Insurance Reserves for Losses and Claims (Tables)

6 Months Ended

Jun. 30, 2023

Insurance Reserves for Losses and Claims [Abstract]

Roll-forward of Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the six months ended June 30, 2023 and 2022 is as follows:

	Six Months Ended June 30,
	2023			2022
Beginning insurance reserves for losses and claims, gross	$	87,484		$	85,620
Less: Reinsurance recoverable on unpaid losses		(17,647	)		(17,690	)
Beginning insurance reserves for losses and claims, net		69,837			67,930

Incurred related to:
Current accident year		57,320			66,260
Prior accident year development ⁽¹⁾		1,636	⁽²⁾		(3,195	)⁽³⁾
Total incurred		58,956			63,065

Paid related to:
Current accident year		25,834			32,630
Prior accident years		33,019			28,754
Total paid		58,853			61,384
Ending insurance reserves for losses and claims, net		69,940			69,611
Plus: Reinsurance recoverable on unpaid losses		16,044			17,487
Ending insurance reserves for losses and claims, gross	$	85,984		$	87,098

(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.

(2)	Prior years’ development was primarily the result of unfavorable development in the property and casualty operations due to inflationary factors.

(3)	Prior years’ development was primarily the result of favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations.

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,
	2023		2022
Total incurred losses	$	58,956	$	63,065
Cash surrender value and matured endowments		812		1,154
Benefit reserve changes		57		(297	)
Total insurance benefits and losses incurred	$	59,825	$	63,922