Activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands):

The $6.0 million unfavorable net development and $58.3 million unfavorable net development in prior accident years recognized in 2021 and 2020, respectively, represent changes in our loss reserve estimates. In 2021 and 2020, the aggregate loss reserve estimates for prior years were increased to reflect unfavorable loss development when the available information indicated a reasonable likelihood that the ultimate losses would be more than the previous estimates. The unfavorable prior year reserve development during the twelve months ended December 31, 2021 was primarily driven by our general liability lines within our E&S Casualty business unit and our Standard Commercial Segment, as well as our personal automobile liability line in our Specialty Personal Lines business unit. The unfavorable prior year reserve development during the twelve months ended December 31, 2020 was primarily driven by the continued emergence of increased frequency and severity trends in our primary commercial automobile lines of business within our Commercial Auto business unit, which was representative of industry trends, as well as unfavorable development in our general liability lines within our E&S Casualty business unit and our Standard Commercial Segment, as well as our personal automobile liability line in our Specialty Personal Lines business unit. Generally, changes in reserves are caused by variations between actual experience and previous expectations and by reduced emphasis on the Bornhuetter-Ferguson method due to the aging of the accident years.

The impact from the unfavorable (favorable) net prior years’ loss development on each reporting segment is presented below:

The following describes the primary factors behind each segment’s prior accident year loss reserve development for the years ended December 31, 2021 and 2020:

Year ended December 31, 2020:

●

Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2018 and prior accident years primarily in the commercial automobile liability line of business, partially offset by favorable development primarily in the commercial automobile line of business in the 2019 accident year. Our E&S Casualty business unit experienced net unfavorable development primarily in our E&S package insurance products in the 2018 and prior accident years, partially offset by favorable development in the 2019 accident year. We experienced net favorable development in our E&S Property and Aerospace & Programs business units, partially offset by net unfavorable development in our Professional Liability.

●

Standard Commercial Segment. Our Commercial Accounts business operating unit experienced net unfavorable development in the 2018 and prior accident years primarily in the general liability line of business, partially offset by net favorable development primarily in the commercial property and commercial automobile liability lines of business in the 2019 accident year and net favorable development primarily in the 2017 accident year in the occupational accident line of business. Our former Workers Compensation operating unit experienced net favorable development primarily in the 2014 and prior accident years.

●

Personal Segment. Net unfavorable development in our Specialty Personal Lines business unit was mostly attributable to the 2018, 2016, 2014 and 2012 and prior accidents years, partially offset by favorable development in the 2017, 2015 and 2013 accident years.

Reserves for unpaid losses and LAE represent management’s best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

Short-Duration Contract Disclosures

ASU 2015-09, “Disclosures about Short-Duration Contracts (Topic 944)", requires insurers to make disclosures about their liability for unpaid claims and claim adjustment expenses for short-duration insurance contracts. These disclosures include tables showing incurred and paid claims development information (net of reinsurance and excluding unallocated loss adjustment expenses) which are disaggregated based on the characteristics of the insurance contracts that the insurer writes and other factors specific to the reporting entity. The information should be disclosed by accident year for the number of years claims typically remain outstanding, but need not be more than 10 years, including a reconciliation of the disaggregated information to the consolidated statement of financial position. We have evaluated the disaggregation criteria and concluded that the basis for our disaggregation of this information is the similar claim duration period of our primary lines of business (certain lines of business have short settlement periods versus long settlement periods).

Reserves for Incurred But Not Reported (“IBNR”) Claims

Reserves for IBNR claims are based on the estimated ultimate cost of settling claims, including the effects of inflation and other social and economic factors, using past experience adjusted for current trends and any other factors that would modify past experience. We use a variety of statistical and actuarial techniques to analyze current claims costs, including frequency and severity data and prevailing economic, social and legal factors. Each such method has its own set of assumptions and outputs, and each has strengths and weaknesses in different areas. Since no single estimation method is superior to another method in all situations, the methods and assumptions used to project loss reserves will vary by coverage and product. We use what we believe to be the most appropriate set of actuarial methods and assumptions for each product line grouping and coverage. While the loss projection methods may vary by product line and coverage, the general approach for calculating IBNR remains the same: ultimate losses are forecasted first, and that amount is reduced by the amount of cumulative paid claims and case reserves. Reserves established in prior years are adjusted as loss experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the results of operations in the year in which they are made.

