LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)

12 Months Ended

Dec. 31, 2019

Insurance Loss Reserves [Abstract]

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

At December 31, 2019 and 2018, loss and loss adjustment expense reserves were composed of the following:

	2019		2018
	($ in thousands)
Case reserves	$	217,834	$	211,910
IBNR	252,754		270,752
Total	$	470,588	$	482,662

A summary of changes in outstanding loss and loss adjustment expense reserves for all lines of business consolidated

for the years ended December 31, 2019, 2018 and 2017 is as follows: 

Consolidated	2019			2018			2017
	($ in thousands)
Gross balance at January 1	$	482,662		$	464,380		$	306,641
Less: Losses recoverable	(43,705		)	(29,459		)	(2,704		)
Net balance at January 1	438,957			434,921			303,937
Incurred losses related to:
Current year	357,237			363,871			466,247
Prior years	31,250			2			36,157
Total incurred	388,487			363,873			502,404
Paid losses related to:
Current year	(167,508		)	(160,975		)	(220,298		)
Prior years	(217,998		)	(197,097		)	(154,183		)
Total paid	(385,506		)	(358,072		)	(374,481		)
Foreign currency revaluation	1,119			(1,765		)	3,061
Net balance at December 31	443,057			438,957			434,921
Add: Losses recoverable	27,531			43,705			29,459
Gross balance at December 31	$	470,588		$	482,662		$	464,380

The changes in the outstanding loss and loss adjustment expense reserves for health claims for the years ended December 31, 2019, 2018 and 2017 are as follows:

Health	2019			2018			2017
	($ in thousands)
Gross balance at January 1	$	24,502		$	22,181		$	18,993
Less: Losses recoverable	—			—			—
Net balance at January 1	24,502			22,181			18,993
Incurred losses related to:
Current year	33,736			56,868			44,539
Prior years	3,569			1,508			3,739
Total incurred	37,305			58,376			48,278
Paid losses related to:
Current year	(17,410		)	(34,696		)	(23,814		)
Prior years	(26,334		)	(21,359		)	(21,276		)
Total paid	(43,744		)	(56,055		)	(45,090		)
Foreign currency revaluation	—			—			—
Net balance at December 31	18,063			24,502			22,181
Add: Losses recoverable	—			—			—
Gross balance at December 31	$	18,063		$	24,502		$	22,181

Schedule of Incurred and Paid Claims Development

The information in the tables below about incurred and paid claims development for the years ended December 31, 2010 to 2018, is presented as unaudited supplementary information.

Health
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	36,075	$	35,924	$	36,224	$	36,159	$	36,159	$	36,145	$	36,145	$	36,145	$	36,145	$	36,145	$	—
2011			36,140		36,212		35,821		35,800		35,595		35,595		35,595		35,566		35,566		—
2012					24,712		23,088		22,780		22,681		22,671		22,671		22,658		22,658		—
2013							30,544		33,841		34,203		33,960		33,945		33,945		33,944		—
2014									32,875		30,191		29,514		29,072		29,031		28,970		—
2015											34,097		33,530		34,116		33,894		33,885		9
2016													37,747		40,889		41,255		41,355		193
2017															45,007		46,455		46,687		72
2018																	56,868		60,176		1,463
2019																			33,736		16,326
																	Total		$	373,122	18,063

Health
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	17,826	$	35,795	$	36,224	$	36,159	$	36,159	$	36,145	$	36,145	$	36,145	$	36,145	$	36,145
2011			26,979		35,542		35,814		35,800		35,595		35,595		35,595		35,566		35,566
2012					14,896		22,691		22,780		22,679		22,671		22,671		22,658		22,658
2013							21,459		33,841		34,024		33,957		33,944		33,944		33,944
2014									19,056		28,515		29,117		29,038		29,032		28,970
2015											14,529		31,802		34,044		33,894		33,876
2016													21,881		39,988		41,255		41,162
2017															23,834		44,125		46,615
2018																	34,696		58,713
2019																			17,410
																	Total		355,059
							All outstanding liabilities before 2010, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance (Health)																$	18,063

Multiline
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2011			—		—		—		—		—		—		—		—		—		—
2012					—		—		—		—		—		—		—		—		—
2013							—		—		—		—		—		—		—		—
2014									2,390		2,390		2,390		2,609		2,625		2,586		1,173
2015											27,956		28,103		30,536		32,038		30,941		11,885
2016													55,758		60,042		60,757		59,805		26,803
2017															81,836		79,466		83,232		43,596
2018																	58,832		50,944		30,215
2019																			46,131		35,096
																	Total		$	273,639	$	148,768

