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v3.20.4

Liability for Unpaid Losses and Loss Adjustment Expense (Tables) | 12 Months Ended
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Dec. 31, 2020
Claims Development |
Short-duration Insurance Contracts, Claims Development | Property & Casualty Homeowners’ Insurance $ In thousands (except number of reported claims)
| Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | As of December 31, 2020
Total of IBNR Liabilities Plus Expected Development on Reported Claims | Cumulative Number of Reported Claims
For the Years Ended December 31,
|  |  | Audited
Accident Year | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |  | 2020
2011 | $ | 77,706 |  | $ | 79,142 |  | $ | 78,763 |  | $ | 77,649 |  | $ | 79,234 |  | $ | 79,985 |  | $ | 80,014 |  | $ | 80,289 |  | $ | 80,199 |  |  | $ | 80,086 |  | $ | 24 |  | 7,400
2012 | — |  | 87,276 |  | 88,629 |  | 87,963 |  | 87,571 |  | 86,818 |  | 90,817 |  | 91,095 |  | 90,879 |  |  | 90,890 |  | 124 |  | 12,048
2013 | — |  | — |  | 113,477 |  | 106,992 |  | 110,268 |  | 106,820 |  | 106,222 |  | 106,132 |  | 106,450 |  |  | 106,600 |  | 171 |  | 8,911
2014 | — |  | — |  | — |  | 155,008 |  | 154,167 |  | 155,729 |  | 156,868 |  | 156,037 |  | 155,956 |  |  | 156,300 |  | 331 |  | 13,458
2015 | — |  | — |  | — |  | — |  | 217,832 |  | 236,059 |  | 239,784 |  | 242,508 |  | 242,610 |  |  | 244,109 |  | 750 |  | 20,337
2016 | — |  | — |  | — |  | — |  | — |  | 304,961 |  | 294,271 |  | 293,785 |  | 295,611 |  |  | 297,195 |  | 1,801 |  | 31,143
2017 | — |  | — |  | — |  | — |  | — |  | — |  | 332,339 |  | 345,647 |  | 359,018 |  |  | 371,447 |  | 10,920 |  | 86,305
2018 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 360,919 |  | 389,841 |  |  | 402,966 |  | 7,681 |  | 48,440
2019 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 421,426 |  |  | 387,164 |  | 22,533 |  | 39,332
2020 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  | 551,945 |  | 173,404 |  | 44,465
|  |  |  |  |  |  |  |  | Total |  | $ | 2,688,702 |  |  |
Accident Year | Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
For the Years Ended December 31,
|  | Audited
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |  | 2020
2011 | $ | 44,547 |  | $ | 62,812 |  | $ | 69,461 |  | $ | 73,215 |  | $ | 77,022 |  | $ | 79,052 |  | $ | 79,480 |  | $ | 80,002 |  | $ | 80,020 |  |  | $ | 80,062 |
2012 | — |  | 52,394 |  | 75,213 |  | 79,810 |  | 82,908 |  | 86,013 |  | 90,356 |  | 90,580 |  | 90,447 |  |  | 90,563 |
2013 | — |  | — |  | 69,615 |  | 94,969 |  | 99,196 |  | 103,441 |  | 104,669 |  | 105,201 |  | 105,686 |  |  | 105,927 |
2014 | — |  | — |  | — |  | 98,762 |  | 135,301 |  | 147,031 |  | 151,954 |  | 153,593 |  | 154,597 |  |  | 155,287 |
2015 | — |  | — |  | — |  | — |  | 145,180 |  | 210,261 |  | 227,661 |  | 234,018 |  | 237,573 |  |  | 240,086 |
2016 | — |  | — |  | — |  | — |  | — |  | 193,876 |  | 265,069 |  | 280,203 |  | 288,425 |  |  | 291,219 |
2017 | — |  | — |  | — |  | — |  | — |  | — |  | 217,983 |  | 313,883 |  | 327,986 |  |  | 349,380 |
2018 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 247,365 |  | 352,422 |  |  | 380,504 |
2019 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | 240,533 |  |  | 327,965 |
2020 | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  | — |  |  | 269,580 |
|  |  |  |  |  |  |  |  | Total |  | $ | 2,290,573 |
All outstanding liabilities before 2011, net of reinsurance |  | 280 |
Liabilities for claims and claim adjustment expenses, net of reinsurance |  | $ | 398,409 |
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis:
| 2020 |  | 2019 |  | 2018
Balance at January 1 | $ | 760,357 |  |  | $ | 661,203 |  |  | $ | 482,232 |
Less: reinsurance recoverable on unpaid losses | 482,315 |  |  | 477,870 |  |  | 305,673 |
Net balance at January 1 | $ | 278,042 |  |  | $ | 183,333 |  |  | $ | 176,559 |
Incurred related to: |  |  |  |  |
Current year | 615,102 |  |  | 466,359 |  |  | 404,271 |
Prior years | (6,786) |  |  | 33,134 |  |  | 4,318 |
Total incurred | $ | 608,316 |  |  | $ | 499,493 |  |  | $ | 408,589 |
Paid related to: |  |  |  |  |
Current year | 320,389 |  |  | 275,488 |  |  | 283,821 |
Prior years | 150,749 |  |  | 129,296 |  |  | 117,994 |
Total paid | $ | 471,138 |  |  | $ | 404,784 |  |  | $ | 401,815 |
Net balance at December 31 | $ | 415,220 |  |  | $ | 278,042 |  |  | $ | 183,333 |
Plus: reinsurance recoverable on unpaid losses | 674,746 |  |  | 482,315 |  |  | 477,870 |
Balance at December 31 | $ | 1,089,966 |  |  | $ | 760,357 |  |  | $ | 661,203 |
Composition of reserve for unpaid losses and LAE: |  |  |  |  |
Case reserves | $ | 392,717 |  |  | $ | 300,858 |  |  | $ | 270,601 |
IBNR reserves | 697,249 |  |  | 459,499 |  |  | 390,602 |
Balance at December 31 | $ | 1,089,966 |  |  | $ | 760,357 |  |  | $ | 661,203 |
Short-duration Insurance Contracts, Schedule of Historical Claims Duration | The following is supplementary information about average historical claims duration as of December 31, 2020.
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Unaudited
Years | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10
| 60.1 | % | 24.9 | % | 6.4 | % | 3.8 | % | 2.1 | % | 1.9 | % | 0.4 | % | 0.2 | % | 0.1 | % | 0.1 | %
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows.
| December 31,
| 2020 |  | 2019
Net outstanding liabilities |  |  |
Property and Casualty Homeowners’ Insurance | $ | 398,409 |  |  | $ | 264,556 |
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance | $ | 398,409 |  |  | $ | 264,556 |
Reinsurance recoverable on unpaid claims |  |  |
Property and Casualty Homeowners’ Insurance | 674,746 |  |  | 482,315 |
Total reinsurance recoverable on unpaid claims | 674,746 |  |  | 482,315 |
Unallocated claims adjustment expenses | 16,811 |  |  | 13,486 |
Total gross liability for unpaid claims and claims adjustment expense | $ | 1,089,966 |  |  | $ | 760,357 |

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- 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
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