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Short-Duration Insurance Contracts | 12 Months Ended
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Dec. 31, 2023
Insurance Loss Reserves [Abstract] |
Short-Duration Insurance Contracts | Short-Duration Insurance Contracts Property & Casualty Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending Property & Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Property & Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of the year gross reserve (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets.
($ in millions) |  | Years Ended December 31,
|  | 2023 |  | 2022 |  | 2021
Property & Casualty |  |  |  |  |  |
Gross reserves, beginning of year |  | $ | 388.7 |  |  | $ | 362.4 |  |  | $ | 372.2 |
Less: reinsurance recoverables |  | 100.8 |  |  | 110.3 |  |  | 112.9 |
Net reserves, beginning of year(1) |  | 287.9 |  |  | 252.1 |  |  | 259.3 |
Incurred claims and claim expenses: |  |  |  |  |  |
Claims occurring in the current year |  | 557.0 |  |  | 512.3 |  |  | 455.1 |
Increase (decrease) in estimated reserves for claims occurring in prior years(2) |  | — |  |  | 22.0 |  |  | (7.2) |
Total claims and claim expenses incurred |  | 557.0 |  |  | 534.3 |  |  | 447.9 |
Claims and claim expense payments for claims occurring during: |  |  |  |  |  |
Current year |  | 353.1 |  |  | 320.0 |  |  | 307.1 |
Prior years |  | 179.0 |  |  | 178.5 |  |  | 148.0 |
Total claims and claim expense payments |  | 532.1 |  |  | 498.5 |  |  | 455.1 |
Net reserves, end of year |  | 312.8 |  |  | 287.9 |  |  | 252.1 |
Plus: reinsurance recoverables |  | 104.0 |  |  | 100.8 |  |  | 110.3 |
Gross reserves, end of year |  | $ | 416.8 |  |  | $ | 388.7 |  |  | $ | 362.4 |
(1) Reserves are net of anticipated reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. Also, refer to the paragraphs below for additional information regarding prior years' reserve development recognized in 2023, 2022 and 2021. Underwriting results for Property & Casualty are significantly influenced by estimates of the Company's ultimate liability for insured events. There is a high degree of uncertainty inherent in the estimates of ultimate losses underlying the liability for unpaid claims and claim settlement expenses. This inherent uncertainty is particularly significant for liability-related exposures due to the extended period, often many years, which transpires between a loss event, receipt of related claims data from policyholders and ultimate settlement of the claim. Reserves for Property & Casualty claims include provisions for payments to be made on reported claims (case reserves), IBNR claims and associated settlement expenses (together, loss reserves). The process by which these loss reserves are established requires reliance upon estimates based on known facts and on interpretations of circumstances, including the Company's experience with similar cases and historical trends involving claim payments and related patterns, pending levels of unpaid claims and product mix, as well as other factors including court decisions, economic conditions, public attitudes and medical costs. The Company believes the Property & Casualty loss reserves are appropriately established based on available facts, laws, and regulations. The Company calculates and recognizes a single best estimate of the reserve as of each reporting date, for each line of business and its coverages for reported losses and for IBNR losses and as a result, the Company believes no other estimate is better than the recognized amount. Due to uncertainties involved, the ultimate cost of losses may vary materially from recognized amounts. The Company continually updates loss estimates using both quantitative and qualitative information from its reserving actuaries and information derived from other sources. Adjustments may be required as information develops which varies from experience, or, in some cases, augments data which previously was not considered sufficient for use in determining liabilities. The effects of these adjustments may be significant and are charged or credited to income in the period in which the adjustments are made. Numerous risk factors will affect more than one product line. One of these factors is changes in claim department practices, including claim closure rates, number of claims closed without payment, the use of third-party claim adjusters and the level of needed case reserve estimated by the adjuster. Other risk factors include changes in claim frequency, changes in claim severity, regulatory and legislative actions, court actions, changes in economic conditions and trends (e.g., medical costs, labor rates and the cost of materials), the occurrence of unusually large or frequent catastrophic loss events, timeliness of claim reporting, the state in which the claim occurred and degree of claimant fraud. The extent of the impact of a risk factor will also vary by coverages within a product line. Individual risk factors are also subject to interactions with other risk factors within product line coverages. While all product lines are exposed to these risks, there are some loss types or product lines for which the financial effect will be more significant. For instance, given the relatively large proportion (approximately 68% as of December 31, 2023) of the Company's reserves that are in the longer-tail auto liability coverages, regulatory and court actions, changes in economic conditions and trends, and medical costs could be expected to impact this product line more extensively than others. Reserves are established for claims as they occur for each line of business based on estimates of the ultimate cost to settle the claims. The actual loss results are compared to prior estimates and differences are recorded as re-estimates. The primary actuarial techniques (development of paid loss dollars, development of reported loss dollars, methods based on expected loss ratios and methods utilizing frequency and severity of claims) used to estimate reserves and provide for losses are applied to actual paid losses and reported losses (paid losses plus individual case reserves set by claim adjusters) for an accident year to create an estimate of how losses are likely to develop over time. In all of the loss estimation techniques referred to above, a ratio (development factor) is calculated which compares current results to results in the prior period for each accident year. Various development factors, based on historical results, are multiplied by the current experience to estimate the development of losses of each accident year from the current time period into the next time period. The development factors for the next time period for each accident year are compounded over the remaining calendar years to calculate an estimate of ultimate losses for each accident year. Occasionally, unusual aberrations in loss patterns are caused by factors such as changes in claim reporting, settlement patterns, unusually large losses, process changes, legal or regulatory environment changes, and other influences. In these instances, analyses of alternate development factor selections are performed to evaluate the effect of these factors and judgment is applied to make appropriate development factor assumptions needed to develop a best