XML 22 R11.htm IDEA: XBRL DOCUMENT
v3.6.0.2

Insurance Reserves and Policyholder Funds | 12 Months Ended
--- | ---
Dec. 31, 2016
Insurance Reserves And Policyholder Funds [Abstract] |
Insurance Reserves and Policyholder Funds | Note 3. Insurance Reserves and Policyholder Funds The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses at December 31, 2016 and 2015.
|  |  | Amount of Insurance In Force, Net
| 2016 | 2015 | 2016 | 2015
Future policy benefits |  |  |  |  |  |  |  |  |  |  |  |
Life insurance policies: |  |  |  |  |  |  |  |  |  |  |  |
Ordinary | $ | 54,554 |  | $ | 54,130 |  | $ | 245,017 |  | $ | 247,590 |
Mass market |  | 2,003 |  |  | 2,205 |  |  | 2,463 |  |  | 2,758 |
Individual annuities |  | 84 |  |  | 103 |  |  | — |  |  | — |
|  | 56,641 |  |  | 56,438 |  | $ | 247,480 |  | $ | 250,348 |
Accident and health insurance policies |  | 18,202 |  |  | 15,698 |  |  |  |  |  |  |
|  | 74,843 |  |  | 72,136 |  |  |  |  |  |  |
Unearned premiums |  | 23,208 |  |  | 25,348 |  |  |  |  |  |  |
Losses, claims and loss adjustment expenses |  | 62,562 |  |  | 63,870 |  |  |  |  |  |  |
Other policy liabilities |  | 2,066 |  |  | 1,991 |  |  |  |  |  |  |
Total insurance reserves and policyholder funds | $ | 162,679 |  | $ | 163,345 |  |  |  |  |  |  |
Annualized premiums for accident and health insurance policies were $95,956 and $87,480 at December 31, 2016 and 2015, respectively. Future Policy Benefits Liabilities for life insurance future policy benefits are based upon assumed future investment yields, mortality rates, and withdrawal rates after giving effect to possible risks of unexpected claim experience. The assumed mortality and withdrawal rates are based upon the Company’s experience. The interest rates assumed for life, accident and health future policy benefits are generally: (i) 2.5% to 5.5% for issues prior to 1977, (ii) 7% graded to 5.5% for 1977 through 1979 issues, (iii) 9% for 1980 through 1987 issues, (iv) 5% to 7% for 1988 through 2009 issues, (v) 4% for 2010 through 2012 issues, and (vi) 3.5% for 2013 through 2016 issues. Loss and Claim Reserves Loss and claim reserves represent estimates of projected ultimate losses and are based upon: (a) management’s estimate of ultimate liability and claims adjusters’ evaluations for unpaid claims reported prior to the close of the accounting period, (b) estimates of incurred but not reported (“IBNR”) claims based on past experience, and (c) estimates of loss adjustment expenses. The estimated liability is periodically reviewed by management and updated, with changes to the estimated liability recorded in the statement of operations in the year in which such changes are known. Activity in the liability for unpaid loss and claim reserves is summarized as follows:
| 2016 | 2015
Balance at January 1 | $ | 63,870 |  | $ | 66,625 |
Less: Reinsurance recoverable on unpaid losses |  | (11,741 | ) |  | (14,302 | )
Net balance at January 1 |  | 52,129 |  |  | 52,323 |
Incurred related to: |  |  |  |  |  |
Current year |  | 103,252 |  |  | 99,447 |
Prior years |  | (3,377 | ) |  | (701 | )
Total incurred |  | 99,875 |  |  | 98,746 |
Paid related to: |  |  |  |  |  |
Current year |  | 71,980 |  |  | 68,159 |
Prior years |  | 28,258 |  |  | 30,781 |
Total paid |  | 100,238 |  |  | 98,940 |
Net balance at December 31 |  | 51,766 |  |  | 52,129 |
Plus: Reinsurance recoverable on unpaid losses |  | 10,796 |  |  | 11,741 |
Balance at December 31 | $ | 62,562 |  | $ | 63,870 |
