The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the years 2021, 2020 and 2019:

(in thousands)	2021			2020			2019
Unpaid losses and LAE at beginning of year:
Gross	$	1,750,049		$	1,574,352		$	1,461,348
Ceded		(443,729	)		(384,517	)		(364,999	)
Net	$	1,306,320		$	1,189,835		$	1,096,349

Adoption impact of ASU 2016-13 on reinsurance balances recoverable	$	—		$	(1,345	)	$	—

Increase (decrease) in incurred losses and LAE:
Current accident year	$	582,065		$	543,937		$	488,700
Prior accident years		(125,463	)		(101,053	)		(75,284	)
Total incurred	$	456,602		$	442,884		$	413,416

Loss and LAE payments for claims incurred:
Current accident year	$	(101,590	)	$	(93,077	)	$	(80,055	)
Prior accident year		(225,863	)		(231,977	)		(239,875	)
Total paid	$	(327,453	)	$	(325,054	)	$	(319,930	)

Net unpaid losses and LAE at end of year	$	1,435,469		$	1,306,320		$	1,189,835

Unpaid losses and LAE at end of year:
Gross	$	2,043,555		$	1,750,049		$	1,574,352
Ceded		(608,086	)		(443,729	)		(384,517	)
Net	$	1,435,469		$	1,306,320		$	1,189,835

We adopted ASU 2016-13, Financial Instruments – Credit Losses, on January 1, 2020, which required financial assets, including reinsurance balances recoverable, to be presented at the net amount expected to be collected. We previously maintained an allowance for uncollectible reinsurance balances prior to the adoption of this update. However, in order to comply with the updated requirements, we released $1.3 million of the allowance on uncollectible reinsurance balances upon adoption. The implementation guidance required the cumulative-effect adjustment be made to the beginning balance of retained earnings, rather than through net earnings like historical changes have and ongoing modifications will continue to be recorded.

Loss development occurs when our current estimate of ultimate losses, established through our reserve analysis processes, differs from the initial reserve estimate. The recognition of the changes in initial reserve estimates occurred over time as claims were reported, initial case reserves were established, initial reserves were reviewed in light of additional information and ultimate payments were made on the collective set of claims incurred as of that evaluation date. The new information on the ultimate settlement value of claims is continually updated until all claims in a defined set are settled. As a small specialty insurer with a diversified product portfolio, our experience will ordinarily exhibit fluctuations from period to period. While we attempt to identify and react to changes in the loss environment, we also must consider the volume of claim experience directly available to the Company and interpret any particular period’s indications with a realistic technical understanding of the reliability of those observations.

The following is information about incurred and paid loss development as of December 31, 2021, net of reinsurance, as well as cumulative claim frequency, the total of IBNR liabilities included within the net incurred loss amounts and average historical claims duration as of December 31, 2021. The loss information has been disaggregated so that only losses that are expected to develop in a similar manner are grouped together. This has resulted in the presentation of loss information for our property and surety segments at the segment level, while information for our casualty segment has been separated in four groupings: primary occurrence, excess occurrence, claims made and transportation. Primary occurrence includes select lines within the professional services product along with general liability, small commercial and other casualty products. Excess occurrence encompasses commercial excess and personal umbrella, while claims made includes select lines within the professional services product, executive products and other casualty. Reported claim counts represent claim events on a specified policy rather than individual claimants and includes claims that did not or are not expected to result in an incurred loss. The information about incurred and paid claims development for the years ended December 31, 2012 to 2020 is presented as unaudited required supplementary information.

Casualty - Primary Occurrence
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																				As of December 31, 2021
	For the Years Ended December 31,																						Cumulative
																							Number of
																							Reported
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		Total IBNR		Claims
2012	$	91,807	$	78,406	$	65,893	$	61,072	$	59,028	$	59,488	$	60,328	$	60,465	$	60,591	$	60,155	$	1,589		5,192
2013				80,823		67,297		62,882		60,329		60,162		59,556		59,116		57,106		57,519		2,096		4,324
2014						88,092		79,497		71,592		67,237		66,389		66,702		65,636		63,727		3,034		4,295
2015								94,835		84,975		83,579		78,675		76,398		75,470		75,438		6,644		4,406
2016										101,950		96,753		90,611		85,449		83,374		79,440		10,352		4,315
2017												119,741		111,391		102,583		95,513		90,759		15,999		4,491
2018														141,513		130,281		125,731		115,076		32,268		4,822
2019																146,011		135,209		120,570		62,738		5,175
2020																		145,171		137,439		88,880		4,394
2021																				142,797		112,702		3,678
																	Total		$	942,920