estimate of ultimate losses. Paid losses are then subtracted from estimated ultimate losses to determine the indicated loss reserves. The difference between indicated reserves and recorded reserves is the amount of reserve re-estimate. Reserves are re-estimated quarterly. When new development factors are calculated from actual losses that differ from estimated development factors used in previous reserve estimates, assumptions about losses and required reserves are revised based on the new development factors. Changes to reserves are recognized in the period in which development factor changes result in reserve re-estimates. Claim count estimates are also established for claims as they occur for each line of business based on estimates of the ultimate claim counts. These counts are derived by counting the number of claimants by insurance coverage. The primary actuarial techniques (development of paid claim counts and development of reported claim counts) used to estimate ultimate claim counts are applied to actual paid claim counts and reported claim counts (paid claims plus individual unpaid claims set by claim adjusters) for an accident year to create an estimate of how claims are likely to develop over time. An accident year refers to classifying claims based on the year in which the claim occurred. The ultimate claim count generally gives equal consideration to the results of the two actuarial techniques described. Occasionally, unusual aberrations in claim reporting patterns or claim payment patterns may occur. In these instances, analyses of alternate development factor selections are performed to evaluate the effect of these factors and judgment is applied to make appropriate development factor assumptions needed to develop a best estimate of ultimate claims. See tables on the following pages of Note 5 for details of the average annual percentage payout of incurred claims by age, also referred to as a history of claims duration and tables illustrating the incurred and paid claims development information by accident year on a net basis for the lines of homeowners, auto liability, and auto physical damage, which represents 99.7% of the Company's Property & Casualty incurred losses for 2023. Numerous actuarial estimates of the types described above are prepared each quarter to monitor losses for each line of business, including the line's individual coverages, for reported losses and IBNR. Often, several different estimates are prepared for each detailed component, incorporating alternative analyses of changing claim settlement patterns and other influences on losses, from which the Company selects the best estimate for each component, occasionally incorporating additional analyses and judgment, as described above. These estimates also incorporate the historical impact of inflation into reserve estimates, the implicit assumption being that a multi-year average development factor represents an adequate provision. Based on the Company's review of these estimates, as well as the review of independent reserve studies, the best estimate of required reserves for each line of business, including the line's individual coverages, is determined by management and is recognized for each accident year, then the required reserves for each component are summed to create the reserve balances carried on the Company's Consolidated Balance Sheets. Based on the Company's products and coverages, historical experience, and various actuarial methodologies used to develop reserve estimates, the Company estimates that the potential variability of the Property & Casualty loss reserves within a reasonable probability of other possible outcomes may be different than expected. A change in claim severity or claim frequency of approximately plus or minus 1.0% of reserves equates to plus or minus approximately $2.5 million of net income as of December 31, 2023. Although this evaluation reflects the most likely outcomes, it is possible the final outcome may fall below or above these estimates. Net favorable (unfavorable) development of total reserves for Property & Casualty claims occurring in prior years was $0.0 million in 2023, $(22.0) million in 2022 and $7.2 million in 2021. In 2022, the Property & Casualty had unfavorable prior years' auto reserve development of $28.0 million, reflecting the impact on severity of overall inflation, higher medical costs, increased usage of medical services and the current judicial environment, as well as favorable prior years' property reserve development of $6.0 million as a result of favorable loss trends for accident years 2021 and prior. In 2021, the favorable development was the result of favorable loss trends in auto and homeowners loss emergence for accident years 2020 and prior. The Company completes a detailed study of Property & Casualty reserves based on information available at the end of each quarter and year. Trends of reported losses (paid amounts and case reserves on claims reported to the Company) for each accident year are reviewed and ultimate loss costs for those accident years are estimated. The Company engages an independent property and casualty actuarial consulting firm to prepare an independent study of the Company's Property & Casualty reserves as of December 31 st of each year. The result of the independent actuarial study as of December 31, 2023 was consistent with management's analysis and selected estimates and did not result in any adjustments to the Company's Property & Casualty reserves recognized. At the time each of the reserve analyses was performed, the Company believed that each estimate was based upon sound methodology and such methodologies were appropriately applied and that there were no trends which indicated the likelihood of future loss reserve development. The financial impact of net reserve development was therefore accounted for in the period that the development was determined. No other adjustments were made in the determination of the liabilities during the periods covered by these consolidated financial statements. Management believes that, based on data currently available, it has reasonably estimated the Company's ultimate losses. Below is the average annual percentage payout of incurred claims by age, also referred to as a history of claims duration:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years |  | 1 |  |  | 2 |  |  | 3 |  |  | 4 |  |  | 5 |  |  | 6 |  |  | 7 |  |  | 8 |  |  | 9 |  | 10
Homeowners |  | 78.8 | % |  | 18.1 | % |  | 2.2 | % |  | 0.5 | % |  | 0.3 | % |  | — |  |  | — |  |  | — |  |  | 0.1 | % |  | —
Auto liability |  | 37.1 | % |  | 35.1 | % |  | 14.7 | % |  | 6.9 | % |  | 3.4 | % |  | 1.6 | % |  | 0.6 | % |  | 0.2 | % |  | 0.4 | % |  | —
Auto physical damage |  | 94.7 | % |  | 5.3 | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
The following tables illustrate the incurred and paid claims development by accident year on a net basis for the lines of homeowners, auto liability and auto physical damage. Conditions and trends that have affected the development of these reserves in the past will not necessarily reoccur in the future. It may not be appropriate to use this cumulative history in the projection of future performance. The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as unaudited supplementary information.
