HISTORICAL LOSS AND LAE DEVELOPMENT (Tables)

12 Months Ended

Dec. 31, 2019

HISTORICAL LOSS AND LAE DEVELOPMENT

Schedule of reconciliation of unpaid losses and settlement expenses (LAE)

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the years 2019, 2018 and 2017:

(in thousands)	2019		2018		2017
Unpaid losses and LAE at beginning of year:
Gross	$	1,461,348	$	1,271,503	$	1,139,337
Ceded		(364,999)		(301,991)		(288,224)
Net	$	1,096,349	$	969,512	$	851,113
Increase (decrease) in incurred losses and LAE:
Current accident year	$	488,700	$	478,143	$	440,452
Prior accident years		(75,284)		(49,950)		(38,868)
Total incurred	$	413,416	$	428,193	$	401,584
Loss and LAE payments for claims incurred:
Current accident year	$	(80,055)	$	(76,050)	$	(73,392)
Prior accident year		(239,875)		(225,306)		(209,793)
Total paid	$	(319,930)	$	(301,356)	$	(283,185)
Net unpaid losses and LAE at end of year	$	1,189,835	$	1,096,349	$	969,512
Unpaid losses and LAE at end of year:
Gross	$	1,574,352	$	1,461,348	$	1,271,503
Ceded		(384,517)		(364,999)		(301,991)
Net	$	1,189,835	$	1,096,349	$	969,512

Schedule of incurred and paid claims development

Casualty - Primary Occurrence
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2019
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019			Total IBNR	Claims
2010	$	87,875	$	96,582	$	93,589	$	88,820	$	85,034	$	80,289	$	78,685	$	78,991	$	80,216	$	79,656		$	1,922	6,128
2011				91,139		98,428		94,145		89,622		86,342		83,181		82,193		82,248		81,579			2,546	5,862
2012						91,807		78,406		65,893		61,072		59,028		59,488		60,328		60,465			2,922	5,179
2013								80,823		67,297		62,882		60,329		60,162		59,556		59,116			4,917	4,307
2014										88,092		79,497		71,592		67,237		66,389		66,702			8,251	4,266
2015												94,835		84,975		83,579		78,675		76,398			14,891	4,362
2016														101,950		96,753		90,611		85,449			24,712	4,240
2017																119,741		111,391		102,583			46,557	4,336
2018																		141,513		130,281			79,489	4,490
2019																				146,011			119,051	4,193
																		Total	$	888,240
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019
2010	$	2,587	$	13,025	$	29,312	$	44,051	$	55,992	$	61,929	$	66,399	$	69,514	$	73,318	$	75,007
2011				5,924		17,124		32,978		48,822		60,769		67,358		71,413		74,814		76,318
2012						5,897		14,539		23,889		33,822		43,276		47,970		51,611		54,391
2013								6,334		13,021		22,366		34,786		40,609		45,753		47,783
2014										11,436		18,771		29,545		40,270		47,343		52,387
2015												10,157		19,902		33,020		45,056		54,270
2016														10,142		24,186		35,764		48,042
2017																13,154		25,933		38,783
2018																		15,066		32,365
2019																				15,698
	* Presented as unaudited required supplementary information.																	Total	$	495,044
										All outstanding liabilities before 2010, net of reinsurance										10,714
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	403,910
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance*
Years		1		2		3		4		5		6		7		8		9		10
		10.8	%	13.2	%	16.3	%	17.4	%	13.0	%	7.9	%	5.0	%	4.2	%	3.3	%	2.1	%

