Insurance Reserves and Policyholder Funds (Tables)

12 Months Ended

Dec. 31, 2020

Insurance Reserves and Policyholder Funds [Abstract]

Reserves for Life, Accident, Health and Property and Casualty Losses, Including Loss Adjustment Expenses

The following table presents the Company’s reserves for life, accident and health, and property and casualty losses, claims and loss adjustment expenses at December 31, 2020 and 2019.

					Amount of Insurance In Force, Net
	2020		2019		2020			2019
Future policy benefits
Life insurance policies:
Ordinary life and annuities	$	54,442	$	55,403	$	199,827		$	212,774
Group life		91		93		83,533	(1)		33,508
		54,533		55,496	$	283,360		$	246,282
Accident and health insurance policies		36,339		36,994
		90,872		92,490
Unearned premiums		27,131		26,035
Losses, claims and loss adjustment expenses		79,147		81,448
Other policy liabilities		1,526		1,933
Total insurance reserves and policyholder funds	$	198,676	$	201,906

(1) The group life in force amounts increased significantly during 2020. However, the impact on future policy benefits is not significant due to the deferred premium offset to the gross benefit reserve.

Summary of Activity in Liabilities for Unpaid Loss and Claim Reserved

Activity in the liability for unpaid loss and claim reserves is summarized as follows:

	2020			2019
Balance at January 1	$	81,448		$	72,612
Less: Reinsurance recoverable on unpaid losses		(18,339	)		(14,354	)
Net balance at January 1		63,109			58,258
Incurred related to:
Current year		122,626			137,305
Prior years		(3,480	)(1)		(80	)(2)
Total incurred		119,146			137,225
Paid related to:
Current year		84,518			95,489
Prior years		36,190			36,885
Total paid		120,708			132,374
Net balance at December 31		61,547			63,109
Plus: Reinsurance recoverable on unpaid losses		17,600			18,339
Balance at December 31	$	79,147		$	81,448

(1) 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.  Rate increases on existing business and the resultant improvement in rate adequacy was more favorable than expected. Additionally, the Company experienced favorable development in the surety line of business in American Southern due to a reduction in exposure coupled with recoveries on certain prior year losses.

(2) Prior years’ development was primarily the result of better than expected development on prior years loss and claim reserves for certain lines of business in American Southern, somewhat offset by unfavorable development on prior years 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:

	2020			2019
Total incurred losses	$	119,146		$	137,225
Cash surrender value and matured endowments		1,198			1,362
Benefit reserve changes		(468	)		638
Total insurance benefits and losses incurred	$	119,876		$	139,225

Supplementary Information about Average Historical Claims Duration

The following is supplementary information about average historical claims duration as of December 31, 2020.

	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Reserve Line	1st Year			2nd Year			3rd Year			4th Year			5th Year			6th Year			7th Year			8th Year			9th Year			10th Year
Medicare Supplement		83.0	%		16.9	%		0.1	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Automobile Liability		29.1	%		30.9	%		17.3	%		12.7	%		5.8	%		2.1	%		0.4	%		0.5	%		0.0	%		0.0	%
Automobile Physical Damage		85.4	%		14.2	%		-0.6	%		-0.4	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
General Liability		17.8	%		17.8	%		22.5	%		16.9	%		8.4	%		6.3	%		2.8	%		2.2	%		1.7	%		6.6	%
Surety		41.2	%		31.1	%		10.5	%		9.8	%		-1.3	%		1.8	%		0.3	%		0.2	%		0.2	%		0.1	%

Reconciliation of Net Incurred and Paid Claims Development

The reconciliation of the net incurred and paid claims development tables to the liability for losses, claims and loss adjustment expenses is as follows:

	December 31, 2020
Net outstanding liabilities
Medicare Supplement	$	12,900
Automobile Liability		36,784
Automobile Physical Damage		1,964
General Liability		3,415
Surety		2,940
Other short-duration insurance lines		1,666
Liabilities for unpaid losses, claims and loss adjustment expenses, net of reinsurance		59,669
Reinsurance recoverable on unpaid losses:
Medicare Supplement		8,975
Automobile Liability		6,260
Automobile Physical Damage		3
General Liability		2,362
Total reinsurance recoverable on unpaid losses		17,600
Unallocated claims adjustment expenses		1,878
Total gross liability for unpaid losses, claims and loss adjustment expenses	$	79,147

Medicare Supplement [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited.

