Provision for Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2022

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table presents the provision for unpaid losses and loss adjustment expenses at December 31, 2022 and 2021:


	Year Ended December 31,
	2022		2021

	in thousands
Outstanding losses reported	$	65,981	$	38,207
IBNR	44,917		36,662
Net reserves for unpaid losses and loss adjustment expenses	$	110,898	$	74,869
Reinsurance recoverables	843		—
Gross reserves for unpaid losses and loss adjustment expenses	$	111,741	$	74,869

The following table presents a reconciliation of beginning and ending provision for unpaid losses and loss adjustment expenses, net of amounts recoverable from reinsurers:


	Year Ended December 31,
	2022		2021

	in thousands
Gross unpaid losses and loss adjustment expenses, beginning of year	$	74,869	$	54,988
Less: Reinsurance recoverable	—		—
Net unpaid losses and loss adjustment expenses, beginning of the year	$	74,869	$	54,988
Incurred losses and loss adjustment expenses:
Current accident year	$	186,478	$	132,481
Prior accident year (1)	(4,076)		(10,401)
Total incurred losses and loss adjustment expenses	$	182,402	$	122,080
Payments:
Current accident year	$	109,555	$	76,559
Prior accident year	36,803		25,656
Total payments	$	146,358	$	102,215
Effect of foreign currency rate changes	(15)		16
Net reserves for losses and loss adjustment expenses, end of year	$	110,898	$	74,869
Reinsurance recoverables	843		—
Gross reserves for losses and loss adjustment expenses, end of year	$	111,741	$	74,869

(1) In both years presented, prior accident year development reflects lower than originally estimated incurred claims related to frequency and severity in accident years 2017 to 2021.

The following table presents a summary of total gross reserves for losses and loss adjustment expenses by line of business for the periods specified below:


	December 31,
	2022		2021

	in thousands
Auto	$	111,575	$	74,573
Marine	166		296
Total gross reserves for losses and loss adjustment expenses	$	111,741	$	74,869

Short-duration Insurance Contracts, Claims Development

The following tables present incurred losses and loss adjustment expenses, by accident year, undiscounted and net of reinsurance recoveries.

a) Auto


(dollars in thousands)													Reserves for Losses and Loss Adjustment Expenses Incurred But Not Reported		Cumulative Number of Reported Claims
	Reporting Years Ended December 31,
Accident Year	2017*		2018*		2019*		2020*		2021*		2022		As of December 31, 2022
2017	$	18,594	$	18,594	$	18,594	$	18,594	$	18,409	$	18,284	$	44	11,031
2018			40,422		40,287		40,287		37,516		37,491		3		20,641
2019					63,642		63,642		59,660		59,660		631		23,780
2020							90,110		86,608		85,111		2,833		27,092
2021									131,643		129,259		9,215		35,116
2022											186,073		32,056		36,604
Total											$	515,878	$	44,782	154,264
Cumulative paid losses and loss adjustment expenses from the table below											(405,131)		—
Reserves for losses and loss adjustment expenses before 2017, net of reinsurance											—		—
Effect of foreign currency rate changes											(15)		(15)
Reserves for losses and loss adjustment expenses, undiscounted and net of reinsurance											$	110,732	$	44,767

Cumulative paid losses and loss adjustment expenses by accident year (in thousands):



	As of December 31,
Accident Year	2017*		2018*		2019*		2020*		2021*		2022
2017	$	11,410	$	16,655	$	17,442	$	17,530	$	17,897	$	18,122
2018			23,915		34,992		35,899		36,414		36,807
2019					37,910		51,491		55,617		57,393
2020							53,167		73,402		78,079
2021									75,933		105,475
2022											109,255
Total											$	405,131

*Unaudited required supplemental information.

b) Marine:


(dollars in thousands)													Reserves for Losses and Loss Adjustment Expenses Incurred But Not Reported		Cumulative Number of Reported Claims
	Reporting Years Ended December 31,
Accident Year	2017*		2018*		2019*		2020*		2021*		2022		As of December 31, 2022
2017	$	198	$	198	$	198	$	198	$	183	$	183	$	—	124
2018			437		437		437		489		514		—		189
2019					893		893		835		835		—		192
2020							915		975		1,002		16		205
2021									854		757		44		210
2022											405		90		114
Total											$	3,696	$	150	1,034
Cumulative paid losses and loss adjustment expenses from the table below											(3,530)		—
Reserves for losses and loss adjustment expenses before the 2017 accident year											—		—
Reserves for losses and loss adjustment expenses, undiscounted and net of reinsurance											$	166	$	150

Cumulative paid losses and loss adjustment expenses by accident year (in thousands):


Accident Year	2017*		2018*		2019*		2020*	2021*		2022
2017	$	138	$	183	$	183	182	$	182	$	183
2018			332		426		425	431		514
2019					514		828	835		835
2020							568	967		985
2021								625		713
2022										300
Total										$	3,530

*Unaudited required supplemental information.

Short-duration Insurance Contracts, Schedule of Historical Claims Duration

The following table presents supplementary information about average historical claims duration as of December 31, 2022 based on the cumulative incurred and paid losses and allocated loss adjustment expenses presented above.


	Average Annual Percentage of Payout of Incurred Claims by Age (in Years), Net of Reinsurance
unaudited	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6
Auto	62.4	%	21.0	%	8.8	%	3.6	%	1.6	%	1.4	%
Marine	77.9	%	21.4	%	0.9	%	(0.3)	%	—	%	—	%