	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012	$	5,897	$	14,539	$	23,889	$	33,822	$	43,276	$	47,970	$	51,611	$	54,391	$	55,679	$	56,660
2013				6,334		13,021		22,366		34,786		40,609		45,753		47,783		49,411		50,597
2014						11,436		18,771		29,545		40,270		47,343		52,387		55,965		56,784
2015								10,157		19,902		33,020		45,056		54,270		58,866		62,997
2016										10,142		24,186		35,764		48,042		56,152		60,349
2017												13,154		25,933		38,783		52,823		62,236
2018														15,066		32,365		48,424		63,980
2019																15,698		30,673		41,911
2020																		17,096		30,596
2021																				14,428
	* Presented as unaudited required supplementary information.																Total		$	500,538
									All outstanding liabilities before 2012, net of reinsurance											10,760
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	453,142

Casualty - Excess Occurrence
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																				As of December 31, 2021
	For the Years Ended December 31,																						Cumulative
																							Number of
																							Reported
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		Total IBNR		Claims
2012	$	29,042	$	21,558	$	21,021	$	21,885	$	21,231	$	22,433	$	23,020	$	25,286	$	26,129	$	26,848	$	783		867
2013				39,984		34,824		26,857		25,425		25,599		24,922		25,496		25,073		24,836		1,396		949
2014						50,889		39,095		35,119		32,274		33,372		33,458		35,128		35,683		2,622		923
2015								53,672		50,857		47,392		42,840		43,328		42,446		41,690		5,439		699
2016										56,341		49,385		37,676		33,125		30,251		29,671		11,023		646
2017												62,863		55,868		48,363		44,737		43,249		16,698		631
2018														69,362		62,646		54,626		51,023		26,824		590
2019																88,078		89,691		79,083		47,276		603
2020																		107,579		98,409		74,182		471
2021																				136,433		93,982		371
																	Total		$	566,925

	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012	$	1,315	$	3,573	$	8,843	$	15,380	$	16,879	$	17,747	$	19,310	$	21,993	$	22,202	$	22,246
2013				1,060		5,701		10,967		14,545		16,967		17,956		18,524		21,229		22,154
2014						1,899		4,006		11,002		18,852		22,541		23,376		26,068		28,963
2015								2,048		10,127		19,571		23,184		28,756		31,352		32,752
2016										1,068		3,396		7,441		10,054		12,703		14,400
2017												17		5,679		9,275		15,441		18,470
2018														2,506		5,823		10,801		17,294
2019																4,213		19,044		25,389
2020																		2,901		13,856
2021																				5,317
	* Presented as unaudited required supplementary information.																Total		$	200,841
									All outstanding liabilities before 2012, net of reinsurance											18,495
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	384,579

Casualty - Claims Made
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																				As of December 31, 2021
	For the Years Ended December 31,																						Cumulative
																							Number of
																							Reported
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		Total IBNR		Claims
2012	$	27,576	$	26,144	$	20,727	$	19,590	$	18,022	$	17,612	$	17,569	$	20,785	$	22,325	$	22,236	$	207		804
2013				40,095		41,488		44,054		40,288		38,473		37,959		38,352		37,974		37,950		767		1,042
2014						53,929		55,386		58,152		55,350		51,554		53,841		53,783		52,619		1,504		1,305
2015								55,006		47,831		42,206		39,906		39,653		39,619		38,609		2,759		1,338
2016										59,992		67,760		69,493		67,728		64,730		65,078		4,808		1,507
2017												60,572		62,450		62,714		57,450		59,907		9,039		1,648
2018														66,128		62,416		56,468		48,457		17,399		1,391
2019																62,918		61,712		52,224		26,387		1,508
2020																		60,278		56,785		43,408		1,287
2021																				51,219		42,451		1,112
																	Total		$	485,084