Medicare Supplement

	For the Years Ended December 31,																				As of December 31, 2020
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	38,188	$	38,296	$	38,360	$	38,327	$	38,316	$	38,302	$	38,299	$	38,297	$	38,297	$	38,297	$	—		664,056
2012				50,021		50,996		51,021		50,998		50,989		50,987		50,985		50,984		50,984		—		867,050
2013						56,974		56,970		57,034		57,023		57,021		57,016		57,015		57,014		—		957,363
2014								57,179		56,938		56,981		56,981		56,976		56,977		56,976		—		939,478
2015										55,482		54,939		54,993		54,990		54,984		54,985		—		898,374
2016												58,849		59,851		63,226		63,225		63,221		—		1,036,769
2017														67,960		69,655		69,643		69,635		—		1,510,654
2018																79,140		80,404		80,361		—		1,782,982
2019																		88,765		87,028		172		2,242,156
2020																				75,857		12,728		1,620,697
																			$	634,358

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	31,720	$	38,296	$	38,360	$	38,327	$	38,316	$	38,302	$	38,299	$	38,297	$	38,297	$	38,297
2012				42,267		50,996		51,021		50,998		50,989		50,987		50,985		50,984		50,984
2013						47,770		56,970		57,034		57,023		57,021		57,016		57,015		57,014
2014								48,024		56,938		56,981		56,981		56,976		56,977		56,976
2015										45,430		54,876		54,993		54,990		54,984		54,985
2016												49,165		59,747		63,226		63,225		63,221
2017														57,696		69,517		69,643		69,635
2018																66,565		80,222		80,361
2019																		72,333		86,856
2020																				63,129
																			$	621,458
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	12,900

Automobile Liability [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited.

Automobile Liability

	For the Years Ended December 31,																				As of December 31, 2020
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	12,263	$	13,802	$	13,235	$	13,289	$	13,281	$	13,495	$	13,385	$	13,330	$	13,329	$	13,328	$	—		2,134
2012				12,980		15,007		14,108		13,707		13,313		13,343		13,357		13,373		13,373		—		2,343
2013						18,664		20,702		21,096		21,823		21,352		21,020		20,972		20,972		—		3,267
2014								20,812		21,881		22,041		22,353		21,682		22,080		22,100		48		3,544
2015										18,521		19,857		20,017		20,007		20,086		20,680		75		3,525
2016												20,549		21,275		21,846		22,388		22,245		140		3,842
2017														22,179		24,212		23,766		25,180		801		3,772
2018																24,284		25,682		27,338		2,072		3,578
2019																		25,241		24,045		3,117		3,479
2020																				22,416		12,187		2,183
																			$	211,677

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	4,205	$	7,934	$	9,858	$	12,071	$	13,039	$	13,106	$	13,199	$	13,330	$	13,329	$	13,328
2012				4,627		8,791		11,507		12,932		13,197		13,211		13,288		13,373		13,373
2013						5,144		12,193		16,782		19,407		20,382		20,982		20,972		20,972
2014								6,822		13,807		17,554		20,177		20,878		21,735		21,813
2015										6,226		11,878		14,938		17,612		19,557		20,234
2016												6,796		13,141		16,397		19,613		21,408
2017														7,401		16,317		20,221		22,778
2018																6,989		15,647		21,121
2019																		7,305		14,694
2020																				5,172
																			$	174,893
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	36,784

Automobile Physical Damage [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited.

