Liability for Unpaid Losses and Loss Adjustment Expense (Tables)

12 Months Ended

Dec. 31, 2018

Claims Development [Line Items]

Short-duration Insurance Contracts, Claims Development

Commercial Residential Insurance

$ In thousands (except number of reported claims)

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				As of December 31, 2018
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	For the Years Ended December 31,
	Unaudited														Audited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	11,323	$	5,233	$	4,054	$	3,853	$	4,182	$	3,459	$	3,490	$	3,489	$	3,486	$	3,484	$	—	383
2010	—		12,134		5,603		5,374		5,489		4,291		4,160		4,112		4,112		4,112		—		580
2011	—		—		12,702		11,280		10,197		8,972		9,142		9,030		8,985		9,026		54		757
2012	—		—		—		11,404		9,540		9,690		9,771		8,671		12,615		12,641		65		802
2013	—		—		—		—		8,359		6,420		11,826		8,382		7,573		7,426		163		740
2014	—		—		—		—		—		15,845		15,752		16,311		16,816		16,070		686		679
2015	—		—		—		—		—		—		16,554		20,434		24,568		26,619		2,039		836
2016	—		—		—		—		—		—		—		38,632		25,599		23,079		2,591		1,194
2017	—		—		—		—		—		—		—		—		76,910		102,408		4,254		4,254
2018	—		—		—		—		—		—		—		—		—		62,043		14,004		3,218
																	Total		$	266,908

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	Unaudited														Audited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	1,639	$	3,616	$	3,410	$	3,415	$	3,920	$	3,446	$	3,471	$	3,485	$	3,484	$	3,483
2010	—		1,968		3,127		3,461		3,966		3,909		3,909		4,112		4,112		4,112
2011	—		—		3,541		6,241		7,605		7,846		8,825		8,851		8,933		8,972
2012	—		—		—		4,583		6,942		6,893		7,543		8,552		12,575		12,576
2013	—		—		—		—		2,958		5,127		5,317		7,248		7,254		7,256
2014	—		—		—		—		—		6,379		9,452		13,212		14,420		15,336
2015	—		—		—		—		—		—		10,188		17,139		20,645		22,983
2016	—		—		—		—		—		—		—		10,917		16,687		19,606
2017	—		—		—		—		—		—		—		—		42,744		86,775
2018	—		—		—		—		—		—		—		—		—		28,092
																	Total		$	209,191
All outstanding liabilities before 2009, net of reinsurance																			—
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	57,717

Remaining Product Lines

$ In thousands (except number of reported claims)

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				As of December 31, 2018
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	For the Years Ended December 31,
	Unaudited														Audited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	10,610	$	10,135	$	10,093	$	10,026	$	9,902	$	9,844	$	9,837	$	10,009	$	10,007	$	10,007	$	—	1,072
2010	—		9,911		11,042		10,733		11,126		11,020		11,105		11,072		11,072		11,072		—		1,096
2011	—		—		11,126		11,022		10,896		10,630		10,575		10,740		10,741		10,741		—		1,171
2012	—		—		—		10,760		9,651		9,350		9,412		9,147		9,138		9,140		3		1,001
2013	—		—		—		—		6,657		5,817		5,401		5,736		5,857		5,843		41		508
2014	—		—		—		—		—		9,073		7,927		8,016		7,956		7,936		38		593
2015	—		—		—		—		—		—		19,669		19,723		19,352		19,340		134		1,009
2016	—		—		—		—		—		—		—		17,053		17,898		18,222		202		52
2017	—		—		—		—		—		—		—		—		46,892		77,864		1,417		32
2018	—		—		—		—		—		—		—		—		—		30,601		3,491		5
																	Total		$	200,766

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	Unaudited														Audited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	4,807	$	7,507	$	8,470	$	9,062	$	9,471	$	9,570	$	9,688	$	10,009	$	10,007	$	10,007
2010	—		4,346		8,128		9,036		10,182		10,242		10,327		11,073		11,072		11,072
2011	—		—		4,587		8,013		9,444		9,837		10,128		10,740		10,741		10,741
2012	—		—		—		5,112		7,631		8,242		8,626		9,124		9,126		9,137
2013	—		—		—		—		2,925		4,496		4,811		5,566		5,626		5,802
2014	—		—		—		—		—		4,008		6,237		7,868		7,898		7,898
2015	—		—		—		—		—		—		11,104		18,129		18,817		18,970
2016	—		—		—		—		—		—		—		12,432		16,116		17,111
2017	—		—		—		—		—		—		—		—		37,127		68,994
2018	—		—		—		—		—		—		—		—		—		24,105
																	Total		$	183,837
All outstanding liabilities before 2009, net of reinsurance																			—
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	16,929

Homeowners’ Insurance

$ In thousands (except number of reported claims)

