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

6 Months Ended

Jun. 30, 2020

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 for the six months ended June 30, 2020 and 2019 is as follows:

	Six Months Ended June 30,
	2020			2019
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	81,448		$	72,612
Less: Reinsurance recoverable on unpaid losses		(18,339	)		(14,354	)
Beginning liabilities for unpaid losses, claims and loss adjustment expenses, net		63,109			58,258

Incurred related to:
Current accident year		62,262			68,157

Prior accident year development ⁽¹⁾		(2,302	)⁽²⁾		103
Total incurred		59,960			68,260

Paid related to:
Current accident year		33,911			38,875
Prior accident years		29,587			28,576
Total paid		63,498			67,451
Ending liabilities for unpaid losses, claims and loss adjustment expenses, net		59,571			59,067
Plus: Reinsurance recoverable on unpaid losses		16,927			16,088
Ending liabilities for unpaid losses, claims and loss adjustment expenses, gross	$	76,498		$	75,155

⁽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.

⁽²⁾

Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity.

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:

	Six Months Ended June 30,
	2020		2019
Total incurred losses	$	59,960	$	68,260
Cash surrender value and matured endowments		697		588
Benefit reserve changes		2		610
Total insurance benefits and losses incurred	$	60,659	$	69,458