Prior years’ development was primarily the result of better than expected development on prior years loss and claim reserves for certain lines of business in both American Southern and Bankers Fidelity. Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:
| 2016 | 2015
Total incurred losses | $ | 99,875 |  | $ | 98,746 |
Cash surrender value and matured endowments |  | 1,278 |  |  | 1,390 |
Benefit reserve changes |  | 2,044 |  |  | 1,228 |
Total insurance benefits and losses incurred | $ | 103,197 |  | $ | 101,364 |
Liability for Unpaid Losses, Claims and Loss Adjustment Expenses The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2016, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2007 to 2016 is presented as supplementary information. Medicare Supplement
| For the Years Ended December 31, |  |
| (Unaudited) | As of December 31, 2016
| Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance | IBNR Reserves | Cumulative Number of Reported Claims
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016
2007 | $ | 29,616 |  | $ | 29,169 |  | $ | 29,230 |  | $ | 29,225 |  | $ | 29,214 |  | $ | 29,213 |  | $ | 29,213 |  | $ | 29,212 |  | $ | 29,111 |  | $ | 29,211 |  | $ | — |  |  | 526,227 |
2008 |  |  |  |  | 29,344 |  |  | 28,698 |  |  | 28,721 |  |  | 28,712 |  |  | 28,688 |  |  | 28,687 |  |  | 28,683 |  |  | 28,683 |  |  | 28,682 |  |  | — |  |  | 528,104 |
2009 |  |  |  |  |  |  |  | 31,124 |  |  | 30,455 |  |  | 30,481 |  |  | 30,447 |  |  | 30,438 |  |  | 30,432 |  |  | 30,431 |  |  | 30,430 |  |  | — |  |  | 555,808 |
2010 |  |  |  |  |  |  |  |  |  |  | 34,849 |  |  | 34,328 |  |  | 34,323 |  |  | 34,303 |  |  | 34,282 |  |  | 34,272 |  |  | 34,268 |  |  | — |  |  | 620,799 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 38,188 |  |  | 38,296 |  |  | 38,360 |  |  | 38,327 |  |  | 38,316 |  |  | 38,302 |  |  | — |  |  | 658,696 |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 50,021 |  |  | 50,996 |  |  | 51,021 |  |  | 50,998 |  |  | 50,989 |  |  | — |  |  | 860,258 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 56,974 |  |  | 56,970 |  |  | 57,034 |  |  | 57,023 |  |  | — |  |  | 949,778 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 57,179 |  |  | 56,938 |  |  | 56,981 |  |  | — |  |  | 933,020 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 55,482 |  |  | 54,939 |  |  | 62 |  |  | 890,878 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 58,849 |  |  | 9,520 |  |  | 879,603 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 439,674 |  |  |  |  |  |  |
| Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance |  |
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |  |
2007 | $ | 24,324 |  | $ | 29,169 |  | $ | 29,230 |  | $ | 29,255 |  | $ | 29,214 |  | $ | 29,213 |  | $ | 29,213 |  | $ | 29,212 |  | $ | 29,211 |  | $ | 29,211 |  |  |  |  |  |  |
2008 |  |  |  |  | 24,055 |  |  | 28,698 |  |  | 28,721 |  |  | 28,712 |  |  | 28,688 |  |  | 28,687 |  |  | 28,683 |  |  | 28,683 |  |  | 28,682 |
2009 |  |  |  |  |  |  |  | 29,866 |  |  | 30,455 |  |  | 30,481 |  |  | 30,447 |  |  | 30,438 |  |  | 30,432 |  |  | 30,431 |  |  | 30,430 |  |  |  |  |  |  |
