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Reserve for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Claims Development

Schedule of reconciliation of changes in the ending reserve balances for losses and loss adjustment expenses ("LAE")


		Year Ended December 31,
		2022			2021			2020

		(in thousands)
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period		$	45,419		$	34,470		$	3,869
Add: Incurred losses and loss adjustment expenses, net of reinsurance, related to:
Current year			76,289			45,042			64,179
Prior years			2,383			(3,585)			(64)
Total incurred			78,672			41,457			64,115
Deduct: Loss and loss adjustment expense payments, net of reinsurance, related to:
Current year			21,802			12,063			31,879
Prior years			24,769			18,445			1,635
Total payments			46,571			30,508			33,514
Reserve for losses and loss adjustment expense net of reinsurance recoverables at end of period			77,520			45,419			34,470
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period			153,895			127,947			94,566
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period		$	231,415		$	173,366		$	129,036

Schedule of reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses


		2022
		(in thousands)
Net outstanding liabilities:
Homeowners’ insurance		$	2,778
Special property			34,334
Reinsurance- Nonproportional assumed property(1)			8,568
Other			31,840
Reserve for losses and loss adjustment expense, net of reinsurance			77,520
Reinsurance recoverable on unpaid claims:
Homeowners’ insurance		$	11,339
Special property			97,231
Other			45,325
Total reinsurance recoverable on unpaid claims			153,895
Total reserve for losses and loss adjustment expenses		$	231,415

(1)

Reflects the Company’s share of Loss and Loss Adjustment Expense related to non-proportional assumed reinsurance business. This amount reflects gross and net reserves related to this treaty and the ultimate incurred amount reflects IBNR only. The Company does not have direct access to individual claim information underlying the assumed quota arrangement. The Company does not use claim frequency information in the determination of loss reserves or for other internal purposes. Based on these considerations, the Company does not believe providing claims frequency information is practicable as it relates to this line of business.

Homeowners' Insurance

Claims Development

Schedule of Incurred and Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses,

Net of Reinsurance Homeowners’ Insurance (in thousands)


																										As of December 31, 2022
																										Incurred but			Cumulative
		Year Ended December 31,																								Not Reported			Number of
Accident Year		2015(1)			2016(1)			2017(1)			2018(1)			2019(1)			2020(1)			2021(1)			2022			Liabilities			Claims
2015		$	2,048		$	1,785		$	1,658		$	1,636		$	1,642		$	1,636		$	1,643		$	1,612		$	—		567
2016						6,069			5,878			5,721			5,636			5,622			5,609			5,604			—		1,357
2017									9,354			7,418			6,630			6,388			5,587			5,681			11		3,516
2018												2,193			2,008			1,930			1,929			1,529			—		1,017
2019															914			838			807			676			36		1,386
2020																		19,100			15,088			13,715			106		4,451
2021																					8,453			5,765			—		4,081
2022																								7,237			1,000		2,149
Total																							$	41,819		$	1,153		18,524

Cumulative Paid Losses and Allocated Loss Adjustment Expenses,

Net of Reinsurance Homeowners’ Insurance (in thousands)


		Year Ended December 31,
Accident Year		2015(1)			2016(1)			2017(1)			2018(1)			2019(1)			2020(1)			2021(1)			2022
2015		$	860		$	1,379		$	1,523		$	1,615		$	1,634		$	1,636		$	1,643		$	1,612
2016						4,120			5,356			5,585			5,607			5,619			5,609			5,604
2017									7,135			7,375			6,628			6,371			5,586			5,649
2018												1,550			1,853			1,922			1,922			1,529
2019															546			685			685			704
2020																		13,588			13,095			13,161
2021																					4,351			5,472
2022																								5,310
Total																							$	39,041
Reserve for losses and loss adjustment expense, net of reinsurance																							$	2,778

(1)	Data presented for these calendar years is required supplementary information, which is unaudited.

Schedule of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Homeowners' Insurance


		Year 1		Year 2		Year 3		Year 4		Year 5 (2)		Year 6		Year 7		Year 8 (2)
Payout percentage		85.32	%	16.39	%	0.81	%	0.88	%	(9.53)	%	0.35	%	0.17	%	(1.92)

(2) Negative payout percentages are due to timing of reinsurance payments, allocations of reinsurance between different lines of business based on actual results, and allocation of reinsurance to different periods for reinsurance treaties in effect for multiple periods. These are primarily associated with larger recoveries from catastrophe events in earlier years of operation.

Special Property

Claims Development

Schedule of Incurred and Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance

Incurred Losses and Allocated Loss Adjustment Expenses,

Net of Reinsurance Special Property Insurance (in thousands)


																										As of December 31, 2022
																										Incurred but			Cumulative
		Year Ended December 31,																								Not Reported			Number of
Accident Year		2015(1)			2016(1)			2017(1)			2018(1)			2019(1)			2020(1)			2021(1)			2022			Liabilities			Claims
2015		$	630		$	719		$	671		$	671		$	678		$	677		$	673		$	692		$	—		6
2016						1,381			1,249			1,251			1,454			1,453			1,453			1,521			—		26
2017									3,071			3,475			4,014			4,264			4,974			4,987			—		110
2018												5,970			6,095			6,009			6,021			6,412			—		176
2019															3,661			3,385			3,140			3,617			62		294
2020																		42,334			42,160			45,850			2,263		960
2021																					21,383			19,393			758		1386
2022																								35,650			10,515		1,425
Total																							$	118,122		$	13,598		4,383

Cumulative Paid Losses and Allocated Loss Adjustment Expenses,

Net of Reinsurance Special Property Insurance (in thousands)


Accident Year		2015(1)			2016(1)			2017(1)			2018(1)			2019(1)			2020(1)			2021(1)			2022
2015		$	265		$	438		$	586		$	626		$	666		$	673		$	673		$	692
2016						703			1,064			1,216			1,444			1,453			1,453			1,521
2017									1,967			3,344			4,011			4,269			4,974			4,987
2018												2,859			6,036			6,009			6,021			6,414
2019															1,633			2,825			3,072			3,466
2020																		18,274			36,127			42,343
2021																					7,004			17,028
2022																								7,337
Total																								83,788
Reserve for losses and loss adjustment expense, net of reinsurance																								34,334

(1)	Data presented for these calendar years is required supplementary information, which is unaudited.

Schedule of Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance Homeowners' Insurance


		Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8
Payout percentage		38.78	%	35.64	%	10.79	%	7.40	%	6.66	%	0.42	%	2.24	%	2.70	%