Multiline
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2011			—		—		—		—		—		—		—		—		—
2012					—		—		—		—		—		—		—		—
2013							—		—		—		—		—		—		—
2014									—		—		145		566		1,092		1,413
2015											30		2,828		9,990		16,107		19,056
2016													5,859		16,577		27,108		33,002
2017															9,562		27,363		39,636
2018																	8,134		20,729
2019																			11,035
																	Total		124,871
							All outstanding liabilities before 2010, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance (Multiline)																$	148,768

General Liability
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	12,111	$	14,327	$	17,484	$	19,649	$	21,664	$	25,946	$	28,251	$	28,251	$	28,251	$	28,251	$	—
2011			20,925		30,693		40,756		44,897		61,446		77,105		77,105		77,105		77,105		—
2012					12,626		18,133		16,921		29,554		31,145		31,161		31,274		30,902		—
2013							3,018		2,689		4,666		4,511		4,510		4,916		4,770		—
2014									1,238		1,229		1,174		1,033		1,355		1,000		238
2015											1,699		1,690		1,756		1,979		2,152		1,227
2016													6,203		6,519		7,124		7,867		3,197
2017															5,431		6,525		7,379		4,556
2018																	2,901		3,438		2,152
2019																			1,002		976
																	Total		$	163,866	$	12,346

General Liability
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	2,107	$	5,096	$	9,356	$	14,051	$	17,471	$	19,228	$	28,251	$	28,251	$	28,251	$	28,251
2011			2,873		11,751		20,030		25,018		32,954		77,105		77,105		77,105		77,105
2012					1,750		9,926		13,142		15,836		30,667		30,687		30,891		30,902
2013							1,371		1,917		2,298		4,191		4,274		4,652		4,770
2014									18		146		413		548		492		762
2015											69		293		532		547		925
2016													122		1,589		3,277		4,670
2017															136		1,412		2,823
2018																	165		1,286
2019																			26
																	Total		151,520
							All outstanding liabilities before 2010, net of reinsurance												3
	Liabilities for claims and claims adjustment expenses, net of reinsurance (General Liability)																		$	12,349

Motor Casualty
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	64,264	$	74,260	$	86,881	$	83,496	$	84,742	$	88,377	$	88,022	$	88,008	$	88,012	$	88,034	$	—
2011			53,035		57,498		57,342		62,921		70,880		70,435		70,495		70,495		70,478		—
2012					132,284		131,196		131,896		131,202		131,305		131,302		131,302		131,302		—
2013							182,833		179,930		174,744		174,782		174,848		174,925		174,931		—
2014									93,718		92,844		94,688		94,385		94,147		94,192		—
2015											128,199		130,410		129,991		132,853		134,951		1,278
2016													166,389		169,294		174,037		179,801		1,001
2017															187,109		188,754		195,258		7,033
2018																	150,700		170,016		26,749
2019																			168,154		69,111
																	Total		$	1,407,117	$	105,172

Motor Casualty
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	23,413	$	44,889	$	60,630	$	70,356	$	79,089	$	82,266	$	88,008	$	88,008	$	88,012	$	88,034
2011			19,082		36,462		49,569		58,244		65,018		70,433		70,433		70,433		70,478
2012					58,585		118,142		126,622		128,913		131,302		131,302		131,302		131,302
2013							86,558		159,200		171,855		174,658		174,848		174,925		174,931
2014									49,994		86,297		89,687		94,385		94,147		94,192
2015											81,093		125,645		129,174		129,571		133,673
2016													97,325		157,948		170,658		178,800
2017															115,204		170,157		188,225
2018																	83,652		143,267
2019																			99,043
																	Total		1,301,945
							All outstanding liabilities before 2010, net of reinsurance												—
	Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Casualty)																		$	105,172

Motor Property
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	560	$	656	$	671	$	684	$	662	$	662	$	667	$	667	$	667	$	667	$	—
2011			3,276		3,271		3,343		3,285		3,285		3,306		3,306		3,306		3,303		—
2012					36,985		36,129		36,008		35,998		35,922		35,922		35,922		35,922		—
2013							46,189		45,629		44,728		44,656		44,695		44,719		44,478		—
2014									18,870		18,797		19,056		19,000		19,006		19,021		—
2015											22,035		22,516		22,505		23,263		23,939		100
2016													27,853		28,279		29,090		29,051		200
2017															39,986		39,621		40,394		683
2018																	42,336		47,209		7,091
2019																			43,103		18,000
																	Total		$	287,087	$	26,074

