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6. Property and Casualty Insurance Activity (Tables)
 3 Months Ended
Mar. 31, 2019
Insurance [Abstract]  
Schedule of Earned Premiums
    Direct     Assumed     Ceded     Net  
                         
Three months ended March 31, 2019                        
Premiums written   $ 37,488,548     $ (34 )   $ (7,127,909 )   $ 30,360,605  
Change in unearned premiums     (628,067 )     195       (136,844 )     (764,716 )
Premiums earned   $ 36,860,481     $ 161     $ (7,264,753 )   $ 29,595,889  
                                 
Three months ended March 31, 2018                                
Premiums written   $ 31,526,283     $ 336     $ (7,826,235 )   $ 23,700,384  
Change in unearned premiums     (1,008,869 )     1,901       144,201       (862,767 )
Premiums earned   $ 30,517,414     $ 2,237     $ (7,682,034 )   $ 22,837,617  
Schedule of Loss and Loss Adjustment Expenses
    Three months ended  
    March 31,  
    2019     2018  
       
Balance at beginning of period   $ 56,197,106     $ 48,799,622  
Less reinsurance recoverables     (15,671,247 )     (16,748,908 )
Net balance, beginning of period     40,525,859       32,050,714  
                 
Incurred related to:                
Current year     24,655,975       17,367,560  
Prior years     4,478,249       (101,230 )
Total incurred     29,134,224       17,266,330  
                 
Paid related to:                
Current year     7,731,086       5,971,788  
Prior years     8,405,440       6,495,154  
Total paid     16,136,526       12,466,942  
                 
Net balance at end of period     53,523,557       36,850,102  
Add reinsurance recoverables     15,586,714       19,422,011  
Balance at end of period   $ 69,110,271     $ 56,272,113  
Allocated Claim Adjustment Expenses

All Lines of Business

(in thousands, except reported claims data)

 

                        As of  
  Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance   March 31, 2019  
  For the Years Ended December 31, Three
Months Ended
March 31,		   IBNR Cumulative Number of Reported Claims by Accident Year  
Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019    
  (Unaudited 2010 - 2018) (Unaudited)        
                             
2010  $5,598  $5,707  $6,429  $6,623  $6,912  $6,853  $6,838  $6,840  $6,787  $      6,787    $     -                1,617  
2011      7,603    7,678    8,618    9,440    9,198    9,066    9,144    9,171          9,175           -                1,914  
2012        9,539    9,344  10,278  10,382  10,582  10,790  10,791        10,831            1             4,704 (1)
2013        10,728    9,745    9,424    9,621  10,061  10,089        10,068          35             1,560  
2014          14,193  14,260  14,218  14,564  15,023        15,925        261             2,132  
2015            22,340  21,994  22,148  22,491        22,598        497             2,553  
2016              26,062  24,941  24,789        25,658     1,188             2,867  
2017                31,605  32,169        33,597     2,920             3,350  
2018                  54,455        55,591     7,322             4,090  
2019                          23,359     8,904                962  
                   Total   $  213,589        
(1) Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy.          

  

All Lines of Business

(in thousands, except reported claims data)

 

  Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance
  For the Years Ended December 31, Three
Months Ended
March 31,
Accident Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
  (Unaudited 2010 - 2018) (Unaudited)
                     
2009  $2,566  $3,947  $4,972  $5,602  $6,323  $6,576  $6,720  $6,772  $6,780  $      6,780
2010      3,740    5,117    6,228    7,170    8,139    8,540    8,702    8,727          8,733
2011        3,950    5,770    7,127    8,196    9,187  10,236  10,323        10,412
2012          3,405    5,303    6,633    7,591    8,407    9,056          9,155
2013            5,710    9,429  10,738  11,770  13,819        13,860
2014            12,295  16,181  18,266  19,984        20,193
2015              15,364  19,001  21,106        21,306
2016                16,704  24,820        25,426
2017                  32,383        39,136
2018                            7,320
                  Total  $  162,321
                     
Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented  $    51,268
All outstanding liabilities before 2009, net of reinsurance             108
Liabilities for loss and allocated loss adjustment expenses, net of reinsurance  $    51,376
Reconciliation of the Net Incurred and Paid Claims
    As of  
(in thousands)  

March 31,

2019

  
Liabilities for loss and loss adjustment expenses, net of reinsurance   $ 51,376  
Total reinsurance recoverable on unpaid losses     15,587  
Unallocated loss adjustment expenses     2,147  
Total gross liability for loss and LAE reserves   $ 69,110  
Schedule of Line of Business

   Treaty Year 
  July 1, 2018   July 1, 2017   July 1, 2016
  to   to   to
 Line of Busines  June 30, 2019   June 30, 2018   June 30, 2017
           
Personal Lines:          
Homeowners, dwelling fire and canine legal liability          
 Quota share treaty:           
 Percent ceded  10%   20%   40%
 Risk retained   $        900,000    $        800,000    $        500,000
 Losses per occurrence subject to quota share reinsurance coverage   $     1,000,000    $     1,000,000    $        833,333
 Excess of loss coverage and facultative facility above quota share coverage (1)   $     9,000,000    $     9,000,000    $     3,666,667
   in excess of     in excess of     in excess of 
   $     1,000,000    $     1,000,000    $        833,333
 Total reinsurance coverage per occurrence   $     9,100,000    $     9,200,000    $     4,000,000
 Losses per occurrence subject to reinsurance coverage   $   10,000,000    $   10,000,000    $     4,500,000
 Expiration date  June 30, 2019   June 30, 2019   June 30, 2017
           
 Personal Umbrella           
 Quota share treaty:           
 Percent ceded - first $1,000,000 of coverage  90%   90%   90%
 Percent ceded - excess of $1,000,000 dollars of coverage  100%   100%   100%
 Risk retained   $        100,000    $        100,000    $        100,000
 Total reinsurance coverage per occurrence   $     4,900,000    $     4,900,000    $     4,900,000
 Losses per occurrence subject to quota share reinsurance coverage   $     5,000,000    $     5,000,000    $     5,000,000
 Expiration date  June 30, 2019   June 30, 2018   June 30, 2017
           
Commercial Lines:          
 General liability commercial policies           
 Quota share treaty  None   None   None
 Risk retained   $        750,000    $        750,000    $        500,000
 Excess of loss coverage above risk retained   $     3,750,000    $     3,750,000    $     4,000,000
   in excess of     in excess of     in excess of 
   $        750,000    $        750,000    $        500,000
 Total reinsurance coverage per occurrence   $     3,750,000    $     3,750,000    $     4,000,000
 Losses per occurrence subject to reinsurance coverage   $     4,500,000    $     4,500,000    $     4,500,000
           
 Commercial Umbrella           
 Quota share treaty:           
 Percent ceded - first $1,000,000 of coverage  90%   90%   90%
 Percent ceded - excess of $1,000,000 of coverage  100%   100%   100%
 Risk retained   $        100,000    $        100,000    $        100,000
 Total reinsurance coverage per occurrence   $     4,900,000    $     4,900,000    $     4,900,000
 Losses per occurrence subject to quota share reinsurance coverage   $     5,000,000    $     5,000,000    $     5,000,000
 Expiration date  June 30, 2019   June 30, 2018   June 30, 2017
           
Catastrophe Reinsurance:          
Initial loss subject to personal lines quota share treaty  $     5,000,000    $     5,000,000    $     5,000,000
 Risk retained per catastrophe occurrence (2)   $     4,500,000    $     4,000,000    $     3,000,000
 Catastrophe loss coverage in excess of quota share coverage (3) (4)   $ 445,000,000    $ 315,000,000    $ 247,000,000
 Reinstatement premium protection (5)   Yes     Yes     Yes 

 

(1) For personal lines, the 2017/2019 Treaty includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $10,000,000 in total insured value, which covers direct losses from $3,500,000 to $10,000,000.

