LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES

12 Months Ended

Dec. 31, 2016

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

LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES

LIABILITY FOR LOSSES AND SETTLEMENT EXPENSES

The following table sets forth a reconciliation of beginning and ending reserves for losses and settlement expenses of the Company.  Amounts presented are on a net basis, with a reconciliation of beginning and ending reserves to the gross amounts presented in the consolidated financial statements.

	Year ended December 31,
($ in thousands)	2016			2015			2014
Gross reserves at beginning of year	$	678,774		$	661,309		$	610,181
Re-valuation due to foreign currency exchange rates	(2,475		)	(2,061		)	333
Less ceded reserves at beginning of year	23,477			28,253			30,118
Net reserves at beginning of year	657,772			635,117			579,730
Incurred losses and settlement expenses related to:
Current year	427,838			405,850			406,266
Prior years	(40,941		)	(35,114		)	(20,792		)
Total incurred losses and settlement expenses	386,897			370,736			385,474
Paid losses and settlement expenses related to:
Current year	172,652			154,958			162,905
Prior years	200,236			193,123			167,182
Total paid losses and settlement expenses	372,888			348,081			330,087
Net reserves at end of year	671,781			657,772			635,117
Plus ceded reserves at end of year	20,664			23,477			28,253
Re-valuation due to foreign currency exchange rates	(1,913		)	(2,475		)	(2,061		)
Gross reserves at end of year	$	690,532		$	678,774		$	661,309

Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have an impact on earnings.  This is due to the fact that such development is simply a mathematical by-product of the mechanical process used to reallocate bulk reserves to the various accident years.  Earnings are only impacted by changes in the total amount of carried reserves.

The following table presents the reported amounts of favorable development experienced on prior years’ reserves and the portion of the reported development amounts that resulted solely from changes in the allocation of bulk reserves between the current and prior accident years (no impact on earnings).  The result is an approximation of the implied amounts of favorable development that had an impact on earnings.

	Year ended December 31,
($ in thousands)	2016			2015			2014
Reported amount of favorable development experienced on prior years' reserves	$	(40,941	)	$	(35,114	)	$	(20,792	)
Adjustment for favorable (adverse) development included in the reported development amount that had no impact on earnings	5,592			(618		)	2,151
Approximation of the implied amount of favorable development that had an impact on earnings	$	(35,349	)	$	(35,732	)	$	(18,641	)

There is an inherent amount of uncertainty involved in the establishment of insurance liabilities.  This uncertainty is greatest in the current and more recent accident years because a smaller percentage of the expected ultimate claims have been reported, adjusted and settled compared to more mature accident years.  For this reason, carried reserves for these accident years reflect prudently conservative assumptions.  As the carried reserves for these accident years run off, the overall expectation is that, more often than not, favorable development will occur.  However, there is also the possibility that the ultimate settlement of liabilities associated with these accident years will show adverse development, and such adverse development could be substantial.

During the third quarter of 2016, management implemented a new reserving methodology for the determination of direct bulk reserves in the property and casualty insurance segment. The new methodology, which is referred to as the accident year ultimate estimate approach, better conforms to industry practices and will provide increased transparency of the drivers of the property and casualty insurance segment's performance. In connection with this change in reserving methodology, there was a reallocation of IBNR loss and allocated settlement expense reserves from prior accident years to the current accident year in multiple lines of business. This change resulted in the movement of approximately $5.6 million of reserves from prior accident years to the current accident year that is reported as favorable development; however, this development is "mechanical in nature", and did not have an impact on earnings because the total amount of carried reserves did not change.

 Changes in reserve estimates are reflected in net income in the year such changes are recorded.  Following is an analysis of the reserve development the Company has experienced during the past three years.  Care should be exercised when attempting to analyze the financial impact of the reported development amounts because, as noted above, 1) the overall expectation is that, more often than not, favorable development will occur as the prior accident years’ reserves run off, and 2) development on prior years' reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have any impact on earnings.

