LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES (Tables)

12 Months Ended

Dec. 31, 2022

Insurance [Abstract]

Reconciliation of reserve balances for loss and LAE, net of reinsurance

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:

	2022		2021		2020
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	320.2	$	237.2	$	140.7
Reinsurance recoverable on unpaid losses	(79.5)		(79.6)		(18.9)
Net loss and LAE reserves, January 1	240.7		157.6		121.8
Net incurred loss and LAE related to:
Current year	348.1		405.9		341.9
Prior years	2.9		(13.6)		20.9
Total incurred	351.0		392.3		362.8
Net paid loss and LAE related to:
Current year	215.6		226.4		216.3
Prior years	165.1		82.8		110.7
Total paid	380.7		309.2		327.0
Net loss and LAE reserves, December 31	211.0		240.7		157.6
Plus reinsurance recoverable on unpaid losses	76.4		79.5		79.6
Gross loss and LAE reserves, December 31	$	287.4	$	320.2	$	237.2

The following table sets forth the reconciliation of the claims development tables to the balance sheet losses and ALAE reserves, with separate disclosure of unallocated LAE, or ULAE, and reinsurance recoverable on unpaid losses for the years ended December 31:

	2022		2021
	(dollars in millions)
Loss and ALAE reserves—net of reinsurance	$	195.0	$	220.5
ULAE reserves—net of reinsurance	16.0		20.2
Reinsurance recoverables on unpaid losses	76.4		79.5
Total loss and LAE reserves—gross of reinsurance	$	287.4	$	320.2

Schedule of ALAE by accident year

The following table shows incurred and paid losses and allocated loss adjustment expenses, or ALAE, development by accident year for private passenger auto in aggregate, cumulative claim frequency is defined as the number of reported claims at the claim level which includes reported claims that do not result in a liability:

Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022		IBNR		Reported Claims(1)
			(dollars in millions)
2017	$	1.2	$	1.1	$	1.1	$	1.1	$	1.1	$	1.1	$	—	556
2018			42.3		48.3		49.6		48.7		48.3		0.2		18,111
2019					287.3		306.3		304.7		306.0		1.5		90,167
2020							295.9		287.7		286.2		3.9		117,343
2021									341.6		348.1		14.3		151,988
2022											296.0		50.1		115,312
Total											$	1,285.7	$	70.0	493,477
Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022
			(dollars in millions)
2017	$	0.6	$	0.9	$	1.0	$	1.1	$	1.1	$	1.1
2018			20.6		44.6		48.1		48.1		47.7
2019					177.0		277.7		296.2		302.1
2020							182.0		238.5		269.9
2021									179.4		294.6
2022											175.3
Total											1,090.7
Loss and ALAE reserves—net of reinsurance											$	195.0

_______________

(1) Reported by claim event.

Reconciliation of claims development to liability

The following table shows incurred and paid losses and allocated loss adjustment expenses, or ALAE, development by accident year for private passenger auto in aggregate, cumulative claim frequency is defined as the number of reported claims at the claim level which includes reported claims that do not result in a liability:

Incurred Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022		IBNR		Reported Claims(1)
			(dollars in millions)
2017	$	1.2	$	1.1	$	1.1	$	1.1	$	1.1	$	1.1	$	—	556
2018			42.3		48.3		49.6		48.7		48.3		0.2		18,111
2019					287.3		306.3		304.7		306.0		1.5		90,167
2020							295.9		287.7		286.2		3.9		117,343
2021									341.6		348.1		14.3		151,988
2022											296.0		50.1		115,312
Total											$	1,285.7	$	70.0	493,477
Cumulative Paid Losses and ALAE—Net of Reinsurance
Accident Year	2017 (unaudited)		2018 (unaudited)		2019 (unaudited)		2020 (unaudited)		2021 (unaudited)		2022
			(dollars in millions)
2017	$	0.6	$	0.9	$	1.0	$	1.1	$	1.1	$	1.1
2018			20.6		44.6		48.1		48.1		47.7
2019					177.0		277.7		296.2		302.1
2020							182.0		238.5		269.9
2021									179.4		294.6
2022											175.3
Total											1,090.7
Loss and ALAE reserves—net of reinsurance											$	195.0

_______________

(1) Reported by claim event.

Schedule of historical claims

The following table sets forth the historical average annual percentage payout of incurred losses and ALAE (claims duration), net of reinsurance, as of December 31, 2022:

Year	1		2		3		4		5		6
Incremental Paid(1)	54.9	%	32.5	%	8.3	%	3.7	%	(0.4)	%	—	%

_______________

(1) Supplemental information and unaudited