,677 51,721 1,744 1
202056,319 46,663 42,968 50,634 49,630 3,732 1
202158,413 55,863 73,289 78,371 15,537 1
202275,113 83,086 95,927 22,328 1
202380,150 82,778 31,451 1
202497,285 51,540 —
Total$657,501 
__________ 
(1) The information for the years 2015 to 2023 is presented as unaudited supplemental information.
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Commercial Property Insurance)
For the Years Ended December 31,
Accident Year
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023(1)
2024
(Amounts in thousands)
2015$17,110 $26,226 $30,703 $33,287 $34,836 $36,262 $38,064 $39,520 $40,087 $40,170 
201618,243 27,210 35,426 39,499 41,221 46,026 48,036 49,190 50,579 
201718,910 31,116 36,284 43,809 47,597 52,350 60,803 60,980 
201816,266 24,146 29,436 34,520 37,428 41,376 43,527 
201915,182 25,956 30,592 35,780 40,056 45,886 
202019,529 27,705 31,138 37,130 40,713 
202124,032 33,477 41,432 54,763 
202225,699 44,304 58,455 
202322,119 32,384 
202417,183 
Total$444,640 
All outstanding liabilities before 2015, net of reinsurance
205 
Loss and allocated loss adjustment expense reserves, net of reinsurance$213,066 
__________ 
(1) The information for the years 2015 to 2023 is presented as unaudited supplemental information.

The following is unaudited supplementary information about average historical claims duration as of December 31, 2024.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Private Passenger and Commercial Automobile insurance57.8 %19.6 %9.7 %6.0 %3.1 %1.5 %0.7 %0.3 %0.1 %— %
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Homeowners insurance66.3 %23.0 %4.3 %2.4 %1.5 %0.9 %0.3 %0.3 %0.1 %— %

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Commercial Property insurance31.3 %17.5 %10.9 %10.9 %5.8 %8.0 %6.6 %2.0 %2.0 %0.2 %
The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows:

Reconciliation of the Disclosure of Incurred and Paid Claims Development
to the Loss and Loss Adjustment Expense Reserves
December 31, 2024
(Amounts in thousands)
Net outstanding liabilities
Private Passenger and Commercial Automobile insurance$2,234,230 
Homeowners insurance424,221 
Commercial Property insurance213,066 
Other short-duration insurance lines98,949 
Loss and loss adjustment expense reserves, net of reinsurance recoverables on unpaid losses2,970,466 
Reinsurance recoverables on unpaid losses
Private Passenger and Commercial Automobile insurance26,499 
Homeowners insurance1,273 
Commercial Property insurance392 
Other short-duration insurance lines481 
Total reinsurance recoverables on unpaid losses28,645 
Insurance lines other than short-duration1,114 
Unallocated claims adjustment expenses151,806 
152,920 
Total gross loss and loss adjustment expense reserves$3,152,031