Unpaid Losses and Settlement Expenses

3 Months Ended

Mar. 31, 2022

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)	2022		2021
Unpaid losses and settlement expense - beginning of the period:
Gross	$	61,835	$	61,576
Less: Ceded		14,521		13,020
Net		47,314		48,556
Increase in incurred losses and settlement expense:
Current year		7,525		7,142
Prior years		2,670		661
Total incurred		10,195		7,803
Deduct: Loss and settlement expense payments for claims incurred:
Current year		1,389		1,288
Prior years		4,802		7,274
Total paid		6,191		8,562
Net unpaid losses and settlement expense - end of the period		51,318		47,797
Plus: Reinsurance recoverable on unpaid losses		16,089		14,011
Gross unpaid losses and settlement expense - end of the period	$	67,407	$	61,808

For the three months ended March 31, 2022 and 2021, we experienced unfavorable development of $2,670,000 and $661,000, respectively. The unfavorable development for the three months ended March 31, 2022 was primarily driven by new claims and additional information received in the current quarter for a handful of prior year claims in the following lines of business and denoted accident years: Business Owners Liability (2020; one claim), Liquor Liability (2021; seven claims), and Business Owners Property (2021; five claims). The Workers’ Compensation line of business was the primary driver of adverse development for the three months ended March 31, 2021.