Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2017

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Reconciliation of total incurred losses to total insurance benefits and losses

Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

	Three Months Ended March 31,
	2017		2016
Total incurred losses	$	28,740	$	24,248
Cash surrender value and matured endowments		483		307
Benefit reserve changes		774		270
Total insurance benefits and losses incurred	$	29,997	$	24,825

Property and Casualty Insurance Products [Member]

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows:

Property and Casualty Insurance Products	Three Months Ended March 31,
	2017			2016
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	49,556		$	51,200
Less: Reinsurance recoverable on unpaid losses		(9,806	)		(11,639	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		39,750			39,561

Incurred related to:
Current accident year		8,806			8,488
Prior accident year development ⁽¹⁾		(522	)		(574	)
Total incurred		8,284			7,914

Paid related to:
Current accident year		2,312			1,701
Prior accident years		5,836			8,708
Total paid		8,148			10,409
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		39,886			37,066
Plus: Reinsurance recoverable on unpaid losses		9,011			8,915
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	48,897		$	45,981

⁽¹⁾

In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. However, as a result, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

Medicare Supplement Insurance Products [Member]

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows:

Medicare Supplement Insurance Products	Three Months Ended March 31,
	2017			2016
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	11,263		$	10,547
Less: Reinsurance recoverable on unpaid losses		(990	)		-
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		10,273			10,547

Incurred related to:
Current accident year		18,035			14,908
Prior accident year development		241			(306	)
Total incurred		18,276			14,602

Paid related to:
Current accident year		8,797			7,424
Prior accident years		8,354			7,753
Total paid		17,151			15,177
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		11,398			9,972
Plus: Reinsurance recoverable on unpaid losses		1,819			-
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	13,217		$	9,972

Other Life and Health Insurance Products [Member]

Liabilities for Unpaid Losses, Claims and Loss Adjustment Expenses [Abstract]

Roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses

The roll-forward of liabilities for unpaid losses, claims and loss adjustment expenses, by major product, is as follows:

Other Life and Health Insurance Products	Three Months Ended March 31,
	2017			2016
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	1,743		$	2,123
Less: Reinsurance recoverable on unpaid losses		-			-
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		1,743			2,123

Incurred related to:
Current accident year		1,527			1,684
Prior accident year development		653	⁽²⁾		48
Total incurred		2,180			1,732

Paid related to:
Current accident year		1,056			946
Prior accident years		1,221			1,189
Total paid		2,277			2,135
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		1,646			1,720
Plus: Reinsurance recoverable on unpaid losses		-			-
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	1,646		$	1,720

⁽²⁾

The prior accident year development for other life and health insurance products was primarily due to poor morbidity and mortality. Although the determination of the unfavorable development is subject to variability due to the lower volume of other life and health business and therefore a lower credibility of claims, influenza, the usual driver of elevated morbidity and mortality in winter, was significantly higher than in the previous year and ultimately had an unfavorable effect on the Company’s loss patterns.