($ in millions)
Homeowners |  |
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  | As of December 31, 2023
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims |  | Cumulative Number of Reported Claims
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Actual)
2014 |  | $ | 111.6 |  |  | $ | 113.5 |  |  | $ | 109.1 |  |  | $ | 106.8 |  |  | $ | 106.6 |  |  | $ | 106.6 |  |  | $ | 106.4 |  |  | $ | 106.4 |  |  | $ | 106.4 |  |  | $ | 106.4 |  |  | $ | — |  |  | 19,777 |
2015 |  |  |  | 111.7 |  |  | 115.1 |  |  | 114.4 |  |  | 114.1 |  |  | 115.1 |  |  | 114.9 |  |  | 114.9 |  |  | 114.9 |  |  | 114.9 |  |  | — |  |  | 19,745 |
2016 |  |  |  |  |  | 115.9 |  |  | 118.6 |  |  | 117.0 |  |  | 117.9 |  |  | 117.9 |  |  | 117.9 |  |  | 118.1 |  |  | 118.1 |  |  | — |  |  | 19,662 |
2017 |  |  |  |  |  |  |  | 126.3 |  |  | 129.8 |  |  | 132.7 |  |  | 130.7 |  |  | 130.8 |  |  | 130.8 |  |  | 131.3 |  |  | 0.3 |  |  | 19,741 |
2018 |  |  |  |  |  |  |  |  |  | 166.8 |  |  | 157.4 |  |  | 158.9 |  |  | 158.1 |  |  | 157.2 |  |  | 156.0 |  |  | 0.5 |  |  | 20,296 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 130.4 |  |  | 129.9 |  |  | 132.1 |  |  | 130.9 |  |  | 131.1 |  |  | 0.3 |  |  | 18,114 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 155.7 |  |  | 151.9 |  |  | 145.4 |  |  | 146.9 |  |  | 0.7 |  |  | 18,906 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 150.2 |  |  | 150.7 |  |  | 154.3 |  |  | 1.9 |  |  | 18,056 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 162.2 |  |  | 156.2 |  |  | 8.4 |  |  | 15,036 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 183.1 |  |  | 38.8 |  |  | 14,655 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 1,398.3 |  |  |  |  |
($ in millions) |  |  |  |
Homeowners |  |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  |  |  |
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |  |  |
2014 |  | $ | 83.3 |  |  | $ | 103.0 |  |  | $ | 105.7 |  |  | $ | 106.1 |  |  | $ | 106.3 |  |  | $ | 106.4 |  |  | $ | 106.4 |  |  | $ | 106.4 |  |  | $ | 106.4 |  |  | $ | 106.4 |  |  |  |  |
2015 |  |  |  | 90.7 |  |  | 109.3 |  |  | 111.9 |  |  | 113.3 |  |  | 114.6 |  |  | 114.9 |  |  | 114.7 |  |  | 114.7 |  |  | 114.9 |  |  |  |  |
2016 |  |  |  |  |  | 95.8 |  |  | 113.2 |  |  | 115.1 |  |  | 117.5 |  |  | 117.7 |  |  | 117.8 |  |  | 118.0 |  |  | 118.1 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 106.8 |  |  | 128.5 |  |  | 129.8 |  |  | 130.0 |  |  | 130.5 |  |  | 130.7 |  |  | 131.2 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 130.5 |  |  | 152.4 |  |  | 157.0 |  |  | 157.4 |  |  | 157.2 |  |  | 156.2 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 103.8 |  |  | 126.2 |  |  | 129.1 |  |  | 130.0 |  |  | 130.4 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 106.8 |  |  | 138.7 |  |  | 144.0 |  |  | 145.6 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 114.9 |  |  | 146.3 |  |  | 151.0 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 108.3 |  |  | 144.8 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 126.3 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 1,324.9 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Outstanding prior to 2013 |  | — |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Prior years paid |  | — |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 73.4 |  |  |  |  |
($ in millions)
Automobile Liability |  |
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |
Years Ended December 31, |  | As of December 31, 2023
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims |  | Cumulative Number of Reported Claims
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Actual)
2014 |  | $ | 155.1 |  |  | $ | 157.2 |  |  | $ | 158.5 |  |  | $ | 159.9 |  |  | $ | 159.8 |  |  | $ | 159.4 |  |  | $ | 159.3 |  |  | $ | 159.4 |  |  | $ | 160.0 |  |  | $ | 160.1 |  |  | $ | — |  |  | 64,648 |
2015 |  |  |  | 165.5 |  |  | 172.6 |  |  | 177.0 |  |  | 178.3 |  |  | 178.7 |  |  | 179.2 |  |  | 178.9 |  |  | 178.8 |  |  | 178.9 |  |  | — |  |  | 68,626 |
2016 |  |  |  |  |  | 180.4 |  |  | 184.4 |  |  | 184.6 |  |  | 186.6 |  |  | 188.1 |  |  | 189.2 |  |  | 189.6 |  |  | 189.5 |  |  | 0.1 |  |  | 70,684 |
2017 |  |  |  |  |  |  |  | 188.0 |  |  | 188.8 |  |  | 188.6 |  |  | 189.1 |  |  | 191.7 |  |  | 192.9 |  |  | 192.5 |  |  | 0.3 |  |  | 68,371 |
