Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Tables)

6 Months Ended

Jun. 30, 2021

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Roll-forward of Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses for the six months ended June 30, 2021 and 2020 is as follows:

	Six Months Ended June 30,
	2021			2020
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	79,147		$	81,448
Less: Reinsurance recoverable on unpaid losses		(17,600	)		(18,339	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		61,547			63,109

Incurred related to:
Current accident year		63,836			62,262

Prior accident year development ⁽¹⁾		589	⁽²⁾		(2,302	)⁽³⁾
Total incurred		64,425			59,960

Paid related to:
Current accident year		33,295			33,911
Prior accident years		28,429			29,587
Total paid		61,724			63,498
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		64,248			59,571
Plus: Reinsurance recoverable on unpaid losses		17,225			16,927
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	81,473		$	76,498

(1)

In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

(2)	Prior years’ development was primarily the result of unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations.

(3)	Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected.

Reconciliation of Total Incurred Losses to Total Insurance Benefits and Losses

Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

	Six Months Ended June 30,
	2021			2020
Total incurred losses	$	64,425		$	59,960
Cash surrender value and matured endowments		1,692			697
Benefit reserve changes		(1,142	)		2
Total insurance benefits and losses incurred	$	64,975		$	60,659