	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012	$	433	$	4,086	$	6,898	$	9,218	$	10,968	$	14,378	$	15,621	$	16,450	$	16,892	$	17,148
2013				792		7,073		18,425		26,121		29,678		32,789		34,535		35,476		36,078
2014						1,705		9,775		27,923		35,755		40,080		44,127		46,122		50,714
2015								2,215		10,738		16,774		20,920		28,795		32,241		33,529
2016										2,060		14,558		27,465		39,370		47,999		52,846
2017												2,455		11,350		22,728		36,522		42,918
2018														1,964		11,965		18,840		24,918
2019																1,839		8,123		14,117
2020																		1,488		5,687
2021																				999
	* Presented as unaudited required supplementary information.																Total		$	278,954
									All outstanding liabilities before 2012, net of reinsurance											3,575
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	209,705

Casualty - Transportation
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																				As of December 31, 2021
	For the Years Ended December 31,																						Cumulative
																							Number of
																							Reported
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		Total IBNR		Claims
2012	$	21,452	$	22,203	$	22,924	$	23,511	$	23,689	$	23,620	$	23,305	$	23,731	$	23,845	$	23,955	$	74		2,287
2013				32,742		32,853		32,989		37,673		38,811		39,974		39,309		39,183		39,586		118		2,853
2014						38,361		33,015		36,452		38,590		40,202		40,508		41,156		41,974		297		3,099
2015								38,561		46,258		47,021		46,395		45,162		45,525		45,807		708		3,186
2016										50,430		53,519		54,105		52,277		52,818		53,915		1,235		3,943
2017												55,640		53,641		45,017		43,764		45,351		2,257		3,639
2018														57,597		54,592		38,719		36,468		4,946		3,402
2019																58,297		56,129		43,976		9,024		3,313
2020																		43,573		35,524		16,243		1,637
2021																				51,322		9,745		2,161
																	Total		$	417,878

	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012	$	4,466	$	8,533	$	12,394	$	17,318	$	20,931	$	22,566	$	22,730	$	23,180	$	23,181	$	23,181
2013				5,306		11,978		19,761		28,220		33,480		35,923		37,327		37,915		38,172
2014						7,125		13,933		19,676		27,457		33,190		38,282		40,006		40,427
2015								6,984		20,709		29,554		37,222		39,339		41,345		42,626
2016										8,923		18,354		30,354		38,001		43,564		47,488
2017												7,979		17,070		24,090		30,260		36,141
2018														6,980		12,827		19,216		24,503
2019																7,148		15,852		21,120
2020																		3,986		7,876
2021																				5,341
	* Presented as unaudited required supplementary information.																Total		$	286,875
									All outstanding liabilities before 2012, net of reinsurance											528
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	131,531

Property
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																				As of December 31, 2021
	For the Years Ended December 31,																						Cumulative
																							Number of
																							Reported
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		Total IBNR		Claims
2012	$	85,485	$	80,155	$	79,181	$	77,569	$	79,175	$	78,125	$	78,161	$	78,002	$	77,924	$	77,883	$	7		2,640
2013				63,864		62,090		62,173		62,114		61,914		61,834		61,776		61,623		61,400		36		2,996
2014						56,587		49,441		48,801		48,761		49,217		49,444		49,479		49,520		52		4,562
2015								59,863		56,103		53,958		52,720		53,111		52,781		52,878		96		4,075
2016										62,900		55,594		55,384		55,930		55,424		55,383		177		3,377
2017												90,803		83,273		84,961		82,671		82,319		1,321		2,893
2018														89,091		83,457		79,961		80,470		3,642		2,337
2019																71,232		65,189		61,116		3,193		2,446
2020																		118,247		110,466		17,071		2,837
2021																				135,447		45,890		2,616
																	Total		$	766,882