2018 |  |  |  |  |  |  |  |  |  | 200.3 |  |  | 195.3 |  |  | 192.9 |  |  | 189.8 |  |  | 192.0 |  |  | 192.3 |  |  | 1.1 |  |  | 35,394 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 181.1 |  |  | 180.1 |  |  | 176.7 |  |  | 181.5 |  |  | 181.2 |  |  | 3.0 |  |  | 61,879 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 137.0 |  |  | 134.9 |  |  | 136.3 |  |  | 137.3 |  |  | 4.7 |  |  | 46,934 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 142.2 |  |  | 157.8 |  |  | 156.7 |  |  | 11.5 |  |  | 45,005 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 165.6 |  |  | 166.1 |  |  | 26.9 |  |  | 46,104 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 176.4 |  |  | 70.0 |  |  | 42,198 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 1,731.0 |  |  |  |  |
($ in millions) |  |  |  |
Automobile Liability |  |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  |  |  |
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |  |  |
2014 |  | $ | 61.3 |  |  | $ | 117.5 |  |  | $ | 139.5 |  |  | $ | 149.1 |  |  | $ | 155.8 |  |  | $ | 157.6 |  |  | $ | 158.6 |  |  | $ | 158.8 |  |  | $ | 160.0 |  |  | $ | 160.0 |  |  |  |  |
2015 |  |  |  | 70.8 |  |  | 134.5 |  |  | 158.0 |  |  | 170.1 |  |  | 174.5 |  |  | 176.7 |  |  | 177.7 |  |  | 178.3 |  |  | 178.6 |  |  |  |  |
2016 |  |  |  |  |  | 73.1 |  |  | 140.9 |  |  | 166.8 |  |  | 177.8 |  |  | 184.5 |  |  | 188.1 |  |  | 189.0 |  |  | 189.4 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 70.7 |  |  | 139.5 |  |  | 166.6 |  |  | 179.8 |  |  | 185.8 |  |  | 190.8 |  |  | 191.8 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 77.5 |  |  | 141.5 |  |  | 168.6 |  |  | 180.7 |  |  | 188.0 |  |  | 190.6 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 69.7 |  |  | 129.1 |  |  | 155.5 |  |  | 170.9 |  |  | 176.2 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 51.5 |  |  | 94.0 |  |  | 118.2 |  |  | 129.2 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 52.9 |  |  | 112.5 |  |  | 136.5 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 55.8 |  |  | 116.7 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 62.2 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 1,531.2 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Outstanding prior to 2013 |  | 1.1 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Prior years paid |  | — |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 200.9 |  |  |  |  |
($ in millions)
Automobile Physical Damage |  |
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |
Years Ended December 31, |  | As of December 31, 2023
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims |  | Cumulative Number of Reported Claims
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Actual)
2014 |  | $ | 95.6 |  |  | $ | 95.6 |  |  | $ | 95.4 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | — |  |  | 68,139 |
2015 |  |  |  | 99.3 |  |  | 98.0 |  |  | 97.6 |  |  | 97.5 |  |  | 97.6 |  |  | 97.6 |  |  | 97.6 |  |  | 97.6 |  |  | 97.6 |  |  | — |  |  | 70,685 |
2016 |  |  |  |  |  | 112.4 |  |  | 109.5 |  |  | 109.3 |  |  | 109.6 |  |  | 109.6 |  |  | 109.5 |  |  | 109.5 |  |  | 109.6 |  |  | — |  |  | 74,209 |
2017 |  |  |  |  |  |  |  | 115.5 |  |  | 111.8 |  |  | 110.5 |  |  | 110.6 |  |  | 110.5 |  |  | 110.6 |  |  | 110.6 |  |  | — |  |  | 73,998 |
2018 |  |  |  |  |  |  |  |  |  | 109.0 |  |  | 108.9 |  |  | 108.3 |  |  | 108.3 |  |  | 108.2 |  |  | 108.3 |  |  | — |  |  | 72,833 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 111.6 |  |  | 110.5 |  |  | 110.0 |  |  | 110.0 |  |  | 109.9 |  |  | (0.1) |  |  | 73,128 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 87.0 |  |  | 86.9 |  |  | 87.1 |  |  | 87.0 |  |  | (0.3) |  |  | 62,044 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 105.0 |  |  | 105.7 |  |  | 105.1 |  |  | (0.4) |  |  | 58,080 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 125.7 |  |  | 125.5 |  |  | 0.9 |  |  | 59,353 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 132.4 |  |  | (6.0) |  |  | 58,167 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 1,081.2 |  |  |  |  |
($ in millions) |  |  |  |
Automobile Physical Damage |  |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  |  |  |
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |  |  |
2014 |  | $ | 88.9 |  |  | $ | 95.4 |  |  | $ | 95.3 |  |  | $ | 95.3 |  |  | $ | 95.3 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  | $ | 95.2 |  |  |  |  |
2015 |  |  |  | 92.1 |  |  | 97.9 |  |  | 97.7 |  |  | 97.6 |  |  | 97.6 |  |  | 97.6 |  |  | 97.6 |  |  | 97.6 |  |  | 97.6 |  |  |  |  |
