Reserves for Unpaid Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2019

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Reserves for Unpaid Losses and Loss Adjustment Expenses

Reserves for unpaid losses and loss adjustment expenses

The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses:

	June 30,
	2019			2018
	(in thousands)
Net reserves for unpaid losses and loss adjustment expenses, beginning of year	$	313,763		$	267,493
Incurred losses and loss adjustment expenses:
Current year	81,127			62,389
Prior years	(7,816		)	(3,523		)
Total net losses and loss adjustment expenses incurred	73,311			58,866
Payments:
Current year	5,530			1,858
Prior years	36,100			33,309
Total payments	41,630			35,167
Net reserves for unpaid losses and loss adjustment expenses, end of period	345,444			291,192
Reinsurance recoverable on unpaid losses	61,989			53,373
Gross reserves for unpaid losses and loss adjustment expenses, end of period	$	407,433		$	344,565

During the six months ended June 30, 2019, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2018 developed favorably by $7.8 million. The favorable development was primarily attributable to the 2017 through 2018 accident years by $14.1 million, which mostly resulted from reported losses emerging at a lower level than expected across most statutory lines of business. This favorable development was offset in part by adverse development from the 2011 through 2016 accident years of $6.2 million primarily related to a modest amount of conservatism added to our reserves for incurred but not yet reported ("IBNR") losses to provide for emergence of reported losses over a longer period of time.

During the six months ended June 30, 2018, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2017 developed favorably by $3.5 million. The favorable development was primarily attributable to the 2015 through 2017 accident years of $6.3 million, which resulted from reported losses emerging at a lower level than expected. This favorable development was offset in part by adverse development from the 2011 through 2014 accident years of $2.8 million.