XML 29 R15.htm IDEA: XBRL DOCUMENT v3.25.1
Liability for Unpaid Losses and Loss Adjustment Expenses
 3 Months Ended
Mar. 31, 2025
Insurance [Abstract]  
Liability for unpaid losses and loss adjustment expenses LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSE (LAE)
The Company determines its 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 the Company's reserve for unpaid losses for the three months ended March 31, 2025 and 2024 on a GAAP basis:
March 31,
 20252024
Balance at January 1$322,087 $347,738 
Less: reinsurance recoverable on unpaid losses249,276 271,736 
Net balance at January 172,811 76,002 
Incurred related to:
Current year13,583 12,450 
Prior years(2,194)24 
Total incurred11,389 12,474 
Paid related to:
Current year10,714 9,516 
Prior years10,435 14,328 
Total paid21,149 23,844 
Net balance at March 31
63,051 64,632 
Plus: reinsurance recoverable on unpaid losses193,238 193,747 
Balance at March 31
256,289 258,379 
Composition of reserve for unpaid losses and LAE:
     Case reserves42,845 87,818 
     IBNR reserves213,444 170,561 
Balance at March 31
$256,289 $258,379 

Based upon the Company's internal analysis and the Company's review of the annual statement of actuarial opinion provided by its actuarial consultants at December 31, 2024, the Company believes 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, the Company had favorable development in the first quarter 2025 and unfavorable development in the first quarter of 2024 related to prior year losses. This development came as a result of re-estimating ultimate losses in 2025 and 2024 based on historical loss trends. The prior year loss payments made by the Company during the three months ended March 31, 2025 were lower than the loss payments made during the three months ended March 31, 2024, driven by decreased catastrophe and non-catastrophe loss payments. The current year loss payments made by the Company during the three months ended March 31, 2025 and March 31, 2024 remained relatively flat. Case reserves on unpaid losses also decreased when compared to the prior period as a result of the continued settlement of prior year claims, offset by increases to IBNR reserves as a result of Hurricane Milton which made landfall in the fourth quarter of 2024. Reinsurance recoverable remained relatively flat year over year.