Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Unpaid Losses And Loss Adjustment Expenses Tables

Unpaid losses and loss adjustment expenses

Crusader’s loss and loss adjustment expense case and incurred but not reported (“IBNR”) reserves are as follows:

	Year ended December 31
	2016		2015
Direct reserves:
Case reserves	$	16,384,081	$	17,991,121
IBNR reserves		30,671,706		31,102,450
Total direct reserves	$	47,055,787	$	49,093,571
Reserves net of reinsurance:
Case reserves	$	12,458,646	$	14,696,913
IBNR reserves		25,076,171		24,759,697
Total net reserves	$	37,534,817	$	39,456,610

Reserves for loss and loss adjustment expenses by line of business

Reserves for losses and loss adjustment expenses before reinsurance for each of Crusader’s lines of business are as follows:

	Year ended December 31
Line of Business	2016				2015
Commercial multi-peril	$	46,100,751	98.0	%	$	48,167,640	98.1	%
Other liability		912,014	1.9	%		889,867	1.8	%
Other		43,022	0.1	%		36,064	0.1	%
Total	$	47,055,787	100.0	%	$	49,093,571	100.0	%

Rollforward of loss and loss adjustment expense reserves

The following table provides an analysis of the roll forward of Crusader’s loss and loss adjustment expense reserves, including a reconciliation of the ending balance sheet liability for the periods indicated:

	Year ended December 31
	2016			2015			2014
Reserve for unpaid losses and loss adjustment expenses at beginning of year – net of reinsurance	$	39,456,610		$	39,233,783		$	39,448,546
Incurred losses and loss adjustment expenses:
Provision for insured events of current year		22,850,408			21,607,628			17,925,882
Decrease in provision for incurred events of prior years		(23,530	)		(2,444,312	)		(3,308,764	)
Total incurred losses and loss adjustment expenses		22,826,878			19,163,316			14,617,118
Payments:
Losses and loss adjustment expenses attributable to insured events of the current year		7,984,562			6,812,275			4,286,861
Losses and loss adjustment expenses attributable to insured events of prior years		16,764,109			12,128,214			10,545,020
Total payments		24,748,671			18,940,489			14,831,881
Reserve for unpaid losses and loss adjustment expenses at end of year – net of reinsurance		37,534,817			39,456,610			39,233,783
Reinsurance recoverable on unpaid losses and loss adjustment expenses at end of year		9,520,970			9,636,961			5,162,775
Reserve for unpaid losses and loss adjustment expenses at end of year per balance sheet, gross of reinsurance	$	47,055,787		$	49,093,571		$	44,396,558

Incurred and paid claim development

The following table presents loss development information by accident year, including cumulative incurred and paid losses and allocated loss adjustment expenses (“ALAE”), net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities plus expected development on reported claims as of December 31, 2016:

Accident Year		Cumulative Incurred		Cumulative Paid		Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
2007	$	24,023,109	$	24,023,106	$	—	1,013
2008		17,617,589		17,593,260		—	921
2009		18,554,526		17,550,304		842,316	1,013
2010		17,641,161		16,778,214		682,675	974
2011		18,224,634		17,422,583		642,817	1,020
2012		18,050,131		16,734,967		794,910	961
2013		21,742,580		19,067,334		1,430,773	839
2014		14,930,960		9,173,947		3,433,848	732
2015		20,840,034		11,151,955		6,440,742	686
2016		21,646,663		7,435,120		10,808,090	696
Total	$	193,271,387	$	156,930,790	$	25,076,171

Reconciliation of cumulative incurred and paid claims to unpaid losses and loss adjustment expenses

The following table reconciles the above cumulative incurred and paid data to Crusader’s loss and loss adjustment expense reserves as of December 31, 2016:

	December 31
	2016
Cumulative incurred losses and ALAE	$	193,271,387
Less: cumulative paid losses and ALAE		(156,930,790	)
Reserve for unpaid losses and ALAE (accident years 2007 to 2016)		36,340,597
Reserves for unpaid losses and ALAE (accident years prior to 2007)		109,898
Reserves for unpaid unallocated loss adjustment expenses		1,084,322
Reserve for unpaid losses and loss adjustment expenses, net of reinsurance		37,534,817
Reinsurance recoverable on unpaid losses and loss adjustment expenses		9,520,970
Reserve for unpaid losses and loss adjustment expenses, gross of reinsurance	$	47,055,787