	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012	$	39,074	$	66,509	$	72,057	$	73,705	$	75,640	$	76,152	$	77,159	$	77,323	$	77,347	$	77,360
2013				32,208		50,840		57,407		59,259		60,520		61,195		61,325		61,335		61,188
2014						30,550		43,380		46,148		46,528		47,799		49,027		49,259		49,317
2015								32,184		49,348		50,197		51,290		52,078		52,342		52,400
2016										33,134		46,921		51,371		53,006		54,328		54,747
2017												41,314		66,818		74,415		78,360		80,581
2018														37,048		68,264		72,357		75,253
2019																30,703		51,740		55,092
2020																		43,192		79,660
2021																				57,272
	* Presented as unaudited required supplementary information.																Total		$	642,870
									All outstanding liabilities before 2012, net of reinsurance											640
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	124,652

Surety
(in thousands, except number of claims)
	Incurred Losses and Loss Adjustment Expenses, Net of Reinsurance																				As of December 31, 2021
	For the Years Ended December 31,																						Cumulative
																							Number of
																							Reported
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021		Total IBNR		Claims
2012	$	17,114	$	11,452	$	8,667	$	8,180	$	7,867	$	7,471	$	7,099	$	7,082	$	6,985	$	7,131	$	2		1,480
2013				16,080		7,516		6,170		5,399		5,271		5,231		5,209		5,107		5,046		10		1,409
2014						16,450		8,106		5,225		4,427		4,267		4,319		4,266		4,227		8		1,355
2015								16,958		12,957		11,113		10,456		9,792		9,521		9,275		59		1,242
2016										18,928		11,062		9,351		8,895		8,391		7,948		125		1,381
2017												16,127		8,641		8,798		8,116		8,034		306		1,790
2018														16,765		7,227		4,564		3,947		713		1,323
2019																14,785		7,205		5,053		2,047		1,112
2020																		19,241		14,840		7,212		748
2021																				18,540		15,647		444
																	Total		$	84,041

	Cumulative Paid Loss and Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
AY	2012*		2013*		2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021
2012	$	1,883	$	6,680	$	6,726	$	7,416	$	7,536	$	7,406	$	7,065	$	6,996	$	6,941	$	7,083
2013				1,116		2,856		4,701		4,911		5,098		5,150		5,128		5,061		5,029
2014						722		4,283		4,166		4,059		4,131		4,234		4,214		4,197
2015								3,192		6,719		7,695		9,436		9,183		9,186		9,168
2016										3,087		5,817		6,299		7,640		8,086		7,673
2017												979		2,862		7,062		7,221		7,362
2018														1,835		2,588		2,368		2,536
2019																336		2,433		2,765
2020																		835		2,719
2021																				1,197
	* Presented as unaudited required supplementary information.																Total		$	49,729
									All outstanding liabilities before 2012, net of reinsurance											(68	)
							Liabilities for losses and loss adjustment expenses, net of reinsurance												$	34,244

The following is a reconciliation of the net incurred and paid loss development tables to the liability for unpaid losses and settlement expenses in the consolidated balance sheet:

(in thousands)	December 31, 2021			December 31, 2020
Net outstanding liabilities:
Casualty - Primary Occurrence	$	453,142		$	432,823
Casualty - Excess Occurrence		384,579			312,827
Casualty - Claims Made		209,705			214,103
Casualty - Transportation		131,531			129,852
Property		124,652			103,383
Surety		34,244			27,009
Unallocated loss adjustment expenses		59,391			54,954
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		11,188			8,634
Other		27,037			22,735
Liabilities for unpaid loss and settlement expenses, net of reinsurance	$	1,435,469		$	1,306,320

Reinsurance recoverable on unpaid claims:
Casualty - Primary Occurrence	$	43,688		$	35,202
Casualty - Excess Occurrence		122,092			88,528
Casualty - Claims Made		271,259			223,020
Casualty - Transportation		66,283			53,251
Property		65,098			40,257
Surety		50,743			4,017
Allowance for uncollectible reinsurance balances recoverable on unpaid losses and settlement expenses		(11,188	)		(8,634	)
Other		111			8,088
Total reinsurance balances recoverable on unpaid losses and settlement expenses	$	608,086		$	443,729

Total gross liability for unpaid loss and settlement expenses	$	2,043,555		$	1,750,049