Casualty - Excess Occurrence
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2019
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019			Total IBNR	Claims
2010	$	29,314	$	24,244	$	22,111	$	18,932	$	20,044	$	22,044	$	21,018	$	20,530	$	20,527	$	20,579		$	315	503
2011				26,272		17,148		17,443		18,641		19,160		20,959		21,295		22,032		21,825			625	581
2012						29,042		21,558		21,021		21,885		21,231		22,433		23,020		25,286			1,016	858
2013								39,984		34,824		26,857		25,425		25,599		24,922		25,496			2,220	939
2014										50,889		39,095		35,119		32,274		33,372		33,458			6,322	887
2015												53,672		50,857		47,392		42,840		43,328			10,833	685
2016														56,341		49,385		37,676		33,125			18,457	624
2017																62,863		55,868		48,363			31,333	563
2018																		69,362		62,646			51,501	452
2019																				88,078			66,592	293
																		Total	$	402,184
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019
2010	$	7	$	6,002	$	10,705	$	13,282	$	15,512	$	17,302	$	19,175	$	19,256	$	19,308	$	19,390
2011				2,169		5,145		6,981		8,793		10,772		16,494		17,769		20,214		21,036
2012						1,315		3,573		8,843		15,380		16,879		17,747		19,310		21,993
2013								1,060		5,701		10,967		14,545		16,967		17,956		18,524
2014										1,899		4,006		11,002		18,852		22,541		23,376
2015												2,048		10,127		19,571		23,184		28,756
2016														1,068		3,396		7,441		10,054
2017																17		5,679		9,275
2018																		2,506		5,823
2019																				4,213
	* Presented as unaudited required supplementary information.																	Total	$	162,440
										All outstanding liabilities before 2010, net of reinsurance										16,409
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	256,153
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance*
Years		1		2		3		4		5		6		7		8		9		10
		4.2	%	13.2	%	16.9	%	14.3	%	9.9	%	8.9	%	5.8	%	7.4	%	2.0	%	0.4	%

Casualty - Claims Made
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2019
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019			Total IBNR	Claims
2010	$	13,690	$	15,556	$	9,776	$	10,429	$	11,689	$	10,581	$	9,175	$	9,024	$	8,735	$	8,680		$	160	502
2011				17,416		17,454		12,260		10,619		8,510		7,720		7,852		11,506		14,031			592	682
2012						27,576		26,144		20,727		19,590		18,022		17,612		17,569		20,785			1,781	803
2013								40,095		41,488		44,054		40,288		38,473		37,959		38,352			2,255	1,042
2014										53,929		55,386		58,152		55,350		51,554		53,841			4,391	1,305
2015												55,006		47,831		42,206		39,906		39,653			6,376	1,336
2016														59,992		67,760		69,493		67,728			16,541	1,506
2017																60,572		62,450		62,714			24,377	1,633
2018																		66,128		62,416			37,809	1,381
2019																				62,918			50,178	1,411
																		Total	$	431,118
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019
2010	$	259	$	1,548	$	2,308	$	3,626	$	5,733	$	5,749	$	6,956	$	8,485	$	8,512	$	8,515
2011				330		1,949		4,508		5,947		5,637		6,209		6,835		7,132		7,239
2012						433		4,086		6,898		9,218		10,968		14,378		15,621		16,450
2013								792		7,073		18,425		26,121		29,678		32,789		34,535
2014										1,705		9,775		27,923		35,755		40,080		44,127
2015												2,215		10,738		16,774		20,920		28,795
2016														2,060		14,558		27,465		39,370
2017																2,455		11,350		22,728
2018																		1,964		11,965
2019																				1,839
	* Presented as unaudited required supplementary information.																	Total	$	215,563
										All outstanding liabilities before 2010, net of reinsurance										2,399
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	217,954
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance*
Years		1		2		3		4		5		6		7		8		9		10
		3.1	%	16.2	%	19.5	%	14.2	%	11.3	%	7.3	%	7.2	%	7.9	%	0.5	%	0.0	%

