Unpaid Losses and Loss Adjustment Reserve

9 Months Ended

Sep. 30, 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 nine months ended September 30, 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	77,869
Prior years	3,460
Net incurred losses and LAE during the current year	81,329
Deduct payments for losses and LAE occurring in:
Current year	(46,477)
Prior years	(36,594)
Net claim and LAE payments during the current year	(83,071)
Reserve for losses and LAE, net of reinsurance recoverables at September 30, 2025	46,250
Reinsurance recoverables on losses and LAE at September 30, 2025	(10,811)
Reserve for unpaid losses and LAE at September 30, 2025	$	57,061

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 $3.5 million for the nine months ended September 30, 2025.