Note 6 - Unpaid Losses and Settlement Expenses

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

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

6. UNPAID LOSSES AND SETTLEMENT EXPENSES

The following table is a reconciliation of the Company’s unpaid losses and settlement expenses:

	For the Three-Months Ended
	March 31,
(In thousands)	2024		2023
Unpaid losses and settlement expense - beginning of the period:
Gross	$	71,920	$	67,614
Less: Ceded		12,737		13,610
Less: CECL allowance for reinsurance recoverable on unpaid losses		82		—
Net		59,101		54,004
Increase in incurred losses and settlement expense:
Current year		12,288		11,072
Prior years		49		(24	)
Total incurred		12,337		11,048
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,924		1,158
Prior years		5,690		5,487
Total paid		7,614		6,645
Net unpaid losses and settlement expense - end of the period		63,824		58,407
Plus: Reinsurance recoverable on unpaid losses net of CECL		13,739		14,356
Plus: CECL allowance for reinsurance recoverable on unpaid losses1		88		104
Gross unpaid losses and settlement expense - end of the period	$	77,651	$	72,867

¹ See page 7, Significant account policies, for an explanation of CECL.

For the  three months ended  March 31, 2024 and  2023, we experienced  unfavorable and favorable development of  $49,000 and  $24,000, respectively. The  unfavorable development for the  three months ended  March 31, 2024 is primarily due to additional information received on prior year accident claims for liquor liability.