Motor Property
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	560	$	620	$	620	$	620	$	620	$	644	$	667	$	667	$	667	$	667
2011			1,418		2,944		3,305		3,285		3,285		3,303		3,303		3,303		3,303
2012					16,902		34,588		35,854		35,903		35,922		35,922		35,922		35,922
2013							21,112		41,066		44,363		44,431		44,476		44,476		44,478
2014									10,305		17,621		18,420		19,000		19,006		19,021
2015											13,859		22,013		22,505		22,595		23,839
2016													16,725		27,023		28,609		28,851
2017															23,091		37,058		39,711
2018																	23,576		40,118
2019																			25,103
																	Total		261,013
							All outstanding liabilities before 2010, net of reinsurance												—
	Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Property)																		$	26,074

Other
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	4,008	$	3,858	$	4,291	$	4,130	$	4,130	$	4,130	$	3,955	$	4,130	$	3,955	$	3,955	$	—
2011			7,360		8,099		7,525		7,473		7,470		7,468		7,468		7,468		7,468		—
2012					4,017		3,591		3,756		3,773		3,759		3,755		3,782		3,777		42
2013							2,492		2,875		2,840		2,821		2,801		2,755		2,586		46
2014									4,768		3,525		1,776		1,701		1,084		2,125		—
2015											4,794		6,769		6,898		4,519		4,229		298
2016													8,360		10,401		9,142		9,131		1,751
2017															9,087		6,011		6,447		1,913
2018																	6,165		7,519		1,931
2019																			19,225		13,828
																	Total		$	66,462	$	19,809

Other
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	864	$	1,593	$	3,123	$	3,130	$	3,406	$	3,477	$	3,955	$	3,955	$	3,955	$	3,955
2011			1,162		7,547		7,513		7,468		7,468		7,468		7,468		7,468		7,468
2012					3,002		3,251		3,676		3,683		3,684		3,688		3,735		3,735
2013							213		1,828		2,426		2,339		2,323		2,578		2,540
2014									197		659		1,124		1,282		1,084		2,125
2015											472		1,387		2,010		3,399		3,931
2016													1,473		3,107		5,646		7,380
2017															484		3,083		4,534
2018																	962		5,588
2019																			5,397
																	Total		46,653
							All outstanding liabilities before 2010, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance (Other)																$	19,809

Property
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	39,106	$	41,983	$	51,698	$	51,483	$	52,263	$	52,507	$	53,723	$	53,574	$	53,495	$	53,506	$	—
2011			73,309		83,261		79,794		80,402		81,894		83,012		83,067		83,006		83,296		—
2012					63,961		50,183		50,874		52,812		53,218		53,473		53,737		53,823		—
2013							60,955		59,002		61,786		62,504		62,491		62,431		62,774		537
2014									41,740		45,153		46,845		47,085		46,874		47,030		510
2015											27,872		30,352		31,752		30,954		30,615		593
2016													25,633		26,127		24,005		23,477		1,450
2017															84,771		78,430		69,042		4,804
2018																	28,219		30,291		14,563
2019																			22,738		18,684
																	Total		$	476,592	$	41,141

Property
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	20,611	$	40,858	$	42,697	$	43,406	$	47,914	$	48,438	$	53,408	$	53,542	$	53,495	$	53,506
2011			49,441		74,383		77,182		79,022		81,214		82,370		82,655		83,006		83,296
2012					32,085		45,887		50,242		52,657		53,211		53,259		53,737		53,823
2013							34,807		55,674		58,533		60,352		61,083		61,996		62,237
2014									20,230		40,172		43,640		45,211		46,301		46,520
2015											12,939		25,453		28,846		29,816		30,022
2016													9,944		18,198		21,040		22,027
2017															43,281		56,397		64,238
2018																	5,365		15,728
2019																			4,054
																	Total		435,451
							All outstanding liabilities before 2010, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance (Property)																$	41,141

Professional Liability
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	3,875	$	3,331	$	3,571	$	3,713	$	3,907	$	3,936	$	3,922	$	3,921	$	3,921	$	3,921	$	424
2011			6,043		6,910		7,367		8,064		8,121		7,950		8,196		8,196		8,023		262
2012					11,236		11,241		11,785		12,221		12,411		13,131		13,131		12,565		885
2013							12,435		13,319		14,844		16,494		17,314		17,489		17,290		2,614
2014									19,229		18,630		18,593		21,149		22,152		22,475		6,017
2015											18,548		18,545		21,100		22,528		22,748		9,952
2016													13,778		16,960		17,328		16,925		9,028
2017															10,252		9,940		9,762		6,673
2018																	4,482		4,468		3,327
2019																			586		441
																	Total		$	118,763	$	39,623