2010 |  |  |  |  |  |  |  |  |  |  | 29,127 |  |  | 34,328 |  |  | 34,323 |  |  | 34,303 |  |  | 34,282 |  |  | 34,272 |  |  | 34,268 |  |  |  |  |  |  |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 31,720 |  |  | 38,296 |  |  | 38,360 |  |  | 38,327 |  |  | 38,316 |  |  | 38,302 |  |  |  |  |  |  |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 42,267 |  |  | 50,996 |  |  | 51,021 |  |  | 50,998 |  |  | 50,989 |  |  |  |  |  |  |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 47,770 |  |  | 56,970 |  |  | 57,034 |  |  | 57,023 |  |  |  |  |  |  |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 48,024 |  |  | 56,938 |  |  | 56,981 |  |  |  |  |  |  |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 45,430 |  |  | 54,876 |  |  |  |  |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 49,165 |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 429,927 |  |  |  |  |  |  |
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | $ | 9,747 |  |  |  |  |  |  |
The cumulative number of reported claims for the Medicare Supplement line of business is the count of distinct claims incurred and submitted to Medicare for payment in the given year. Multiple payments on the same claim are not counted in the frequency information. Estimated ultimate claims incurred, using claims data reported during each month of any given year, are calculated using the chain ladder method modified to use seasonality and trend-adjusted expected claims for the final two months. Additional adjustments to the estimated ultimate claims incurred are then applied to account for seasonal changes in billing and payment frequencies. The IBNR reserve is calculated as estimated ultimate claims less paid claims and claims in course of settlement. Thirty-six months of loss data are used to develop the estimated ultimate incurred claims. Similar approaches are used for other less significant health products, subject to modifications to account for unique aspects of the product. Automobile Liability
| For the Years Ended December 31, |  |
| (Unaudited) | As of December 31, 2016
| Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance | IBNR Reserves | Cumulative Number of Reported Claims
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016
2007 | $ | 6,711 |  | $ | 6,733 |  | $ | 7,415 |  | $ | 7,407 |  | $ | 7,253 |  | $ | 7,296 |  | $ | 7,299 |  | $ | 7,314 |  | $ | 7,303 |  | $ | 7,290 |  | $ | — |  |  | 1,663 |
2008 |  |  |  |  | 9,723 |  |  | 7,011 |  |  | 6,627 |  |  | 6,374 |  |  | 6,124 |  |  | 6,112 |  |  | 6,106 |  |  | 6,104 |  |  | 6,105 |  |  | — |  |  | 1,534 |
2009 |  |  |  |  |  |  |  | 10,817 |  |  | 8,891 |  |  | 8,659 |  |  | 8,558 |  |  | 8,245 |  |  | 8,123 |  |  | 8,155 |  |  | 8,154 |  |  | — |  |  | 1,754 |
2010 |  |  |  |  |  |  |  |  |  |  | 10,752 |  |  | 10,818 |  |  | 10,547 |  |  | 9,937 |  |  | 10,068 |  |  | 10,185 |  |  | 10,202 |  |  | 18 |  |  | 1,946 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 12,263 |  |  | 13,802 |  |  | 13,235 |  |  | 13,289 |  |  | 13,281 |  |  | 13,495 |  |  | 65 |  |  | 2,129 |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 12,980 |  |  | 15,007 |  |  | 14,108 |  |  | 13,707 |  |  | 13,313 |  |  | 19 |  |  | 2,338 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18,664 |  |  | 20,702 |  |  | 21,096 |  |  | 21,823 |  |  | 906 |  |  | 3,251 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20,812 |  |  | 21,881 |  |  | 22,041 |  |  | 1,683 |  |  | 3,522 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 18,521 |  |  | 19,857 |  |  | 2,992 |  |  | 3,431 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 20,549 |  |  | 7,421 |  |  | 3,374 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 142,829 |  |  |  |  |  |  |
| Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance |  |
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |  |