2016 |  |  |  |  |  | 106.5 |  |  | 109.7 |  |  | 109.5 |  |  | 109.6 |  |  | 109.6 |  |  | 109.6 |  |  | 109.5 |  |  | 109.5 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 105.2 |  |  | 110.8 |  |  | 110.7 |  |  | 110.6 |  |  | 110.6 |  |  | 110.6 |  |  | 110.6 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 103.6 |  |  | 109.1 |  |  | 108.3 |  |  | 108.3 |  |  | 108.2 |  |  | 108.2 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 106.2 |  |  | 110.7 |  |  | 110.1 |  |  | 110.1 |  |  | 110.1 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 84.1 |  |  | 87.6 |  |  | 87.4 |  |  | 87.3 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 97.3 |  |  | 105.8 |  |  | 105.4 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 114.6 |  |  | 124.3 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 122.0 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 1,070.2 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Outstanding prior to 2013 |  | — |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Prior years paid |  | — |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 11.0 |  |  |  |  |
Group Benefits Unpaid Claims and Claim Expense Reserves The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the year ended December 31, 2023 (2022 recast for adoption of LDTI). The table presents reserves on both a gross and net (after reinsurance). The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of the year gross reserve (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets.
($ in millions) |  | Year Ended December 31,
|  | 2023 |  | 2022
Group Benefits |  |  |  |
Gross reserves, beginning of year |  | $ | 121.6 |  |  | $ | 125.4 |
Less: reinsurance recoverables |  | 27.9 |  |  | 28.5 |
Net reserves, beginning of year(1) |  | 93.7 |  |  | 96.9 |
Incurred claims and claim expenses: |  |  |  |
Claims occurring in the current year |  | 73.6 |  |  | 77.7 |
Increase (decrease) in estimated reserves for claims occurring in prior years(2) |  | (13.9) |  |  | (10.9) |
Total claims and claim expenses incurred |  | 59.7 |  |  | 66.8 |
Claims and claim expense payments for claims occurring during: |  |  |  |
Current year |  | 33.8 |  |  | 35.0 |
Prior years |  | 30.7 |  |  | 35.0 |
Total claims and claim expense payments |  | 64.5 |  |  | 70.0 |
Net reserves, end of year |  | 88.9 |  |  | 93.7 |
Plus: reinsurance recoverables |  | 27.7 |  |  | 27.9 |
Gross reserves, end of year |  | $ | 116.6 |  |  | $ | 121.6 |
(1) Reserves are net of anticipated reinsurance recoverables. (2) Shows the amounts by which the Company increased (decreased) its reserves for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs. Also, refer to the paragraphs below for additional information regarding prior years' reserve development recognized in 2023. The Company's Group Benefits has short-duration contracts that are generated from specialty health and group disability lines of business, and are accounted for based on actuarial estimates of the amount of loss inherent in that period’s claims, including losses incurred for which claims have not been reported. Short-duration contract loss estimates rely on actuarial observations of ultimate loss experience for similar historical events. The Company maintains loss reserves for these lines of business to cover its estimated liability for unpaid losses and loss adjustment expenses, where material, (including legal, other fees, and costs not associated with specific claims but related to the claims payment function) for reported and unreported claims incurred as of the end of each accounting period. These loss reserves are based on actuarial assumptions. Many factors could affect these reserves, including economic and social conditions, frequency and severity of claims, medical trends resulting from the influences of underlying cost inflation, changes in utilization and demand for medical services, and changes in doctrines of legal liability and damage awards in litigation. Therefore, the Company’s reserves are necessarily based on estimates, assumptions and analysis of historical experience. The Company’s results depend upon the variation between actual claims experience and the assumptions used in determining reserves and pricing products. Reserve assumptions and estimates require significant judgment and, therefore, are inherently uncertain. The Company cannot determine with precision the ultimate amounts that will be paid for actual claims or the timing of those payments. The Company's estimate of loss represents management's best estimate of the Company's liability at the reporting date. The Company believes that its liability for policy benefits and claims is reasonable and adequate to satisfy its ultimate liability. The Company primarily uses its own loss development experience, but will also supplement that with data from its outside actuaries, reinsurers and industry loss experience as warranted. To illustrate the impact that loss ratios have on the Company’s loss reserves and related expenses, each