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Liability for Unpaid Losses and Loss Adjustment Expenses

12 Months Ended

Dec. 31, 2022

Insurance [Abstract]

Liability for Unpaid Losses and Loss Adjustment Expenses

13.

Liability for Unpaid Losses and Loss Adjustment Expenses

Consolidated Activity

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:


	Years Ended December 31,
(Dollars in thousands)	2022			2021		2020
Balance at beginning of period	$	759,904		$	662,811	$	630,181
Less: Ceded reinsurance receivables		94,443			82,158		76,273
Net balance at beginning of period		665,461			580,653		553,908
Incurred losses and loss adjustment expenses related to:
Current year		367,298			376,306		367,739
Prior years		(8,070	)		8,658		(31,538	)
Total incurred losses and loss adjustment expenses		359,228			384,964		336,201
Paid losses and loss adjustment expenses related to:
Current year		103,442			149,092		183,109
Prior years		161,864			151,064		126,347
Total paid losses and loss adjustment expenses		265,306			300,156		309,456
Net balance at end of period		759,383			665,461		580,653
Plus: Ceded reinsurance receivables		73,021			94,443		82,158
Balance at end of period	$	832,404		$	759,904	$	662,811

When analyzing loss reserves and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

During 2022, the Company decreased its prior accident year loss reserves by $8.1 million, which consisted of a $1.4 million decrease related to Commercial Specialty, a $1.5 million decrease related to Reinsurance Operations, and a $5.2 million decrease related to Exited Lines.

The $1.4 million decrease in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•

General Liability: A $3.9 million increase mainly reflects higher than expected claims severity in accident years prior to 2006 and 2017 through 2021, partially offset by decreases in the 2006 through 2016 accident years.

•

Property: A $3.1 million decrease primarily recognizes lower than expected claims severity in the 2019 through 2021 accident years, partially offset by an increase in the 2015 and 2018 accident year.

•

Professional: A $2.2 million decrease primarily in 2008 through 2010 and 2012 through 2015 accident years.

The $1.5 million decrease in prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•

Professional: A $3.6 million decrease was recognized in the 2016 accident year reflecting a reduction in the ultimate for the claims-made segment; the inception-to-date case incurred remains zero in this year.

•

General Liability: A $2.1 million increase in the 2019 through 2021 accident years based on reported information from a cedant.

The $5.2 million decrease in prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•

Property: A $4.6 million decrease primarily in the 2017 through 2019 and 2021 accident years, partially offset by increases in the 2016 and 2020 accident years.

•

General Liability: A $0.6 million decrease, primarily in the 2015 through 2017, 2019, and 2021 accident years, partially offset by increases in the 2018 and 2020 accident years.

During 2021, the Company increased its prior accident year loss reserves by $8.7 million, which consisted of a $1.6 million increase related to Commercial Specialty, a $1.1 million decrease related to Reinsurance Operations, and a $8.2 million increase related to Exited Lines.

The $1.6 million increase in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•

General Liability: A $0.1 million increase in aggregate with $2.9 million of favorable development in the construction defect reserve category and $3.0 million of adverse development in the other general liability reserve categories. The reduction in the construction defect reserve category recognizes lower than expected claims frequency and severity in accident years prior to 2005 and the 2005 through 2009, 2011 and 2014 accident years with a slight increase recognized in the 2016 accident year. For the other general liability reserve categories, higher than anticipated claims severity was the main driver of the increases, primarily in accident years 2005 through 2007, 2009 and 2017 through 2020 accident years, partially offset by decreases prior to 2005, 2008 and 2013 through 2016 accident years.

•

Property: A $1.9 million increase primarily recognizes higher than expected claims severity mainly in the 2016, 2018, and 2020 accident years, partially offset by a decrease in the 2015, 2017, and 2019 accident years.

•

Professional Liability: A $0.5 million decrease mainly in the 2019 and 2020 accident years, mainly reflecting lower than anticipated claims severity.

The $1.1 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•

Professional: A $1.1 million decrease was recognized in professional lines mainly in the 2015 accident year, reflecting that the inception-to-date case incurred remained zero for this claims-made segment in this year.