As described above, various actuarial methods are utilized to determine the reserves for losses and LAE recorded in our consolidated balance sheets. Weightings of methods at a detailed level may change from evaluation to evaluation based on a number of observations, measures, and time elements.

Methodology for Determining Cumulative Number of Reported Claims

A claim file is created when the Company is notified of an actual demand for payment, notified of an event that may lead to a demand for payment or it is determined that a demand for payment could possibly lead to a future demand for payment on another coverage on the same policy or on another policy. The cumulative number of reported claims is predominately measured at the claim level for our Commercial Accounts, Aviation, Personal, Primary Commercial Auto Liability, and certain Programs lines of business and at a coverage level by occurrence for our other lines of business. The Company does not generate claim counts for ceded business.

Incurred & Paid Claims Development Disclosures

The following tables provide information about incurred and cumulative paid losses and allocated loss adjustment expenses (“ALAE”), net of reinsurance for our primary lines of business with similar claims duration periods. The incurred and paid losses by accident year information is presented for all lines of business with similar claim duration periods in the below tables. The following tables also include IBNR reserves plus expected development on reported claims and the cumulative number of reported claims as of December 31, 2021 ($ in thousands):

Commercial Auto Liability


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	60,844	$	69,628	$	68,225	$	71,515	$	73,153	$	75,464	$	75,657	$	76,333	$	75,907	$	75,910	$	(25)	3,646
2013				93,692		86,902		90,726		96,974		102,031		103,379		103,571		105,448		105,402		(147)	4,695
2014						102,053		93,187		99,280		106,138		113,357		116,373		120,417		120,705		(1,742)	5,259
2015								106,133		106,608		125,161		133,574		135,774		141,197		141,222		376	5,923
2016										111,913		115,044		121,714		137,690		140,794		141,739		(217)	6,126
2017												125,315		119,583		148,563		154,993		156,528		(1,301)	6,276
2018														119,070		118,334		110,052		114,281		9,449	5,299
2019																118,351		128,652		125,815		17,576	3,972
2020																		101,568		100,430		29,443	3,064
2021																				45,927		32,756	2,075
																		Total	$	1,127,961


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	12,859	$	30,046	$	46,510	$	59,883	$	69,026	$	72,907	$	75,190	$	75,039	$	75,893	$	75,763
2013				13,333		40,670		63,255		83,184		93,554		101,146		106,894		105,194		105,194
2014						17,145		43,078		67,410		88,823		107,912		112,617		121,683		121,964
2015								18,108		48,239		95,056		123,668		141,678		139,605		139,681
2016										19,788		53,398		106,707		129,761		133,918		135,247
2017												22,578		77,884		133,880		143,791		141,545
2018														26,101		49,912		86,894		101,502
2019																16,812		61,332		78,955
2020																		14,491		37,308
2021																				1,663
																		Total	$	938,823
								All outstanding liabilities before 2012, net of reinsurance												1,069
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	190,207

Casualty


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	13,020	$	11,301	$	13,098	$	12,230	$	13,330	$	12,390	$	11,852	$	12,944	$	13,400	$	13,145	$	(454)	752
2013				13,379		12,002		12,384		12,792		12,874		12,205		13,330		13,274		13,370		(502)	810
2014						15,590		14,007		12,034		11,663		11,676		13,167		13,140		12,989		(524)	950
2015								17,362		16,746		15,046		15,266		15,945		16,931		18,542		157	1,033
2016										16,039		16,513		16,927		18,625		17,508		16,819		(1,083)	1,061
2017												17,845		15,751		20,360		18,023		21,362		1,113	1,656
2018														23,056		24,590		23,856		23,055		(5,305)	2,251
2019																34,610		43,426		47,496		3,220	2,938
2020																		62,464		60,706		16,107	7,503
2021																				54,385		26,649	6,195
																		Total	$	281,868


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	1,337	$	2,666	$	6,096	$	8,037	$	10,255	$	10,938	$	11,357	$	12,572	$	12,725	$	13,038
2013				1,331		3,190		5,461		9,212		11,134		11,866		12,255		12,478		12,972
2014						1,829		4,196		5,499		8,075		11,327		12,365		13,003		13,189
2015								1,420		4,133		8,258		13,553		16,158		15,729		16,573
2016										1,753		5,672		11,269		16,442		17,111		17,848
2017												2,900		5,884		11,268		16,264		19,633
2018														2,708		8,027		15,363		22,898
2019																2,526		17,177		32,705
2020																		6,176		24,029
2021																				6,892
																		Total	$	179,778
								All outstanding liabilities before 2012, net of reinsurance												1,910
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	104,001

