Unpaid Loss and Loss Adjustment Expense (Tables)

12 Months Ended

Dec. 31, 2020

Activity in the liability for unpaid loss and LAE

The following table presents the activities in the liability for unpaid loss and loss adjustment expense (“LAE”) as of December 31, 2020 and 2019 ($ in millions):


	December 31,
	2020		2019
Unpaid loss and LAE as of January 1	$	28.2	$	13.1
Less: Reinsurance recoverable(1)	18.5		11.3
Net unpaid loss and LAE as of January 1	9.7		1.8
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year	54.8		47.3
Prior years	(0.1)		(1.5)
Total incurred	54.7		45.8
Deduct: Paid losses and LAE, net of reinsurance, related to:
Current year	44.6		37.7
Prior years	9.8		0.2
Total paid	54.4		37.9
Unpaid loss and LAE, net of reinsurance recoverable, as of December 31	10.0		9.7
Reinsurance recoverable as of December 31(1)	36.3		18.5
Unpaid loss and LAE, gross of reinsurance recoverable, as of December 31	$	46.3	$	28.2

____________

(1) Reinsurance recoverable in this table includes only ceded unpaid loss and LAE

Claims development information - incurred and paid losses

The following table presents incurred loss and ALAE, net of reinsurance, as well as IBNR loss reserves and the number of reported claims ($ in millions, except for number of claims):


											December 31, 2020
													Cumulative Number of Reported Claims
	December 31,
	2016		2017		2018		2019		2020		IBNR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	—	$	—	$	—	$	—	$	—	$	—	8
2017	—		1.7		1.7		1.7		1.7		—		1,758
2018	—		—		15.0		13.5		13.4		—		10,532
2019	—		—		—		46.0		46.0		—		19,440
2020	—		—		—		—		53.5		5.1		45,162
Total incurred losses and ALAE, net									$	114.6	$	5.1	76,900

The following table presents cumulative paid loss and ALAE, net of reinsurance ($ in millions):


	December 31,
	2016		2017		2018		2019		2020
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	—	$	—	$	—	$	—	$	—
2017	—		1.6		1.7		1.7		1.7
2018	—		—		13.2		13.4		13.4
2019	—		—		—		36.4		46.1
2020	—		—		—		—		43.4
Total paid losses and ALAE, net									$	104.6
Total unpaid loss and ALAE reserves, net									$	10.0
Ceded unpaid loss and LAE									36.3
Gross unpaid loss and LAE									$	46.3

Reconciliation of Loss Reserve Rollforward Table and Development Tables

The reconciliation of the net incurred and paid loss information in the loss reserve rollforward table and development tables with respect to the current accident year is as follows ($ in millions):


	2020 Current Accident Year				2020 Prior Accident Year
	Incurred		Paid		Incurred		Paid
Rollforward table	$	54.8	$	44.6	$	(0.1)	$	9.8
Development table	53.5		43.4		—		9.7
Variance	$	1.3	$	1.2	$	(0.1)	$	0.1
Unallocated loss adjustment expense	$	1.3	$	1.2

Historical claims duration

Average annual percentage payout of accident year incurred claims by age, net of reinsurance (unaudited supplementary information)


	1		2		3
Property & Casualty	78	%	16	%	5	%