The $8.2 million increase of prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•

Property: A $12.4 million increase in total which is primarily due to case incurred emergence on a Property Brokerage claim in the 2018 accident year reflecting a higher estimated ultimate for Hurricane Michael. In addition, there was an increase in the 2016 and 2020 accident years which reflects higher than expected claims severity. The increases were partially offset by lower than expected severity in 2015, 2017 and 2019 accident years.

•

General Liability: A $2.6 million reduction primarily reflects lower than expected claims severity in the 2015 through 2017 and 2020 accident years, partially offset by an increase in the 2007, 2018 and 2019 accident year.

•

Reinsurance: A $1.6 million decrease was in the property lines and primarily in the 2011, 2015, 2017, 2018 and 2020 accident years, partially offset by increases in the 2010, 2012 and 2019 accident years.

During 2020, the Company reduced its prior accident year loss reserves by $31.5 million, which consisted of a $23.5 million decrease related to Commercial Specialty, a $1.7 million decrease related to Reinsurance Operations, and a $6.3 million decrease related to Exited Lines.

The $23.5 million reduction of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following:

•

General Liability: A $20.4 million reduction in aggregate with $6.6 million of favorable development in the construction defect reserve category and $13.8 million of favorable development in the other general liability reserve categories. The reduction in the construction defect reserve category primarily recognizes lower than expected claims frequency and severity in the 2005 through 2009, 2012, 2015 and 2017 accident years, slightly offset by an increase in the 2016 accident year. For the other general liability reserve categories, lower than anticipated claims severity was the main driver of the favorable development primarily in the 2005 through 2015 accident years, partially offset by increases in the 2016 through 2019 accident years.

•

Professional Liability: A $1.8 million decrease mainly in the 2007 through 2010 and 2019 accident years recognizes lower than expected claims severity, partially offset by an increase in the 2006 accident year.

•

Commercial Auto Liability: A $1.0 million reduction primarily in the 2010 and 2012 through 2016 accident years recognizes lower than anticipated claims severity.

•

Property: A $0.1 million decrease primarily recognizes lower than expected claims severity in a few of the prior accident years.

•

Workers Compensation: A $0.2 million decrease primarily in loss adjustment expense reserves in the 2012 accident year and accident years prior to 2005.

The $1.7 million reduction of prior accident year loss reserves related to Reinsurance Operations primarily consisted of the following:

•

Professional Lines: A $1.7 million decrease in the 2014 and 2015 accident years, reflecting that the inception-to-date case incurred remained zero for this claims-made segment in these years.

The $6.3 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following:

•

Property: A $0.6 million decrease primarily reflects lower than anticipated claims severity in the 2015 through 2017 accident years and a reduction in the catastrophe reserve category in the 2017 accident year for subrogation recoveries from the California wildfires. This decrease is partially offset by a higher than expected claims severity in the 2018 and 2019 accident years. The bulk of the increase in the 2018 accident year reflects a higher estimated ultimate for Hurricane Michael; the increase in ultimate resulted from receiving additional information during the year for a Property Brokerage claim.

•

General Liability: A $2.4 million decrease primarily recognizes lower than expected claims severity mainly in the 2009 and 2015 through 2019 accident years, mostly offset by increases in the 2007 and 2013 accident years due to higher than anticipated claims severity.

•

Reinsurance: A $3.3 million decrease was primarily based on a review of the experience reported from cedants. There was a $2.9 million decrease in the property lines in the 2009 through 2018 accident years, partially offset by an increase in the 2019 accident year. In addition, there was a reduction of $0.4 million in the liability & workers compensation lines in the 2009 through 2012 accident years.

Prior to 2001, the Company underwrote multi-peril business insuring general contractors, developers, and sub-contractors primarily involved in residential construction that has resulted in significant exposure to construction defect (“CD”) claims. The Company’s reserves for CD claims are established based upon management’s best estimate in consideration of known facts, existing case law, and generally accepted actuarial methodologies. However, due to the inherent uncertainty concerning this type of business, the ultimate exposure for these claims may vary significantly from the amounts currently recorded. As of December 31, 2022 and 2021, gross reserves for CD claims were $34.8 million and $31.4 million, respectively, and net reserves for CD claims were $33.4 million and $30.2 million, respectively.