Casualty - Transportation
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2019
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019			Total IBNR	Claims
2010	$	27,239	$	23,390	$	24,912	$	25,593	$	23,981	$	23,625	$	23,701	$	23,786	$	23,776	$	23,860		$	23	2,843
2011				22,957		23,479		25,747		25,272		25,431		25,376		25,167		25,614		25,827			41	2,469
2012						21,452		22,203		22,924		23,511		23,689		23,620		23,305		23,731			47	2,285
2013								32,742		32,853		32,989		37,673		38,811		39,974		39,309			140	2,853
2014										38,361		33,015		36,452		38,590		40,202		40,508			458	3,099
2015												38,561		46,258		47,021		46,395		45,162			1,574	3,183
2016														50,430		53,519		54,105		52,277			4,241	3,935
2017																55,640		53,641		45,017			7,476	3,625
2018																		57,597		54,592			24,385	3,376
2019																				58,297			17,932	3,082
																		Total	$	408,580
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019
2010	$	6,296	$	10,116	$	15,475	$	20,045	$	21,792	$	23,063	$	23,488	$	23,533	$	23,556	$	23,635
2011				5,295		9,485		14,477		19,443		22,375		23,537		23,941		24,377		25,052
2012						4,466		8,533		12,394		17,318		20,931		22,566		22,730		23,180
2013								5,306		11,978		19,761		28,220		33,480		35,923		37,327
2014										7,125		13,933		19,676		27,457		33,190		38,282
2015												6,984		20,709		29,554		37,222		39,339
2016														8,923		18,354		30,354		38,001
2017																7,979		17,070		24,090
2018																		6,980		12,827
2019																				7,148
	* Presented as unaudited required supplementary information.																	Total	$	268,881
										All outstanding liabilities before 2010, net of reinsurance										252
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	139,951
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance*
Years		1		2		3		4		5		6		7		8		9		10
		17.2	%	18.1	%	18.8	%	18.8	%	11.0	%	7.1	%	1.9	%	1.3	%	1.4	%	0.3	%

Property
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2019
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019			Total IBNR	Claims
2010	$	63,194	$	59,145	$	55,427	$	53,937	$	54,153	$	52,927	$	52,964	$	52,952	$	52,903	$	52,548		$	10	2,850
2011				70,246		66,924		64,976		63,724		62,770		62,570		62,456		62,875		62,799			65	3,028
2012						85,485		80,155		79,181		77,569		79,175		78,125		78,161		78,002			97	2,640
2013								63,864		62,090		62,173		62,114		61,914		61,834		61,776			183	2,995
2014										56,587		49,441		48,801		48,761		49,217		49,444			158	4,561
2015												59,863		56,103		53,958		52,720		53,111			403	4,075
2016														62,900		55,594		55,384		55,930			1,418	3,371
2017																90,803		83,273		84,961			5,861	2,883
2018																		89,091		83,457			10,867	2,321
2019																				71,232			27,090	2,098
																		Total	$	653,260
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019
2010	$	25,274	$	43,091	$	47,743	$	50,055	$	52,729	$	52,426	$	52,719	$	52,851	$	52,855	$	52,538
2011				27,676		48,756		55,778		59,099		60,272		61,428		61,834		62,729		62,730
2012						39,074		66,509		72,057		73,705		75,640		76,152		77,159		77,323
2013								32,208		50,840		57,407		59,259		60,520		61,195		61,325
2014										30,550		43,380		46,148		46,528		47,799		49,027
2015												32,184		49,348		50,197		51,290		52,078
2016														33,134		46,921		51,371		53,006
2017																41,314		66,818		74,415
2018																		37,048		68,264
2019																				30,703
	* Presented as unaudited required supplementary information.																	Total	$	581,409
										All outstanding liabilities before 2010, net of reinsurance										114
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	71,965
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance*
Years		1		2		3		4		5		6		7		8		9		10
		51.2	%	31.5	%	7.7	%	2.9	%	2.6	%	1.1	%	0.7	%	0.6	%	0.0	%	(0.6)	%

