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Liability for Unpaid Losses and Loss Adjustment Expenses
 6 Months Ended
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,
 20242023
Balance at January 1$347,738 $816,489 
Less: reinsurance recoverable on unpaid losses271,736 731,579 
Net balance at January 1$76,002 $84,910 
Incurred related to:
Current year28,773 38,253 
Prior years(1,022)(8,107)
Total incurred$27,751 $30,146 
Paid related to:
Current year23,520 24,003 
Prior years21,407 21,442 
Total paid$44,927 $45,445 
Net balance at June 30
$58,826 $69,611 
Plus: reinsurance recoverable on unpaid losses152,607 443,506 
Balance at June 30
$211,433 $513,118 
Composition of reserve for unpaid losses and LAE:
     Case reserves$73,261 $170,817 
     IBNR reserves138,172 342,301 
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.