2016 Development

For the property and casualty insurance segment, the December 31, 2016 estimate of loss and settlement expense reserves for accident years 2015 and prior decreased $30.0 million from the estimate at December 31, 2015.  This decrease represents 6.2 percent of the December 31, 2015 gross carried reserves and is primarily attributed to a significant amount of favorable reserve development experienced in the workers' compensation and other liability lines of business. The favorable development in the workers' compensation line of business was generated from a change in assumptions due to better than expected loss frequency for accident year 2015 and loss severity for the most recent accident years. The favorable development in the other liability line of business was generated from a change in assumptions due to better than expected loss severity.

For the reinsurance segment, the December 31, 2016 estimate of loss and settlement expense reserves for accident years 2015 and prior decreased $10.9 million from the estimate at December 31, 2015.  This decrease represents 5.5 percent of the December 31, 2015 gross carried reserves and is primarily attributed to favorable development in the 2015 accident year in the HORAD pro rata line of business, and an increase in the amount of negative bulk IBNR loss reserve carried on prior years' reserves in the MRB book of business.

During 2016, the expected loss ratios utilized for prior contract years remained unchanged, except for ocean marine pro rata business. The expected loss ratios associated with this contract type were decreased in contract years 2012, 2014 and 2015 from the ratios utilized during 2015. Additionally, the expected loss ratio for contract year 2013 was increased slightly relative to the 2015 value. These changes were made in response to reserving information supplied by the ceding company, a large writer of ocean marine pro rata business.

2015 Development

For the property and casualty insurance segment, the December 31, 2015 estimate of loss and settlement expense reserves for accident years 2014 and prior decreased $13.8 million from the estimate at December 31, 2014.  This decrease represented 3.0 percent of the December 31, 2014 gross carried reserves and was primarily attributed to better than expected outcomes on claims reported in prior years and favorable development on prior years' settlement expenses.  No changes were made in the key actuarial assumptions utilized to estimate loss and settlement expense reserves during 2015; however, the accident year allocation factors applied to IBNR loss reserves, bulk case loss reserves and the defense and cost containment portion of settlement expense reserves were revised at December 31, 2015 as part of the annual review.  This change resulted in the movement of $423,000 of reserves from prior accident years to the current accident year, and hence, was reported as favorable development on prior years' reserves.  Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have an impact on earnings.

For the reinsurance segment, the December 31, 2015 estimate of loss and settlement expense reserves for accident years 2014 and prior decreased $21.3 million from the estimate at December 31, 2014.  This decrease represented 10.8 percent of the December 31, 2014 gross carried reserves and was attributed to several factors, including adjustments made in the offshore energy and liability proportional account, a reduction in carried IBNR loss reserves that could no longer be justified and a negative bulk IBNR loss reserve established for the MRB book of business. No changes were made in the key actuarial assumptions utilized to estimate loss and settlement expense reserves during 2015; however, the accident year allocation factors applied to IBNR loss reserves were revised during 2015. This change resulted in the movement of $1.0 million of reserves from the current accident year to prior accident years, and hence, was reported as adverse development on prior years' reserves. Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have an impact on earnings.

2014 Development

For the property and casualty insurance segment, the December 31, 2014 estimate of loss and settlement expense reserves for accident years 2013 and prior decreased $8.1 million from the estimate at December 31, 2013.  This decrease represented 1.9 percent of the December 31, 2013 gross carried reserves and was primarily attributed to better than expected outcomes on claims reported in prior years and favorable development on prior years' settlement expense reserves.  No changes were made in the key actuarial assumptions utilized to estimate loss and settlement expense reserves during 2014; however, the accident year allocation factors applied to IBNR loss reserves, bulk case loss reserves and the defense and cost containment portion of settlement expense reserves were revised at December 31, 2014 as part of the annual review.  This change resulted in the movement of $2.2 million of reserves from the prior accident years to the current accident year, and hence, was reported as favorable development on prior years' reserves.  Development on prior years’ reserves resulting solely from changes in the allocation of bulk reserves between the current and prior accident years does not have an impact on earnings.

For the reinsurance segment, the December 31, 2014 estimate of loss and settlement expense reserves for accident years 2013 and prior decreased $12.7 million from the estimate at December 31, 2013.  This decrease represented 6.9 percent of the December 31, 2013 gross carried reserves and was largely attributed to reported losses being lower than what was expected as of December 31, 2014 for accident years 2012 and prior, and a reduction of IBNR loss reserves on older accident years because the amount previously carried was no longer indicated in the actuarial analysis.

