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Property and Casualty Insurance Reserves | 9 Months Ended
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Sep. 30, 2020
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] |
Property and Casualty Insurance Reserves | Property and Casualty Insurance Reserves Property and casualty insurance reserve activity for the nine months ended September 30, 2020 and 2019 was:
|  | Nine Months Ended
(Dollars in Millions) |  | Sep 30, 2020 |  | Sep 30, 2019
Property and Casualty Insurance Reserves: |  |  |  |
Gross of Reinsurance at Beginning of Year |  | $ | 1,969.8 |  |  | $ | 1,874.9 |
Less Reinsurance Recoverables at Beginning of Year |  | 65.6 |  |  | 101.9 |
Property and Casualty Insurance Reserves - Net of Reinsurance at Beginning of Year |  | 1,904.2 |  |  | 1,773.0 |
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance |  | — |  |  | 3.6 |
Incurred Losses and LAE Related to: |  |  |  |
Current Year |  | 2,132.3 |  |  | 2,140.1 |
Prior Years |  | 28.3 |  |  | (55.8) |
Total Incurred Losses and LAE |  | 2,160.6 |  |  | 2,084.3 |
Paid Losses and LAE Related to: |  |  |  |
Current Year |  | 1,133.7 |  |  | 1,128.8 |
Prior Years |  | 1,032.9 |  |  | 853.1 |
Total Paid Losses and LAE |  | 2,166.6 |  |  | 1,981.9 |
Property and Casualty Insurance Reserves - Net of Reinsurance at End of Period |  | 1,898.2 |  |  | 1,879.0 |
Plus Reinsurance Recoverables at End of Period |  | 51.8 |  |  | 62.6 |
Property and Casualty Insurance Reserves - Gross of Reinsurance at End of Period |  | $ | 1,950.0 |  |  | $ | 1,941.6 |
Property and casualty insurance reserves are estimated based on historical experience patterns and current economic trends. Actual loss experience and loss trends are likely to differ from these historical experience patterns and economic conditions. Loss experience and loss trends emerge over several years from the dates of loss inception. The Company monitors such emerging loss trends on a quarterly basis. Changes in such estimates are included in the Condensed Consolidated Statements of Income in the period of change. For the nine months ended September 30, 2020, the Company increased its property and casualty insurance reserves by $28.3 million to recognize adverse development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed adversely by $31.3 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Commercial automobile insurance loss and LAE reserves developed favorably by $14.4 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance. Preferred personal automobile insurance loss and LAE reserves developed adversely by $17.2 million due primarily to the emergence of more adverse loss patterns than expected for liability insurance. Homeowners loss and LAE reserves developed favorably by $3.0 million due primarily to the emergence of more favorable loss patterns than expected. Other lines loss and LAE reserves developed favorably by $2.8 million due primarily to the emergence of more favorable loss patterns than expected for prior accident years. For the nine months ended September 30, 2019, the Company decreased its property and casualty insurance reserves by $55.8 million to recognize favorable development of loss and LAE reserves from prior accident years. Specialty personal automobile insurance loss and LAE reserves developed favorably by $19.6 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance related to the 2018 accident year. Commercial automobile loss and LAE reserves developed favorably by $11.1 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance related to the 2018 accident year. Preferred personal automobile insurance loss and LAE reserves developed favorably by $5.6 million due primarily to the emergence of more favorable loss patterns than expected for liability insurance related to 2018 and 2017 accident years. Homeowners insurance loss and LAE reserves developed favorably by $13.6 million primarily due to the net of reinsurance impact from the sale of subrogation rights related to the 2017 and 2018 California Wildfires. Other lines loss and LAE reserves developed favorably by $5.0 million due primarily to the emergence of more favorable loss patterns than expected for the 2018 and 2017 accident years. Note 3 - Property and Casualty Insurance Reserves (continued) The Company cannot predict whether loss and LAE reserves will develop favorably or adversely from the amounts reported in the Company’s Condensed Consolidated Financial Statements. The Company believes that any such development will not have a material effect on the Company’s consolidated shareholders’ equity, but could have a material effect on the Company’s consolidated financial results for a given period. Receivables from Policyholders - Allowance for Expected Credit Losses The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the nine months ended September 30, 2020.
(Dollars in Millions) |  | Receivables from Policyholders, Net of Allowance for Expected Credit Losses |  | Allowance for Expected Credit Losses
Balance at Beginning of Year |  | $ | 1,117.1 |  |  | $ | 22.3 |
Provision for Expected Credit Losses |  |  |  | 31.9 |
Write-offs of Uncollectible Receivables from Policyholders |  |  |  | (33.8) |
Balance at End of Period |  | $ | 1,249.3 |  |  | $ | 20.4 |
The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the three months ended September 30, 2020.
(Dollars in Millions) |  | Receivables from Policyholders, Net of Allowance for Expected Credit Losses |  | Allowance for Expected Credit Losses
Balance at Beginning of Period |  | $ | 1,165.3 |  |  | $ | 29.9 |
Provision for Expected Credit Losses |  |  |  | 3.5 |
Write-offs of Uncollectible Receivables from Policyholders |  |  |  | (13.0) |
Balance at End of Period |  | $ | 1,249.3 |  |  | $ | 20.4 |

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI http://asc.fasb.org/subtopic&trid=2560295 + Details
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