Unpaid Losses and Settlement Expenses

3 Months Ended

Mar. 31, 2020

Unpaid Losses and Settlement Expenses [Abstract]

Unpaid Losses and Settlement Expenses

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)	2020		2019
Unpaid losses and settlement expense - beginning of the period:
Gross	$	56,838	$	51,447
Less: Ceded		11,036		6,736
Net		45,802		44,711
Increase in incurred losses and settlement expense:
Current year		6,245		8,359
Prior years		1,597		1,248
Total incurred		7,842		9,607
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,204		1,592
Prior years		5,484		6,818
Total paid		6,688		8,410
Net unpaid losses and settlement expense - end of the period		46,956		45,908
Plus: Reinsurance recoverable on unpaid losses		11,318		15,109
Gross unpaid losses and settlement expense - end of the period	$	58,274	$	61,017

Net unpaid losses and settlement expense increased $1,048,000, or 2.3%, in the three months ended March 31, 2020 as compared to the same period in 2019. For the three months ended March 31, 2020 and 2019, we experienced unfavorable development of $1,597,000 and $1,248,000, respectively. The 2020 increase in unfavorable development was primarily driven by the Business Owners Liability and Business Owners Property lines of business. Business Owners and Liquor Liability lines of business were the primary drivers of adverse development for the three months ended March 31, 2019.