LOSS AND LOSS ADJUSTMENT RESERVES (Tables)

12 Months Ended

Dec. 31, 2019

Liability for Future Policy Benefit, before Reinsurance [Abstract]

Activity in Liability for Loss and LAE Reserves

Activity in the liability for loss and LAE reserves is summarized as follows:

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	Year Ended December 31,
	2019		2018		2017
	(In thousands)
Gross reserves, beginning-of-period	$	296,230	$	230,515	$	158,110
Less: reinsurance recoverable (1)	(166,396)		(98,345)		(40,412)
Net reserves, beginning-of-period	129,834		132,170		117,698
Net reserves from Maison acquisition	11,825		—		—
Incurred loss, net of reinsurance, related to:
Current year	262,118		231,133		245,545
Prior year loss development (2)	13,460		2,166		13,926
Ceded losses subject to offsetting experience account adjustments (3)	(2,489)		(4,883)		(11,914)
Prior years	10,971		(2,717)		2,012
Amortization of acquisition fair value adjustment	(9)		—		—
Total incurred loss and LAE, net of reinsurance	273,080		228,416		247,557
Paid loss, net of reinsurance, related to:
Current year	173,313		155,462		160,945
Prior years	81,493		75,290		72,140
Total paid loss and LAE, net of reinsurance	254,806		230,752		233,085
Net reserves, end-of-period	159,933		129,834		132,170
Plus: reinsurance recoverable (1)	164,429		166,396		98,345
Gross reserves, end-of-period	$	324,362	$	296,230	$	230,515

(1)Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

(2)Reflects loss development from prior accident years impacting pre-tax net income. Excludes losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment.

(3)Reflects losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment, such that there is no impact on pre-tax net income (loss).

The following tables provide incurred losses and ALAE and cumulative paid losses and ALAE, net of reinsurance, for the prior 10 accident years, and the total of IBNR reserves plus expected development on reported claims and the cumulative number of reported claims (in thousands, except number of reported claims), as of the most recent reporting period, by the Company’s significant lines of business, which are homeowners, commercial general liability and automobile.

																					IBNR & Expected		Cumulative
	Homeowners Incurred Losses and ALAE, Net of Reinsurance																				Development on		Number of
	For the Years Ended December 31,																				Reported Claims		Reported Claims (1)
	(Unaudited)
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		2019		2019
2010	$	24,825	$	25,056	$	26,151	$	27,895	$	28,968	$	29,407	$	29,945	$	30,459	$	30,602	$	30,651	$	66	2,393
2011			20,492		21,344		23,007		23,932		24,582		25,957		26,143		26,394		26,394		33		2,429
2012					23,032		23,301		24,186		24,468		25,889		26,356		26,836		26,951		63		2,694
2013							43,807		42,021		35,834		35,859		37,185		37,880		37,978		102		3,434
2014									64,312		63,300		61,770		62,206		61,817		62,043		144		7,657
2015											99,497		92,411		95,129		94,760		94,703		887		13,227
2016													171,264		162,043		158,764		157,880		4,709		24,219
2017															202,844		192,769		188,548		5,228		67,237
2018																	210,158		213,128		9,975		36,555
2019																			245,819		58,908		17,670
																	Total		$	1,084,095

(1)The cumulative number of reported claims is measured by individual claimant at a coverage level.

Reconciliation of Claims Development To Liability

The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in the consolidated balance sheets is as follows:

	December 31,
	2019		2018
	(In thousands)
Liabilities for unpaid losses and ALAE:
Homeowners	$	137,168	$	102,279
Commercial general liability	17,014		18,888
Automobile	2,142		4,374
Flood	—		—
Total liabilities for unpaid losses and ALAE, net of reinsurance	156,324		125,541
Reinsurance recoverables:
Homeowners	160,578		158,043
Commercial general liability	500		—
Automobile	3,228		8,275
Flood	123		78
Total reinsurance recoverables	164,429		166,396
Unallocated loss adjustment expenses	3,609		4,293
Gross liability for unpaid losses and LAE	$	324,362	$	296,230