Unpaid Losses and Settlement Expenses

3 Months Ended

Mar. 31, 2021

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)	2021		2020
Unpaid losses and settlement expense - beginning of the period:
Gross	$	61,576	$	56,838
Less: Ceded		13,020		11,036
Net		48,556		45,802
Increase in incurred losses and settlement expense:
Current year		7,142		6,245
Prior years		661		1,597
Total incurred		7,803		7,842
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,288		1,204
Prior years		7,274		5,484
Total paid		8,562		6,688
Net unpaid losses and settlement expense - end of the period		47,797		46,956
Plus: Reinsurance recoverable on unpaid losses		14,011		11,318
Gross unpaid losses and settlement expense - end of the period	$	61,808	$	58,274

Net unpaid losses and settlement expense increased$841,000, or 1.8%, in the three months ended March 31, 2021 as compared to the same period in 2020. For the three months ended March 31, 2021 and 2020, we experienced unfavorable development of $661,000 and $1,597,000,  respectively. The unfavorable development for the three months ended March 31, 2021 was primarily driven by the Workers’ Compensation line of business. Business Owners Liability and Business Owners Property lines of business were the primary drivers of adverse development for the three months ended March 31, 2020.