Following is information about reported incurred and paid claims development as of December 31, 2016, net of reinsurance, as well as cumulative claim frequency and the amount of IBNR loss reserves carried. The information displayed for assumed reinsurance is restated to reflect all foreign currency denominated transactions on the basis of current (December 31, 2016) exchange rates. The number of reported claims (cumulative claim frequency) for the Company’s direct insurance business represents the total number of claims reported by the participants in the pooling agreement, and is determined on the basis of each unique combination of claimant, specific policy coverage, and type of loss. This is in contrast to all other reported amounts that are stated at the aggregate 30 percent pool participation percentage of the Company's property and casualty insurance subsidiaries. The cumulative claim frequency for the Company’s assumed reinsurance business is not readily available. Consistent with industry practices, bordereauxs on pro rata accounts often exclude claim frequency information, and if it is included, the level of detail provided by the ceding companies can vary significantly. Excess of loss contracts customarily report total losses subject to the treaty without detailed loss listings.

($ in thousands)
Commercial auto liability insurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																					As of December 31, 2016
	Supplementary unaudited information																		Audited			Audited			Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016			IBNR reserves carried			Cumulative number of reported claims
2007	$	29,391	$	32,270	$	33,085	$	32,264	$	30,850	$	30,513	$	30,263	$	30,120	$	30,054	$	30,059		$	46		12,289
2008			29,898		30,082		29,433		27,968		26,886		26,923		26,878		26,741		26,768			2			11,511
2009					28,973		27,923		26,667		25,370		24,986		24,874		24,730		24,655			14			10,481
2010							30,377		27,480		26,478		26,401		26,252		26,479		26,166			(1		)	11,391
2011									32,775		29,790		31,098		31,961		31,914		31,635			30			11,763
2012											32,768		34,235		37,098		37,681		37,693			(308		)	11,940
2013													37,265		40,382		42,086		42,336			(454		)	13,628
2014															50,342		49,998		51,455			2,008			15,029
2015																	53,883		57,824			4,608			16,378
2016																			59,468			11,487			15,598
																	Total		$	388,059
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	6,180	$	14,231	$	21,600	$	25,928	$	28,241	$	29,239	$	29,993	$	29,989	$	29,998	$	30,005
2008			6,551		13,437		19,204		23,144		25,215		26,306		26,527		26,648		26,750
2009					6,952		12,957		17,359		21,532		24,001		24,495		24,593		24,608
2010							7,025		13,278		19,274		23,547		24,674		25,558		26,039
2011									6,801		14,875		22,206		26,598		29,121		30,293
2012											8,830		19,398		26,023		32,636		35,406
2013													8,729		19,975		29,997		36,232
2014															12,069		25,746		37,433
2015																	13,336		27,424
2016																			13,583
																	Total		$	287,773
									All outstanding liabilities before 2007, net of reinsurance										(34		)
							Liability for losses and settlement expenses, net of reinsurance												$	100,252

($ in thousands)
Commercial property insurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited			Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried			Cumulative number of reported claims
2007	$	38,293	$	35,166	$	34,070	$	33,877	$	33,858	$	33,896	$	33,892	$	33,928	$	33,811	$	33,815	$	1		11,933
2008			48,559		42,870		42,645		42,422		42,562		42,649		42,784		42,765		42,707		(50		)	15,795
2009					39,511		36,003		35,985		35,881		35,622		35,926		36,056		36,020		(446		)	14,635
2010							40,422		38,650		38,770		39,071		39,154		39,379		39,428		(3		)	16,267
2011									58,930		57,614		57,271		57,629		57,703		58,375		95			19,493
2012											41,535		44,157		45,313		46,273		46,566		(116		)	16,039
2013													50,266		50,976		52,511		53,070		(27		)	15,982
2014															60,018		60,990		60,662		(35		)	16,702
2015																	55,508		56,798		(289		)	14,253
2016																			59,708		339			13,636
																	Total		$	487,149
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	24,873	$	32,797	$	33,404	$	33,656	$	33,809	$	33,857	$	33,878	$	33,914	$	33,800	$	33,813
2008			31,514		40,603		41,868		41,991		42,071		42,607		42,691		42,755		42,755
2009					25,321		32,602		34,624		35,422		35,803		35,803		35,849		35,893
2010							28,032		35,730		36,931		37,926		38,901		39,314		39,318
2011									41,524		53,226		54,803		56,249		57,065		57,607
2012											32,879		41,862		43,628		44,543		46,270
2013													36,555		47,683		50,460		51,457
2014															43,022		55,679		58,045
2015																	37,208		50,068
2016																			41,652
																	Total		$	456,878
									All outstanding liabilities before 2007, net of reinsurance										100
							Liability for losses and settlement expenses, net of reinsurance												$	30,371

