Unpaid Loss and Loss Adjustment Expense (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

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, 2021 and 2020 ($ in millions):

	December 31,
	2021		2020
Unpaid loss and LAE as of January 1	$	46.3	$	28.2
Less: Reinsurance recoverable(1)	36.3		18.5
Net unpaid loss and LAE as of January 1	10.0		9.7
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year	73.2		54.8
Prior years	(1.3)		(0.1)
Total incurred	71.9		54.7
Deduct: Paid losses and LAE, net of reinsurance, related to:
Current year	49.2		44.6
Prior years	7.5		9.8
Total paid	56.7		54.4
Foreign currency translation gain (loss)	—		—
Unpaid loss and LAE, net of reinsurance recoverable, as of December 31	25.2		10.0
Reinsurance recoverable as of December 31(1)	72.7		36.3
Unpaid loss and LAE, gross of reinsurance recoverable, as of December 31	$	97.9	$	46.3

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(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, 2021
															Cumulative Number of Reported Claims
	December 31,
	2016		2017		2018		2019		2020		2021		IBNR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	—	$	—	$	—	$	—	$	—	$	—	$	—	8
2017	—		1.7		1.7		1.7		1.7		1.7		—		1,758
2018	—		—		15.0		13.5		13.4		13.4		—		10,528
2019	—		—		—		46.0		46.0		46.2		—		19,483
2020	—		—		—		—		53.2		51.8		1.1		30,212
2021	—		—		—		—		—		59.4		11.1		50,821
Total incurred losses and ALAE, net											$	172.5	$	12.2	112,810

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

	December 31,
	2016		2017		2018		2019		2020		2021
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	—	$	—	$	—	$	—	$	—	$	—
2017	—		1.6		1.7		1.7		1.7		1.7
2018	—		—		13.2		13.4		13.4		13.4
2019	—		—		—		36.4		46.1		46.2
2020	—		—		—		—		42.9		50.0
2021	—		—		—		—		—		37.9
Total paid losses and ALAE, net											$	149.2
Total unpaid loss and ALAE reserves, net											$	22.9
Ceded unpaid loss and LAE											66.7
Gross unpaid loss and LAE											$	89.6

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, 2021
							Cumulative Number of Reported Claims
	2020		2021		IBNR
	(unaudited)
Accident Year
2020	$	0.3	$	0.2	$	—	20,415
2021	—		10.0		2.1		173,379
Total incurred losses and ALAE, net			$	10.2	$	2.1	193,794

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

	December 31,
		2020		2021
		(unaudited)
Accident Year
2020		$	0.4	$	0.7
2021		—		7.5
Total paid losses and ALAE, net				$	8.2
Total unpaid loss and ALAE reserves, net				$	2.3
Ceded unpaid loss and LAE				6.0
Gross unpaid loss and LAE				$	8.3

Historical claims duration

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

	Year 1		Year 2		Year 3
Home and renters	79	%	15	%	4	%

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

	Year 1		Year 2		Year 3
Pet	94	%	5	%	1	%

Reconciliation of net incurred and paid loss information in the loss reserve rollforward 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):

	2021 Current Accident Year				2021 Prior Accident Year
	Incurred		Paid		Incurred		Paid
Rollforward table
Home	$	62.2	$	40.6	$	(1.2)	$	7.2
Pet	10.9		8.5		(0.1)		0.3
Car	0.1		0.1		—		—
	73.2		49.2		(1.3)		7.5
Development table
Home	59.4		37.9		(1.2)		7.2
Pet	10.0		7.5		(0.1)		0.3
	69.4		45.4		(1.3)		7.5
Others	—		—		—		—
Variance	$	3.8	$	3.8	$	—	$	—
Unallocated loss adjustment expense	$	3.8	$	3.8