Reserves for Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2017

Reserves for Losses and Loss Adjustment Expenses

Reserve for Losses and Loss Adjustment Expenses

20. Reserve for Losses and Loss Adjustment Expenses

A summary of NLC’s reserve for unpaid losses and LAE, as included in other liabilities within the consolidated balance sheets, is as follows (in thousands).

	September 30,		December 31,
	2017		2016
Reserve for unpaid losses and allocated LAE balance, net	$	29,849	$	25,203
Reinsurance recoverables on unpaid losses		35,297		9,434
Unallocated LAE		1,860		1,189
Reserve for unpaid losses and LAE balance, gross	$	67,006	$	35,826

This increase in the gross reserve for unpaid losses and LAE was primarily due to losses attributable to non-catastrophic weather-related events that occurred in 2017 and Hurricane Harvey which occurred in August and September 2017. See Note 21 for further details regarding the effects of reinsurance. 

A summary of claims loss reserve development activity is presented in the following table (dollars in thousands).

					September 30, 2017
					Total of
					IBNR Reserves
					Plus Expected		Cumulative
Accident	Nine Months Ended September 30, 2017				Development on		Number of
Year	Paid		Incurred		Reported Claims		Reported Claims
2012	$	113,037	$	114,693	$	7		16,658
2013		110,483		111,128		44		15,701
2014		83,044		84,289		197		13,146
2015		84,986		88,028		1,231		14,997
2016		80,786		86,301		3,696		21,363
2017		61,158		78,816		5,462		18,624
Total		533,494	$	563,255
		88	All outstanding reserves prior to 2012, net of reinsurance
	$	29,849	Reserve for unpaid losses and allocated LAE, net of reinsurance