Surety
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																						As of December 31, 2019
	For the Years Ended December 31,																							Cumulative
																								Number of
																								Reported
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019			Total IBNR	Claims
2010	$	13,961	$	8,205	$	6,630	$	7,076	$	6,810	$	7,136	$	7,645	$	6,244	$	6,580	$	6,743		$	47	1,543
2011				13,842		17,832		17,792		17,321		16,766		16,695		16,480		18,281		18,293			35	1,679
2012						17,114		11,452		8,667		8,180		7,867		7,471		7,099		7,082			38	1,474
2013								16,080		7,516		6,170		5,399		5,271		5,231		5,209			65	1,406
2014										16,450		8,106		5,225		4,427		4,267		4,319			67	1,346
2015												16,958		12,957		11,113		10,456		9,792			384	1,217
2016														18,928		11,062		9,351		8,895			742	1,359
2017																16,127		8,641		8,798			1,469	1,645
2018																		16,765		7,227			3,965	1,157
2019																				14,785			14,035	607
																		Total	$	91,143
	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
								For the Years Ended December 31,
AY		2010*		2011*		2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019
2010	$	1,724	$	3,205	$	5,702	$	7,092	$	7,151	$	7,285	$	7,822	$	6,663	$	6,637	$	6,733
2011				8,160		16,932		17,151		17,403		17,212		17,086		17,086		17,013		18,251
2012						1,883		6,680		6,726		7,416		7,536		7,406		7,065		6,996
2013								1,116		2,856		4,701		4,911		5,098		5,150		5,128
2014										722		4,283		4,166		4,059		4,131		4,234
2015												3,192		6,719		7,695		9,436		9,183
2016														3,087		5,817		6,299		7,640
2017																979		2,862		7,062
2018																		1,835		2,588
2019																				336
	* Presented as unaudited required supplementary information.																	Total	$	68,151
										All outstanding liabilities before 2010, net of reinsurance										1,996
								Liabilities for losses and loss adjustment expenses, net of reinsurance											$	24,988
	Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance*
Years		1		2		3		4		5		6		7		8		9		10
		24.1	%	39.1	%	16.8	%	9.4	%	0.7	%	0.6	%	0.7	%	(6.2)	%	3.2	%	1.4	%

Schedule of reconciliation of the net incurred and paid loss development tables to the liability for unpaid losses and settlement expenses in the consolidated balance sheet

Reconciliation of Incurred and Paid Loss Development to the Liability for Unpaid Losses and Settlement Expenses
(in thousands)	December 31, 2019		December 31, 2018
Net outstanding liabilities:
Casualty - Primary Occurrence	$	403,910	$	372,450
Casualty - Excess Occurrence		256,153		209,683
Casualty - Claims Made		217,954		204,501
Casualty - Transportation		139,951		133,558
Property		71,965		77,238
Surety		24,988		28,237
Unallocated loss adjustment expenses		52,275		50,891
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		9,402		9,793
Other		13,237		9,998
Liabilities for unpaid loss and settlement expenses, net of reinsurance	$	1,189,835	$	1,096,349
Reinsurance recoverable on unpaid claims:
Casualty - Primary Occurrence	$	31,122	$	34,742
Casualty - Excess Occurrence		98,518		81,072
Casualty - Claims Made		176,936		144,921
Casualty - Transportation		53,724		50,748
Property		21,438		50,495
Surety		11,199		11,834
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		(9,402)		(9,793)
Other		982		980
Total reinsurance balances recoverable on unpaid losses and settlement expenses	$	384,517	$	364,999
Total gross liability for unpaid loss and settlement expenses	$	1,574,352	$	1,461,348

Schedule of prior accident years' loss reserve development by segment

(FAVORABLE)/UNFAVORABLE RESERVE DEVELOPMENT BY SEGMENT
(in thousands)	2019		2018		2017
Casualty	$	(62,497)	$	(33,252)	$	(17,462)
Property		(4,461)		(10,813)		(12,134)
Surety		(8,326)		(5,885)		(9,272)
Total	$	(75,284)	$	(49,950)	$	(38,868)

Schedule of paid and unpaid environmental, asbestos and mass tort claims data (including incurred but not reported losses)

(in thousands)	2019		2018		2017
Loss and LAE Payments (Cumulative):
Gross	$	137,485	$	136,043	$	132,883
Ceded		(68,849)		(68,638)		(67,507)
Net	$	68,636	$	67,405	$	65,376
Unpaid Losses and LAE at End of Year:
Gross	$	22,616	$	24,262	$	28,042
Ceded		(5,149)		(5,373)		(5,715)
Net	$	17,467	$	18,889	$	22,327