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Note 15 - Reserves for Losses and Loss Adjustment Expenses
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Insurance Disclosure [Text Block]

NOTE 15.     RESERVES FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

 

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses (“LAE”) for the three months ended March 31, 2024 and 2023:  

 

  

2024

  

2023

 

Gross reserve for unpaid losses and loss adjustment expenses, beginning of year

 $5,733,444  $2,105,579 

Less: reinsurance recoverable on unpaid losses

  3,283,071   415,000 

Net reserve for unpaid losses and loss adjustment expenses, beginning of year

  2,450,373   1,690,579 
         

Incurred losses and loss adjustment expenses:

        

Current year

  816,563   633,370 

Prior year

  (135,890)  (59,999)

Total net losses and loss adjustment expense incurred

  680,673   573,371 
         

Payments:

        

Current year

  239,500   84,356 

Prior year

  (32,186)  196,420 

Total payments:

  207,314   280,776 
         

Net reserves for unpaid losses and loss adjustment expenses, end of year

  2,923,732   1,983,174 

Reinsurance recoverable on unpaid losses, net of allowance

  1,674,699   415,000 
         

Gross reserves for unpaid losses and loss adjustment expenses, end of year

 $4,598,431  $2,398,174 

 

For the three months ended   March 31, 2024 and March 31, 2023 , there was unfavorable prior year loss development which was the result of a re-estimation of amounts ultimately to be paid on prior year losses and loss adjustment expense. Original estimates are increased or decreased as additional information becomes known regarding individual claims.