Unpaid Losses and Loss Adjustment Reserve

3 Months Ended

Mar. 31, 2025

Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]

Unpaid Losses and Loss Adjustment Reserve

Note 13. 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, 2025:

Reserve for unpaid losses and LAE at December 31, 2024	$	67,785
Reinsurance recoverables on losses and LAE at December 31, 2024	(19,793)
Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2024	47,992
Add provisions (reductions) for losses and LAE occurring in:
Current year	24,887
Prior years	4,248
Net incurred losses and LAE during the current year	29,135
Deduct payments for losses and LAE occurring in:
Current year	(8,925)
Prior years	(20,467)
Net claim and LAE payments during the current year	(29,392)
Reserve for losses and LAE, net of reinsurance recoverables at March 31, 2025	47,735
Reinsurance recoverables on losses and LAE at March 31, 2025	(24,077)
Reserve for unpaid losses and LAE at March 31, 2025	$	71,812

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 $4.2 million for the three months ended March 31, 2025.