Commercial Accounts


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	47,194	$	48,085	$	44,625	$	42,632	$	41,451	$	40,350	$	38,669	$	38,669	$	39,462	$	39,626	$	208	2,712
2013				46,413		47,385		46,990		43,917		42,822		39,567		40,211		40,141		40,562		178	2,809
2014						46,280		46,470		43,806		43,806		43,673		42,463		42,503		42,645		201	2,742
2015								40,966		42,580		41,429		38,385		39,287		39,206		38,677		512	2,579
2016										43,327		43,449		41,983		43,111		45,267		43,883		795	2,548
2017												40,943		42,704		43,579		44,732		45,815		1,259	2,745
2018														42,898		41,290		44,590		47,007		2,920	2,606
2019																37,984		34,616		36,044		2,867	2,754
2020																		40,356		35,879		8,597	2,793
2021																				46,529		21,462	2,539
																		Total	$	416,667


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	22,264	$	30,096	$	32,378	$	34,597	$	35,943	$	37,808	$	38,044	$	38,211	$	38,518	$	39,108
2013				19,386		29,586		33,927		36,225		37,947		38,892		39,329		39,560		40,210
2014						21,322		31,150		33,544		36,775		39,185		41,162		41,658		41,863
2015								16,557		28,501		30,974		35,238		35,611		37,135		37,886
2016										19,776		29,456		35,035		39,417		40,828		42,819
2017												16,644		28,813		36,650		41,631		42,707
2018														19,233		29,381		33,546		40,163
2019																17,490		26,233		30,407
2020																		13,942		23,914
2021																				18,695
																		Total	$	357,772
								All outstanding liabilities before 2012, net of reinsurance												1,616
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	60,511

Aviation


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	10,988	$	10,738	$	10,353	$	10,336	$	10,024	$	10,021	$	9,941	$	9,941	$	9,446	$	10,040	$	—	229
2013				10,236		11,304		10,295		9,563		10,057		10,649		10,252		10,297		10,254		—	231
2014						3,179		3,654		3,627		3,558		3,566		3,567		3,567		3,567		—	201
2015								1,870		1,709		1,643		1,631		1,630		1,635		1,635		—	198
2016										2,330		2,241		2,119		2,219		2,220		2,082		—	292
2017												2,325		2,082		2,079		2,178		2,150		—	320
2018														2,382		1,990		2,565		2,446		31	338
2019																5,246		4,525		3,580		70	305
2020																		3,487		1,198		246	289
2021																				3,562		1,866	194
																		Total	$	40,514


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	5,641	$	8,486	$	9,672	$	10,049	$	10,041	$	10,041	$	10,041	$	9,941	$	9,446	$	10,040
2013				6,537		9,493		9,584		9,356		9,944		10,456		10,242		10,281		10,239
2014						2,779		3,105		3,259		3,327		3,565		3,567		3,567		3,567
2015								958		1,405		1,520		1,601		1,630		1,634		1,633
2016										1,469		1,907		1,918		2,082		2,216		2,082
2017												1,260		1,837		2,021		2,054		2,149
2018														1,716		2,237		2,368		2,282
2019																2,911		3,787		3,139
2020																		2,120		693
2021																				1,414
																		Total	$	37,238
								All outstanding liabilities before 2012, net of reinsurance												—
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	3,276

Runoff


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	4,804	$	4,469	$	3,597	$	3,358	$	2,821	$	2,636	$	2,752	$	2,752	$	2,773	$	2,773	$	91	714
2013				9,069		10,143		9,713		9,257		9,257		9,472		9,486		9,483		9,470		237	1,337
2014						9,208		9,338		9,762		10,076		10,452		10,463		10,292		10,127		431	1,027
2015								8,605		7,277		8,624		8,892		8,420		8,526		8,508		164	822
2016										3,553		4,733		4,365		4,416		4,425		4,425		—	462
2017												450		465		415		403		368		10	66
2018														—		—		—		—		—	—
2019																—		—		—		—	—
2020																		—		—		—	—
2021																				—		—	—
																		Total	$	35,671


