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Liability for Unpaid Losses and Loss Adjustment Expenses | 3 Months Ended
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Mar. 31, 2023
Insurance [Abstract] |
Liability for Unpaid Losses and Loss Adjustment Expenses | 8. Liability for Unpaid Losses and Loss Adjustment Expenses Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:
|  | Quarters Ended March 31, |
(Dollars in thousands) |  | 2023 |  |  | 2022 |
Balance at beginning of period |  | $ | 832,404 |  |  | $ | 759,904 |
Less: Ceded reinsurance receivables |  |  | 73,021 |  |  |  | 94,443 |
Net balance at beginning of period |  |  | 759,383 |  |  |  | 665,461 |
Incurred losses and loss adjustment expenses related to: |  |  |  |  |  |
Current year |  |  | 88,001 |  |  |  | 87,758 |
Prior years |  |  | — |  |  |  | (3,063 | )
Total incurred losses and loss adjustment expenses |  |  | 88,001 |  |  |  | 84,695 |
Paid losses and loss adjustment expenses related to: |  |  |  |  |  |
Current year |  |  | 9,617 |  |  |  | 13,315 |
Prior years |  |  | 53,912 |  |  |  | 59,703 |
Total paid losses and loss adjustment expenses |  |  | 63,529 |  |  |  | 73,018 |
Net balance at end of period |  |  | 783,855 |  |  |  | 677,138 |
Plus: Ceded reinsurance receivables |  |  | 73,665 |  |  |  | 93,194 |
Balance at end of period |  | $ | 857,520 |  |  | $ | 770,332 |
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 the first quarter of 2023, the Company's adjustments to prior accident year loss reserves netted to zero. This consisted of a $1.5 million increase related to Commercial Specialty and a $1.5 million decrease related to Exited Lines. The $1.5 million increase in prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $0.2 m illion increase primarily recognizes higher than expected claims severity in the 2018 through 2020 and 2022 accident years, mostly offset by a decrease in the 2021 accident year reflecting lower than expected claims severity in that year. • General Liability: A $1.3 million increase primarily in accident years prior to 2005 and the 2013, 2015, 2016, 2019, 2020, and 2022 accident years mainly reflects higher than expected claims severity, partially offset by decreases in the 2011 and 2018 accident years. The $1.5 million decrease in prior accident year loss reserves related to Exited Lines consisted of the following: • Property: A $1.0 million decrease in total, mainly in one reinsurance treaty in the 2017 and 2020 accident years based on the reported information from the cedant and decreases in the 2016 and 2018 accident years in property brokerage, partially offset by increases in the 2021 and 2022 accident years in property brokerage, specialty property and farm, ranch & stable lines of business. • General Liability: A $0.5 m illion decrease in total primarily in the 2014 through 2017, 2019 and 2020 accident years, partially offset by increases in the 2018, 2021, and 2022 accident years. These prior year reserve loss adjustments were mainly in the specialty property and farm, ranch & stable lines of business. During the first quarter of 2022, the Company decreased its prior accident year loss reserves by $3.1 million, which consisted of a $1.9 million increase related to Commercial Specialty and a $4.9 million decrease related to Exited Lines. The $1.9 million increase of prior accident year loss reserves related to Commercial Specialty primarily consisted of the following: • Property: A $1.9 million increase primarily recognizes higher than expected claims severity in the 2015, 2018, and 2020 accident years, partially offset by a decrease in the 2019 and 2021 accident years. The $4.9 million reduction of prior accident year loss reserves related to Exited Lines primarily consisted of the following: • Property: A $2.1 million decrease primarily in the 2015, 2018 and 2021 accident years, partially offset by increases in the 2017 and 2020 accident years. • General Liability: A $0.6 million decrease primarily in the 2017, 2019, and 2021 accident years partially offset by an increase in the 2018 accident year. • Reinsurance: A $2.2 million decrease was primarily from one treaty and in the 2017 through 2021 accident years based on the reported information from the cedant.

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI https://asc.fasb.org/subtopic&trid=2560295 + Details
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