Liability for Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Summary of Incurred Claims, Cumulative Paid Claims and Allocated Claim Adjustments Expenses, Net of Reinsurance

Set forth in the following tables is information about unpaid losses and loss adjustment expenses as of December 31, 2016, net of reinsurance, as well as cumulative claim counts and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the liability for unpaid losses and LAE (in thousands).

The information about unpaid losses and loss adjustment expenses for the years ended December 31, 2012 to 2015, is presented as supplementary information and is unaudited.

Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance												As of December 31, 2016
												Total of Incurred-
												but-Not-Reported
For the Years Ended December 31,												Liabilities Plus
Accident Year		2012*		2013*		2014*		2015*		2016		Expected Development (Redundancy) on Reported Claims			Cumulative Number of Reported Claims
2012	*	$	109,073	$	102,118	$	101,888	$	99,517	$	95,727	$	(3,399	)		24,272
2013	*				100,111		96,993		96,012		88,493		(7,650	)		20,415
2014	*						111,739		118,289		112,251		(9,947	)		22,347
2015	*								170,381		187,431		(10,114	)		26,502
2016											269,814		13,321			35,690
								Total		$	753,716
*UNAUDITED

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,
Accident Year		2012*		2013*		2014*		2015*		2016
2012	*	$	54,155	$	89,039	$	94,817	$	97,962	$	98,510
2013	*				61,117		88,843		93,489		95,059
2014	*						69,703		112,059		119,798
2015	*								115,328		191,481
2016											204,122
								Total		$	708,970

All outstanding liabilities before 2012, net of reinsurance*											381

Liabilities for claims and claim adjustment expenses, net of reinsurance										$	45,127
*UNAUDITED

Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and LAE

Set forth is the following reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and LAE in the consolidated Balance Sheet as of December 31, 2016 (in thousands):

	December 31, 2016
Liabilities for unpaid claims and claim
adjustment expenses, net of reinsurance	$	45,127
Reinsurance recoverable on unpaid claims		106
Unallocated claims adjustment expenses and other		13,261
Total gross liability for unpaid claims and claim
adjustment expense	$	58,494

Supplementary Information About Average Historical Claims Duration

Set forth is the supplementary information about average historical claims duration as of December 31, 2016:

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1			2			3			4			5
		64.0	%		14.6	%		8.7	%		5.6	%		3.5	%

Change in Liability for Unpaid Losses and LAE

Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):

	Years Ended December 31,
	2016			2015			2014
Balance at beginning of year	$	98,840		$	134,353		$	159,222
Less: Reinsurance recoverable		(13,540	)		(47,350	)		(68,584	)
Net balance at beginning of period		85,300			87,003			90,638

Incurred (recovered) related to:
Current year		305,919			188,040			124,011
Prior years		(4,690	)		(301	)		(736	)
Total incurred		301,229			187,739			123,275

Paid related to:
Current year		229,761			123,952			73,981
Prior years		98,380			65,490			52,929
Total paid		328,141			189,442			126,910

Net balance at end of period		58,388			85,300			87,003
Plus: Reinsurance recoverable		106			13,540			47,350
Balance at end of year	$	58,494		$	98,840		$	134,353