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Liability for Unpaid Losses and Loss Adjustment Expenses | 6 Months Ended
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Jun. 30, 2024
Insurance [Abstract] |
Liability for Unpaid Losses and Loss Adjustment Expenses | 7. 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 June 30, |  |  | Six Months Ended June 30, |
(Dollars in thousands) |  | 2024 |  |  | 2023 |  |  | 2024 |  |  | 2023 |
Balance at beginning of period |  | $ | 853,602 |  |  | $ | 857,520 |  |  | $ | 850,599 |  |  | $ | 832,404 |
Less: Ceded reinsurance receivables |  |  | 71,814 |  |  |  | 73,665 |  |  |  | 72,829 |  |  |  | 73,021 |
Net balance at beginning of period |  |  | 781,788 |  |  |  | 783,855 |  |  |  | 777,770 |  |  |  | 759,383 |
Incurred losses and loss adjustment expenses related to: |  |  |  |  |  |  |  |  |  |  |  |
Current year |  |  | 53,744 |  |  |  | 78,031 |  |  |  | 107,127 |  |  |  | 166,032 |
Prior years |  |  | (82 | ) |  |  | 51 |  |  |  | (81 | ) |  |  | 51 |
Total incurred losses and loss adjustment expenses |  |  | 53,662 |  |  |  | 78,082 |  |  |  | 107,046 |  |  |  | 166,083 |
Paid losses and loss adjustment expenses related to: |  |  |  |  |  |  |  |  |  |  |  |
Current year |  |  | 18,489 |  |  |  | 24,565 |  |  |  | 24,086 |  |  |  | 34,184 |
Prior years |  |  | 43,147 |  |  |  | 44,354 |  |  |  | 86,916 |  |  |  | 98,264 |
Total paid losses and loss adjustment expenses |  |  | 61,636 |  |  |  | 68,919 |  |  |  | 111,002 |  |  |  | 132,448 |
Net balance at end of period |  |  | 773,814 |  |  |  | 793,018 |  |  |  | 773,814 |  |  |  | 793,018 |
Plus: Ceded reinsurance receivables |  |  | 70,392 |  |  |  | 73,933 |  |  |  | 70,392 |  |  |  | 73,933 |
Balance at end of period |  | $ | 844,206 |  |  | $ | 866,951 |  |  | $ | 844,206 |  |  | $ | 866,951 |
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 second quarter of 2024, the Company's adjustments to prior accident year loss reserves netted to a decrease of $0.1 million. • Penn-America had a decrease of $0.5 million consisting of (i) $0.4 million decrease for property lines related to the 2020 through 2022 accident years and (ii) $0.1 million decrease for casualty lines across various accident years. • Non-Core Operations had an increase of $0.4 million driven by its casualty lines across various accident years. During the second quarter of 2023, the Company's adjustments to prior accident year loss reserves netted to an increase of $0.1 million. • Penn-America had an increase of $0.9 million consisting of (i) $1.2 million increase in aggregate for casualty lines resulting from increases of $4.7 million primarily related to the 2019 through 2021 accident years partially offset by favorable development of $3.5 million mainly due to accident years prior to 2006 and (ii) a $0.3 million decrease in aggregate on its property lines resulting fro m favorable development of $0.7 million primarily related to the 2020 accident year partially offset by unfavorable deve lopment of $0.4 million from various accident years. • Non-Core Operations had a decrease of $0.8 million consisting of (i) a $5.3 million decrease related to reinsurance across various accident years, (ii) a $3.9 million increase in casualty lines primarily driven by higher than expected claims severity in the 2021 and 2022 accident years, and (iii) a $0.6 million net increase in property lines primarily related to the 2020 through 2022 accident years. During the first six months of 2024, the Company's adjustments to prior accident year loss reserves netted to a decrease of $0.1 million. • Penn-America had a decrease of $0.4 million consisting of (i) $0.3 million decrease for property lines related to the 2020 and 2021 accident years and (ii) $0.1 million decrease for casualty lines across various accident years. • Non-Core Operations had an increase of $0.3 million consisting of (i) $0.5 million increase for property lines in the 2019, 2020 and 2022 accident years, (ii) a $0.5 million increase in aggregate for casualty lines across various accident years, and (iii) $0.7 million decrease in reinsurance across various accident years. During the first six months of 2023, the Company's adjustments to prior accident year loss reserves netted to an increase of $0.1 million. • Penn-America had an increase of $3.1 million consisting of (i) $3.9 million increase in aggregate for casualty lines resulting from increases of $6.9 million primarily related to the 2017 through 2021 accident years partially offset by favorable development of $3.0 million mainly due to accident years prior to 2006, (ii) $0.1 million increase in professional lines and (iii) a $0.9 million net decrease in property lines primarily related to the 2020 through 2022 accident years. • Non-Core Operations had a decrease of $3.0 million consisting of (i) a $6.3 million decrease in aggregate for reinsurance resulting from favorable development of $7.4 million primarily related to the 2017 through 2021 accident years partially offset by unfavorable development of $1.1 million in the 2022 accident year, (ii) a $1.9 million increase for casualty lines across various accident years, and (iii) a $1.4 million increase in aggregate for property lines resulting from unfavorable development of $2.4 million mainly due to the 2021 and 2022 accident years partially offset by favorable development of $1.0 million primarily in the 2016 and 2020 accident years.

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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 -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944-40/tableOfContent + Details
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