XML 42 R29.htm IDEA: XBRL DOCUMENT
v3.21.2

Reserve for Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Insurance [Abstract] |
Schedule of Reserve for Losses and Loss Adjustment Expenses | Activity in the reserve for losses and loss adjustment expenses is summarized as follows:
(In thousands) | Nine Months Ended September 30, 2021 |  | Nine Months Ended September 30, 2020 |  | Year Ended December 31, 2020 |  |
Balance, beginning of year | $ | 2,417,179 |  |  | $ | 2,346,526 |  |  | $ | 2,346,526 |  |  |
Less reinsurance recoverables on unpaid losses and loss adjustment expenses | 385,087 |  |  | 390,708 |  |  | 390,708 |  |  |
Net balance, beginning of year | 2,032,092 |  |  | 1,955,818 |  |  | 1,955,818 |  |  |
Net reserves acquired from NORCAL acquisition | 1,089,103 |  |  | — |  |  | — |  |  |
Net losses: |  |  |  |  |  |  |
Current year(1)(2)(3) | 582,235 |  |  | 555,969 |  |  | 711,846 |  |  |
Favorable development of reserves established in prior years, net | (27,205) |  |  | (34,557) |  |  | (50,399) |  |  |
Total | 555,030 |  |  | 521,412 |  |  | 661,447 |  |  |
Paid related to: |  |  |  |  |  |  |
Current year | (62,276) |  |  | (60,449) |  |  | (83,204) |  |  |
Prior years | (457,578) |  |  | (400,930) |  |  | (501,969) |  |  |
Total paid | (519,854) |  |  | (461,379) |  |  | (585,173) |  |  |
Net balance, end of period | 3,156,371 |  |  | 2,015,851 |  |  | 2,032,092 |  |  |
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses | 476,315 |  |  | 391,637 |  |  | 385,087 |  |  |
Balance, end of period | $ | 3,632,686 |  |  | $ | 2,407,488 |  |  | $ | 2,417,179 |  |  |
(1) Current year net losses for the nine months ended September 30, 2021 included $4.3 million of amortization of the negative VOBA associated with NORCAL's assumed unearned premium, which is being amortized over a period in proportion to the earn-out of the associated premium as a reduction to current accident year net losses (see Note 2). Additionally, current year net losses for the nine months ended September 30, 2021 included $5.1 million related to a Custom Physician tail policy in the Specialty P&C segment. (2) Current year net losses for the nine months ended September 30, 2021 included incurred losses of $2.9 million related to an assumed reinsurance arrangement entered into during the first quarter of 2021 in the Specialty P&C segment (see Note 5). (3) Current year net losses for the nine months ended September 30, 2020 and the year ended December 31, 2020 included the impact of a large national healthcare account in the Specialty P&C segment including losses of $60.0 million associated with a tail policy and $9.2 million of amortization of a related PDR. For additional information, see Note 7 of the Notes to Consolidated Financial Statements included in ProAssurance's December 31, 2020 report on Form 10-K.

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=116884095&loc=d3e14764-158437 + Details
Name: | us-gaap_ScheduleOfLiabilityForUnpaidClaimsAndClaimsAdjustmentExpense
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration