Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Insurance Loss Reserves [Abstract]

Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense

The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands):

	December 31,
	2021		2020		2019
Gross reserves - beginning of period	$	111,270	$	107,246	$	92,807
Less: reinsurance recoverables on unpaid losses		24,218		22,579		29,685
Plus: deferred gain on ADC		—		—		(5,677	)
Net reserves - beginning of period		87,052		84,667		68,799
Add: incurred losses and loss adjustment expenses, net   of reinsurance
Current period		50,429		40,634		49,192
Prior period		19,432		15,594		10,552
Total net incurred losses and loss adjustment   expenses		69,861		56,228		59,744
Deduct: loss and loss adjustment expense payments,   net of reinsurance
Current period		18,984		13,599		14,357
Prior period		39,188		40,244		29,519
Total net loss and loss adjustment expense   payments		58,172		53,843		43,876
Net reserves - end of period		98,741		87,052		84,667
Plus: reinsurance recoverables on unpaid losses		40,344		24,218		22,579
Less: deferred gain on ADC		—		—		—
Gross reserves - end of period	$	139,085	$	111,270	$	107,246

Short-duration Insurance Contracts, Claims Development

The following tables represent cumulative incurred loss and allocated loss adjustment expenses ("ALAE"), net of reinsurance, by accident year and cumulative paid loss and ALAE, net of reinsurance, by accident year, for the years ended December 31, 2012 to 2021, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2021, by reportable segment and accident year (dollars in thousands).

Commercial Lines
			Incurred loss and allocated loss adjustment expenses, net of reinsurance																		Total IBNR		Cumulative number of reported claims
Accident
Year	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		2021		2021
2012		7,745		6,421		6,288		6,384		6,253		6,190		6,209		6,209		6,245		6,255		—		571
2013				10,018		9,435		9,893		10,237		11,252		11,218		11,624		11,804		11,867		40		612
2014						19,709		19,907		22,711		26,367		28,145		28,766		29,045		29,175		125		1,753
2015								22,442		26,633		31,861		34,478		36,372		37,795		38,824		293		2,361
2016										32,396		34,935		40,440		44,355		46,089		46,993		620		3,556
2017												44,251		44,495		49,749		51,883		55,589		1,451		5,828
2018														42,624		42,432		49,741		55,261		1,901		6,113
2019																41,286		42,129		46,329		3,640		6,288
2020																		33,867		35,328		7,268		3,782
2021																				40,388		16,483		2,559
																	Total		$	366,009	$	31,821

Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident
Year	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012		2,325		3,703		4,696		5,558		5,994		6,065		6,209		6,209		6,245		6,246
2013				3,979		6,211		7,643		8,622		10,147		10,650		11,137		11,620		11,702
2014						8,715		13,977		17,458		22,446		25,609		27,544		28,389		28,648
2015								10,470		17,817		22,549		30,475		34,497		35,833		37,563
2016										10,255		19,135		27,785		37,967		41,945		43,644
2017												12,448		23,020		34,205		42,308		47,148
2018														10,375		19,799		31,633		41,577
2019																10,078		20,462		28,958
2020																		10,217		17,332
2021																				12,870
																	Total		$	275,688
	Unpaid losses and ALAE, years 2012 through 2021																		$	90,321
	Unpaid losses and ALAE, prior to 2012 *																			141
	Unpaid losses and ALAE, net of reinsurance																		$	90,462

*  Presented as unaudited required supplementary information.

Personal Lines
			Incurred loss and allocated loss adjustment expenses, net of reinsurance																		Total IBNR		Cumulative number of reported claims
Accident					For the years ended December 31,
Year	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		2021		2021
2012		9,960		11,690		11,740		12,159		12,390		12,365		12,357		12,369		12,382		12,450		—		3,339
2013				18,034		17,996		18,925		19,138		19,167		19,202		19,222		19,226		19,227		—		5,208
2014						17,951		17,471		17,735		17,880		17,929		18,082		18,095		18,097		—		3,737
2015								10,877		13,445		14,721		15,285		15,364		15,427		15,427		—		2,152
2016										11,619		13,418		14,949		15,550		15,655		15,634		—		1,814
2017												14,058		13,550		14,493		14,793		14,911		—		2,916
2018														5,893		6,378		6,283		6,382		—		802
2019																3,099		2,712		2,898		—		341
2020																		2,339		2,590		107		365
2021																				4,409		774		534
																	Total		$	112,025	$	881

Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident					For the years ended December 31,
Year	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012		5,665		9,251		10,844		11,777		12,202		12,306		12,329		12,349		12,382		12,450
2013				9,955		15,883		18,052		18,600		19,014		19,174		19,214		19,222		19,227
2014						12,819		16,515		17,260		17,746		17,855		18,047		18,068		18,070
2015								7,771		11,873		13,844		15,159		15,250		15,290		15,416
2016										7,119		11,238		14,442		15,110		15,351		15,452
2017												8,320		12,944		14,004		14,526		14,866
2018														4,296		5,618		6,100		6,242
2019																2,119		2,604		2,692
2020																		1,307		2,455
2021																				3,022
																	Total		$	109,892
	Unpaid losses and ALAE, years 2012 through 2021																		$	2,133
	Unpaid losses and ALAE, prior to 2012 *																			—
	Unpaid losses and ALAE, net of reinsurance																		$	2,133

*  Presented as unaudited required supplementary information.

Total Lines
Incurred loss and allocated loss adjustment expenses, net of reinsurance																					Total IBNR		Cumulative number of reported claims
Accident	For the years ended December 31,
Year	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		2021		2021
2012		17,705		18,111		18,028		18,544		18,642		18,554		18,566		18,578		18,627		18,705		—		3,910
2013				28,052		27,431		28,817		29,375		30,419		30,420		30,846		31,030		31,094		40		5,820
2014						37,660		37,378		40,446		44,247		46,074		46,848		47,140		47,272		125		5,490
2015								33,319		40,078		46,581		49,763		51,736		53,222		54,251		293		4,513
2016										44,015		48,353		55,389		59,905		61,744		62,627		620		5,370
2017												58,309		58,045		64,242		66,676		70,500		1,451		8,744
2018														48,517		48,810		56,024		61,643		1,901		6,915
2019																44,385		44,841		49,227		3,640		6,629
2020																		36,206		37,918		7,375		4,147
2021																				44,797		17,257		3,093
																	Total			478,034		32,702

Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident			For the years ended December 31,
Year	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012		7,990		12,954		15,540		17,335		18,195		18,369		18,538		18,558		18,627		18,696
2013				13,934		22,094		25,695		27,223		29,162		29,824		30,351		30,842		30,929
2014						21,534		30,492		34,718		40,192		43,464		45,591		46,457		46,718
2015								18,241		29,690		36,393		45,634		49,747		51,123		52,979
2016										17,374		30,373		42,227		53,077		57,296		59,096
2017												20,768		35,964		48,209		56,834		62,014
2018														14,671		25,417		37,733		47,819
2019																12,197		23,066		31,650
2020																		11,524		19,787
2021																				15,892
																	Total		$	385,580
	Unpaid losses and ALAE, years 2012 through 2021																		$	92,454
	Unpaid losses and ALAE, prior to 2012 *																		$	141
	Unpaid losses and ALAE, net of reinsurance																		$	92,595

*  Presented as unaudited required supplementary information.

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

The following table reconciles the loss development information to the consolidated balance sheet for the year ended December 31, 2021, by reportable segment (dollars in thousands).

	December 31, 2021
Net unpaid losses claims and ALAE
Commercial Lines	$	90,462
Personal Lines		2,133
Total unpaid losses and LAE, net of reinsurance		92,595
Reinsurance recoverable on losses and LAE
Commercial Lines		38,584
Personal Lines		1,760
Total reinsurance recoverable on unpaid losses and LAE		40,344
ULAE expense		6,146
Total gross unpaid losses and LAE	$	139,085

Loss Duration Schedule

The following table represents the average annual percentage payout of incurred losses by age, net of reinsurance, for each reportable segment.

	Average annual percentage payout of incurred losses by age, net of reinsurance
	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10+
Commercial Lines	40.6%	26.4%	17.2%	8.5%	4.1%	2.3%	0.6%	0.2%	0.1%	0.0%
Personal Lines	47.6%	23.5%	15.6%	11.9%	1.0%	0.3%	0.0%	0.1%	0.0%	0.0%
Total Lines	40.8%	26.3%	17.1%	8.6%	4.0%	2.3%	0.6%	0.2%	0.1%	0.0%