XML 32 R21.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Note 15 - Reserves for Losses and Loss Adjustment Expenses
 6 Months Ended
Jun. 30, 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 six months ended June 30, 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

  1,420,332   1,398,187 

Prior year

  (67,229)  (183,695)

Total net losses and loss adjustment expense incurred

  1,353,103   1,214,492 
         

Payments:

        

Current year

  454,252   434,618 

Prior year

  268,956   351,709 

Total payments:

  723,208   786,327 
         

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

  3,080,268   2,118,744 

Reinsurance recoverable on unpaid losses, net of allowance

  2,186,121   712,035 
         

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

 $5,266,389  $2,830,779 

 

For the six months ended   June 30, 2024 and June 30, 2023 , there was a favorable 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.