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Note 15 - Reserves for Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 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 nine months ended September 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

  1,892,367   2,426,208 

Prior year

  395,263   (535,609)

Total net losses and loss adjustment expense incurred

  2,287,630   1,890,599 
         

Payments:

        

Current year

  525,389   1,010,637 

Prior year

  1,055,526   371,910 

Total payments:

  1,580,915   1,382,547 
         

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

  3,157,088   2,198,631 

Reinsurance recoverable on unpaid losses, net of allowance

  1,816,021   479,000 
         

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

 $4,973,109  $2,677,631 

 

For the nine months ended   September 30, 2024 and September 30, 2023 , there was an unfavorable and favorable prior year’s 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.