The Company has exposure to asbestos and environmental (“A&E”) claims. The asbestos exposure primarily arises from the sale of product liability insurance, and the environmental exposure arises from the sale of general liability and commercial multi-peril insurance. In establishing the liability for unpaid losses and loss adjustment expenses related to A&E exposures, management considers facts currently known and the current state of the law and coverage litigation. Liabilities are recognized for known claims (including the cost of related litigation) when sufficient information has been developed to indicate the involvement of a specific insurance policy, and management can reasonably estimate its liability. In addition, liabilities have been established to cover additional exposures on both known and unasserted claims. Estimates of the liabilities are reviewed and updated regularly. Case law continues to evolve for such claims, and uncertainty exists about the outcome of coverage litigation and whether past claim experience will be representative of future claim experience. Included in net unpaid losses and loss adjustment expenses as of December 31, 2022, 2021, and 2020 were IBNR reserves of $18.9 million, $20.1 million, and $27.3 million, respectively, and case reserves of approximately $2.8 million, $1.9 million, and $1.4 million, respectively, for known A&E-related claims.

The following table shows the Company’s gross reserves for A&E losses:


	Years Ended December 31,
(Dollars in thousands)	2022		2021			2020
Gross reserve for A&E losses and loss adjustment expenses – beginning of period	$	39,153	$	47,593		$	48,825
Plus: Change in incurred losses and loss adjustment expenses		2,658		(7,500	)		(259	)
Less: Payments		4,669		940			973
Gross reserves for A&E losses and loss adjustment expenses – end of period	$	37,142	$	39,153		$	47,593

The following table shows the Company’s net reserves for A&E losses:


	Years Ended December 31,
(Dollars in thousands)	2022		2021			2020
Net reserve for A&E losses and loss adjustment expenses – beginning of period	$	21,985	$	28,679		$	29,033
Plus: Change in incurred losses and loss adjustment expenses		1,962		(6,500	)		1
Less: Payments		2,300		194			355
Net reserves for A&E losses and loss adjustment expenses – end of period	$	21,647	$	21,985		$	28,679

Establishing reserves for A&E and other mass tort claims involves more judgment than other types of claims due to factors including, but not limited to, inconsistent court decisions, an increase in bankruptcy filings as a result of asbestos-related liabilities, and judicial interpretations that often expand theories of recovery and broaden the scope of coverage. The insurance industry continues to receive a substantial number of asbestos-related bodily injury claims, with an increasing focus being directed toward other parties, including installers of products containing asbestos rather than against asbestos manufacturers. This shift has resulted in significant insurance coverage litigation implicating applicable coverage defenses or determinations, if any, including but not limited to, determinations as to whether or not an asbestos-related bodily injury claim is subject to aggregate limits of liability found in most comprehensive general liability policies.

As of December 31, 2022, 2021, and 2020, the survival ratio on a gross basis for the Company’s open A&E claims was 16.9 years, 33.3 years, and 35.5 years, respectively. As of December 31, 2022, 2021, and 2020, the survival ratio on a net basis for the Company’s open A&E claims was 22.8 years, 63.5 years, and 59.5 years, respectively. The survival ratio, which is the ratio of gross or net reserves to the 3-year average of annual paid claims, is a financial measure that indicates how long the current amount of gross or net reserves are expected to last based on the current rate of paid claims.

Line of Business Categories

The following is information, presented by lines of business with similar characteristics including similar payout patterns, about incurred and paid claims development as of December 31, 2022, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities included within the net incurred claims amounts. The years included represent the number of years for which claims incurred typically remain outstanding but need not exceed 10 years including the most recent report period presented.

The information about incurred and paid claims development for the years ended December 31, 2013 to 2021, is presented as required supplementary unaudited information.