2007 | $ | 2,631 |  | $ | 4,792 |  | $ | 5,957 |  | $ | 6,519 |  | $ | 6,824 |  | $ | 7,008 |  | $ | 7,230 |  | $ | 7,247 |  | $ | 7,249 |  | $ | 7,290 |  |  |  |  |  |  |
2008 |  |  |  |  | 2,426 |  |  | 4,202 |  |  | 5,077 |  |  | 5,695 |  |  | 5,839 |  |  | 6,065 |  |  | 6,104 |  |  | 6,104 |  |  | 6,105 |  |  |  |  |  |  |
2009 |  |  |  |  |  |  |  | 3,250 |  |  | 5,208 |  |  | 6,353 |  |  | 7,502 |  |  | 7,995 |  |  | 8,123 |  |  | 8,155 |  |  | 8,154 |  |  |  |  |  |  |
2010 |  |  |  |  |  |  |  |  |  |  | 3,211 |  |  | 6,274 |  |  | 8,291 |  |  | 9,382 |  |  | 9,725 |  |  | 10,056 |  |  | 10,090 |  |  |  |  |  |  |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,205 |  |  | 7,934 |  |  | 9,858 |  |  | 12,071 |  |  | 13,039 |  |  | 13,106 |  |  |  |  |  |  |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,627 |  |  | 8,791 |  |  | 11,507 |  |  | 12,932 |  |  | 13,197 |  |  |  |  |  |  |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,144 |  |  | 12,193 |  |  | 16,782 |  |  | 19,407 |  |  |  |  |  |  |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,822 |  |  | 13,807 |  |  | 17,554 |  |  |  |  |  |  |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,226 |  |  | 11,878 |  |  |  |  |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,796 |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 113,577 |  |  |  |  |  |  |
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | $ | 29,252 |  |  |  |  |  |  |
Automobile Physical Damage
| For the Years Ended December 31, |  |
| (Unaudited) | As of December 31, 2016
| Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance | IBNR Reserves | Cumulative Number of Reported Claims
Accident Year | 2012 | 2013 | 2014 | 2015 | 2016
2012 | $ | 5,478 |  | $ | 5,114 |  | $ | 5,113 |  | $ | 5,070 |  | $ | 5,070 |  | $ | — |  |  | 1,129 |
2013 |  |  |  |  | 6,039 |  |  | 5,515 |  |  | 5,536 |  |  | 5,599 |  |  | — |  |  | 1,598 |
2014 |  |  |  |  |  |  |  | 8,079 |  |  | 7,657 |  |  | 7,583 |  |  | 1 |  |  | 1,633 |
2015 |  |  |  |  |  |  |  |  |  |  | 8,287 |  |  | 7,955 |  |  | 2 |  |  | 1,583 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 6,877 |  |  | 196 |  |  | 1,187 |
|  |  |  |  |  |  |  |  |  |  |  |  | $ | 33,084 |  |  |  |  |  |  |
| Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance |  |
Accident Year | 2012 | 2013 | 2014 | 2015 | 2016
2012 | $ | 4,610 |  | $ | 5,075 |  | $ | 5,089 |  | $ | 5,067 |  | $ | 5,067 |  |  |  |  |  |  |
2013 |  |  |  |  | 4,778 |  |  | 5,486 |  |  | 5,466 |  |  | 5,599 |  |  |  |  |  |  |
2014 |  |  |  |  |  |  |  | 6,437 |  |  | 7,619 |  |  | 7,570 |  |  |  |  |  |  |
2015 |  |  |  |  |  |  |  |  |  |  | 6,745 |  |  | 7,937 |  |  |  |  |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  | 5,804 |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  | $ | 31,977 |  |  |  |  |  |  |
All outstanding liabilities before 2012, net of reinsurance |  | 41 |  |  |  |  |  |  |
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | $ | 1,148 |  |  |  |  |  |  |
General Liability
| For the Years Ended December 31, |  |
| (Unaudited) | As of December 31, 2016
| Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance | IBNR Reserves | Cumulative Number of Reported Claims
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016
2007 | $ | 6,549 |  | $ | 5,124 |  | $ | 4,648 |  | $ | 4,293 |  | $ | 3,960 |  | $ | 4,257 |  | $ | 4,377 |  | $ | 4,457 |  | $ | 4,443 |  | $ | 4,503 |  | $ | 17 |  |  | 488 |
