Unpaid Losses and Loss Adjustment Reserve

3 Months Ended

Mar. 31, 2024

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 three months ended March 31, 2024:

Reserve for unpaid losses and LAE at December 31, 2023	$	95,503
Reinsurance recoverables on losses and LAE at December 31, 2023	(19,808)
Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2023	75,695
Add provisions (reductions) for losses and LAE occurring in:
Current year	67,135
Prior years	1,798
Net incurred losses and LAE during the current year	68,933
Deduct payments for losses and LAE occurring in:
Current year	(19,242)
Prior years (1)	(31,382)
Net claim and LAE payments during the current year	(50,624)
Reserve for losses and LAE, net of reinsurance recoverables at March 31, 2024	94,004
Reinsurance recoverables on losses and LAE at March 31, 2024	(18,556)
Reserve for unpaid losses and LAE at March 31, 2024	$	112,560

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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 $1.8 million for the three months ended March 31, 2024.