Commercial Specialty

Property and Casualty Methodologies

Commercial Specialty’s internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (“ALAE”) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial reserve reviews were completed with data through December, 2022. Actuarial methodologies, such as the Loss Development and Bornhuetter-Ferguson methods, were employed to develop estimates of ultimate loss & ALAE for most reserve categories. Additional actuarial methodologies were employed to develop estimates of ultimate loss & ALAE for mass tort and constructions defect reserve categories due to the unique characteristics of the exposures involved. Management’s ultimate selections considered the internal actuarial review and a third-party actuarial review completed during the fourth quarter of 2022. Case incurred is subtracted from the management selected ultimates to obtain the booked IBNR reserves. These methodologies are consistent with last year.

Commercial Specialty’s cumulative claim frequency has been calculated at the claim level and includes claims closed without payment.

Commercial Specialty – Property

(Dollars in thousands)


	Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,						As of December 31, 2022
Accident Year	2020		2021		2022		IBNR (1)		Cumulative Number of Reported Claims
	(unaudited)		(unaudited)
2020	$	75,609	$	78,760	$	77,860	$	2,003		4,598
2021				84,037		82,841		5,712		4,206
2022						82,018		14,533		3,234
Total					$	242,719

(1)

Incurred-but-not-reported liabilities plus expected development on reported claims

Commercial Specialty – Property

(Dollars in thousands)


	Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2020		2021		2022
	(unaudited)		(unaudited)
2020	$	47,486	$	69,944	$	73,640
2021				50,846		74,860
2022						49,744
Total						198,244
All outstanding liabilities before 2020, net of reinsurance						3,025
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance					$	47,500

The following is required supplementary information about average historical claims duration as of December 31, 2022:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year	1			2			3
Commercial Specialty - Property		61.0	%		28.9	%		4.7	%

Commercial Specialty – Casualty

(Dollars in thousands)


	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,																				As of December 31, 2022
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR (1)		Cumulative Number of Reported Claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	63,931	$	68,230	$	68,081	$	66,566	$	65,193	$	61,714	$	58,961	$	56,901	$	56,786	$	56,336	$	1,226		2,597
2014				61,427		60,779		58,618		57,828		57,230		54,971		51,329		50,919		49,134		2,006		2,400
2015						57,710		57,088		58,384		58,993		60,231		56,498		56,279		55,322		2,652		2,162
2016								54,576		54,123		53,751		52,078		52,760		52,401		52,347		2,949		1,997
2017										54,654		54,978		53,876		54,704		56,273		57,369		4,535		1,915
2018												58,220		57,605		57,922		60,372		60,879		7,436		2,345
2019														69,145		69,114		73,968		76,844		9,924		2,695
2020																83,553		84,260		88,347		23,282		2,719
2021																		112,124		113,382		55,202		3,689
2022																				138,225		106,457		2,782
																	Total		$	748,185

(1)

Incurred-but-not-reported liabilities plus expected development on reported claims

Commercial Specialty – Casualty

(Dollars in thousands)


	Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	6,439	$	17,969	$	29,705	$	38,641	$	46,475	$	51,167	$	52,468	$	53,194	$	53,471	$	53,525
2014				4,011		15,924		26,526		34,504		40,293		43,505		45,831		46,263		46,578
2015						3,355		14,865		25,559		36,357		43,116		46,272		48,524		50,169
2016								4,148		14,047		22,064		34,973		40,639		44,130		47,352
2017										4,996		12,879		23,326		33,511		39,926		46,169
2018												4,303		13,869		22,194		34,745		42,884
2019														5,222		14,017		30,439		48,285
2020																5,510		19,623		40,665
2021																		7,238		24,414
2022																				12,022
Total																				412,063
All outstanding liabilities before 2013, net of reinsurance																				44,506
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance																			$	380,628

The following is required supplementary information about average historical claims duration as of December 31, 2022:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year	1			2			3			4			5			6			7			8			9			10
Commercial Specialty - Casualty		7.7	%		17.4	%		19.3	%		19.7	%		12.2	%		7.6	%		4.3	%		1.7	%		0.6	%		0.1	%

