Reserve for Unpaid Losses

12 Months Ended

Dec. 31, 2014

Reserves [Abstract]

Liability for Future Policy Benefits and Unpaid Claims Disclosure [Text Block]

RESERVE FOR UNPAID LOSSES

We determine the reserve for unpaid losses on an individual-case basis for all incidents reported. The liability also includes amounts for IBNR claims as of the balance sheet date.

The table below summarizes the activity related to our reserve for unpaid losses:

	2014			2013		2012
Balance at January 1	$	47,451		$	35,692	$	33,600
Less: reinsurance recoverable on unpaid losses	1,957			1,935		3,318
Net balance at January 1	$	45,494		$	33,757	$	30,282
Incurred related to:
Current year	122,114			94,752		57,739
Prior years	(4,037		)	4,078		670
Total incurred	$	118,077		$	98,830	$	58,409
Paid related to:
Current year	83,967			62,494		37,906
Prior years	26,420			24,599		17,028
Total paid	$	110,387		$	87,093	$	54,934
Net balance at December 31	$	53,184		$	45,494	$	33,757
Plus: reinsurance recoverable on unpaid losses	1,252			1,957		1,935
Balance at December 31	$	54,436		$	47,451	$	35,692

Based upon our internal analysis and our review of the statement of actuarial opinion provided by our actuarial consultants, we believe that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date.

As reflected by our losses incurred related to prior years, we had a reserve deficiency in 2013 and 2012. Since we place substantial reliance on loss-development-based actuarial models when determining our estimate of ultimate losses, the deficiencies resulted from additional development on prior accident years which caused our ultimate losses to increase. The favorable development experienced in 2014 was primarily the result of losses related to the 2013 and 2012 accident years coming in better than expected.