Unpaid Losses and Loss Adjustment Reserve

12 Months Ended

Dec. 31, 2024

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Unpaid Losses and Loss Adjustment Reserve

Note 15. Unpaid Losses and Loss Adjustment Reserve

The following tables summarizes the changes in the reserve balances for unpaid losses and LAE, gross of reinsurance, for the year ended December 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	200,833
Prior years (1)	(4,926)
Net incurred losses and LAE during the current year	195,907
Deduct payments for losses and LAE occurring in:
Current year	(162,329)
Prior years	(61,281)
Net claim and LAE payments during the current year	(223,610)
Reserve for losses and LAE, net of reinsurance recoverables at December 31, 2024	47,992
Reinsurance recoverables on losses and LAE at December 31, 2024	(19,793)
Reserve for unpaid losses and LAE at December 31, 2024	$	67,785

______________________________________

(1)Also includes certain charges related to Vesttoo (see Note 14, Reinsurance, for more information).

The following tables summarizes the changes in reserve balances for unpaid losses and LAE, gross of reinsurance for the year ended December 31, 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)	197,792
Prior years	(158)
Net incurred losses and LAE during the current year	197,634
Deduct payments for losses and LAE occurring in:
Current year	(125,370)
Prior years	(20,202)
Net claim and LAE payments during the current year	(145,572)
Reserve for losses and LAE, net of reinsurance recoverables at December 31, 2023	75,695
Reinsurance recoverables on losses and LAE at December 31, 2023	(19,808)
Reserve for unpaid losses and LAE at December 31, 2023	$	95,503

______________________________________

(1)Also includes certain charges related to Vesttoo (see Note 14, Reinsurance, for more information).

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 decreases of $4.9 million and $0.2 million for the years ended December 31, 2024 and 2023, respectively.

The claim counts in the following tables are cumulative reported claim counts as of December 31, 2024, and are equal to the sum of cumulative open and cumulative closed claims, including claims closed without payment. The following

supplementary information presents incurred and paid losses by accident year, net of reinsurance ($ in thousands, except for number of claims):

											December 31, 2024
	Incurred losses and allocated loss adjustment expenses, net of reinsurance, for the years ended December 31,												Cumulative Number of
	2020		2021		2022		2023		2024		IBNR Reserves		Reported Claims
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2020	$	12,664	$	14,281	$	14,587	$	14,717	$	14,718	$	—	13,233
2021			19,795		20,614		23,149		22,745		5		35,088
2022					55,110		52,065		50,555		72		25,332
2023							183,669		180,626		553		22,428
2024									200,824		11,407		22,291
Total									$	469,468	$	12,037	118,372

	Cumulative paid losses and allocated adjustment expenses, net of reinsurance, for the year ended December 31,
	2020		2021		2022		2023		2024
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Accident Year
2020	$	9,750	$	13,865	$	14,142	$	14,500	$	14,566
2021			15,335		20,569		21,652		22,302
2022					32,073		50,705		53,524
2023							125,370		182,933
2024									162,329
Total									$	435,654
Liability for losses and loss adjustment expenses, net of reinsurance									$	33,814

Payments for losses, net of reinsurance, related to accident year 2019 and prior was $66 thousand for the year ended December 31, 2024.

Average annual percentage payout of accident year incurred claims by age, net of reinsurance (unaudited supplementary information) as of December 31, 2024:

1	2	3	4	5
79.2%	19.6%	1.0%	0.2%	—%