Reinsurance Lines

Casualty Methodology

Reinsurance Operations’ internal reserve reviews were completed for loss and allocated loss adjustment expenses (“ALAE”) by treaty. The current book of business is constituted of professional liability portfolios, retrocessions for casualty business, and primary reinsurance on a few smaller treaties. The reserve reviews were completed based on the latest data reported from the cedants which is typically on a quarter lag. Paid loss, ALAE and case reserves, shown in the reinsurance category tables below, which are originally based in a foreign currency, are remeasured in U.S. dollars based on the Foreign Exchange (“FX”) rate at the end of the period. Management’s ultimate selections considered the internal actuarial review and a third-party actuarial review completed during the fourth quarter of 2022. Case incurred is subtracted from the management selected ultimates to obtain the booked IBNR reserves. These methodologies are consistent with last year.

The Company does not have direct access to claim frequency information underlying reinsurance contracts. As a result, the Company does not believe providing claim frequency information is practicable.

Reinsurance Lines – Casualty

(Dollars in thousands)


	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31,																				As of December 31, 2022
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022		IBNR (1)		Cumulative Number of Reported Claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	1,009	$	1,009	$	1,009	$	850	$	850	$	850	$	—	$	—	$	—	$	—	$	—		—
2014				1,987		1,987		1,954		1,954		1,954		590		—		—		—		—		—
2015						2,779		2,779		2,779		2,779		2,179		1,090		—		—		—		—
2016								3,627		3,627		3,627		3,627		3,627		3,627		—		—		—
2017										4,358		4,358		4,358		4,358		4,358		4,358		4,356		—
2018												5,573		5,573		5,573		5,574		5,574		5,568		—
2019														13,686		13,686		13,685		14,080		11,092		—
2020																30,398		30,375		31,258		23,998		—
2021																		49,177		50,122		42,927		—
2022																				86,624		82,247		—
																	Total		$	192,016

(1)

Incurred-but-not-reported liabilities plus expected development on reported claims

Reinsurance Lines – Casualty

(Dollars in thousands)


	Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2013		2014		2015		2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2013	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2014				—		—		—		—		—		—		—		—		—
2015						—		—		—		—		—		—		—		—
2016								—		—		—		—		—		—		—
2017										—		2		2		2		2		2
2018												—		—		—		6		6
2019														27		801		1,014		1,925
2020																48		2,174		4,503
2021																		1,593		3,986
2022																				1,986
Total																				12,408
All outstanding liabilities before 2013, net of reinsurance																				—
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance																			$	179,608

The following is required supplementary information about average historical claims duration as of December 31, 2022:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited) (1)
Year	1			2			3			4			5			6			7			8			9			10
Reinsurance Lines - Casualty		0.6	%		1.9	%		1.1	%		0.9	%		—	%		—	%		—	%		—	%		—	%		—	%

(1)

May not be indicative of future average annual percentage payout of incurred claims due to a change in mix of business

Exited Lines

Property and Casualty Methodologies

Exited Lines’ internal actuarial reserve reviews were completed for loss and allocated loss adjustment expenses (“ALAE”) separately for property excluding catastrophe experience, property catastrophes, and casualty reserve categories. The internal actuarial reserve reviews were completed with data through December, 2022. Actuarial methodologies, such as the Loss Development and Bornhuetter-Ferguson methods, were employed to develop estimates of ultimate loss & ALAE. Management’s ultimate selections considered the internal actuarial review and a third-party actuarial review completed during the fourth quarter of 2022. Case incurred is subtracted from the management selected ultimates to obtain the booked IBNR reserves. These methodologies are consistent with last year.

Exited Lines includes business acquired in the purchase of American Reliable, which occurred on January 1, 2015. The acquisition included the purchase of the business of the legal entity as well as additional books of business written by other Assurant entities. In addition, ceding arrangements subsequent to the date of the acquisition are not consistent with years prior to the acquisition. As a result, it is not practical, nor would it be consistent, to include information for years prior to 2015 in the development tables for Exited Lines. It also includes experience for reinsurance contracts which the Company does not have direct access to claim frequency information, so claim frequency information will not be provided for Exited Lines as it is not available for all the experience contained within this category.