2008 |  |  |  |  | 5,386 |  |  | 4,359 |  |  | 2,858 |  |  | 2,685 |  |  | 2,479 |  |  | 2,489 |  |  | 2,507 |  |  | 2,548 |  |  | 2,647 |  |  | 20 |  |  | 387 |
2009 |  |  |  |  |  |  |  | 3,392 |  |  | 2,215 |  |  | 1,944 |  |  | 1,730 |  |  | 1,702 |  |  | 1,727 |  |  | 1,828 |  |  | 1,832 |  |  | 4 |  |  | 283 |
2010 |  |  |  |  |  |  |  |  |  |  | 4,114 |  |  | 2,699 |  |  | 2,269 |  |  | 2,337 |  |  | 2,258 |  |  | 2,400 |  |  | 2,423 |  |  | 10 |  |  | 288 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,022 |  |  | 1,723 |  |  | 1,452 |  |  | 1,338 |  |  | 1,174 |  |  | 1,242 |  |  | 17 |  |  | 198 |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,055 |  |  | 1,305 |  |  | 1,269 |  |  | 1,270 |  |  | 1,214 |  |  | 23 |  |  | 155 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,461 |  |  | 728 |  |  | 926 |  |  | 817 |  |  | 2 |  |  | 186 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,744 |  |  | 501 |  |  | 557 |  |  | 128 |  |  | 189 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,421 |  |  | 1,037 |  |  | 467 |  |  | 136 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,119 |  |  | 2,660 |  |  | 63 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 19,391 |  |  |  |  |  |  |
| Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance |  |
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |  |
2007 | $ | 901 |  | $ | 1,825 |  | $ | 2,566 |  | $ | 2,993 |  | $ | 3,387 |  | $ | 3,595 |  | $ | 3,966 |  | $ | 4,214 |  | $ | 4,371 |  | $ | 4,426 |  |  |  |  |  |  |
2008 |  |  |  |  | 534 |  |  | 1,091 |  |  | 1,637 |  |  | 1,861 |  |  | 2,023 |  |  | 2,123 |  |  | 2,418 |  |  | 2,506 |  |  | 2,564 |  |  |  |  |  |  |
2009 |  |  |  |  |  |  |  | 476 |  |  | 941 |  |  | 1,082 |  |  | 1,410 |  |  | 1,629 |  |  | 1,662 |  |  | 1,796 |  |  | 1,816 |  |  |  |  |  |  |
2010 |  |  |  |  |  |  |  |  |  |  | 284 |  |  | 678 |  |  | 1,374 |  |  | 1,542 |  |  | 2,037 |  |  | 2,368 |  |  | 2,382 |  |  |  |  |  |  |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 295 |  |  | 412 |  |  | 582 |  |  | 835 |  |  | 1,161 |  |  | 1,169 |  |  |  |  |  |  |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 371 |  |  | 707 |  |  | 847 |  |  | 1,034 |  |  | 1,113 |  |  |  |  |  |  |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 104 |  |  | 339 |  |  | 579 |  |  | 811 |  |  |  |  |  |  |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 171 |  |  | 299 |  |  | 331 |  |  |  |  |  |  |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 98 |  |  | 259 |  |  |  |  |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 116 |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 14,987 |  |  |  |  |  |  |
All outstanding liabilities before 2007, net of reinsurance |  | 238 |  |  |  |  |  |  |
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | $ | 4,642 |  |  |  |  |  |  |
Surety
| For the Years Ended December 31, |  |
| (Unaudited) | As of December 31, 2016
| Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance | IBNR Reserves | Cumulative Number of Reported Claims
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016
2007 | $ | 3,287 |  | $ | 1,953 |  | $ | 893 |  | $ | 983 |  | $ | 1,084 |  | $ | 868 |  | $ | 856 |  | $ | 818 |  | $ | 814 |  | $ | 769 |  | $ | — |  |  | 37 |
2008 |  |  |  |  | 3,883 |  |  | 2,098 |  |  | 2,420 |  |  | 2,312 |  |  | 2,312 |  |  | 2,360 |  |  | 2,360 |  |  | 2,324 |  |  | 2,324 |  |  | — |  |  | 62 |
2009 |  |  |  |  |  |  |  | 4,920 |  |  | 5,025 |  |  | 4,239 |  |  | 3,951 |  |  | 3,616 |  |  | 4,636 |  |  | 4,916 |  |  | 4,664 |  |  | — |  |  | 83 |