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	1,181	$	2,107	$	2,411	$	2,594	$	2,583	$	2,600	$	2,602	$	2,675	$	2,675	$	2,675
2013				3,737		6,825		7,882		8,350		8,809		8,961		9,010		9,050		9,070
2014						2,933		5,972		7,970		9,004		9,210		9,323		9,487		9,571
2015								2,528		5,744		7,328		8,049		8,495		8,512		8,542
2016										1,732		2,550		3,743		4,418		4,425		4,425
2017												111		171		203		282		358
2018														—		—		—		—
2019																—		—		—
2020																		—		—
2021																				—
																		Total	$	34,641
								All outstanding liabilities before 2012, net of reinsurance												723
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	1,753

Programs


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	3,001	$	2,045	$	2,045	$	3,885	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045	$	—	3
2013				1,595		2,543		1,561		2,076		2,302		2,302		2,302		2,302		2,302		—	2
2014						1,623		666		2,039		1,575		1,575		1,575		1,575		1,575		—	5
2015								1,683		1,629		752		752		752		752		752		—	2
2016										478		1,200		1,178		1,178		1,178		1,178		—	1
2017												955		1,775		1,801		1,982		1,982		7	66
2018														3,598		4,368		4,222		4,222		42	795
2019																5,407		9,150		9,078		673	1,060
2020																		6,737		7,107		848	880
2021																				7,620		3,322	593
																		Total	$	37,861


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045	$	2,045
2013				1,489		1,561		1,561		2,076		2,302		2,302		2,302		2,302		2,302
2014						758		1,502		1,575		1,575		1,575		1,575		1,575		1,575
2015								1,515		1,629		752		752		752		752		752
2016										1,139		1,139		1,178		1,178		1,178		1,178
2017												36		1,556		1,551		1,967		1,967
2018														911		1,290		3,778		4,030
2019																4,501		7,794		8,174
2020																		2,908		5,563
2021																				2,867
																		Total	$	30,453
								All outstanding liabilities before 2012, net of reinsurance												—
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	7,408

Personal Segment


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	58,604	$	73,795	$	70,552	$	71,513	$	72,042	$	72,037	$	72,076	$	72,100	$	72,123	$	72,128	$	—	23,940
2013				55,706		59,132		60,100		60,211		60,379		60,328		60,310		60,286		60,299		—	23,472
2014						5,452		5,340		6,243		6,699		6,504		6,518		6,578		6,580		—	19,293
2015								23,104		25,682		25,307		25,136		25,102		25,185		25,194		—	23,376
2016										32,260		32,893		32,728		32,803		33,042		33,193		—	23,759
2017												23,342		21,968		21,926		22,547		22,768		—	16,818
2018														18,334		18,353		19,972		20,139		18	15,332
2019																56,009		63,722		64,677		(770)	25,728
2020																		47,938		50,820		404	18,429
2021																				45,295		7,690	14,671
																		Total	$	401,093


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	37,860	$	64,278	$	68,849	$	70,807	$	71,995	$	72,055	$	72,094	$	72,124	$	72,138	$	72,146
2013				45,901		54,514		58,047		59,775		60,277		60,297		60,279		60,279		60,291
2014						2,515		4,418		5,631		6,428		6,566		6,580		6,583		6,585
2015								11,570		22,281		24,262		25,243		25,098		25,169		25,191
2016										21,669		30,646		32,260		32,777		32,991		33,141
2017												15,776		21,061		21,972		22,488		22,762
2018														11,137		18,009		19,628		19,983
2019																41,524		60,870		64,885
2020																		32,746		48,281
2021																				30,435
																		Total	$	383,700
								All outstanding liabilities before 2012, net of reinsurance												—
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	17,393

Property


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021		2021		2021
2012	$	18,518	$	17,541	$	18,119	$	17,743	$	17,768	$	18,005	$	17,974	$	17,963	$	17,963	$	17,963	$	—	1,629
2013				21,644		22,363		22,264		22,578		22,914		22,936		22,935		22,935		22,935		—	1,893
2014						22,551		21,950		21,862		21,793		21,852		21,876		21,932		21,932		—	2,037
2015								20,256		19,919		20,014		20,091		20,202		20,107		20,107		—	1,993
2016										20,734		22,838		22,632		22,789		22,781		22,786		—	2,031
2017												24,182		23,003		24,490		24,287		24,369		—	2,009
2018														22,822		18,694		19,611		19,680		(98)	1,078
2019																20,214		20,984		20,924		(23)	1,239
2020																		41,487		38,472		1,359	1,518
2021																				34,626		9,692	1,265
																		Total	$	243,794