Exited Lines – Property

(Dollars in thousands)


			Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
			For the Years Ended December 31,						As of December 31, 2022
Accident Year	2019		2020		2021		2022		IBNR (1)		Cumulative Number of Reported Claims
	(unaudited)		(unaudited)		(unaudited)
2019	$	155,116	$	159,713	$	162,523	$	160,865	$	6,645		—
2020				155,747		159,718		161,351		9,558		—
2021						108,708		106,079		4,715		—
2022								42,818		4,017		—
Total							$	471,113

(1)

Incurred-but-not-reported liabilities plus expected development on reported claims

Exited Lines – Property

(Dollars in thousands)


	Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)
2019	$	99,554	$	128,338	$	140,463	$	145,406
2020				121,430		143,332		148,159
2021						82,528		98,809
2022								34,533
Total								426,907
All outstanding liabilities before 2019, net of reinsurance								44,812
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance							$	89,018

The following is required supplementary information about average historical claims duration as of December 31, 2022.


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year	1			2			3			4
Exited Lines - Property		73.9	%		15.6	%		5.3	%		3.1	%

Exited Lines – Casualty

(Dollars in thousands)


	Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,																As of December 31, 2022
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022		IBNR (1)		Cumulative Number of Reported Claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2015	$	18,612	$	20,170	$	21,243	$	21,720	$	21,133	$	20,677	$	20,045	$	19,837	$	864		—
2016				21,030		20,726		19,423		17,035		16,719		16,256		16,074		1,127		—
2017						19,683		18,730		17,624		17,056		15,516		15,114		1,518		—
2018								14,835		15,439		15,414		15,979		16,340		1,721		—
2019										13,574		13,518		13,870		13,613		2,934		—
2020												13,285		13,099		13,697		4,555		—
2021														12,376		12,160		8,115		—
2022																8,317		5,986		—
Total															$	115,152

(1)

Incurred-but-not-reported liabilities plus expected development on reported claims

Exited Lines – Casualty

(Dollars in thousands)


	Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2015		2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
2015	$	3,527	$	8,605	$	12,515	$	15,575	$	17,959	$	18,584	$	18,785	$	18,806
2016				3,494		6,865		9,745		11,824		12,478		14,347		14,783
2017						2,051		4,635		8,406		11,585		12,021		12,413
2018								1,334		4,522		8,840		12,593		14,169
2019										1,975		5,011		7,900		9,820
2020												1,583		4,949		7,531
2021														1,628		3,125
2022																854
Total																81,501
All outstanding liabilities before 2015, net of reinsurance																4,683
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance															$	38,334

The following is required supplementary information about average historical claims duration as of December 31, 2022:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year	1			2			3			4			5			6			7			8
Exited Lines - Casualty		13.9	%		20.3	%		21.5	%		17.3	%		7.2	%		5.8	%		1.9	%		0.1	%

The reconciliation of the net incurred and paid claims development tables to the liability for unpaid losses and loss adjustment expenses in the consolidated balance sheets as of December 31, 2022 is as follows:


Net outstanding liabilities
Commercial Specialty – Property	$	47,500
Commercial Specialty – Casualty		380,628
Reinsurance Lines – Casualty		179,608
Exited Lines – Property		89,018
Exited Lines – Casualty		38,334
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance		735,088
Reinsurance recoverable on unpaid claims
Commercial Specialty – Property		5,951
Commercial Specialty – Casualty		45,273
Reinsurance Lines – Casualty		—
Exited Lines – Property		19,590
Exited Lines – Casualty		(40	)
Total reinsurance recoverable on unpaid claims		70,774
Other outstanding liabilities
Commercial Specialty
Ceded Allowance		8,992
Unallocated claims adjustment expenses		14,818
Loss Clearing		(918	)
Reinsurance Lines
Unallocated claims adjustment expenses		595
Exited Lines
Fronted business ceded to Assurant		2,189
Unallocated claims adjustment expenses		2,042
Other		(1,176	)
Total other outstanding liabilities		26,542
Total gross liability for unpaid losses and loss adjustment expenses	$	832,404