($ in thousands)
Workers' compensation insurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried		Cumulative number of reported claims
2007	$	43,285	$	45,832	$	44,747	$	44,888	$	44,981	$	44,373	$	44,372	$	44,325	$	44,353	$	43,599	$	845	22,312
2008			49,577		46,240		44,113		43,156		43,766		43,338		43,301		43,737		42,943		1,179		21,614
2009					46,130		43,335		44,098		44,041		44,093		43,590		43,724		42,774		998		19,233
2010							46,328		49,336		50,057		49,906		49,851		50,069		49,145		1,383		19,611
2011									47,836		46,724		44,709		44,506		44,427		43,695		1,649		19,562
2012											51,099		50,094		47,756		46,928		45,088		2,156		19,357
2013													52,141		51,637		48,946		46,102		2,639		19,814
2014															51,515		50,973		47,472		2,680		19,390
2015																	54,960		48,919		3,485		18,983
2016																			57,832		17,228		17,764
																	Total		$	467,569
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	11,592	$	24,164	$	30,600	$	34,061	$	36,338	$	37,818	$	38,916	$	39,628	$	40,251	$	40,643
2008			12,432		25,214		31,110		34,302		36,024		37,270		37,938		38,654		39,099
2009					11,879		25,157		31,802		35,363		37,409		38,329		39,167		39,583
2010							14,237		28,074		35,029		39,001		41,437		42,651		43,614
2011									13,291		26,291		32,237		35,295		37,027		38,437
2012											14,015		28,109		33,943		37,307		39,456
2013													14,917		29,219		35,061		37,907
2014															14,692		28,894		35,883
2015																	14,956		29,023
2016																			15,473
																	Total		$	359,118
									All outstanding liabilities before 2007, net of reinsurance										28,331
							Liability for losses and settlement expenses, net of reinsurance												$	136,782

($ in thousands)
Other liability insurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried		Cumulative number of reported claims
2007	$	47,426	$	40,441	$	35,944	$	36,535	$	36,148	$	36,185	$	36,725	$	36,399	$	36,194	$	36,011	$	632	10,442
2008			46,327		40,005		38,877		34,689		38,755		37,005		36,305		35,528		35,491		1,056		10,941
2009					44,497		39,908		37,650		34,263		35,614		32,827		32,384		32,521		1,277		9,826
2010							41,624		36,213		34,655		38,829		36,137		34,655		34,556		1,273		10,129
2011									44,490		42,982		35,125		35,177		33,649		32,452		1,700		9,969
2012											42,661		42,081		41,139		40,275		37,093		1,450		10,010
2013													47,974		43,837		42,544		42,187		6,957		10,504
2014															61,382		54,403		52,601		6,614		10,691
2015																	54,221		47,553		15,533		10,074
2016																			59,052		24,345		8,612
																	Total		$	409,517
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	3,505	$	9,966	$	17,971	$	23,893	$	28,383	$	30,234	$	31,605	$	33,182	$	34,096	$	34,725
2008			4,299		10,443		16,525		24,139		28,476		31,270		32,514		32,863		33,162
2009					3,294		10,707		16,718		22,276		26,255		28,172		29,722		30,176
2010							3,403		8,315		15,041		21,732		27,612		29,688		30,711
2011									4,730		10,572		17,308		22,154		25,647		28,228
2012											4,720		12,851		19,661		25,095		29,651
2013													4,414		11,894		21,122		27,642
2014															5,630		17,267		27,506
2015																	4,331		11,588
2016																			6,403
																	Total		$	259,792
									All outstanding liabilities before 2007, net of reinsurance										14,056
							Liability for losses and settlement expenses, net of reinsurance												$	163,781

