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RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

9 Months Ended

Sep. 30, 2024

Reserve For Losses And Loss Adjustment Expenses

RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

7. RESERVE FOR LOSSES AND LOSS ADJUSTMENT EXPENSES

The following table summarizes the Company’s loss and loss adjustment expenses (“LAE”) and the reserve for loss and LAE reserve movements for the nine-month periods ending September 30, 2024 and 2023:

SCHEDULE OF LOSS ADJUSTMENT EXPENSE

		At September 30,		At September 30,
		2024		2023
		(in thousands)

Balance, beginning of period	$	-	$	1,073
Incurred related to:
Current period		-		-
Prior period		-		-
Total incurred		-		1,073
Paid related to:
Current period		-		-
Prior period		-		(1,073	)
Total paid		-		(1,073	)
Balance, end of period	$	-	$	-

When losses occur, the reserves for losses and LAE are typically comprised of case reserves (which are based on claims that have been reported) and IBNR reserves (which are based on losses that are believed to have occurred but for which claims have not yet been reported and include a provision for expected future development on existing case reserves). The Company typically suffers limit losses in the event of a Category 3 or above hurricane making landfall in a populated area where the Company has catastrophe risk exposure. For the nine-month periods ended September 30, 2024 and 2023, the Company has recorded it’s reserves for losses and LAE based on the contractual maximum loss the Company can suffer under the affected contracts.

The uncertainties inherent in the reserving process and potential delays by cedants and brokers in the reporting of loss information, together with the potential for unforeseen adverse developments, may result in the reserve for losses and LAE ultimately being significantly greater or less than the reserve provided at the end of any given reporting period. The degree of uncertainty is further increased when a significant loss event takes place near the end of a reporting period. Reserve for losses and LAE estimates are reviewed periodically on a contract-by-contract basis and updated as new information becomes known. Any resulting adjustments are reflected in income in the period in which they become known.

The Company’s reserving process is highly dependent on the timing of loss information received from its cedants and related brokers.

There were no losses incurred during the nine-month periods ended September 30, 2024 and 2023.