2010 |  |  |  |  |  |  |  |  |  |  | 3,995 |  |  | 4,624 |  |  | 3,618 |  |  | 3,396 |  |  | 3,607 |  |  | 3,549 |  |  | 3,563 |  |  | — |  |  | 93 |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,422 |  |  | 4,786 |  |  | 5,080 |  |  | 5,092 |  |  | 4,966 |  |  | 5,031 |  |  | 1 |  |  | 124 |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 4,979 |  |  | 4,767 |  |  | 5,396 |  |  | 5,345 |  |  | 4,869 |  |  | — |  |  | 86 |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,060 |  |  | 2,007 |  |  | 2,743 |  |  | 2,947 |  |  | 31 |  |  | 56 |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,214 |  |  | 3,130 |  |  | 2,990 |  |  | 75 |  |  | 46 |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,902 |  |  | 1,630 |  |  | 377 |  |  | 48 |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,314 |  |  | 1,703 |  |  | 41 |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 32,101 |  |  |  |  |  |  |
| Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance |  |
Accident Year | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |  |
2007 | $ | 255 |  | $ | 519 |  | $ | 664 |  | $ | 698 |  | $ | 937 |  | $ | 849 |  | $ | 853 |  | $ | 816 |  | $ | 814 |  | $ | 769 |  |  |  |  |  |  |
2008 |  |  |  |  | 503 |  |  | 1,369 |  |  | 2,261 |  |  | 2,232 |  |  | 2,311 |  |  | 2,359 |  |  | 2,360 |  |  | 2,324 |  |  | 2,324 |  |  |  |  |  |  |
2009 |  |  |  |  |  |  |  | 103 |  |  | 1,595 |  |  | 2,640 |  |  | 3,205 |  |  | 3,410 |  |  | 3,760 |  |  | 3,757 |  |  | 4,663 |  |  |  |  |  |  |
2010 |  |  |  |  |  |  |  |  |  |  | 928 |  |  | 2,193 |  |  | 2,780 |  |  | 2,943 |  |  | 3,252 |  |  | 3,545 |  |  | 3,560 |  |  |  |  |  |  |
2011 |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,031 |  |  | 3,207 |  |  | 4,622 |  |  | 4,748 |  |  | 4,939 |  |  | 5,022 |  |  |  |  |  |  |
2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,257 |  |  | 4,581 |  |  | 4,856 |  |  | 5,331 |  |  | 4,869 |  |  |  |  |  |  |
2013 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 323 |  |  | 1,010 |  |  | 1,369 |  |  | 2,763 |  |  |  |  |  |  |
2014 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,331 |  |  | 2,327 |  |  | 2,727 |  |  |  |  |  |  |
2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 641 |  |  | 856 |  |  |  |  |  |  |
2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,054 |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 28,607 |  |  |  |  |  |  |
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance | $ | 3,494 |  |  |  |  |  |  |
For the property and casualty lines of business, the number of claims presented above equals the number of occurrences by type of claim reported to the Company. The number of claims reported during a given year corresponds to the number of claims records opened during the year. Frequency information is maintained on a cumulative basis by accident year by line of business. For automobile claims, a claim count is separately maintained for bodily injury, property damage and physical damage claims. The Company has consistently monitored claim frequency on this basis, and believes this provides more meaningful information than using claimant count which can change over the course of settling a claim. In general, when a claim is reported, claims representatives establish a “case reserve” for the estimated amount of the ultimate payment based on the known information of the claim at that time. Claims managers