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Liability for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended
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Jun. 30, 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 six months ended June 30, 2024 and 2023 on a GAAP basis:
| June 30,
| 2024 |  | 2023
Balance at January 1 | $ | 347,738 |  |  | $ | 816,489 |
Less: reinsurance recoverable on unpaid losses | 271,736 |  |  | 731,579 |
Net balance at January 1 | $ | 76,002 |  |  | $ | 84,910 |
Incurred related to: |  |  |
Current year | 28,773 |  |  | 38,253 |
Prior years | (1,022) |  |  | (8,107) |
Total incurred | $ | 27,751 |  |  | $ | 30,146 |
Paid related to: |  |  |
Current year | 23,520 |  |  | 24,003 |
Prior years | 21,407 |  |  | 21,442 |
Total paid | $ | 44,927 |  |  | $ | 45,445 |
Net balance at June 30 | $ | 58,826 |  |  | $ | 69,611 |
Plus: reinsurance recoverable on unpaid losses | 152,607 |  |  | 443,506 |
Balance at June 30 | $ | 211,433 |  |  | $ | 513,118 |
Composition of reserve for unpaid losses and LAE: |  |  |
Case reserves | $ | 73,261 |  |  | $ | 170,817 |
IBNR reserves | 138,172 |  |  | 342,301 |
Balance at June 30 | $ | 211,433 |  |  | $ | 513,118 |
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. Both current and prior year loss payments made by the Company during the six months ended June 30, 2024 and June 30, 2023 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.

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- Definition The entire disclosure for insurance products considered to be short-duration contracts because the contract provides insurance protection for a fixed period of short duration and enables the insurer to cancel the contract or to adjust the provisions of the contract at the end of any contract period, such as adjusting the amount of premiums charged or coverage provided, and on contracts on which amounts are paid but insurance risk is not transferred. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 4D -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-4D Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944/tableOfContent + Details
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