Professional Liability
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	—	$	35	$	402	$	834	$	1,112	$	1,478	$	1,620	$	1,740	$	3,497	$	3,497
2011			110		1,331		3,680		5,244		6,580		7,285		7,781		7,830		7,761
2012					533		3,668		6,392		8,836		10,268		11,780		11,947		11,680
2013							710		3,482		7,771		11,175		14,092		14,863		14,676
2014									1,370		5,440		9,716		14,173		16,448		16,458
2015											1,186		3,349		9,012		11,953		12,796
2016													342		2,187		4,915		7,897
2017															228		1,437		3,089
2018																	241		1,141
2019																			145
																	Total		79,140
							All outstanding liabilities before 2010, net of reinsurance												2,120
	Liabilities for claims and claims adjustment expenses, net of reinsurance (Professional Liability)																		$	41,743

Workers' Compensation
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2019
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	11,181	$	11,736	$	12,426	$	13,108	$	13,108	$	13,108	$	13,108	$	13,108	$	13,108	$	13,108	$	—
2011			14,915		15,233		16,861		16,861		16,861		16,861		16,861		16,861		16,861		—
2012					11,763		12,213		12,213		12,213		12,213		12,213		12,213		12,213		—
2013							4,751		4,751		4,751		4,751		4,751		4,751		4,751		—
2014									—		—		—		3		—		—		—
2015											1,014		1,010		948		950		951		174
2016													4,342		4,275		4,266		3,975		701
2017															10,882		10,346		9,603		2,204
2018																	13,609		13,499		5,178
2019																			22,927		17,454
																	Total		$	97,888	$	25,711

Workers' Compensation
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	(Unaudited - Supplementary Information)
	($ in thousands)
2010	$	3,184	$	8,170	$	12,270	$	13,108	$	13,108	$	13,108	$	13,108	$	13,108	$	13,108	$	13,108
2011			5,004		11,175		16,861		16,861		16,861		16,861		16,861		16,861		16,861
2012					2,359		12,213		12,213		12,213		12,213		12,213		12,213		12,213
2013							4,751		4,751		4,751		4,751		4,751		4,751		4,751
2014									—		—		—		—		—		—
2015											28		251		564		688		777
2016													613		1,920		2,782		3,274
2017															2,028		5,356		7,399
2018																	4,213		8,321
2019																			5,473
																	Total		72,177
							All outstanding liabilities before 2010, net of reinsurance												—
	Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation)																		$	25,711

Schedule of Net Incurred and Paid Claims Development

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheet is as follows:

	December 31, 2019
	($ in thousands)
Net outstanding liabilities
Health	$	18,063
Multiline	148,768
General Liability	12,349
Motor Casualty	105,172
Motor Property	26,074
Other	19,809
Property	41,141
Professional Liability	41,743
Workers' Compensation	25,711
Liabilities for claims and claims adjustment expenses, net of reinsurance	438,830
Add: Reinsurance recoverable on unpaid claims	27,531
Add: Unallocated claims adjustment expenses	4,227
Total gross liabilities for unpaid claims and claim adjustment expense	$	470,588

Schedule of Historical Annual Percentage Payout of Net Incurred Claims

The average historical annual percentage payout of net incurred claims (excluding health) as of December 31, 2019 is as follows:

Years	1		2		3		4		5		6		7		8		9		10
	(Unaudited - Supplementary Information)
Multiline	10.2	%	19.0	%	18.8	%	16.0	%	13.3	%	22.7	%	—	%	—	%	—	%	—	%
General Liability	4.7	%	13.5	%	12.9	%	11.4	%	18.8	%	29.5	%	6.1	%	2.7	%	0.4	%	—	%
Motor Casualty	45.7	%	33.1	%	8.8	%	5.1	%	3.5	%	1.8	%	1.3	%	0.7	%	—	%	—	%
Motor Property	53.1	%	39.8	%	5.3	%	0.6	%	1.0	%	0.2	%	—	%	—	%	—	%	—	%
Other	21.1	%	39.8	%	19.1	%	9.0	%	2.8	%	5.9	%	2.3	%	—	%	—	%	—	%
Property	51.0	%	32.9	%	7.0	%	2.9	%	2.7	%	0.9	%	2.2	%	0.3	%	0.1	%	—	%
Professional Liability	5.3	%	19.4	%	28.7	%	24.0	%	14.0	%	6.2	%	2.3	%	0.1	%	—	%	—	%
Workers' Compensation	27.9	%	41.6	%	23.0	%	6.1	%	0.9	%	0.5	%	—	%	—	%	—	%	—	%