Unpaid Losses and Loss Adjustment Reserve

9 Months Ended

Sep. 30, 2022

Unpaid Losses and Loss Adjustment Reserve

Unpaid Losses and Loss Adjustment Reserve

11. Unpaid Losses and Loss Adjustment Reserve

The following table provides the rollforward of the beginning and ending reserve balances for unpaid losses and LAE, gross of reinsurance for the three and nine months ended September 30, 2022:

	2022
Reserve for unpaid losses and LAE, at December 31, 2021	$	61,949
Reinsurance recoverables on losses and LAE		(56,752)
Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2021		5,197
Add provisions (reductions) for losses and LAE occurring in:
Current year		9,868
Prior years		(620)
Net incurred losses and LAE during the current year		9,248
Deduct payments for losses and LAE occurring in:
Current year		(4,431)
Prior years		(1,602)
Net claim and LAE payments during the current year		(6,033)
Reserve for unpaid losses and LAE, net of reinsurance recoverables, at end of period		8,412
Reinsurance recoverables on losses and LAE		71,196
Reserve for unpaid losses and LAE at March 31, 2022		79,608
Add provisions (reductions) for losses and LAE occurring in:
Current year		13,506
Prior years		979
Net incurred losses and LAE during the current year		14,485
Deduct payments for losses and LAE occurring in:
Current year		(9,118)
Prior years		(615)
Net claim and LAE payments during the current year		(9,733)
Reserve for unpaid losses and LAE, net of reinsurance recoverables, at end of period		13,164
Reinsurance recoverables on losses and LAE		75,730
Reserve for unpaid losses and LAE at June 30, 2022		88,894
Add provisions (reductions) for losses and LAE occurring in:
Current year		13,963
Prior years		2,608
Net incurred losses and LAE during the current year		16,571
Deduct payments for losses and LAE occurring in:
Current year		(8,322)
Prior years		(3,085)
Net claim and LAE payments during the current year		(11,407)
Reserve for unpaid losses and LAE, net of reinsurance recoverables, at end of period		18,327
Reinsurance recoverables on losses and LAE		81,971
Reserve for unpaid losses and LAE at September 30, 2022	$	100,298

Lower than expected recoveries on reinsurance relating to claims occurring in prior years resulted in an increase in incurred losses of $2.6 million and $3.0 million for the three and nine months ended September 30, 2022.