Reserves for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Reserves for Losses and Loss Adjustment Expenses [Abstract]

Summary of Activity in the Reserves for Unpaid Losses and Loss Adjustment Expense

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

	2021		2020
Balance at January 1	$	789,768	$	620,355
Less reinsurance recoverable		357,200		274,275
Net balance at January 1		432,568		346,080
Incurred related to:
Current year		269,204		326,919
Retroactive loss portfolio transfer		—		21,700
Prior years		6,040		58,288
Total incurred		275,244		406,907
Paid related to:
Current year		101,475		113,312
Retroactive loss portfolio transfer		—		21,700
Prior years		177,571		185,407
Total paid		279,046		320,419
Net balance at December 31		428,766		432,568
Plus reinsurance recoverable		387,915		357,200
Balance at December 31	$	816,681	$	789,768

Impact of Net Prior Years Loss Development On Each Reporting Segment

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

	December 31,
	2021		2020
Specialty Commercial Segment	$	2,670	$	45,808
Standard Commercial Segment		(1,521)		3,357
Personal Segment		4,891		9,123
Corporate		—		—
Total unfavorable net prior year development	$	6,040	$	58,288

Schedule of Incurred and Paid Claims Development

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

Reconciliation of Claims Development to Liability for Unpaid Losses

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

Annual percentage payout of incurred losses and ALAE

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.