Liability for Unpaid Losses and Loss Adjustment Expense (Tables)

12 Months Ended

Dec. 31, 2020

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