Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2017

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
	2017		2016
Direct reserves:
Case reserves	$	18,948,233	$	16,384,081
IBNR reserves		30,128,758		30,671,706
Total direct reserves	$	49,076,991	$	47,055,787
Reserves net of reinsurance:
Case reserves	$	14,985,639	$	12,458,646
IBNR reserves		25,697,802		25,076,171
Total net reserves	$	40,683,441	$	37,534,817

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	2017				2016
CMP	$	48,003,282	97.8	%	$	46,100,751	98.0	%
Other liability		1,060,328	2.2	%		912,014	1.9	%
Other		13,381	0.0	%		43,022	0.1	%
Total	$	49,076,991	100.0	%	$	47,055,787	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
	2017		2016
Reserve for unpaid losses and loss adjustment expenses at beginning of year – net of reinsurance	$	37,534,817	$	39,456,610
Incurred losses and loss adjustment expenses:
Provision for insured events of current year		23,377,228		22,850,408
Decrease in provision for incurred events of prior years		7,113,279		(23,530	)
Total incurred losses and loss adjustment expenses		30,490,507		22,826,878
Payments:
Losses and loss adjustment expenses attributable to insured events of the current year		7,925,460		7,984,562
Losses and loss adjustment expenses attributable to insured events of prior years		19,416,423		16,764,109
Total payments		27,341,883		24,748,671
Reserve for unpaid losses and loss adjustment expenses at end of year – net of reinsurance		40,683,441		37,534,817
Reinsurance recoverable on unpaid losses and loss adjustment expenses at end of year		8,393,550		9,520,970
Reserve for unpaid losses and loss adjustment expenses at end of year per balance sheet, gross of reinsurance	$	49,076,991	$	47,055,787

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, 2017:

Accident Year		Cumulative Incurred		Cumulative Paid		Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
2008	$	17,497,508	$	17,497,105	$	—	921
2009		17,622,828		17,568,877		1,208	1,013
2010		16,828,688		16,720,942		5,944	974
2011		19,187,240		19,027,232		107,793	1,021
2012		17,914,837		17,265,513		125,157	965
2013		22,798,398		21,415,490		1,049,748	845
2014		17,640,211		14,556,687		1,616,118	742
2015		22,471,512		14,978,639		4,412,589	717
2016		22,908,016		12,009,273		7,070,782	763
2017		21,914,736		6,405,641		11,308,463	706
Total	$	196,783,974	$	157,445,399	$	25,697,802

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:

	Year ended December 31
	2017			2016
Cumulative incurred losses and ALAE	$	196,783,974		$	193,271,387
Less cumulative paid losses and ALAE		(157,445,399	)		(156,930,790	)
Reserve for unpaid losses and ALAE (latest 10 accident years)		39,338,575			36,340,597
Reserves for unpaid losses and ALAE (beyond latest 10 accident years)		237,800			109,898
Reserves for unpaid unallocated loss adjustment expenses		1,107,066			1,084,322
Reserve for unpaid losses and loss adjustment expenses, net of reinsurance		40,683,441			37,534,817
Reinsurance recoverable on unpaid losses and loss adjustment expenses		8,393,550			9,520,970
Reserve for unpaid losses and loss adjustment expenses, gross of reinsurance	$	49,076,991		$	47,055,787