Initial carried IBNR reserves are determined through a reserve estimation process. For most casualty and surety products, this process involves the use of an initial loss and allocated loss adjustment expense (ALAE) ratio that is applied to the earned premium for a given period. Payments and case reserves are subtracted from this initial estimate of ultimate loss and ALAE to determine a carried IBNR reserve. For most property products, the IBNR reserves are determined by IBNR percentages applied to premium earned. The percentages are determined based on historical reporting patterns and are updated periodically. No deductions for paid or case reserves are made. Shortly after natural or man-made catastrophes, we review insured locations exposed to the event and model losses based on our own exposures and industry loss estimates of the event. We also consider our knowledge of frequency and severity from early claim reports to determine an appropriate reserve for the catastrophe. Adjustments to the initial loss ratio by product and segment are made where necessary and reflect updated assumptions regarding loss experience, loss trends, price changes and prevailing risk factors.

Actuaries perform a ground-up reserve study of the expected value of the unpaid loss and LAE derived using multiple standard actuarial methodologies on a quarterly basis. Each method produces an estimate of ultimate loss by accident year. We review all of these various estimates and assign weights to each based on the characteristics of the product being reviewed. These estimates are then compared to the carried loss reserves to determine the appropriateness of the current reserve balance. In addition, an emergence analysis is completed quarterly to determine if further adjustments are necessary.

Upon completion of our loss and LAE estimation analysis, a review of the resulting variance between the indicated reserves and the carried reserves takes place. Our actuaries make a recommendation to management in regards to booked reserves that reflect their analytical assessment and view of estimation risk. After discussion of these analyses and all relevant risk factors, the Loss Reserve Committee, a panel of management including the lead reserving actuary, chief executive officer, chief operating officer, chief financial officer and other executives, confirms the appropriateness of the reserve balances.

Actuarial models base future emergence on historic experience, with adjustments for current trends, and the appropriateness of these assumptions involved more uncertainty as of December 31, 2021. We expect the timing of loss emergence and ultimate loss ratios for certain coverages we underwrite will be affected as a result of the spread of COVID-19 and the related economic impact.

The industry is experiencing new issues, including the postponement of civil court cases, the extension of various statutes of limitations and changes in settlement trends. Our recorded reserves include consideration of these factors, but the duration and degree to which these issues persist, along with potential legislative, regulatory or judicial actions, could result in loss reserve deficiencies and reduce earnings in future periods.

The following table summarizes our prior accident years’ loss reserve development by segment for 2021, 2020 and 2019:

A discussion of significant components of reserve development for the three most recent calendar years follows:

2021. We experienced favorable emergence relative to prior years’ reserve estimates in all of our segments during 2021. Development from the casualty segment totaled $108.6 million, inclusive of ULAE. Favorable development was experienced across accident years 2014 through 2020, with the largest amounts attributable to accident years 2018 through 2020. We continued to experience emergence that was generally better than previously estimated. We attribute the favorable emergence to loss trends in most lines outperforming our long-term expectations, our underwriters’ ability to select risk and an increasing rate environment. Within the primary occurrence grouping, the general liability product contributed $25.3 million to our favorable development and small commercial was favorable by $7.5 million. Within the excess occurrence grouping, commercial excess was favorable by $10.5 million and personal umbrella developed favorably by $10.4 million. Within the claims made grouping, professional services coverages developed favorably by $14.2 million and executive products developed favorably by $5.9 million. Transportation had $20.1 million of favorable development.

Our marine product was the predominant driver of the favorable development in the property segment, accounting for $6.6 million of the $11.0 million total favorable development for the segment, inclusive of ULAE. Accident years 2019 and 2020 made the largest contribution. Commercial property was favorable by $2.0 million.

The surety segment experienced $5.9 million of favorable development, inclusive of ULAE. The majority of the favorable development came from the 2019 and 2020 accident years. Contract surety was the main contributor with favorable development of $4.6 million.

2020. We experienced favorable emergence relative to prior years’ reserve estimates in all of our segments during 2020. The casualty segment contributed $75.1 million in favorable development, inclusive of ULAE. Accident years 2017 through 2019 contributed significantly to the favorable development. This was predominantly caused by favorable frequency and severity trends that continued to be better than our long-term expectations. In addition, we believe this to be the result of our underwriters’ ability to select risk as well as an increasing rate environment within many of our casualty sublines. Nearly all of our casualty products contributed to the favorable development. Transportation contributed $19.1 million for the year. Within the primary occurrence grouping, the general liability product contributed $17.9 million to our favorable development. Within the excess occurrence grouping, commercial excess developed favorably by $12.5 million. Within the claims made grouping, professional services coverages developed favorably by $7.8 million and medical professional liability had $6.1 million of favorable development.