($ in thousands)
Personal auto liability insurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited			Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried			Cumulative number of reported claims
2007	$	8,616	$	8,337	$	8,107	$	7,923	$	7,866	$	7,839	$	7,814	$	7,794	$	7,782	$	7,793	$	21		6,737
2008			9,024		8,221		8,121		8,098		8,094		7,909		7,876		7,833		7,862		51			6,781
2009					10,168		9,653		9,452		9,386		9,353		9,382		9,339		9,325		24			7,523
2010							9,815		9,851		9,736		9,698		9,700		9,656		9,676		31			7,429
2011									9,741		9,388		9,331		9,432		9,460		9,311		(97		)	8,050
2012											10,917		10,756		11,023		10,731		10,537		(30		)	7,871
2013													10,492		10,384		10,376		10,085		13			7,232
2014															10,573		9,631		9,331		112			6,304
2015																	9,119		8,638		213			5,642
2016																			7,404		997			4,443
																	Total		$	89,962
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	3,243	$	5,355	$	6,696	$	7,134	$	7,497	$	7,697	$	7,756	$	7,772	$	7,772	$	7,772
2008			3,096		5,798		6,743		7,291		7,558		7,794		7,810		7,809		7,805
2009					3,564		6,393		7,966		8,905		9,049		9,194		9,204		9,278
2010							3,988		6,666		8,250		9,108		9,401		9,562		9,632
2011									3,950		6,842		8,129		8,883		9,038		9,153
2012											4,779		7,439		9,091		9,871		10,244
2013													4,377		7,521		8,985		9,648
2014															3,970		6,392		7,755
2015																	3,800		6,229
2016																			3,505
																	Total		$	81,021
									All outstanding liabilities before 2007, net of reinsurance										59
							Liability for losses and settlement expenses, net of reinsurance												$	9,000

($ in thousands)
Homeowners insurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited			Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried			Cumulative number of reported claims
2007	$	14,283	$	12,525	$	12,332	$	12,333	$	12,317	$	12,295	$	12,322	$	12,314	$	12,322	$	12,312	$	(6	)	9,208
2008			22,736		20,222		19,894		19,924		19,905		19,886		19,886		19,901		19,908		—			12,964
2009					18,109		16,606		16,467		16,379		16,352		16,394		16,465		16,464		—			11,475
2010							17,875		17,523		17,074		17,053		17,093		17,129		17,146		(16		)	12,132
2011									24,530		23,389		22,975		23,309		23,448		23,415		45			14,257
2012											16,057		16,496		16,836		16,929		16,892		(9		)	10,108
2013													14,844		14,833		14,685		14,784		60			8,683
2014															13,228		13,328		13,447		39			7,416
2015																	11,233		11,153		37			5,907
2016																			11,801		(38		)	6,853
																	Total		$	157,322
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	9,164	$	11,605	$	12,067	$	12,126	$	12,133	$	12,158	$	12,219	$	12,220	$	12,221	$	12,221
2008			15,642		19,385		19,550		19,787		19,891		19,902		19,903		19,902		19,908
2009					12,645		15,885		16,135		16,246		16,288		16,315		16,421		16,464
2010							13,457		16,633		16,909		17,011		17,128		17,128		17,130
2011									19,828		22,421		22,737		23,136		23,403		23,370
2012											13,759		16,283		16,582		16,793		16,859
2013													11,735		14,285		14,621		14,681
2014															11,065		13,025		13,215
2015																	8,650		10,456
2016																			10,573
																	Total		$	154,877
									All outstanding liabilities before 2007, net of reinsurance										—
							Liability for losses and settlement expenses, net of reinsurance												$	2,445

