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Provision for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended
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Sep. 30, 2024
Insurance [Abstract] |
Provision for Unpaid Losses and Loss Adjustment Expenses | 11 — Provision for Unpaid Losses and Loss Adjustment Expenses The following table presents a reconciliation of the beginning and ending provision for unpaid losses and loss adjustment expenses related to Hagerty Re, net of amounts recoverable from various reinsurers:
|  |  |  | Nine months ended September 30,
|  |  |  |  |  | 2024 |  | 2023 |  |
|  |  |  |  |  | in thousands
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year |  |  |  |  | $ | 136,507 |  |  | $ | 111,741 |  |  |
Less: Reinsurance recoverable on unpaid losses and loss adjustment expenses |  |  |  |  | 2,235 |  |  | 843 |  |  |
Net reserves for unpaid losses and loss adjustment expenses, beginning of year |  |  |  |  | 134,272 |  |  | 110,898 |  |  |
Incurred losses and loss adjustment expenses: |  |  |  |  |  |  |  |  |
Current accident year |  |  |  |  | 226,515 |  |  | 159,461 |  |  |
Prior accident year |  |  |  |  | — |  |  | — |  |  |
Total incurred losses and loss adjustment expenses |  |  |  |  | 226,515 |  |  | 159,461 |  |  |
Payments: |  |  |  |  |  |  |  |  |
Current accident year |  |  |  |  | 50,683 |  |  | 35,993 |  |  |
Prior accident year |  |  |  |  | 59,090 |  |  | 44,499 |  |  |
Total payments |  |  |  |  | 109,773 |  |  | 80,492 |  |  |
Effect of foreign currency rate changes |  |  |  |  | 84 |  |  | (42) |  |  |
Net reserves for unpaid losses and loss adjustment expenses, end of period |  |  |  |  | 251,098 |  |  | 189,825 |  |  |
Reinsurance recoverable on unpaid losses and loss adjustment expenses |  |  |  |  | 7,738 |  |  | 959 |  |  |
Gross reserves for unpaid losses and loss adjustment expenses, end of period |  |  |  |  | $ | 258,836 |  |  | $ | 190,784 |  |  |
Hagerty Re's loss reserve estimates are updated based on an evaluation of inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, and internal review processes, including the views of the Company's actuary. These inputs are used to improve evaluation techniques and to analyze and assess the change in estimated ultimate losses for each accident year by line of business. These analyses produce a range of indications from various methods, from which an actuarial point estimate is recorded. Losses and loss adjustment expenses for the nine months ended September 30, 2024 includes $24.7 million of estimated pre-tax losses related to Hurricane Helene. Claims from Hurricane Helene, which made landfall on September 26, 2024, are still being processed. There is inherent variability in estimates of early loss projections and claims severity, particularly in high-damage regions, and therefore, the estimate may change as additional information emerges. Any losses above $28.0 million for this event will be recoverable under the Company's catastrophe reinsurance program. Refer to Note 12 — Reinsurance for additional information.

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- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 310 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c)(4)(ii) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477363/944-310-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 310 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c)(4)(iv) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477363/944-310-50-3 + Details
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