Unpaid Losses and Settlement Expenses

6 Months Ended

Jun. 30, 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
	June 30,
(In thousands)	2022		2021
Unpaid losses and settlement expense - beginning of the period:
Gross	$	67,407	$	61,808
Less: Ceded		16,089		14,011
Net		51,318		47,797
Increase in incurred losses and settlement expense:
Current year		11,960		8,094
Prior years		1,849		570
Total incurred		13,809		8,664
Deduct: Loss and settlement expense payments for claims incurred:
Current year		4,605		3,523
Prior years		5,667		4,998
Total paid		10,272		8,521
Net unpaid losses and settlement expense - end of the period		54,855		47,940
Plus: Reinsurance recoverable on unpaid losses		15,526		15,918
Gross unpaid losses and settlement expense - end of the period	$	70,381	$	63,858

	For the Six-Months Ended
	June 30,
(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		19,485		15,236
Prior years		4,519		1,231
Total incurred		24,004		16,467
Deduct: Loss and settlement expense payments for claims incurred:
Current year		5,994		4,811
Prior years		10,469		12,272
Total paid		16,463		17,083
Net unpaid losses and settlement expense - end of the period		54,855		47,940
Plus: Reinsurance recoverable on unpaid losses		15,526		15,918
Gross unpaid losses and settlement expense - end of the period	$	70,381	$	63,858

For the six months ended June 30, 2022 and 2021, we experienced unfavorable development of $4,519,000 and $1,231,000, respectively. The unfavorable development for the six months ended June 30, 2022 was primarily driven by new claims and additional information received for a handful of prior year claims in the following lines of business and denoted accident years: Business Owners Liability (2020; one claim & 2017; two claims) and Liquor Liability (2019; one claim). The Business Owners Property line of business was the primary driver of adverse development for the six months ended June 30, 2022.