hypothetical 1% change in the loss ratio for the health business (i.e., the ratio of insurance benefits, claims and settlement expenses to earned health premiums) for the year ended December 31, 2023, would increase reserves (in the case of a higher ratio) or decrease reserves (in the case of a lower ratio) by approximately $0.8 million pretax with a corresponding increase or decrease to Benefits, claims and settlement expenses in the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss). For the specialty health line of business, IBNR claims liabilities plus expected development on reported claims are calculated using standard actuarial methods and practices. The “primary” assumption in the determination of specialty health reserves is that historical claim development patterns are representative of future claim development patterns. Factors that may affect this assumption include changes in claim payment processing times and procedures, changes in time delay in submission of claims, and the incidence of unusually large claims. Liabilities for claims for specialty health coverages are computed using completion factors and expected net loss ratios derived from actual historical premium and claim data. The reserving analysis includes a review of claim processing statistical measures and large claim early notifications; the potential impacts of any changes in these factors are not material. The Company has business that is serviced by third-party administrators. From time to time, there are changes in the timing of claims processing due to any number of factors including, but not limited to, system conversions and staffing changes during the year. These changes are monitored by the Company and the effects of these changes are taken into consideration during the claim reserving process. While these calculations are based on standard methodologies, they are estimates based on historical patterns. To the extent that actual claim payment patterns differ from historical patterns, such estimated reserves may be redundant or inadequate. The effects of such deviations are evaluated by considering claim backlog statistics and reviewing the reasonableness of projected claim ratios. Other factors which may affect the accuracy of policy benefits and claim estimates include the proportion of large claims which may take longer to adjudicate, changes in billing patterns by providers and changes in claim management practices such as hospital bill audits. Since the Company's analysis considers a variety of outcomes related to these factors, the Company does not believe that any reasonably likely change in these factors will have a material effect. With regards to the Company’s group disability line of business, the two “primary” assumptions on which disability policy benefits and claims are based are: (i) morbidity levels; and (ii) recovery rates. If morbidity levels increase, for example due to an epidemic or a recessionary environment, the Company would increase reserves because there would be more new claims than expected. With regards to the assumed recovery rate, if disabled lives recover more quickly than anticipated then the existing claims reserves would be reduced; if less quickly, the existing claims reserves would be increased. Advancements in medical treatments could affect future recovery, termination, and mortality rates. In 2023, Group Benefits had net favorable prior years' reserve development of $13.9 million which was primarily the result of favorable loss trends in specialty health and group disability for loss years 2022 and prior. Below is the average annual percentage payout of incurred claims by age for Group Benefits, also referred to as a history of claims duration:
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years |  | 1 |  |  | 2 |  |  | 3 |  |  | 4 |  |  | 5 |  |  | 6 |  |  | 7 |  |  | 8 |  |  | 9 |  | 10
Specialty health |  | 74.1 | % |  | 24.5 | % |  | 0.9 | % |  | 0.2 | % |  | 0.2 | % |  | 0.1 | % |  | — |  |  | — |  |  | — |  |  | — |
Group disability |  | 29.3 | % |  | 32.4 | % |  | 9.7 | % |  | 4.0 | % |  | 3.4 | % |  | 3.1 | % |  | 3.0 | % |  | 2.5 | % |  | 2.1 | % |  | 1.8 | %
The following tables illustrate the incurred and paid claims development by accident year on a net basis for the lines of specialty health and group disability. Conditions and trends that have affected the development of these reserves in the past will not necessarily reoccur in the future. It may not be appropriate to use this cumulative history in the projection of future performance. The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as unaudited supplementary information.
