Liability for Unpaid Losses and Loss Adjustment Expense (Tables)

12 Months Ended

Dec. 31, 2019

Short-duration Insurance Contracts, Claims Development

Property & Casualty Homeowners’ Insurance

$ In thousands (except number of reported claims)



	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																				As of December 31, 2019
																					Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	For the Years Ended December 31,
																			Audited
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	73,189	$	67,937	$	67,969	$	68,854	$	66,996	$	67,106	$	66,858	$	67,020	$	66,980	$	66,937	$	—	6,769
2011	—		77,706		79,142		78,763		77,649		79,234		79,985		80,014		80,289		80,199		43		8,154
2012	—		—		87,276		88,629		87,963		87,571		86,818		90,817		91,095		90,879		101		12,852
2013	—		—		—		113,477		106,992		110,268		106,820		106,222		106,132		106,450		255		9,631
2014	—		—		—		—		155,008		154,167		155,729		156,868		156,037		155,956		461		14,123
2015	—		—		—		—		—		217,832		236,059		239,784		242,508		242,610		2,168		21,078
2016	—		—		—		—		—		—		304,961		294,271		293,785		295,611		3,749		32,005
2017	—		—		—		—		—		—		—		332,339		345,647		359,018		16,039		83,969
2018	—		—		—		—		—		—		—		—		360,919		389,841		15,465		47,757
2019	—		—		—		—		—		—		—		—		—		421,426		103,909		33,368
																	Total		$	2,208,927



Accident Year	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
																			Audited
	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
2010	$	39,307	$	55,187	$	59,208	$	63,404	$	64,366	$	64,940	$	66,348	$	66,619	$	66,668	$	66,684
2011	—		44,547		62,812		69,461		73,215		77,022		79,052		79,480		80,002		80,020
2012	—		—		52,394		75,213		79,810		82,908		86,013		90,356		90,580		90,447
2013	—		—		—		69,615		94,969		99,196		103,441		104,669		105,201		105,686
2014	—		—		—		—		98,762		135,301		147,031		151,954		153,593		154,597
2015	—		—		—		—		—		145,180		210,261		227,661		234,018		237,573
2016	—		—		—		—		—		—		193,876		265,069		280,203		288,425
2017	—		—		—		—		—		—		—		217,983		313,883		327,986
2018	—		—		—		—		—		—		—		—		247,365		352,422
2019	—		—		—		—		—		—		—		—		—		240,533
																	Total		$	1,944,373
All outstanding liabilities before 2010, net of reinsurance																			2
Liabilities for claims and claim adjustment expenses, net of reinsurance																			$	264,556

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:



	2019		2018		2017
Balance at January 1	$	661,203	$	482,232	$	140,855
Less: reinsurance recoverable on unpaid losses	477,870		305,673		18,724
Net balance at January 1	$	183,333	$	176,559	$	122,131

Acquired reserves, net of reinsurance recoverables⁽¹⁾	—		—		40,299
Incurred related to:
Current year	466,359		404,271		368,148
Prior years	33,134		4,318		(2,613		)
Total incurred	$	499,493	$	408,589	$	365,535
Paid related to:
Current year	275,488		283,821		256,134
Prior years	129,296		117,994		95,272
Total paid	$	404,784	$	401,815	$	351,406

Net balance at December 31	$	278,042	$	183,333	$	176,559
Plus: reinsurance recoverable on unpaid losses	482,315		477,870		305,673
Balance at December 31	$	760,357	$	661,203	$	482,232

Composition of reserve for unpaid losses and LAE:
Case reserves	$	300,858	$	270,601	$	236,253
IBNR reserves	459,499		390,602		245,979
Balance at December 31	$	760,357	$	661,203	$	482,232

Short-duration Insurance Contracts, Schedule of Historical Claims Duration

The following is supplementary information about average historical claims duration as of December 31, 2019.



Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Unaudited
Years	1		2		3		4		5		6		7		8		9		10
	60.5	%	24.6	%	5.7	%	3.9	%	2.2	%	1.9	%	0.8	%	0.3	%	0.1	%	—	%

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,
	2019		2018
Net outstanding liabilities
Property and Casualty Homeowners’ Insurance	$	264,556	$	171,884
Liabilities for unpaid claims and claim adjustment expenses, net of reinsurance	$	264,556	$	171,884

Reinsurance recoverable on unpaid claims
Property and Casualty Homeowners’ Insurance	482,315		477,870
Total reinsurance recoverable on unpaid claims	482,315		477,870

Unallocated claims adjustment expenses	13,486		11,449

Total gross liability for unpaid claims and claims adjustment expense	$	760,357	$	661,203