Unpaid Losses and Loss Adjustment Reserve

9 Months Ended

Sep. 30, 2023

Liability for Claims and Claims Adjustment Expense [Abstract]

Unpaid Losses and Loss Adjustment Reserve

Note 11. Unpaid Losses and Loss Adjustment Reserve

The following table summarizes the changes in the reserve balances for unpaid losses and LAE, gross of reinsurance, for the nine months ended September 30, 2023:

Reserve for unpaid losses and LAE at December 31, 2022	$	100,632
Reinsurance recoverables on losses and LAE at December 31, 2022	(76,999)
Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2022	23,633
Add provisions (reductions) for losses and LAE occurring in:
Current year (1)	182,010
Prior years	1,486
Net incurred losses and LAE during the current year	183,496
Deduct payments for losses and LAE occurring in:
Current year	(85,481)
Prior years	(17,645)
Net claim and LAE payments during the current year	(103,126)
Reserve for losses and LAE, net of reinsurance recoverables at September 30, 2023	104,003
Reinsurance recoverables on losses and LAE at September 30, 2023	25,772
Reserve for unpaid losses and LAE at September 30, 2023	$	129,775

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(1)Also includes certain charges related to Vesttoo (see Note 10).

As a result of additional information on claims occurring in prior years becoming available to management, changes in estimates of provisions of losses and loss adjustment expenses were made resulting in an increase of $1.5 million for the nine months ended September 30, 2023.