Unpaid Losses and Settlement Expenses

6 Months Ended

Jun. 30, 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
	June 30,
(In thousands)	2021		2020
Unpaid losses and settlement expense - beginning of the period:
Gross	$	61,808	$	58,274
Less: Ceded		14,011		11,318
Net		47,797		46,956
Increase in incurred losses and settlement expense:
Current year		8,094		8,294
Prior years		570		914
Total incurred		8,664		9,208
Deduct: Loss and settlement expense payments for claims incurred:
Current year		3,523		4,444
Prior years		4,998		4,768
Total paid		8,521		9,212
Net unpaid losses and settlement expense - end of the period		47,940		46,952
Plus: Reinsurance recoverable on unpaid losses		15,918		19,463
Gross unpaid losses and settlement expense - end of the period	$	63,858	$	66,415

	For the Six-Months Ended
	June 30,
(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		15,236		14,540
Prior years		1,231		2,511
Total incurred		16,467		17,051
Deduct: Loss and settlement expense payments for claims incurred:
Current year		4,811		5,649
Prior years		12,272		10,252
Total paid		17,083		15,901
Net unpaid losses and settlement expense - end of the period		47,940		46,952
Plus: Reinsurance recoverable on unpaid losses		15,918		19,463
Gross unpaid losses and settlement expense - end of the period	$	63,858	$	66,415

Net unpaid losses and settlement expense increased $988,000, or 2.1%, in the six months ended June 30, 2021 as compared to the same period in 2020. For the six months ended June 30, 2021 and 2020, we experienced unfavorable development of $1,231,000 and $2,511,000, respectively. The unfavorable development for the three and six months ended June 30, 2021 was primarily driven by the Business Owners Liability and Business Owners Property lines of business. Similarly, Business Owners Liability and Business Owners Property lines of business were the primary drivers of adverse development for the three and six months ended June 30, 2020.