($ in thousands)
Auto physical damage insurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited			Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried			Cumulative number of reported claims
2007	$	17,177	$	15,198	$	15,034	$	15,051	$	15,033	$	15,022	$	15,014	$	15,010	$	15,004	$	14,993	$	(9	)	25,973
2008			19,589		17,743		17,598		17,584		17,578		17,567		17,562		17,558		17,540		(15		)	28,635
2009					18,077		16,744		16,720		16,639		16,593		16,605		16,602		16,587		(15		)	29,419
2010							19,249		18,657		18,538		18,549		18,527		18,532		18,488		(35		)	31,513
2011									21,965		21,003		20,919		20,917		20,915		20,877		(25		)	34,393
2012											21,389		21,342		21,263		21,233		21,161		(54		)	31,098
2013													22,847		22,553		22,486		22,371		(52		)	31,040
2014															24,897		24,115		23,904		(98		)	31,571
2015																	27,950		26,612		(47		)	30,633
2016																			28,070		(1,294		)	29,060
																	Total		$	210,603
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	14,202	$	15,111	$	15,019	$	15,043	$	15,029	$	15,019	$	15,012	$	15,008	$	15,004	$	15,002
2008			16,491		17,662		17,577		17,570		17,577		17,564		17,560		17,557		17,555
2009					15,566		16,661		16,687		16,636		16,592		16,603		16,602		16,601
2010							17,113		18,557		18,529		18,540		18,523		18,528		18,521
2011									19,849		20,984		20,912		20,904		20,912		20,900
2012											19,719		21,328		21,256		21,227		21,216
2013													20,774		22,512		22,463		22,417
2014															22,743		24,110		23,987
2015																	24,483		26,538
2016																			26,871
																	Total		$	209,608
									All outstanding liabilities before 2007, net of reinsurance										3
							Liability for losses and settlement expenses, net of reinsurance												$	998

($ in thousands)
Assumed pro rata reinsurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried		Cumulative number of reported claims
2007	$	26,407	$	19,758	$	18,245	$	18,323	$	18,152	$	17,959	$	17,867	$	17,849	$	17,758	$	17,773	$	268	Unavailable
2008			29,698		25,004		23,684		24,053		23,560		23,690		23,500		23,654		23,712		321
2009					23,625		19,009		18,100		17,306		17,143		16,970		16,907		16,899		295
2010							19,357		16,773		16,151		15,501		15,322		15,114		15,065		150
2011									29,890		29,567		29,156		28,399		27,808		27,792		230
2012											21,735		20,865		20,422		17,785		17,231		505
2013													23,022		29,554		26,902		26,325		2,764
2014															30,931		27,215		27,500		2,089
2015																	38,142		34,953		5,292
2016																			35,519		17,637
																	Total		$	242,769
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	6,397	$	13,247	$	14,976	$	16,004	$	16,789	$	16,899	$	17,007	$	17,222	$	17,273	$	17,338
2008			9,154		17,973		20,168		21,367		21,872		22,288		22,539		22,842		22,984
2009					6,071		12,821		14,387		15,195		15,720		15,980		16,158		16,346
2010							4,995		11,774		13,692		14,083		14,693		14,742		14,783
2011									10,139		22,575		26,190		26,893		27,268		27,339
2012											4,378		12,433		14,639		15,834		16,178
2013													3,834		12,291		17,455		20,564
2014															5,980		15,907		20,297
2015																	9,526		21,794
2016																			9,613
																	Total		$	187,236
									All outstanding liabilities before 2007, net of reinsurance										2,926
							Liability for losses and settlement expenses, net of reinsurance												$	58,459

