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

3 Months Ended

Mar. 31, 2018

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,
	2018		2017
Total incurred losses	$	32,367	$	28,740
Cash surrender value and matured endowments		378		483
Benefit reserve changes		427		774
Total insurance benefits and losses incurred	$	33,172	$	29,997

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,
	2018			2017
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	47,997		$	49,556
Less: Reinsurance recoverable on unpaid losses		(7,220	)		(9,806	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		40,777			39,750

Incurred related to:
Current accident year		9,602			8,806
Prior accident year development ⁽¹⁾		(425	)		(522	)
Total incurred		9,177			8,284

Paid related to:
Current accident year		2,348			2,312
Prior accident years		5,976			5,836
Total paid		8,324			8,148
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		41,630			39,886
Plus: Reinsurance recoverable on unpaid losses		7,158			9,011
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	48,788		$	48,897

⁽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. Accordingly, 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

Medicare Supplement Insurance Products	Three Months Ended March 31,
	2018			2017
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	15,859		$	11,263
Less: Reinsurance recoverable on unpaid losses		(4,748	)		(990	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		11,111			10,273

Incurred related to:
Current accident year		17,615			18,035
Prior accident year development		3,343	⁽²⁾		241
Total incurred		20,958			18,276

Paid related to:
Current accident year		5,873			8,797
Prior accident years		13,252			8,354
Total paid		19,125			17,151
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		12,944			11,398
Plus: Reinsurance recoverable on unpaid losses		6,535			1,819
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	19,479		$	13,217

⁽²⁾

The prior accident year development for Medicare supplement insurance products was primarily due to influenza, the usual driver of elevated morbidity in winter, which was significantly higher than in the previous year and ultimately had an unfavorable effect on the Company’s loss patterns.

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

Other Life and Health Insurance Products	Three Months Ended March 31,
	2018			2017
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	1,833		$	1,743
Less: Reinsurance recoverable on unpaid losses		-			-
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		1,833			1,743

Incurred related to:
Current accident year		2,516			1,527
Prior accident year development		(284	)		653
Total incurred		2,232			2,180

Paid related to:
Current accident year		998			1,056
Prior accident years		1,214			1,221
Total paid		2,212			2,277
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		1,853			1,646
Plus: Reinsurance recoverable on unpaid losses		-			-
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	1,853		$	1,646