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Liability for Unpaid Losses and Loss Adjustment Expenses
 3 Months Ended
Mar. 31, 2021
Insurance [Abstract]  
Liability for unpaid losses and loss adjustment expenses LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE)
We determine the reserve for unpaid losses on an individual case basis for all incidents reported. The liability also includes amounts for incurred but not reported (IBNR) claims as of the balance sheet date.
The table below shows the analysis of our reserve for unpaid losses for the three-months ended March 31, 2021 and 2020 on a GAAP basis:
March 31,
 20212020
Balance at January 1$1,089,966 $760,357 
Less: reinsurance recoverable on unpaid losses674,746 482,315 
Net balance at January 1$415,220 $278,042 
Incurred related to:
Current year86,012 103,966 
Prior years29,769 (1,129)
Total incurred$115,781 $102,837 
Paid related to:
Current year30,597 30,935 
Prior years103,977 62,511 
Total paid$134,574 $93,446 
Net balance at March 31$396,427 $287,433 
Plus: reinsurance recoverable on unpaid losses821,364 423,609 
Balance at March 31$1,217,791 $711,042 
Composition of reserve for unpaid losses and LAE:
     Case reserves$432,537 $294,679 
     IBNR reserves785,254 416,363 
Balance at March 31$1,217,791 $711,042 

Based upon our internal analysis and our review of the annual statement of actuarial opinion provided by our actuarial consultants at December 31, 2020, along with our assessment of litigation claim trends that developed during the first quarter of 2021, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date.
As reflected in the table above, we had adverse development in 2021 related to prior year losses. This adverse development came as a result of the strengthening of our reserves based on increased litigation related claims being filed in the state of Florida. The loss payments made by the Company during the three months ended March 31, 2021 were higher than the loss payments we made during the three months ended March 31, 2020, due to the settling of claims related to the unprecedented catastrophe activity that took place in 2020. IBNR reserves increased when compared to the prior period as a result of Winter Storm Uri in 2021.