Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Unpaid Losses And Loss Adjustment Expenses

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
	2018		2017
Direct reserves:
Case reserves	$	23,648,183	$	18,948,233
IBNR reserves		28,008,972		30,128,758
Total direct reserves	$	51,657,155	$	49,076,991
Reserves net of reinsurance:
Case reserves	$	19,855,301	$	14,985,639
IBNR reserves		22,270,252		25,697,802
Total net reserves	$	42,125,553	$	40,683,441

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	2018				2017
CMP	$	50,459,206	97.7	%	$	48,003,282	97.8	%
Other liability		1,172,331	2.3	%		1,060,328	2.2	%
Other		25,618	0.0	%		13,381	0.0	%
Total	$	51,657,155	100.0	%	$	49,076,991	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
	2018		2017
Reserve for unpaid losses and loss adjustment expenses at beginning of year – net of reinsurance	$	40,683,441	$	37,534,817
Incurred losses and loss adjustment expenses:
Provision for insured events of current year		20,635,786		23,377,228
Provision for incurred events of prior years		2,921,957		7,113,279
Total incurred losses and loss adjustment expenses		23,557,743		30,490,507
Payments:
Losses and loss adjustment expenses attributable to insured events of the current year		6,582,377		7,925,460
Losses and loss adjustment expenses attributable to insured events of prior years		15,533,254		19,416,423
Total payments		22,115,631		27,341,883
Reserve for unpaid losses and loss adjustment expenses at end of year – net of reinsurance		42,125,553		40,683,441
Reinsurance recoverable on unpaid losses and loss adjustment expenses at end of year		9,531,602		8,393,550
Reserve for unpaid losses and loss adjustment expenses at end of year per balance sheet, gross of reinsurance	$	51,657,155	$	49,076,991

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, 2018:

Accident Year		Cumulative Incurred		Cumulative Paid		Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	2009	$	17,619,015	$	17,568,228	$	—		1,013
	2010		16,822,859		16,721,059		—		974
	2011		19,094,732		19,087,866		—		1,020
	2012		18,235,335		17,638,646		153,904		967
	2013		22,397,394		21,875,978		171,857		849
	2014		18,034,749		16,843,128		594,893		757
	2015		21,707,615		17,700,688		1,846,071		725
	2016		24,126,775		15,916,432		3,180,439		787
	2017		23,453,130		11,503,228		6,990,158		782
	2018		19,048,233		4,959,689		9,332,930		528
	Total	$	200,539,837	$	159,814,942	$	22,270,252

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
	2018			2017
Cumulative incurred losses and ALAE	$	200,539,837		$	196,783,974
Less cumulative paid losses and ALAE		(159,814,942	)		(157,445,399	)
Reserve for unpaid losses and ALAE (latest 10 accident years)		40,724,895			39,338,575
Reserves for unpaid losses and ALAE (beyond latest 10 accident years)		67,227			237,800
Reserves for unpaid unallocated loss adjustment expenses		1,333,431			1,107,066
Reserve for unpaid losses and loss adjustment expenses, net of reinsurance		42,125,553			40,683,441
Reinsurance recoverable on unpaid losses and loss adjustment expenses		9,531,602			8,393,550
Reserve for unpaid losses and loss adjustment expenses, gross of reinsurance	$	51,657,155		$	49,076,991