	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				As of December 31, 2018
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	For the Years Ended December 31,
	Unaudited														Audited
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	46,952	$	46,089	$	45,515	$	45,583	$	45,316	$	45,116	$	44,959	$	44,996	$	44,617	$	44,574	$	2	4,152
2010	—		51,144		51,292		51,862		52,239		51,685		51,841		51,674		51,836		51,796		11		5,095
2011	—		—		53,878		56,840		57,670		58,047		59,517		60,215		60,288		60,522		72		6,224
2012	—		—		—		65,112		69,438		68,923		68,388		69,000		69,064		67,934		159		11,046
2013	—		—		—		—		98,461		94,755		93,041		92,702		92,792		66,709		174		8,373
2014	—		—		—		—		—		130,090		130,488		131,402		132,096		104,222		619		12,822
2015	—		—		—		—		—		—		181,609		195,902		195,864		196,549		1,795		19,152
2016	—		—		—		—		—		—		—		249,276		250,774		236,050		4,208		30,572
2017	—		—		—		—		—		—		—		—		208,537		165,375		9,730		73,280
2018	—		—		—		—		—		—		—		—		—		268,275		44,495		35,629
																	Total		$	1,262,006

Accident Year	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
	Unaudited														Audited
	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
2009	$	31,525	$	41,134	$	43,149	$	44,114	$	44,413	$	44,737	$	44,898	$	44,966	$	44,577	$	44,572
2010	—		32,993		43,932		46,711		49,256		50,215		50,704		51,163		51,435		51,484
2011	—		—		36,419		48,558		52,412		55,532		58,069		59,461		59,806		60,289
2012	—		—		—		42,699		60,640		64,675		66,739		68,337		68,655		67,487
2013	—		—		—		—		63,732		85,346		89,068		90,627		91,789		65,989
2014	—		—		—		—		—		88,375		119,612		125,951		129,636		102,550
2015	—		—		—		—		—		—		123,888		174,993		188,199		192,065
2016	—		—		—		—		—		—		—		170,527		232,266		227,052
2017	—		—		—		—		—		—		—		—		138,112		158,114
2018	—		—		—		—		—		—		—		—		—		195,168
																	Total		$	1,164,770
All outstanding liabilities before 2009, net of reinsurance																			2
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	97,238

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The table below shows the analysis of our reserve for unpaid losses for each of our last three fiscal years on a GAAP basis:

	2018		2017			2016
Balance at January 1	$	482,232	$	140,855		$	76,792
Less: reinsurance recoverable on unpaid losses	305,673		18,724			2,114
Net balance at January 1	$	176,559	$	122,131		$	74,678
Acquired reserves, net of reinsurance recoverables(1)	—		40,299			22,576
Incurred related to:
Current year	404,271		368,148			281,365
Prior years	4,318		(2,613		)	16,988
Total incurred	$	408,589	$	365,535		$	298,353
Paid related to:
Current year	283,821		256,134			210,970
Prior years	117,994		95,272			62,506
Total paid	$	401,815	$	351,406		$	273,476
Net balance at December 31	$	183,333	$	176,559		$	122,131
Plus: reinsurance recoverable on unpaid losses	477,870		305,673			18,724
Balance at December 31	$	661,203	$	482,232		$	140,855
Composition of reserve for unpaid losses and LAE:
Case reserves	$	270,601	$	236,253		$	83,447
IBNR reserves	390,602		245,979			57,408
Balance at December 31	$	661,203	$	482,232		$	140,855

⁽¹⁾ Acquired reserves, net of reinsurance recoverables of $19,945,000 for 2017 and $2,391,000 for 2016 related to our acquisitions of AmCo and IIC, respectively.

Short-duration Insurance Contracts, Schedule of Historical Claims Duration

The following is supplementary information about average historical claims duration as of December 31, 2018.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Unaudited
Years	1		2		3		4		5		6		7		8		9		10
	74.4	%	25.4	%	6.2	%	3.3	%	(2.5	)%	(6.9	)%	—	%	0.5	%	(0.4	)%	—	%

The following is supplementary information about average historical claims duration as of December 31, 2018.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Unaudited
Years	1		2		3		4		5		6		7		8		9		10
	41.5	%	29.9	%	7.8	%	8.9	%	6.3	%	3.7	%	1.6	%	0.3	%	—	%	—	%

The following is supplementary information about average historical claims duration as of December 31, 2018.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Unaudited
Years	1		2		3		4		5		6		7		8		9		10
	51.8	%	28.3	%	7.0	%	5.5	%	2.3	%	2.1	%	2.0	%	1.0	%	—	%	—	%

Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated statement of financial position is as follows.

	December 31,
	2018		2017
Net outstanding liabilities
Personal Homeowners’ Only	$	97,238	$	101,544
Commercial Residential Only	57,717		49,810
All other lines of business	16,929		12,384
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	$	171,884	$	163,738
Reinsurance recoverable on unpaid claims
Personal Homeowners’ Only	$	318,678	$	131,581
Commercial Residential Only	155,717		165,313
All other lines of business	3,475		8,779
Total reinsurance recoverable on unpaid claims	$	477,870	$	305,673
Unallocated claims adjustment expenses	11,449		12,821
Total gross liability for unpaid claims and claims adjustment expense	$	661,203	$	482,232