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Note 16 - Reserves for Losses and Loss Adjustment Expenses
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Insurance Disclosure [Text Block]

NOTE 16.

RESERVES FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

 

The following table provides a reconciliation of the beginning and ending reserve balances at UCS for losses and loss adjustment expenses ("LAE") for the years ended December 31:

 

  

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

  3,924,202   2,411,846 

Prior year

  (750,747)  (367,411)

Total net losses and loss adjustment expense incurred

  3,173,455   2,044,435 
         

Payments:

        

Current Year

  1,193,187   532,062 

Prior Year

  361,314   752,579 

Total Payments:

  1,554,501   1,284,641 
         

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

  4,069,327   2,450,373 

Reinsurance recoverable on unpaid losses, net of allowance

  1,803,865   3,283,071 
         

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

 $5,873,192  $5,733,444 

 

During the years ended  December 31, 2024 and 2023, there was a favorable loss development for the current year and a 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.