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Liability for Unpaid Losses and Loss Adjustment Expenses
 3 Months Ended
Mar. 31, 2024
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, 2024 and 2023 on a GAAP basis:
March 31,
 20242023
Balance at January 1$370,221 $842,958 
Less: reinsurance recoverable on unpaid losses271,948 732,254 
Net balance at January 1$98,273 $110,704 
Incurred related to:
Current year16,337 19,577 
Prior years(432)(3,165)
Total incurred$15,905 $16,412 
Paid related to:
Current year10,702 10,654 
Prior years17,869 14,108 
Total paid$28,571 $24,762 
Net balance at March 31
$85,607 $102,354 
Plus: reinsurance recoverable on unpaid losses193,949 646,011 
Balance at March 31
$279,556 $748,365 
Composition of reserve for unpaid losses and LAE:
     Case reserves$97,944 $284,679 
     IBNR reserves181,612 463,686 
Balance at March 31
$279,556 $748,365 

Based upon our internal analysis and our review of the annual statement of actuarial opinion provided by our actuarial consultants at December 31, 2023, 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 favorable development in both 2024 and 2023 related to prior year losses. This favorable development came as a result of re-estimating ultimate losses in 2024 and 2023 based on historical loss trends. The loss payments made by the Company during the three months ended March 31, 2024, were higher than the loss payments made during the three months ended March 31, 2023, due to the settling of prior year catastrophe claims. Current year loss payments remained relatively flat. Case and IBNR reserves and reinsurance recoverable on unpaid losses also decreased when compared to the prior period as a result of the continued settlement of prior year claims with no similar losses in 2023 or the current year.