Automobile Physical Damage

	For the Years Ended December 31,										As of December 31, 2020
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance										IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2016		2017		2018		2019		2020
2016	$	6,877	$	6,386	$	6,352	$	6,289	$	6,289	$	—		1,269
2017				6,257		5,933		5,857		5,860		—		1,324
2018						7,805		7,530		7,447		—		1,452
2019								8,526		8,026		2		1,485
2020										10,288		177		1,526
									$	37,910

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2016		2017		2018		2019		2020
2016	$	5,804	$	6,353	$	6,349	$	6,289	$	6,289
2017				5,215		5,914		5,856		5,860
2018						6,344		7,510		7,446
2019								6,360		8,005
2020										8,347
									$	35,947
All outstanding liabilities before 2016, net of reinsurance										1
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance									$	1,964

General Liability [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited.

General Liability

	For the Years Ended December 31,																				As of December 31, 2020
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	3,022	$	1,723	$	1,452	$	1,338	$	1,174	$	1,242	$	1,327	$	1,335	$	1,400	$	1,534	$	20		210
2012				4,055		1,305		1,269		1,270		1,214		1,333		1,344		1,377		1,388		25		161
2013						3,461		728		926		817		865		820		945		904		11		197
2014								3,744		501		557		476		406		497		523		6		194
2015										4,421		1,037		1,227		1,044		867		855		—		146
2016												3,119		1,148		736		608		621		1		92
2017														1,490		488		513		738		68		82
2018																1,656		333		198		40		75
2019																		1,916		707		261		82
2020																				2,223		1,749		62
																			$	9,691

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	295	$	412	$	582	$	835	$	1,161	$	1,169	$	1,278	$	1,285	$	1,325	$	1,426
2012				371		707		847		1,034		1,113		1,219		1,260		1,269		1,280
2013						104		339		579		811		791		803		805		855
2014								171		299		331		369		373		493		498
2015										98		259		464		664		863		855
2016												116		203		568		608		617
2017														75		136		365		556
2018																65		90		115
2019																		41		209
2020																				208
																			$	6,619
All outstanding liabilities before 2011, net of reinsurance																				343
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	3,415

Surety [Member]

Insurance Reserves and Policyholder Funds [Abstract]

Information About Incurred and Paid Claims Development

The following is information, by significant product lines, about incurred and paid claims development as of December 31, 2020, net of reinsurance, as well as the cumulative number of reported claims and the total of IBNR reserves plus expected development on reported claims included within the net incurred claims amounts. The information presented for the years ended December 31, 2015 and prior is presented as supplementary information and is unaudited.

Surety

	For the Years Ended December 31,																				As of December 31, 2020
	Incurred Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance																				IBNR Reserves		Cumulative Number of Reported Claims
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	4,422	$	4,786	$	5,080	$	5,092	$	4,966	$	5,031	$	5,112	$	5,111	$	5,112	$	5,163	$	7		128
2012				4,979		4,767		5,396		5,345		4,869		4,880		4,892		4,925		4,944		2		89
2013						3,060		2,007		2,743		2,947		2,866		2,809		2,765		2,757		—		58
2014								3,214		3,130		2,990		2,760		2,685		2,617		2,818		43		54
2015										1,902		1,630		1,400		1,359		1,406		1,310		6		50
2016												3,314		1,812		1,865		1,876		1,865		—		46
2017														4,677		3,671		3,799		3,629		13		58
2018																3,528		1,938		1,381		6		62
2019																		2,130		657		128		30
2020																				2,263		1,887		20
																			$	26,787

	Cumulative Paid Losses, Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	1,031	$	3,207	$	4,622	$	4,748	$	4,939	$	5,022	$	5,109	$	5,111	$	5,112	$	5,117
2012				2,257		4,581		4,856		5,331		4,869		4,880		4,878		4,916		4,934
2013						323		1,010		1,369		2,763		2,789		2,749		2,765		2,757
2014								1,331		2,327		2,727		2,739		2,664		2,593		2,562
2015										641		856		1,127		1,125		1,128		1,271
2016												1,054		1,732		1,772		1,873		1,862
2017														1,971		3,255		3,523		3,545
2018																1,157		1,454		1,361
2019																		259		395
2020																				97
																			$	23,901
All outstanding liabilities before 2011, net of reinsurance																				54
Liabilities for losses, claims and loss adjustment expenses, net of reinsurance																			$	2,940