 

(2) Plus losses in excess of catastrophe coverage.

 

(3) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. Effective July 1, 2016, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone was extended to 168 consecutive hours from 120 consecutive hours.

 

(4) Effective July 1, 2018, the top $50,000,000 layer of catastrophe reinsurance coverage has a two-year term expiring on June 30, 2020.

 

(5) Effective July 1, 2016, reinstatement premium protection for $20,000,000 of catastrophe coverage in excess of $5,000,000.

 
Schedule of Single Maximum Risks Under Treaties
    July 1, 2018 - June 30, 2019
Treaty    Extent of Loss    Risk Retained
Personal Lines (1)    Initial $1,000,000   $900,000  
     $1,000,000 - $10,000,000    None) (2)
     Over $10,000,000   100%  
           
Personal Umbrella    Initial $1,000,000   $100,000  
     $1,000,000 - $5,000,000    None  
     Over $5,000,000   100%  
           
Commercial Lines    Initial $750,000   $750,000  
     $750,000 - $4,500,000    None (3)
     Over $4,500,000   100%  
           
Commercial Umbrella    Initial $1,000,000   $100,000  
     $1,000,000 - $5,000,000    None  
     Over $5,000,000   100%  
           
Catastrophe (4)    Initial $5,000,000   $4,500,000  
     $5,000,000 - $450,000,000    None  
     Over $450,000,000   100%  

 

(1) Treaty for July 1, 2018 – June 30, 2019 is a two-year treaty with expiration date of June 30, 2019.

 

(2) Covered by excess of loss treaties up to $3,500,000 and by facultative facility from $3,500,000 to $10,000,000.

 

(3) Covered by excess of loss treaties.

 

(4) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. 

 

    July 1, 2017 - June 30, 2018   July 1, 2016 - June 30, 2017
Treaty    Range of Loss    Risk Retained    Range of Loss    Risk Retained
Personal Lines (1)    Initial $1,000,000   $800,000    Initial $833,333   $500,000
     $1,000,000 - $10,000,000    None(2)    $833,333 - $4,500,000    None(3)
     Over $10,000,000   100%    Over $4,500,000   100%
                 
Personal Umbrella    Initial $1,000,000   $100,000    Initial $1,000,000   $100,000
     $1,000,000 - $5,000,000    None    $1,000,000 - $5,000,000    None
     Over $5,000,000   100%    Over $5,000,000   100%
                 
Commercial Lines    Initial $750,000   $750,000    Initial $500,000   $500,000
     $750,000 - $4,500,000    None(3)    $500,000 - $4,500,000   None(3)
     Over $4,500,000   100%    Over $4,500,000   100%
                 
Commercial Umbrella  Initial $1,000,000   $100,000    Initial $1,000,000   $100,000
     $1,000,000 - $5,000,000    None    $1,000,000 - $5,000,000    None
     Over $5,000,000   100%    Over $5,000,000   100%
                 
Catastrophe (4)    Initial $5,000,000   $4,000,000    Initial $5,000,000   $3,000,000
     $5,000,000 - $320,000,000    None    $5,000,000 - $252,000,000    None
     Over $320,000,000   100%    Over $252,000,000   100%

 

(1) Treaty for July 1, 2017 – June 30, 2018 is a two-year treaty with expiration date of June 30, 2019.

 

(2) Covered by excess of loss treaties up to $3,500,000 and by facultative facility from $3,500,000 to $10,000,000.

 

(3) Covered by excess of loss treaties.

 

(4) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. 

 
Schedule of Ceding Commission Revenue
    Three months ended  
    March 31,  
    2019     2018  
       
Provisional ceding commissions earned   $ 1,317,751     $ 2,067,505  
Contingent ceding commissions earned     (40,068 )     (372,347 )
    $ 1,277,683     $ 1,695,158