Liability for Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2025

The following table provides a reconciliation of changes in the liability for unpaid losses and LAE:


	December 31,
	2025	2024
Unpaid Loss and LAE beginning of period	$475,708	$279,392
Less: Reinsurance recoverables on unpaid losses and LAE	415,086	214,718
Net unpaid loss and LAE at beginning of period	60,622	64,674
Add: Losses and LAE, net of reinsurance, incurred related to:
Current period	99,848	94,019
Prior period	(1,814)	(3,187)
Total net losses and LAE incurred	98,034	90,832
Less: Losses and LAE paid, net of reinsurance, related to:
Current period	45,574	56,038
Prior period	38,827	38,846
Total net paid losses and LAE	84,401	94,884
Unpaid loss and LAE, net of reinsurance at end of period	74,255	60,622
Add: Reinsurance recoverables on unpaid losses and LAE	192,336	415,086
Unpaid loss and LAE at end of period	$266,591	$475,708

The following is information about incurred and paid loss development as of December 31, 2025, net of reinsurance, as

well as cumulative claim frequency and the total of IBNR liabilities plus expected development on reported claims

included within the net incurred loss amounts. All information is reported in thousands, except for cumulative number of

reported claims, which are shown at the actual counts.

In determining the cumulative number of reported claims, the Company measures claim frequency per policy, per claim

event for all coverages. Reported claims that are closed without an indemnity payment are not included in cumulative

number of reported claims.

The Company compiles and aggregates its claims data by grouping the claims according to the year in which the claim

occurred (“accident year”) when analyzing claim payment and emergence patterns and trends over time. The Company

analyzed the usefulness of disaggregation of its results and determined the characteristics associated with the policies and

the related unpaid loss reserves, incurred losses, and payment patterns are similar in nature. As such, the information about

incurred and paid loss development for the years ended December 31, 2015 to 2024, is presented as supplementary

information.


Incurred Losses and Allocated LAE, Net of Reinsurance
For the years ended December 31,
Accident Year	2015*	2016*	2017*	2018*	2019*	2020*	2021*	2022*	2023*	2024*	2025	Total of IBNR Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
2015	$42,003	$39,623	$46,877	$47,555	$48,545	$48,672	$48,426	$48,853	$49,012	$48,895	$49,086	$19	55,583
2016	—	53,192	51,879	54,306	56,499	57,282	60,983	61,206	61,568	60,855	60,791	66	83,177
2017	—	—	57,286	48,820	26,956	24,139	22,535	18,846	19,453	19,172	19,363	25	266,335
2018	—	—	—	89,565	78,270	82,013	86,354	83,734	84,985	83,191	83,072	72	105,848
2019	—	—	—	—	104,651	107,979	118,580	118,187	121,378	119,509	118,987	553	81,599
2020	—	—	—	—	—	93,727	133,001	134,531	140,552	139,361	139,337	1,344	95,164
2021	—	—	—	—	—	—	78,605	110,218	114,801	116,366	116,347	2,008	47,158
2022	—	—	—	—	—	—	—	91,299	72,343	71,726	76,236	5,388	134,076
2023	—	—	—	—	—	—	—	—	88,840	90,307	94,161	5,337	23,363
2024	—	—	—	—	—	—	—	—	—	94,189	84,378	11,054	29,632
2025	—	—	—	—	—	—	—	—	—	—	99,847	50,565	5,965
										Total	$941,605


Cumulative Paid Losses and Allocated LAE, Net of Reinsurance

For the years ended December 31,
Accident Year	2015*	2016*	2017*	2018*	2019*	2020*	2021*	2022*	2023*	2024*	2025
2015	$20,564	$32,681	$40,904	$45,050	$47,492	$48,396	$48,316	$48,796	$48,905	$48,878	$48,967
2016	—	31,282	42,759	49,237	54,877	56,557	60,486	61,012	61,187	60,759	60,727
2017	—	—	25,224	40,067	24,925	22,207	21,343	18,371	19,012	19,091	19,346
2018	—	—	—	45,454	72,404	77,680	83,699	82,836	83,761	83,091	83,011
2019	—	—	—	—	58,982	95,405	112,510	116,637	117,975	118,521	118,533
2020	—	—	—	—	—	58,376	120,360	130,048	136,788	137,474	138,159
2021	—	—	—	—	—	—	48,184	99,498	108,814	113,529	114,606
2022	—	—	—	—	—	—	—	49,437	56,876	65,080	71,376
2023	—	—	—	—	—	—	—	—	55,107	80,487	89,552
2024	—	—	—	—	—	—	—	—	—	56,037	77,499
2025	—	—	—	—	—	—	—	—	—	—	45,574
										Total	$867,350

* Presented as unaudited required supplementary information.

The reconciliation of the net incurred and paid loss development tables to the liability for unpaid losses and LAE in the

consolidated balance sheets is as follows:


	December 31, 2025	December 31, 2024
Homeowners’ Insurance Liabilities for unpaid losses and allocated LAE, net of reinsurance	$74,255	$60,622
Reinsurance recoverable on unpaid losses and LAE	192,336	415,086
Total gross liability for unpaid losses and LAE	$266,591	$475,708

The following is supplementary information about average historical claims duration as of December 31, 2025, and is

presented as required supplementary information, which is unaudited.


Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years	1	2	3	4	5	6	7	8	9	10
Homeowners’ Insurance	55%	31%	3%	4%	1%	—%	—%	—%	—%	—%