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Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2023

Liability for Unpaid Losses and Loss Adjustment Expenses

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


	Years Ended December 31,
	2023			2022			2021
Net balance, beginning of year*	$	246,546		$	172,410		$	141,065
Incurred, net of reinsurance, related to:
Current year		235,725			330,836			199,888
Prior years		18,854			40,627			27,637
Total incurred, net of reinsurance		254,579			371,463			227,525
Paid, net of reinsurance, related to:
Current year		(107,204	)		(169,641	)		(95,809	)
Prior years		(139,570	)		(127,686	)		(100,371	)
Total paid, net of reinsurance		(246,774	)		(297,327	)		(196,180	)
Net balance, end of year		254,351			246,546			172,410
Add: reinsurance recoverable before allowance for credit losses		330,722			617,219			64,755
Gross balance, end of year	$	585,073		$	863,765		$	237,165

* Net balance represents beginning-of-year liability for unpaid losses and LAE less beginning-of-year reinsurance recoverable for unpaid losses and LAE.

Schedule of Incurred and Paid Claims Development

The following is information about incurred and paid claims development as of December 31, 2023, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2022 to 2014 is presented as supplementary information and is unaudited.

Homeowners Multi-peril and Dwelling Fire Insurance (a)


																					As of December 31, 2023
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31,																				Total of IBNR Plus Expected Development Reported		Cumulative Number of Reported Claims (Not in Dollar
Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		Claims		Amounts) (b)
2014	$	75,810	$	81,773	$	84,917	$	88,053	$	90,084	$	92,454	$	92,945	$	93,181	$	93,358	$	93,298	$	93		7,662
2015		—		78,017		90,902		96,173		101,272		102,149		102,587		103,135		103,671		103,818		250		7,665
2016		—		—		81,446		90,879		92,684		92,986		92,752		92,333		92,738		92,779		174		6,936
2017		—		—		—		91,443		88,937		89,652		90,958		90,877		90,652		91,132		640		5,776
2018		—		—		—		—		79,436		83,976		83,123		83,234		82,816		83,126		2,330		4,771
2019		—		—		—		—		—		95,467		94,018		96,821		99,754		101,081		5,788		5,402
2020		—		—		—		—		—		—		126,086		133,349		159,758		170,175		8,214		8,264
2021		—		—		—		—		—		—		—		187,164		186,606		186,059		21,921		11,787
2022		—		—		—		—		—		—		—		—		263,626		257,683		52,895		13,393
2023		—		—		—		—		—		—		—		—		—		232,819		126,652		7,554
Total																			$	1,411,970


	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31,
Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2014	$	47,650	$	68,897	$	77,712	$	82,463	$	87,125	$	90,707	$	92,264	$	92,924	$	92,986	$	93,205
2015		—		50,939		76,042		87,784		95,179		99,200		101,424		102,486		103,405		103,569
2016		—		—		51,663		73,037		83,311		89,144		90,989		92,001		92,367		92,605
2017		—		—		—		43,039		66,996		78,808		83,383		86,364		89,387		90,492
2018		—		—		—		—		41,014		63,958		71,809		76,311		79,247		80,796
2019		—		—		—		—		—		47,471		70,182		81,941		91,839		95,293
2020		—		—		—		—		—		—		56,173		108,388		144,298		161,961
2021		—		—		—		—		—		—		—		85,895		142,054		164,138
2022		—		—		—		—		—		—		—		—		135,793		204,788
2023		—		—		—		—		—		—		—		—		—		106,167
Total																			$	1,193,014
All outstanding liabilities before 2014, net of reinsurance																				37
Liabilities for loss and LAE, net of reinsurance																			$	218,993

(a)

Excludes losses from Wind-only insurance (2014 through 2023) and any hurricane and storm events prior to 2023.

(b)

The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company.

Homeowners Wind-only Insurance (a) *


																					As of December 31, 2023
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31,																				Total of IBNR Plus Expected Development Reported		Cumulative Number of Reported Claims (Not in Dollar
Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		Claims		Amounts) (b)
2015	$	—	$	308	$	401	$	569	$	692	$	605	$	582	$	582	$	582	$	582	$	—		100
2016		—		—		1,005		1,314		1,814		1,853		1,837		2,255		1,948		1,957		4		228
2017		—		—		—		1,529		1,119		815		792		923		991		807		16		157
2018		—		—		—		—		798		708		1,061		1,109		1,226		1,037		69		137
2019		—		—		—		—		—		1,132		1,501		1,833		2,359		1,909		115		154
2020		—		—		—		—		—		—		1,621		1,970		3,386		3,036		280		193
2021		—		—		—		—		—		—		—		682		1,257		1,556		396		114
2022		—		—		—		—		—		—		—		—		1,284		1,943		830		136
2023		—		—		—		—		—		—		—		—		—		2,193		1,862		94
Total																			$	15,020


