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Unpaid Losses and Loss Adjustment Reserve | 12 Months Ended
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Dec. 31, 2022
Unpaid Losses and Loss Adjustment Reserve |
Unpaid Losses and Loss Adjustment Reserve | 15. Unpaid Losses and Loss Adjustment Reserve The following table provides the rollforward of the beginning and ending reserve balances for losses and LAE, gross of reinsurance for the period since the acquisition date of HOA on April 5, 2021: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Year Ended | ​ | Period Ended
​ | ​ | December 31, 2022 | ​ | December 31, 2021
Reserve for unpaid losses and LAE, at January 1, 2022 and April 5, 2021 | ​ | $ | 61,949 | ​ | $ | 84,366
Reinsurance recoverables on losses and LAE | ​ |  | (56,752) | ​ |  | (82,898)
Losses and LAE reserve, net of reinsurance recoverables, at January 1, 2022 and April 5, 2021 | ​ | ​ | 5,197 | ​ | ​ | 1,468
Add provisions for losses and LAE occurring in: | ​ | ​ | ​ | ​ | ​ | ​
Current year | ​ | ​ | 55,148 | ​ | ​ | 17,583
Prior year | ​ | ​ | 1,155 | ​ | ​ | 921
Net incurred losses and LAE during the current year | ​ | ​ | 56,303 | ​ | ​ | 18,504
Deduct payments for losses and LAE occurring in: | ​ | ​ | ​ | ​ | ​ | ​
Current year | ​ | ​ | (32,111) | ​ | ​ | (13,154)
Prior year | ​ | ​ | (5,756) | ​ | ​ | (1,621)
Net claim and LAE payments during the current year | ​ | ​ | (37,867) | ​ | ​ | (14,775)
Reserve for losses and LAE, net of reinsurance recoverables, at end of year | ​ | ​ | 23,633 | ​ | ​ | 5,197
Reinsurance recoverables on losses and LAE | ​ | ​ | 76,999 | ​ | ​ | 56,752
Reserve for unpaid losses and LAE, at December 31 | ​ | $ | 100,632 | ​ | $ | 61,949
​ Lower than expected recoveries on reinsurance relating to claims occurring in prior years resulted in an increase in incurred losses of $1.2 million for the year ended December 31, 2022. As a result of additional information on claims occurring in prior years becoming available to management, changes in estimates of provisions of losses and loss adjustment expenses were made resulting in an increase of $0.9 million for the period since the acquisition date of April 5, 2021 to December 31, 2021. The claim counts in the following tables are cumulative reported claim counts as of December 31, 2022 and are equal to the sum of cumulative open and cumulative closed claims, including claims closed without payment. The following supplementary information presents incurred and paid losses by accident year, net of reinsurance ($ in thousands, except for number of claims): ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | December 31, 2022
​ | ​ | ​ | Incurred losses and allocated loss adjustment expenses, net of reinsurance, | ​ | ​ | ​ | ​ | Cumulative
​ | ​ | for the years ended December 31, |  | ​ | ​ |  | Number of
​ | ​ | ​ | 2018 | ​ | ​ | 2019 | ​ | ​ | 2020 | ​ | ​ | 2021 | ​ | ​ | 2022 | ​ | IBNR Reserves |  | Reported Claims
​ | ​ | (unaudited) | ​ | (unaudited) | ​ | (unaudited) | ​ | (unaudited) | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accident Year | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
2018 | ​ | $ | 7,512 |  | $ | 7,041 | ​ | $ | 7,046 | ​ | $ | 7,380 | ​ | $ | 7,396 | ​ | $ | — | ​ | ​ | 8,369
2019 | ​ |  | ​ |  |  | 9,666 | ​ |  | 9,678 | ​ |  | 9,773 | ​ |  | 9,786 | ​ |  | 20 | ​ |  | 10,790
2020 | ​ |  | ​ |  |  | ​ | ​ |  | 12,664 | ​ |  | 14,281 | ​ |  | 14,587 | ​ |  | 84 | ​ |  | 13,152
2021 | ​ |  | ​ |  |  | ​ | ​ |  | ​ | ​ |  | 19,795 | ​ |  | 20,614 | ​ |  | 976 | ​ |  | 34,548
2022 | ​ |  | ​ |  |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | 55,110 | ​ |  | 14,575 | ​ |  | 18,550
Total | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 107,493 | ​ | $ | 15,655 | ​ | ​ | 85,409
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | Cumulative paid losses and allocated adjustment expenses, net of reinsurance,
​ | ​ |  | for the year ended December 31,
​ | ​ | ​ | 2018 | ​ | ​ | 2019 | ​ | ​ | 2020 | ​ | ​ | 2021 | ​ | ​ | 2022
​ | ​ | (unaudited) | ​ | (unaudited) | ​ | (unaudited) | ​ | (unaudited) | ​ | ​ | ​
Accident Year | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
2018 | ​ | $ | 5,295 |  | $ | 6,690 | ​ | $ | 6,838 | ​ | $ | 7,213 | ​ | $ | 7,345
2019 | ​ |  | ​ |  |  | 7,405 | ​ |  | 9,324 | ​ |  | 9,578 | ​ |  | 9,694
2020 | ​ |  | ​ |  |  | ​ | ​ |  | 9,750 | ​ |  | 13,865 | ​ |  | 14,142
2021 | ​ |  | ​ |  |  | ​ | ​ |  | ​ | ​ |  | 15,335 | ​ |  | 20,569
2022 | ​ |  | ​ |  |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | 32,073
Total | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 83,823
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liability for losses and loss adjustment expenses, net of reinsurance | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 23,669
​ Liability for losses and loss adjustment expenses, net of reinsurance, related to accident years prior to 2017 was $40 thousand for the year ended December 31, 2022. Average annual percentage payout of accident year incurred claims by age, net of reinsurance (unaudited supplementary information) as of December 31, 2022: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
1 | ​ | 2 | ​ | 3 | ​ | 4 | ​ | 5
83.8 | % | ​ | 15.1 | % | ​ | 0.8 | % | ​ | 0.6 | % | ​ | 0.2 | %
​

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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 https://asc.fasb.org/subtopic&trid=2560295 + Details
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