Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2019

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
	2019		2018
Direct reserves:
Case reserves	$	23,663,743	$	23,648,183
IBNR reserves		31,402,737		28,008,972
Total direct reserves	$	55,066,480	$	51,657,155
Reserves net of reinsurance:
Case reserves	$	18,128,008	$	19,855,301
IBNR reserves		22,212,617		22,270,252
Total net reserves	$	40,340,625	$	42,125,553

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	2019				2018
CMP	$	54,270,633	98.6	%	$	50,459,206	97.7	%
Other liability		776,957	1.4	%		1,172,331	2.3	%
Other		18,890	0.0	%		25,618	0.0	%
Total	$	55,066,480	100.0	%	$	51,657,155	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
	2019		2018
Reserve for unpaid losses and loss adjustment expenses at beginning of year – net of reinsurance	$	42,125,553	$	40,683,441
Incurred losses and loss adjustment expenses:
Provision for insured events of current year		19,384,942		20,635,786
Provision for incurred events of prior years		3,191,185		2,921,957
Total incurred losses and loss adjustment expenses		22,576,127		23,557,743
Payments:
Losses and loss adjustment expenses attributable to insured events of the current year		6,210,475		6,582,377
Losses and loss adjustment expenses attributable to insured events of prior years		18,150,580		15,533,254
Total payments		24,361,055		22,115,631
Reserve for unpaid losses and loss adjustment expenses at end of year – net of reinsurance		40,340,625		42,125,553
Reinsurance recoverable on unpaid losses and loss adjustment expenses at end of year		14,725,855		9,531,602
Reserve for unpaid losses and loss adjustment expenses at end of year per balance sheet, gross of reinsurance	$	55,066,480	$	51,657,155

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, 2019:

Accident Year		Cumulative Incurred		Cumulative Paid		Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
2010	$	16,721,160	$	16,721,159	$	—	974
2011		19,156,281		19,133,302		—	1,020
2012		18,355,031		18,001,581		425	967
2013		22,859,132		22,364,215		66,169	849
2014		17,898,306		17,487,722		118,937	759
2015		23,006,844		20,148,880		987,286	744
2016		25,677,378		21,438,785		2,286,224	796
2017		23,876,588		15,289,400		4,081,831	800
2018		18,099,500		9,254,754		6,109,585	595
2019		17,349,941		4,292,275		8,562,160	575
Total	$	203,000,161	$	164,132,073	$	22,212,617

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
	2019			2018
Cumulative incurred losses and ALAE	$	203,000,161		$	200,539,837
Less cumulative paid losses and ALAE		(164,132,073	)		(159,814,942	)
Reserve for unpaid losses and ALAE (latest 10 accident years)		38,868,088			40,724,895
Reserves for unpaid losses and ALAE (beyond latest 10 accident years)		126,042			67,227
Reserves for unpaid unallocated loss adjustment expenses		1,346,495			1,333,431
Reserve for unpaid losses and loss adjustment expenses, net of reinsurance		40,340,625			42,125,553
Reinsurance recoverable on unpaid losses and loss adjustment expenses		14,725,855			9,531,602
Reserve for unpaid losses and loss adjustment expenses, gross of reinsurance	$	55,066,480		$	51,657,155