The marine product was the primary driver of the favorable development in the property segment. Marine contributed $6.5 million of the $13.0 million total favorable property development, inclusive of ULAE, primarily in accident years 2017 and 2018. Commercial property was favorable by $5.2 million.

The surety segment experienced favorable development of $13.0 million, inclusive of ULAE. The majority of the favorable development was from accident year 2019. Contract and commercial surety products were the main contributors with favorable development of $5.9 million and $3.8 million, respectively.

2019. We experienced favorable emergence relative to prior years’ reserve estimates in all of our segments during 2019. The casualty segment contributed $62.5 million in favorable development, inclusive of unallocated loss and adjustment expenses (ULAE), which is excluded from the incurred loss and loss adjustment expense tables above. Accident years 2017 and 2018 contributed the majority of the favorable development, with earlier years developing favorably in aggregate to a lesser extent. Risk selection by our underwriters continued to provide better results than estimated in our reserving process. Within the primary occurrence grouping, the general liability product contributed $11.8 million to our favorable development. Small commercial products were favorable by $6.3 million. Within the excess occurrence grouping, commercial excess was favorable by $6.8 million and our personal umbrella product developed favorably by $7.8 million. Within the claims made grouping, professional services coverages developed favorably by $10.2 million, which was offset

by adverse development of $7.3 million on executive products and $2.3 million on medical professional liability coverages. Transportation experienced favorable development of $16.6 million, primarily on accident years 2016 through 2018.

Marine contributed $2.4 million of the $4.5 million total favorable property development, inclusive of ULAE. Accident years 2017 and 2018 contributed to the marine products’ favorable development. Homeowners’ contributed $1.1 million of favorable development with other commercial property insurance and assumed reinsurance products contributing the balance.

The surety segment experienced favorable development of $8.3 million, inclusive of ULAE. The majority of the favorable development was from accident year 2018, while earlier accident years developed slightly adversely. The commercial surety product was the main contributor with favorable development of $5.8 million. Contract surety had favorable development of $4.2 million, which offset $1.7 million of adverse development on miscellaneous surety.

We are subject to environmental site cleanup, asbestos removal and mass tort claims and exposures through our commercial excess, general liability and discontinued assumed casualty reinsurance lines of business. The majority of the exposure is in the excess layers of our commercial excess and assumed reinsurance books of business.

The following table represents paid and unpaid environmental, asbestos and mass tort claims data (including incurred but not reported losses) as of December 31, 2021, 2020 and 2019:

(in thousands)	2021			2020			2019
Loss and LAE Payments (Cumulative):
Gross	$	141,768		$	139,804		$	137,485
Ceded		(69,576	)		(69,219	)		(68,849	)
Net	$	72,192		$	70,585		$	68,636

Unpaid Losses and LAE at End of Year:
Gross	$	25,747		$	22,485		$	22,616
Ceded		(5,718	)		(4,619	)		(5,149	)
Net	$	20,029		$	17,866		$	17,467

Our environmental, asbestos and mass tort exposure is limited, relative to other insurers, as a result of entering the affected liability lines after the insurance industry had already recognized environmental and asbestos exposure as a problem and adopted appropriate coverage exclusions. The majority of our reserves are associated with products that went into runoff at least two decades ago. Some are for assumed reinsurance, some are for excess liability business and some followed from the acquisition of Underwriters Indemnity Company in 1999.

During 2021, RLI experienced modest emergence of asbestos, environmental and mass tort losses and we increased our IBNR reserves for these exposures.

While our environmental exposure is limited, the ultimate liability for this exposure is difficult to assess because of the extensive and complicated litigation involved in the settlement of claims and evolving legislation on issues such as joint and several liability, retroactive liability and standards of cleanup. Additionally, we participate primarily in the excess layers of coverage, where accurate estimates of ultimate loss are more difficult to derive than for primary coverage.