XML 39 R22.htm IDEA: XBRL DOCUMENT v3.22.2

Reserve for Losses and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2022

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)			Six Months Ended June 30, 2022						Six Months Ended June 30, 2021						Year Ended December 31, 2021
Balance, beginning of year			$	3,579,940					$	2,417,179					$	2,417,179
Less reinsurance recoverables on unpaid losses and loss adjustment expenses			451,741						385,087						385,087
Net balance, beginning of year			3,128,199						2,032,092						2,032,092
Net reserves acquired from NORCAL acquisition			—						1,089,103						1,089,103
Net losses:
Current year(1)			411,397						350,252						797,732
Favorable development of reserves established in prior years, net(2)			(24,304)						(18,616)						(45,483)
Total			387,093						331,636						752,249
Paid related to:
Current year			(44,903)						(32,346)						(109,925)
Prior years			(366,643)						(282,713)						(635,320)
Total paid			(411,546)						(315,059)						(745,245)
Net balance, end of period			3,103,746						3,137,772						3,128,199
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses			469,116						484,059						451,741
Balance, end of period			$	3,572,862					$	3,621,831					$	3,579,940

(1) Current year net losses for the six months ended June 30, 2022 and 2021 and year ended December 31, 2021 included $4.9 million, $1.8 million and $6.7 million, respectively, 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 of the Notes to Consolidated Financial Statements in ProAssurance's December 31, 2021 report on Form 10-K).

(2) Net favorable prior year reserve development recognized for the six months ended June 30, 2022 and 2021 and year ended December 31, 2021 included $5.8 million, $2.1 million and $7.9 million, respectively, of amortization of the purchase accounting fair value adjustment on NORCAL's assumed net reserve and amortization of the negative VOBA associated with NORCAL's DDR reserve which is recorded as a reduction to prior accident year net losses and loss adjustment expenses (see Note 2 of the Notes to Consolidated Financial Statements in ProAssurance's December 31, 2021 report on Form 10-K). ProAssurance has not recognized any development related to NORCAL's prior accident year reserves since the date of acquisition on May 5, 2021.

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 https://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