($ in thousands)
Assumed excess of loss reinsurance
	Incurred losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,																				As of December 31, 2016
	Supplementary unaudited information																		Audited		Audited		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016		IBNR reserves carried		Cumulative number of reported claims
2007	$	31,246	$	25,899	$	26,567	$	23,064	$	22,825	$	22,735	$	22,588	$	22,112	$	22,036	$	22,084	$	1,135	Unavailable
2008			43,846		39,823		41,319		40,054		38,911		39,499		37,413		36,956		36,821		1,490
2009					38,849		30,505		29,941		30,470		30,121		28,187		27,867		27,096		1,872
2010							47,367		40,923		40,735		40,223		39,592		40,348		39,544		2,761
2011									71,897		61,504		60,672		59,088		58,825		58,444		3,254
2012											58,734		55,971		54,397		53,152		52,800		4,598
2013													52,143		47,088		44,536		44,391		4,219
2014															65,009		58,476		59,827		6,611
2015																	59,686		54,522		10,167
2016																			66,336		23,457
																	Total		$	461,865
	Cumulative paid losses and allocated settlement expenses, net of reinsurance, for the years ended December 31,
	Supplementary unaudited information																		Audited
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
2007	$	5,853	$	13,257	$	15,750	$	16,513	$	17,599	$	18,157	$	18,464	$	18,725	$	19,328	$	19,708
2008			14,250		25,464		28,652		30,585		31,214		32,529		32,679		33,110		33,554
2009					8,554		15,867		18,765		20,968		21,837		22,186		22,809		22,987
2010							9,281		24,713		27,985		30,778		32,620		33,629		35,306
2011									25,188		42,007		47,722		50,367		52,362		53,657
2012											21,318		36,224		40,592		43,580		45,115
2013													11,676		27,327		32,973		37,232
2014															22,114		38,921		45,604
2015																	13,376		30,171
2016																			18,280
																	Total		$	341,614
									All outstanding liabilities before 2007, net of reinsurance										19,142
							Liability for losses and settlement expenses, net of reinsurance												$	139,393

The following table sets forth a reconciliation of the incurred and paid claims development tables to the liability for losses and settlement expenses:

($ in thousands)	December 31, 2016
Net outstanding liabilities for losses and allocated settlement expenses:
Commercial auto liability insurance	$	100,252
Commercial property insurance	30,371
Workers' compensation insurance	136,782
Other liability insurance	163,781
Personal auto liability insurance	9,000
Homeowners insurance	2,445
Auto physical damage insurance	998
Assumed pro rata reinsurance	58,459
Assumed excess of loss reinsurance	139,393
Other lines of insurance	1,967
Liability for losses and allocated settlement expenses, net of reinsurance	643,448
Ceded reserves for losses and allocated settlement expenses:
Commercial auto liability insurance	526
Commercial property insurance	3,608
Workers' compensation insurance	8,265
Other liability insurance	2,547
Personal auto liability insurance	1,511
Homeowners insurance	41
Auto physical damage insurance	21
Assumed pro rata reinsurance	2,242
Assumed excess of loss reinsurance	1,880
Other lines of insurance	23
Total ceded reserves for losses and allocated settlement expenses	20,664
Unallocated settlement expenses	26,420
Gross reserve for losses and settlement expenses	$	690,532

Average annual percentage payout of incurred claims by age, net of reinsurance
	Supplementary unaudited information
Years	1		2		3		4		5		6		7		8		9		10
Commercial auto liability insurance	23.5	%	25.8	%	21.8	%	15.5	%	7.5	%	3.3	%	1.4	%	0.2	%	0.2	%	0.0	%
Commercial property insurance	70.6	%	20.9	%	3.6	%	1.7	%	1.6	%	0.7	%	0.1	%	0.1	%	(0.2	)%	0.0	%
Workers' compensation insurance	29.5	%	29.8	%	14.0	%	7.5	%	4.6	%	2.8	%	2.0	%	1.4	%	1.2	%	0.9	%
Other liability insurance	11.0	%	18.6	%	19.7	%	17.1	%	12.8	%	6.6	%	3.8	%	2.3	%	1.7	%	1.7	%
Personal auto liability insurance	42.5	%	29.0	%	15.1	%	7.7	%	3.0	%	2.0	%	0.5	%	0.3	%	(0.1	)%	0.0	%
Homeowners insurance	80.3	%	16.8	%	1.8	%	0.9	%	0.5	%	0.1	%	0.3	%	0.1	%	0.0	%	0.0	%
Auto physical damage insurance	93.9	%	6.8	%	(0.3	)%	0.0	%	(0.1	)%	0.0	%	0.0	%	0.0	%	0.0	%	0.0	%
Assumed pro rata reinsurance	29.6	%	39.5	%	12.8	%	5.6	%	2.8	%	0.9	%	0.8	%	1.2	%	0.5	%	0.4	%
Assumed excess of loss reinsurance	31.9	%	31.2	%	10.1	%	6.2	%	3.5	%	2.4	%	2.1	%	1.0	%	2.0	%	1.7	%