($ in millions)
Specialty Health |  |
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  | As of December 31, 2023
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims |  | Cumulative Number of Reported Claims
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Actual)
2014 |  | $ | 59.6 |  |  | $ | 56.3 |  |  | $ | 55.9 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | — |  |  | 337,987 |
2015 |  |  |  | 33.3 |  |  | 30.9 |  |  | 30.3 |  |  | 30.3 |  |  | 30.3 |  |  | 30.4 |  |  | 30.4 |  |  | 30.4 |  |  | 30.4 |  |  | — |  |  | 183,433 |
2016 |  |  |  |  |  | 12.5 |  |  | 11.2 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  | — |  |  | 67,274 |
2017 |  |  |  |  |  |  |  | 10.6 |  |  | 9.7 |  |  | 9.6 |  |  | 9.6 |  |  | 9.6 |  |  | 9.6 |  |  | 9.6 |  |  | — |  |  | 63,492 |
2018 |  |  |  |  |  |  |  |  |  | 12.9 |  |  | 13.2 |  |  | 13.0 |  |  | 12.7 |  |  | 12.6 |  |  | 12.6 |  |  | — |  |  | 95,218 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 10.6 |  |  | 9.5 |  |  | 9.6 |  |  | 9.5 |  |  | 9.5 |  |  | — |  |  | 72,754 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 6.8 |  |  | 5.8 |  |  | 5.7 |  |  | 5.7 |  |  | — |  |  | 43,609 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 22.8 |  |  | 17.7 |  |  | 16.1 |  |  | 2.4 |  |  | 72,407 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 22.6 |  |  | 18.0 |  |  | 1.3 |  |  | 120,965 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 16.0 |  |  | 7.1 |  |  | 79,654 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 185.0 |  |  |  |  |
($ in millions) |  |  |  |
Specialty Health |  |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  |  |  |
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |  |  |
2014 |  | $ | 43.4 |  |  | $ | 54.9 |  |  | $ | 55.4 |  |  | $ | 55.7 |  |  | $ | 55.9 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  | $ | 56.0 |  |  |  |  |
2015 |  |  |  | 24.9 |  |  | 30.4 |  |  | 30.3 |  |  | 30.3 |  |  | 30.3 |  |  | 30.4 |  |  | 30.4 |  |  | 30.4 |  |  | 30.4 |  |  |  |  |
2016 |  |  |  |  |  | 5.5 |  |  | 11.0 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  | 11.1 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 7.3 |  |  | 9.4 |  |  | 9.6 |  |  | 9.6 |  |  | 9.6 |  |  | 9.6 |  |  | 9.6 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 8.8 |  |  | 12.1 |  |  | 12.5 |  |  | 12.6 |  |  | 12.6 |  |  | 12.6 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 7.5 |  |  | 9.3 |  |  | 9.5 |  |  | 9.5 |  |  | 9.5 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 4.2 |  |  | 5.6 |  |  | 5.7 |  |  | 5.7 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.9 |  |  | 12.9 |  |  | 13.7 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 10.5 |  |  | 16.7 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 8.8 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 174.1 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Outstanding prior to 2014 |  | — |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Prior years paid |  | — |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 10.9 |  |  |  |  |
($ in millions)
Group Disability |  |
Incurred Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  | As of December 31, 2023
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total of Incurred- But-Not-Reported Liabilities Plus Expected Development on Reported Claims |  | Cumulative Number of Reported Claims
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (Actual)
2014 |  | $ | 16.3 |  |  | $ | 13.3 |  |  | $ | 14.8 |  |  | $ | 14.4 |  |  | $ | 14.3 |  |  | $ | 14.5 |  |  | $ | 14.7 |  |  | $ | 14.3 |  |  | $ | 14.6 |  |  | $ | 14.5 |  |  | $ | — |  |  | 2,863 |
2015 |  |  |  | 25.3 |  |  | 19.2 |  |  | 16.6 |  |  | 14.7 |  |  | 14.6 |  |  | 15.2 |  |  | 15.2 |  |  | 14.7 |  |  | 14.5 |  |  | — |  |  | 3,347 |
2016 |  |  |  |  |  | 28.5 |  |  | 28.6 |  |  | 27.4 |  |  | 26.0 |  |  | 26.3 |  |  | 26.8 |  |  | 28.1 |  |  | 28.1 |  |  | 0.7 |  |  | 3,618 |
2017 |  |  |  |  |  |  |  | 29.9 |  |  | 26.0 |  |  | 22.9 |  |  | 22.4 |  |  | 23.3 |  |  | 24.0 |  |  | 23.1 |  |  | 0.1 |  |  | 3,904 |
2018 |  |  |  |  |  |  |  |  |  | 29.8 |  |  | 26.6 |  |  | 23.2 |  |  | 22.7 |  |  | 23.3 |  |  | 23.6 |  |  | 0.3 |  |  | 4,171 |
