Reserves (Tables)

6 Months Ended

Jun. 30, 2019

Roll Forward of Claims and Benefits Payable

The following table provides a roll forward of the Company’s beginning and ending claims and benefits payable balances. Claims and benefits payable is the liability for unpaid loss and loss adjustment expenses and is comprised of case and incurred but not reported (“IBNR”) reserves.

Since unpaid loss and loss adjustment expenses are estimates, the Company’s actual losses incurred may be more or less than the Company’s previously developed estimates, which is referred to as either unfavorable or favorable development, respectively.

The best estimate of ultimate loss and loss adjustment expense is generally selected from a blend of methods that are applied consistently each period. There have been no significant changes in the methodologies and assumptions utilized in estimating the liability for unpaid loss and loss adjustment expenses for any of the periods presented.



	For the Six Months Ended June 30,
	2019			2018
Claims and benefits payable, at beginning of period	$	2,813.7		$	3,782.2
Less: Reinsurance ceded and other	(2,053.7		)	(3,193.3		)
Net claims and benefits payable, at beginning of period	760.0			588.9
Acquired reserves as of Acquisition Date (1)	—			140.7
Incurred losses and loss adjustment expenses related to:
Current year	1,339.4			940.3
Prior years	(37.7		)	(30.6		)
Total incurred losses and loss adjustment expenses	1,301.7			909.7
Paid losses and loss adjustment expenses related to:
Current year	882.9			624.6
Prior years	409.2			336.4
Total paid losses and loss adjustment expenses	1,292.1			961.0
Net claims and benefits payable, at end of period	769.6			678.3
Plus: Reinsurance ceded and other (2)	1,952.6			2,824.8
Claims and benefits payable, at end of period (2) (3)	$	2,722.2		$	3,503.1


(1)	Acquired reserves from TWG on the Acquisition Date include $419.9 million of gross claims and benefits payable, and $279.2 million of ceded claims and benefits payable. The reserve roll forward includes the activity of TWG from June 1, 2018 to June 30, 2018.


(2)	Includes reinsurance recoverables and claims and benefits payable of $83.2 million and $89.6 million as of June 30, 2019 and 2018, respectively, which was ceded to the U.S. government. The Company acts as an administrator for the U.S. government under the voluntary National Flood Insurance Program.

(3)

Claims and benefits payable and related reinsurance ceded were reduced by $730.0 million in December 2018 as result of the sale of Time Insurance Company, a legal entity associated with the previously exited Assurant Health business.