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Liability for Unpaid Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 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 nine months ended September 30, 2024 and 2023 on a GAAP basis:
September 30,
 20242023
Balance at January 1$347,738 $816,489 
Less: reinsurance recoverable on unpaid losses271,736 731,666 
Net balance at January 1$76,002 $84,823 
Incurred related to:
Current year41,904 51,180 
Prior years(2,379)(11,212)
Total incurred$39,525 $39,968 
Paid related to:
Current year29,577 34,746 
Prior years26,499 5,612 
Total paid$56,076 $40,358 
Net balance at September 30
$59,451 $84,433 
Plus: reinsurance recoverable on unpaid losses113,871 337,265 
Balance at September 30
$173,322 $421,698 
Composition of reserve for unpaid losses and LAE:
     Case reserves$51,549 $128,503 
     IBNR reserves121,773 293,195 
Balance at September 30
$173,322 $421,698 

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 prior year loss payments made by the Company during the nine months ended September 30, 2024 were higher than the loss
payments made during the nine months ended September 30, 2023, driven by catastrophe loss payments. The current year loss payments made by the Company during the nine months ended September 30, 2024 and September 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.