2019 |  |  |  |  |  |  |  |  |  |  |  | 34.5 |  |  | 33.5 |  |  | 30.2 |  |  | 29.9 |  |  | 30.2 |  |  | 0.5 |  |  | 4,549 |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 36.7 |  |  | 34.3 |  |  | 34.1 |  |  | 33.2 |  |  | 0.6 |  |  | 4,343 |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 37.8 |  |  | 41.3 |  |  | 41.3 |  |  | 2.0 |  |  | 5,109 |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 39.2 |  |  | 32.0 |  |  | (0.5) |  |  | 4,349 |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 40.3 |  |  | 13.2 |  |  | 3,510 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | $ | 280.8 |  |  |  |  |
($ in millions) |  |  |  |
Group Disability |  |  |  |
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net of Reinsurance |  |  |  |
Years Ended December 31, |  |  |  |
Accident |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  | Unaudited |  |  |  |  |  |
Year |  | 2014 |  | 2015 |  | 2016 |  | 2017 |  | 2018 |  | 2019 |  | 2020 |  | 2021 |  | 2022 |  | 2023 |  |  |  |
2014 |  | $ | 3.7 |  |  | $ | 8.5 |  |  | $ | 9.9 |  |  | $ | 10.6 |  |  | $ | 11.1 |  |  | $ | 11.7 |  |  | $ | 12.1 |  |  | $ | 12.4 |  |  | $ | 12.7 |  |  | $ | 12.9 |  |  |  |  |
2015 |  |  |  | 6.8 |  |  | 14.0 |  |  | 16.6 |  |  | 17.2 |  |  | 17.6 |  |  | 18.1 |  |  | 18.6 |  |  | 18.9 |  |  | 19.1 |  |  |  |  |
2016 |  |  |  |  |  | 8.3 |  |  | 16.4 |  |  | 19.3 |  |  | 20.3 |  |  | 21.1 |  |  | 21.8 |  |  | 22.4 |  |  | 22.9 |  |  |  |  |
2017 |  |  |  |  |  |  |  | 8.5 |  |  | 16.1 |  |  | 17.9 |  |  | 18.3 |  |  | 18.9 |  |  | 19.4 |  |  | 19.7 |  |  |  |  |
2018 |  |  |  |  |  |  |  |  |  | 8.4 |  |  | 16.1 |  |  | 18.0 |  |  | 18.9 |  |  | 19.6 |  |  | 20.1 |  |  |  |  |
2019 |  |  |  |  |  |  |  |  |  |  |  | 11.8 |  |  | 22.8 |  |  | 24.3 |  |  | 24.7 |  |  | 25.2 |  |  |  |  |
2020 |  |  |  |  |  |  |  |  |  |  |  |  |  | 12.4 |  |  | 22.7 |  |  | 25.5 |  |  | 26.4 |  |  |  |  |
2021 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11.8 |  |  | 24.0 |  |  | 26.7 |  |  |  |  |
2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 11.7 |  |  | 21.4 |  |  |  |  |
2023 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 12.2 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Total |  | 206.6 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Outstanding prior to 2014 |  | 9.0 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Prior years paid |  | 100.3 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 83.2 |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Effect of discounting | (14.0) |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  | Discounted net reserves |  | $ | 69.2 |  |  |  |  |
Reconciliation of Net Incurred and Paid Claims Development Tables for Property & Casualty and Group Benefits to Unpaid Claims and Claim Expense Reserves in the Consolidated Balance Sheet (2022 recast for the adoption of LDTI)
($ in millions) | Year Ended December 31,
|  | 2023 |  | 2022
Property & Casualty and Group Benefits |  |  |  |
Net reserves |  |  |  |
Homeowners |  | $ | 73.4 |  |  | $ | 61.0 |
Auto liability |  | 200.9 |  | 192.5 |
Auto physical damage |  | 11.0 |  | 10.6 |
Specialty health |  | 10.9 |  | 16.9 |
Group disability |  | 83.2 |  | 69.0 |
Other than short duration lines |  | 11.0 |  | 10.5 |
Total net reserves for unpaid claims and claim adjustment expenses, net of reinsurance |  | 390.4 |  |  | 360.5 |
Reinsurance recoverable on unpaid claims |  |  |  |
Homeowners |  | 2.2 |  |  | (4.4) |
Auto liability |  | 96.6 |  | 97.6 |
Specialty health |  | 0.2 |  | 0.2 |
Group disability |  | 25.0 |  | 25.6 |
Other short duration lines |  | 14.9 |  | 20.0 |
Total reinsurance recoverable on unpaid claims |  | 138.9 |  |  | 139.0 |
Insurance lines other than short duration(1) |  | 41.1 |  | 43.5 |
Unallocated claims adjustment expenses |  | 11.3 |  | 21.0 |
Total other than short duration and unallocated claims adjustment expenses |  | 52.4 |  |  | 64.5 |
Gross reserves, end of year(1) |  | $ | 581.7 |  |  | $ | 564.0 |
(1) This line includes Life & Retirement and Supplemental reserves included in the Consolidated Balance Sheet.

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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 -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//944-40/tableOfContent + Details
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