review and monitor all property and casualty claims in excess of $25,000. As new information becomes available or payments are made on a claim, the case reserve is adjusted to reflect the revised estimate of the ultimate amount to be paid out. Estimates and assumptions pertaining to individual claims are based on complex and subjective judgments and subject to change at any time as new information becomes available. In addition to case reserves, IBNR reserves are established to provide for claims which have not been reported to the Company as of the reporting date as well as potential adverse development on known case reserves. IBNR reserve estimates are derived through a number of analytical techniques. Actuarial data is analyzed by line of business, coverage and accident year. Qualitative factors are also considered in determining IBNR reserves and include such factors as judicial decisions, general economic trends such as inflation, changes in policy forms, and underwriting changes. Reserves are reviewed quarterly and any indicated adjustments are made. Because of the inherent uncertainties in establishing both case and IBNR reserves, ultimate loss experience may prove better or worse than indicated by the combined claim reserves. Adjustments to claim reserves are reflected in the period recognized and could increase or decrease earnings for the period. The following is supplementary information about average historical claims duration as of December 31, 2016.
Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Reserve Line | 1st Year | 2nd Year | 3rd Year | 4th Year | 5th Year | 6th Year | 7th Year | 8th Year | 9th Year | 10th Year
Medicare Supplement |  | 83.7 | % |  | 16.3 | % |  | 0.1 | % |  | -0.1 | % |  | 0.0 | % |  | 0.0 | % |  | 0.0 | % |  | 0.0 | % |  | 0.0 | % |  | 0.0 | %
Automobile Liability |  | 33.2 | % |  | 29.3 | % |  | 17.1 | % |  | 11.7 | % |  | 4.2 | % |  | 2.3 | % |  | 1.1 | % |  | 0.1 | % |  | 0.0 | % |  | 0.6 | %
Automobile Physical Damage |  | 86.1 | % |  | 13.1 | % |  | -0.2 | % |  | 1.0 | % |  | 0.0 | % |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
General Liability |  | 18.9 | % |  | 20.8 | % |  | 16.7 | % |  | 15.3 | % |  | 13.3 | % |  | 4.9 | % |  | 6.8 | % |  | 3.3 | % |  | 2.8 | % |  | 1.2 | %
Surety |  | 27.7 | % |  | 33.3 | % |  | 19.4 | % |  | 11.3 | % |  | 7.0 | % |  | 1.6 | % |  | 0.2 | % |  | 4.4 | % |  | -0.1 | % |  | -5.9 | %
The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as follows:
| December 31, 2016
Net outstanding liabilities: |  |  |
Medicare Supplement | $ | 9,747 |
Automobile Liability |  | 29,252 |
Automobile Physical Damage |  | 1,148 |
General Liability |  | 4,642 |
Surety |  | 3,494 |
Other short-duration insurance lines |  | 2,060 |
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance |  | 50,343 |
Reinsurance recoverable on unpaid losses: |  |  |
Medicare Supplement |  | 990 |
Automobile Liability |  | 5,556 |
Automobile Physical Damage |  | 106 |
General Liability |  | 4,135 |
Other insurance lines |  | 9 |
Total reinsurance recoverable on unpaid losses |  | 10,796 |
Unallocated claims adjustment expenses |  | 1,423 |
Total gross liability for unpaid losses, claims and loss adjustment expenses | $ | 62,562 |

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6480747&loc=d3e6772-158386 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6480747&loc=d3e6764-158386 + Details
Name: | us-gaap_InsuranceDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration