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Liability for Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2024

Insurance [Abstract]

Summarized Activity in Liability for Unpaid Losses and Loss Adjustment Expenses

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


		Years Ended December 31,
(Dollars in thousands)		2024				2023				2022
Balance at beginning of period		$	850,599			$	832,404			$	759,904
Less: ceded reinsurance receivables			72,829				73,021				94,443
Net balance at beginning of period			777,770				759,383				665,461
Incurred losses and loss adjustment expenses related to:
Current year			213,118				279,609				367,298
Prior years			72				9,544				(8,070	)
Total incurred losses and loss adjustment expenses			213,190				289,153				359,228
Paid losses and loss adjustment expenses related to:
Current year			40,063				72,717				103,442
Prior years			211,260				198,049				161,864
Total paid losses and loss adjustment expenses			251,323				270,766				265,306
Net balance at end of period			739,637				777,770				759,383
Plus: ceded reinsurance receivables			60,754				72,829				73,021
Balance at end of period		$	800,391			$	850,599			$	832,404

Gross Reserves for Asbestos and Environmental Losses

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


		Years Ended December 31,
(Dollars in thousands)		2024				2023				2022
Gross reserve for A&E losses and loss adjustment expenses – beginning of period		$	36,831			$	37,142			$	39,153
Plus: Change in incurred losses and loss adjustment expenses			179				1,419				2,658
Less: Payments			1,122				1,730				4,669
Gross reserves for A&E losses and loss adjustment expenses – end of period		$	35,888			$	36,831			$	37,142

Net Reserves for Asbestos and Environmental Losses

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


		Years Ended December 31,
(Dollars in thousands)		2024				2023				2022
Net reserve for A&E losses and loss adjustment expenses – beginning of period		$	21,107			$	21,647			$	21,985
Plus: Change in incurred losses and loss adjustment expenses			2				(1	)			1,962
Less: Payments			413				539				2,300
Net reserves for A&E losses and loss adjustment expenses – end of period		$	20,696			$	21,107			$	21,647

Incurred and Cumulative Paid Claims Development

Penn-America – Property

(Dollars in thousands)


		Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
		For the Years Ended December 31,												As of December 31, 2024
Accident Year		2022				2023				2024				IBNR (1)				Cumulative Number of Reported Claims
		(unaudited)				(unaudited)
2022		$	80,485			$	81,232			$	75,739			$	2,000				3,620
2023							72,862				71,298				5,438				3,055
2024											88,354				19,693				3,269
Total										$	235,391

		Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
		For the Years Ended December 31,
Accident Year		2022				2023				2024
		(unaudited)				(unaudited)
2022		$	48,646			$	71,530			$	73,138
2023							50,543				64,492
2024											51,575
Total										$	189,205

All outstanding liabilities for the accident years presented, net of reinsurance										$	46,186
All outstanding liabilities before 2022, net of reinsurance											3,721
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance										$	49,907

(1)

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

Penn-America – Casualty

(Dollars in thousands)


		Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
		For the Years Ended December 31,																																								As of December 31, 2024
Accident Year		2015				2016				2017				2018				2019				2020				2021				2022				2023				2024				IBNR (1)				Cumulative Number of Reported Claims
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
2015		$	47,299			$	46,306			$	47,055			$	46,958			$	48,462			$	45,968			$	45,439			$	45,254			$	43,764			$	43,502			$	822				1,787
2016							45,684				45,230				44,758				43,055				42,798				42,237				42,291				42,166				41,622				712				1,646
2017											46,050				45,970				44,720				44,078				45,071				45,581				45,212				43,503				1,380				1,656
2018															48,830				48,450				47,783				47,175				47,726				47,721				48,100				1,430				2,009
2019																			59,512				59,384				61,055				63,139				69,013				72,663				3,475				2,359
2020																							72,149				71,693				75,412				86,132				90,542				6,907				2,515
2021																											96,705				96,268				108,042				114,164				17,096				3,162
2022																															123,985				129,796				130,487				44,021				3,292
2023																																			122,770				123,133				75,154				2,230
2024																																							113,767				94,301				1,358
																																		Total				$	821,483

		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				2023				2024
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
2015		$	2,903			$	11,999			$	20,459			$	28,579			$	34,932			$	37,850			$	39,078			$	40,596			$	41,655			$	42,261
2016							3,478				11,130				17,314				28,601				33,734				36,472				38,597				39,466				39,924
2017											4,412				10,286				19,818				26,834				31,766				36,672				39,833				40,137
2018															3,575				11,622				17,714				27,571				34,019				41,133				44,556
2019																			4,818				12,015				24,082				38,153				51,672				61,450
2020																							3,795				14,672				33,882				55,914				68,866
2021																											5,639				20,405				44,663				67,334
2022																															10,346				29,358				55,355
2023																																			7,378				23,662
2024																																							6,571
Total																																						$	450,116

All outstanding liabilities for the accident years presented, net of reinsurance																																						$	371,367
All outstanding liabilities before 2015, net of reinsurance																																							4,737
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance																																						$	376,104

(1)

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

Non-Core Operations – Property

(Dollars in thousands)


		Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
		For the Years Ended December 31,																As of December 31, 2024
Accident Year		2021				2022				2023				2024				IBNR (1)				Cumulative Number of Reported Claims
		(unaudited)				(unaudited)				(unaudited)
2021		$	111,042			$	108,443			$	109,047			$	109,567			$	3,791				10,406
2022							44,668				47,558				47,765				1,816				8,755
2023											10,105				9,724				1,701				3,269
2024															179				134				175
Total														$	167,235

		Cumulative Paid Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
		For the Years Ended December 31,
Accident Year		2021				2022				2023				2024
		(unaudited)				(unaudited)				(unaudited)
2021		$	84,333			$	100,865			$	102,420			$	104,575
2022							35,635				43,468				45,613
2023											7,802				8,008
2024															32
Total														$	158,228

All outstanding liabilities for the accident years presented, net of reinsurance														$	9,007
All outstanding liabilities before 2021, net of reinsurance															33,350
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance														$	42,357

(1)

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

Non-Core Operations – Casualty

(Dollars in thousands)


		Incurred Claims and Allocated Claims Adjustment Expenses, Net of Reinsurance
		For the Years Ended December 31,																																								As of December 31, 2024
Accident Year		2015				2016				2017				2018				2019				2020				2021				2022				2023				2024				IBNR (1)				Cumulative Number of Reported Claims
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
2015		$	31,802			$	33,731			$	35,350			$	36,534			$	35,081			$	32,297			$	30,885			$	29,905			$	29,820			$	29,563			$	231				—
2016							33,548				33,246				32,042				29,685				30,308				30,047				26,130				29,460				29,556				778				—
2017											32,645				32,097				31,138				32,040				31,077				31,260				26,168				24,629				1,235				—
2018															29,798				30,168				31,126				34,749				35,067				34,131				35,965				2,249				—
2019																			36,892				36,933				40,469				41,398				37,619				35,919				5,237				—
2020																							55,088				56,041				57,890				53,765				53,651				15,306				—
2021																											76,971				79,396				81,538				80,870				32,660				—
2022																															109,182				114,189				118,123				66,732				—
2023																																			66,102				68,229				48,361				—
2024																																							4,272				3,550				—
Total																																						$	480,777

		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				2023				2024
		(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)				(unaudited)
2015		$	3,979			$	11,470			$	17,615			$	23,354			$	26,144			$	27,005			$	28,231			$	28,379			$	28,445			$	28,609
2016							4,164				9,782				14,495				18,196				19,383				22,005				23,539				25,791				27,355
2017											2,633				7,230				11,915				18,263				20,183				21,912				22,904				23,207
2018															2,063				6,769				13,320				19,773				23,041				25,403				31,092
2019																			2,406				7,814				15,271				21,877				25,553				28,016
2020																							3,346				12,074				18,816				27,235				32,237
2021																											4,820				11,121				23,355				37,785
2022																															4,517				14,607				33,305
2023																																			4,000				11,077
2024																																							378
Total																																						$	253,061

All outstanding liabilities for the accident years presented, net of reinsurance																																						$	227,716
All outstanding liabilities before 2015, net of reinsurance																																							28,510
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance																																						$	256,226

(1)

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

Supplementary Information about Average Historical Claims

The following is required supplementary information about average historical claims duration as of December 31, 2024:


		Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year		1				2				3
Penn-America - Property			64.5	%			24.9	%			2.1	%

The following is required supplementary information about average historical claims duration as of December 31, 2024:


		Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year		1				2				3				4				5				6				7				8				9				10
Penn-America - Casualty			6.8	%			14.7	%			18.5	%			20.9	%			14.1	%			10.6	%			5.6	%			2.1	%			1.8	%			1.4	%

The following is required supplementary information about average historical claims duration as of December 31, 2024.


		Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year		1				2				3				4
Non-Core Operations - Property			76.4	%			14.7	%			2.4	%			2.0	%

The following is required supplementary information about average historical claims duration as of December 31, 2024:


		Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Year		1				2				3				4				5				6				7				8				9				10
Non-Core Operations - Casualty			8.1	%			14.9	%			17.3	%			18.2	%			8.3	%			6.4	%			7.3	%			3.1	%			2.8	%			0.6	%

Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Unpaid Losses and Loss Adjustment Expenses in Consolidated Balance Sheets

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, 2024 is as follows:


Net outstanding liabilities
Penn-America – Property		$	49,907
Penn-America – Casualty			376,104
Non-Core Operations – Property			42,357
Non-Core Operations – Casualty			256,226
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance			724,594
Reinsurance recoverable on unpaid claims
Penn-America – Property			2,199
Penn-America – Casualty			6,835
Non-Core Operations – Property			19,264
Non-Core Operations – Casualty			32,456
Total reinsurance recoverable on unpaid claims			60,754
Other outstanding liabilities
Penn-America
Ceded Allowance			—
Unallocated claims adjustment expenses			11,534
Loss Clearing			(1,393	)
Non-Core Operations
Ceded Allowance			8,992
Unallocated claims adjustment expenses			5,006
Loss Clearing			(8,169	)
Other			(927	)
Total other outstanding liabilities			15,043
Total gross liability for unpaid losses and loss adjustment expenses		$	800,391