Unpaid Loss and Loss Adjustment Expense (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021 ($ in millions):

	December 31,
	2022		2021
Unpaid loss and LAE as of January 1	$	97.9	$	46.3
Less: Reinsurance recoverable(1)	72.7		36.3
Net unpaid loss and LAE as of January 1	25.2		10.0
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year	170.5		73.2
Prior years	(3.2)		(1.3)
Total incurred	167.3		71.9
Deduct: Paid losses and LAE, net of reinsurance, related to:
Current year	106.9		49.2
Prior years	30.1		7.5
Total paid	137.0		56.7
Unpaid loss and LAE, net of reinsurance recoverable acquired from Metromile	76.2		—
Unpaid loss and LAE, net of reinsurance recoverable, as of December 31	131.6		25.2
Reinsurance recoverable as of December 31(1)	124.6		72.7
Unpaid loss and LAE, gross of reinsurance recoverable, as of December 31	$	256.2	$	97.9

____________

(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, net of reinsurance, and the number of reported claims ($ in millions, except for number of claims):

															December 31, 2022
																	Cumulative Number of Reported Claims
	December 31,
	2016		2017		2018		2019		2020		2021		2022		IBNR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	8
2017	—		1.7		1.7		1.7		1.7		1.7		1.7		—		1,758
2018	—		—		15.0		13.5		13.4		13.4		13.4		—		10,530
2019	—		—		—		46.0		46.1		46.3		46.3		—		19,492
2020	—		—		—		—		53.0		51.5		51.5		0.5		30,205
2021	—		—		—		—		—		59.4		55.9		2.3		53,285
2022	—		—		—		—		—		—		96.5		28.8		51,808
Total incurred losses and ALAE, net													$	265.3	$	31.6	167,086

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

	December 31,
	2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2017	—		1.6		1.7		1.7		1.7		1.7		1.7
2018	—		—		13.2		13.2		13.4		13.4		13.4
2019	—		—		—		36.4		46.1		46.3		46.3
2020	—		—		—		—		43.1		50.2		51.3
2021	—		—		—		—		—		37.8		53.4
2022	—		—		—		—		—		—		52.7
Total paid losses and ALAE, net													$	218.8
Total unpaid loss and ALAE reserves, net													$	46.9
Ceded unpaid loss and LAE													$	101.0
Gross unpaid loss and LAE													$	147.9

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

								December 31, 2022
										Cumulative Number of Reported Claims
	December 31,
		2020		2021		2022		IBNR
		(unaudited)		(unaudited)
Accident Year
2020		$	0.7	$	0.6	$	1.0	$	—	20,796
2021		—		10.0		9.7		0.2		195,156
2022		—		—		27.4		0.5		345,557
Total incurred losses and ALAE, net						$	38.1	$	0.7	561,509

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

	December 31,
		2020		2021		2022
		(unaudited)		(unaudited)
Accident Year
2020		$	0.4	$	0.6	$	0.7
2021		—		7.6		9.4
2022		—		—		21.8
Total paid losses and ALAE, net						$	31.9
Total unpaid loss and ALAE reserves, net						$	5.9
Ceded unpaid loss and LAE						11.3
Gross unpaid loss and LAE						$	17.2

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

															December 31, 2022
																	Cumulative Number of Reported Claims
	2016		2017		2018		2019		2020		2021		2022		IBNR
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	1.6	$	2.0	$	1.7	$	1.7	$	1.8	$	1.9	$	2.0	$	0.1	1,630
2017	—		28.6		30.0		30.2		31.4		32.3		32.5		0.9		29,073
2018	—		—		31.4		29.7		31.9		31.8		33.9		3.0		44,104
2019	—		—		—		24.2		24.0		23.2		24.6		3.2		51,129
2020	—		—		—		—		10.8		12.0		11.8		3.1		37,311
2021	—		—		—		—		—		75.3		75.3		6.6		42,985
2022	—		—		—		—		—		—		80.6		21.9		42,605
Total incurred losses and ALAE, net													$	260.7	$	38.8	248,837

(1) Table above retrospectively includes Metromile's historical incurred accident year claim information for periods presented.

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

	December 31,
	2016		2017		2018		2019		2020		2021		2022
	(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2016	$	0.2	$	1.2	$	1.5	$	1.7	$	1.7	$	1.9	$	1.9
2017	—		17.3		24.3		28.1		30.1		30.8		31.7
2018	—		—		16.8		24.4		28.2		27.6		30.2
2019	—		—		—		13.5		18.7		14.5		18.8
2020	—		—		—		—		5.2		(0.9)		5.6
2021	—		—		—		—		—		38.4		58.9
2022	—		—		—		—		—		—		44.1
Total paid losses and ALAE, net													$	191.2
Total unpaid loss and ALAE reserves, net (2)													$	71.5
Ceded unpaid loss and LAE													$	12.3
Gross unpaid loss and LAE													$	83.8

(1) Table above retrospectively includes Metromile's historical paid accident year claim information for periods presented.

(2) Includes the fair value adjustment on insurance contract intangible liability of $2.0 million.

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	80	%	15	%	5	%

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

	Year 1		Year 2		Year 3
Pet	88	%	11	%	1	%

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

	Year 1		Year 2		Year 3
Car	52	%	22	%	26	%

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):

	December 31, 2022
Unpaid Loss and ALAE, net
Home and renters	$	46.9
Pet	5.9
Car	71.5
	124.3
Reinsurance recoverable on Unpaid Loss and ALAE, net
Home and renters	101.0
Pet	11.3
Car	12.3
	124.6
Unallocated LAE	7.3
Gross Unpaid Loss and Loss Adjustment Expenses	$	256.2