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Note 14 - Reserves for Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2025
Notes to Financial Statements  
Insurance Disclosure [Text Block]

NOTE 14.     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 nine months ended September 30, 2025 and 2024. These balances reside within Accounts payable and accrued expenses on the Condensed Consolidated Balance Sheet.  

 

  

2025

  

2024

 

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

 $5,873,192  $5,733,444 

Less: reinsurance recoverable on unpaid losses

  1,803,865   3,283,071 

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

  4,069,327   2,450,373 
         

Incurred losses and loss adjustment expenses:

        

Current year

  5,015,026   1,892,367 

Prior year

  (633,744)  395,263 

Total net losses and loss adjustment expense incurred

  4,381,282   2,287,630 
         

Payments:

        

Current year

  2,468,942   525,389 

Prior year

  1,213,480   1,055,526 

Total payments:

  3,682,422   1,580,915 
         

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

  4,768,187   3,157,088 

Reinsurance recoverable on unpaid losses, net of allowance

  3,153,365   1,816,021 
         

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

 $7,921,552  $4,973,109 

 

For the nine months ended   September 30, 2025 there was a favorable prior year loss development. For the nine months ended  September 30, 2024, there was an unfavorable prior year loss development.  Favorable and unfavorable prior year loss developments are 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.