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
2012	$	15,773	$	17,679	$	17,743	$	17,666	$	17,693	$	17,978	$	17,974	$	17,963	$	17,963	$	17,963
2013				17,785		21,452		21,864		22,197		22,826		22,936		22,935		22,935		22,933
2014						19,586		21,749		21,778		21,849		21,911		21,955		22,013		22,000
2015								17,513		19,500		19,928		20,134		19,953		19,965		19,960
2016										17,248		22,500		22,613		22,789		22,781		22,786
2017												18,703		22,059		23,821		24,179		24,187
2018														10,923		16,914		18,138		19,006
2019																11,344		18,895		19,658
2020																		18,215		29,003
2021																				12,790
																		Total	$	210,286
								All outstanding liabilities before 2012, net of reinsurance												—
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	33,508

The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in our consolidated balance sheets is as follows (in thousands):


	2021		2020
Net outstanding liabilities for losses and LAE

Commercial Auto Liability	$	190,207	$	218,999
Casualty		104,001		97,302
Commercial Accounts		60,511		59,603
Aviation		3,276		2,448
Runoff		1,753		2,226
Programs		7,408		5,644
Personal Segment		17,393		18,597
Property		33,508		27,002
Liabilities for unpaid losses and allocated loss adjustment expenses, net of reinsurance		418,057		431,821

Reinsurance recoverable on unpaid losses and LAE
Commercial Auto Liability		85,398		91,040
Casualty		141,746		122,341
Commercial Accounts		27,464		20,464
Aviation		13,385		10,143
Runoff		1,155		1,184
Programs		236		968
Personal Segment		1,707		5,613
Property		116,824		97,832
Total reinsurance recoverable on unpaid losses and LAE		387,915		349,585

Unallocated loss adjustment expenses
Commercial Auto Liability		1,589		1,850
Casualty		3,694		1,681
Commercial Accounts		2,448		2,643
Aviation		99		104
Runoff		170		170
Programs		91		61
Personal Segment		1,625		1,250
Property		993		603
Total unallocated loss adjustment expenses		10,709		8,362
Total reserves for unpaid losses and loss adjustment expenses	$	816,681	$	789,768

Claims Duration

The following table provides supplementary unaudited information about the annual percentage payout of incurred losses and ALAE, net of reinsurance, as of December 31, 2021:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (1)
	Unaudited
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Commercial Auto Liability	15.3	%	25.7	%	25.5	%	16.6	%	9.0	%	4.5	%	2.3	%	0.8	%	0.3	%	—	%
Casualty	9.4	%	17.8	%	20.5	%	23.1	%	14.9	%	4.9	%	3.6	%	3.0	%	2.0	%	0.8	%
Commercial Accounts	41.0	%	23.8	%	10.2	%	8.2	%	6.0	%	3.8	%	2.5	%	2.0	%	1.5	%	1.0	%
Aviation	77.9	%	8.3	%	2.7	%	4.5	%	3.0	%	1.6	%	1.1	%	0.7	%	0.2	%	—	%
Runoff	33.5	%	31.1	%	16.1	%	9.0	%	3.3	%	1.9	%	1.5	%	1.3	%	1.2	%	1.1	%
Programs	44.6	%	36.9	%	13.9	%	4.6	%	—	%	—	%	—	%	—	%	—	%	—	%
Personal Segment	62.1	%	25.5	%	7.4	%	3.7	%	0.9	%	0.4	%	—	%	—	%	—	%	—	%
Property	64.7	%	27.5	%	4.1	%	2.1	%	1.0	%	0.5	%	0.1	%	—	%	—	%	—	%

(1)

The average annual percentage payout is calculated from a paid losses and ALAE development pattern based on an actuarial analysis of the paid losses and ALAE movements by accident year for each disaggregation category. The paid losses and ALAE development pattern provides the expected percentage of ultimate losses and ALAE to be paid in each year. The pattern considers all accident years included in the claims development tables.