	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31,
Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2015	$	—	$	156	$	332	$	465	$	582	$	582	$	582	$	582	$	582	$	582
2016		—		—		689		1,155		1,405		1,772		1,821		1,843		1,944		1,952
2017		—		—		—		484		786		789		792		792		792		792
2018		—		—		—		—		216		607		745		899		925		967
2019		—		—		—		—		—		828		1,290		1,451		1,770		1,794
2020		—		—		—		—		—		—		567		1,461		2,435		2,756
2021		—		—		—		—		—		—		—		415		799		1,161
2022		—		—		—		—		—		—		—		—		704		1,113
2023		—		—		—		—		—		—		—		—		—		330
Total																			$	11,447
Liabilities for loss and LAE, net of reinsurance																			$	3,573

* The Company began writing Homeowners Wind-only insurance in 2015.

(a)

Excludes losses from multi-peril and dwelling fire insurance (2014 through 2023) and any hurricane and storm events prior to 2023.

(b)

The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company.

Losses Specific to Any Hurricane and Storm Events prior to 2023


																					As of December 31, 2023
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31,																				Total of IBNR Plus Expected Development Reported		Cumulative Number of Reported Claims (Not in Dollar
Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023		Claims		Amounts) (b)
2016	$	—	$	—	$	21,414	$	24,126	$	26,211	$	28,133	$	27,634	$	27,634	$	27,634	$	27,634	$	464		2,420
2017		—		—		—		53,602		54,080		53,557		53,624		53,628		53,636		53,649		236		21,777
2018		—		—		—		—		16,543		16,532		16,532		16,532		16,476		16,466		—		1,719
2019		—		—		—		—		—		—		—		—		—		—		—		144
2020		—		—		—		—		—		—		30,264		46,284		55,235		61,847		7,491		3,294
2021		—		—		—		—		—		—		—		11,689		13,000		13,000		348		2,597
2022		—		—		—		—		—		—		—		—		65,325		71,860		23,233		13,992
2023		—		—		—		—		—		—		—		—		—		—		—		272
Total																			$	244,456


	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31,
Year	2014		2015		2016		2017		2018		2019		2020		2021		2022		2023
2016	$	—	$	—	$	12,227	$	20,025	$	23,316	$	25,849	$	26,098	$	26,807	$	27,146	$	27,169
2017		—		—		—		43,905		47,514		47,524		49,425		53,216		53,634		53,413
2018		—		—		—		—		13,391		15,992		16,436		16,477		16,476		16,466
2019		—		—		—		—		—		—		—		—		—		—
2020		—		—		—		—		—		—		14,964		34,771		47,056		54,356
2021		—		—		—		—		—		—		—		9,323		12,616		12,652
2022		—		—		—		—		—		—		—		—		32,998		48,627
2023		—		—		—		—		—		—		—		—		—		—
Total																			$	212,683
Liabilities for loss and LAE, net of reinsurance																			$	31,773

(b)

The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company.

Reconciliation of Net Incurred and Paid Loss Development Tables to Liability for Losses and Loss Adjustment Expenses

The reconciliation of the net incurred and paid loss development tables to the liability for losses and loss adjustment expenses is as follows:


	December 31,
	2023		2022
Net outstanding liabilities
Homeowners multi-peril and dwelling fire insurance	$	218,993	$	201,627
Homeowners Wind-only insurance		3,573		3,082
Losses specific to any hurricane and storm events prior to 2023		31,773		41,380
Other short-duration insurance lines		12		457
Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance		254,351		246,546
Reinsurance recoverables		330,722		617,219
Total gross liability for unpaid losses and loss adjustment expenses	$	585,073	$	863,765

Supplementary and Unaudited Information about Average Historical Claims Duration

The following is supplementary and unaudited information about average historical claims duration as of December 31, 2023:


Average Annual Percentage Payout of Incurred
Losses by Age, Net of Reinsurance
Years	1			2			3			4			5			6			7			8			9			10
Homeowners multi-peril and dwelling fire insurance		47.2	%		22.3	%		8.5	%		3.9	%		0.2	%		0.8	%		0.3	%		0.0	%		0.0	%		0.0	%
Homeowners Wind-only insurance		29.2	%		23.2	%		13.5	%		8.5	%		0.1	%		0.4	%		0.7	%		0.0	%		0.0	%	*
Other short-duration insurance lines		74.9	%		23.1	%		1.5	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		—			—
Losses specific to any hurricane and storm events prior to 2023		51.8	%		22.1	%		6.9	%		4.9	%		1.7	%		0.5	%		—			—			—			—

* The Company began writing Homeowners Wind-only insurance in 2015.