XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.20.2

Liability for Unpaid Losses and Loss Adjustment Expenses | 9 Months Ended
--- | ---
Sep. 30, 2020
Insurance [Abstract] |
Liability for Unpaid Losses and Loss Adjustment Expenses | Liability for Unpaid Losses and Loss Adjustment Expenses Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2020 |  | 2019 |  | 2020 |  | 2019
Balance at beginning of period | $ | 147,659 |  |  | $ | 288,296 |  |  | $ | 267,760 |  |  | $ | 472,829 |
Less: Reinsurance recoverable | (26,107) |  |  | (197,117) |  |  | (123,221) |  |  | (393,365) |
Net balance at beginning of period | 121,552 |  |  | 91,179 |  |  | 144,539 |  |  | 79,464 |
Incurred related to: |  |  |  |  |  |  |
Current year | 208,392 |  |  | 129,353 |  |  | 489,966 |  |  | 355,258 |
Prior years | 30,085 |  |  | 3,218 |  |  | 34,904 |  |  | 3,703 |
Total incurred | 238,477 |  |  | 132,571 |  |  | 524,870 |  |  | 358,961 |
Paid related to: |  |  |  |  |  |  |
Current year | 172,977 |  |  | 137,313 |  |  | 355,479 |  |  | 260,955 |
Prior years | 43,661 |  |  | 30,408 |  |  | 170,539 |  |  | 121,441 |
Total paid | 216,638 |  |  | 167,721 |  |  | 526,018 |  |  | 382,396 |
Net balance at end of period | 143,391 |  |  | 56,029 |  |  | 143,391 |  |  | 56,029 |
Plus: Reinsurance recoverable | 59,329 |  |  | 110,313 |  |  | 59,329 |  |  | 110,313 |
Balance at end of period | $ | 202,720 |  |  | $ | 166,342 |  |  | $ | 202,720 |  |  | $ | 166,342 |
For the three months ended September 30, 2020, there was adverse prior year’s reserve development of $136.7 million gross, less $106.7 million ceded, resulting in $30.1 million net. The net prior year’s reserve development for the quarter ended September 30, 2020 was principally due to increased ultimate losses and LAE for Hurricane Irma not recoverable from the Florida Hurricane Catastrophe Fund (”FHCF”) and increased prior year’s companion claims in the run up to the expiration of the statute of limitations for Hurricane Irma. For the nine months ended September 30, 2020, there was adverse prior year’s reserve development of $190.8 million gross, less $155.9 million ceded, resulting in $34.9 million net. The direct and net prior year’s reserve development for the nine months ended September 30, 2020 was principally due to increased ultimate losses and LAE for Hurricane Irma not recoverable from the FHCF and increased prior year’s companion claims in the run up to the expiration of the statute of limitations for Hurricane Irma. Florida law bars new, supplemental or reopened claim for loss caused by the peril of windstorm or hurricane unless notice is provided within three years of the event. In September 2020, the three-year period following Hurricane Irma expired. The Company continues to adjust and settle Hurricane Irma claims that were reported prior to the expiration of the three-year period. During the nine months ended September 30, 2019, there was adverse prior year’s reserve development of $305.3 million gross, less $301.6 million ceded, resulting in $3.7 million net. Gross prior year’s reserve development was principally the result of an increase in estimated losses and LAE for Hurricane Irma claims, which were fully ceded. Net prior year’s reserve development of $3.7 million principally resulted from a change in the allocation of estimated Hurricane Michael losses and LAE recoveries from the Non-Florida reinsurance coverage to the All States reinsurance coverage. There was no change to gross Hurricane Michael losses. The Non-Florida reinsurance coverage has a lower retention and the change in the allocation of reinsurance recoveries to the All States reinsurance coverage resulted in higher retained losses.

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 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 http://asc.fasb.org/subtopic&trid=2560295 + Details
Name: | us-gaap_LiabilityForFuturePolicyBenefitsAndUnpaidClaimsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration