Property and Casualty Unpaid Claims and Claim Expenses

3 Months Ended

Mar. 31, 2017

Property and Casualty Unpaid Claims and Claim Expenses

Note 5 - Property and Casualty Unpaid Claims and Claim Expenses

The following table is a summary reconciliation of the beginning and ending Property and Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both gross and net (after reinsurance) bases. The total net Property and Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations. The end of the period gross reserve (before reinsurance) balances and the reinsurance recoverable balances are reflected on a gross basis in the Consolidated Balance Sheets.

	March 31,				March 31,
	2017				2016
Property and Casualty segment
Gross reserves, beginning of year (1)		$	307,757			$	301,569
Less: reinsurance recoverables			61,199				50,332
Net reserves, beginning of year (2)			246,558				251,237
Incurred claims and claim expenses:
Claims occurring in the current year			123,204				103,206
Decrease in estimated reserves for
claims occurring in prior years (3)			(1,000	)			(2,000	)
Total claims and claim expenses incurred (4)			122,204				101,206
Claims and claim expense payments
for claims occurring during:
Current year			52,380				39,081
Prior years			62,013				54,515
Total claims and claim expense payments			114,393				93,596
Net reserves, end of year (2)			254,369				258,847
Plus: reinsurance recoverables			61,804				60,429
Gross reserves, end of year (1)		$	316,173			$	319,276

(1)

Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for the Life and Retirement segments of $23,860 and $24,993 as of March 31, 2017 and 2016, respectively, in addition to Property and Casualty segment reserves.

(2)

Reserves net of anticipated reinsurance recoverables.

(3)

Shows the amounts by which the Company decreased its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs.

(4)

Benefits, claims and settlement expenses as reported in the Consolidated Statements of Operations also include amounts for the Life and Retirement segments of $21,892 and $18,307 as of March 31, 2017 and 2016, respectively, in addition to the Property and Casualty segment amounts.

Net favorable development of total reserves for Property and Casualty claims occurring in prior years was $1,000 and $2,000 for the three month periods ended March 31, 2017 and 2016, respectively. The favorable development for both of the three month periods ended March 31, 2017 and 2016 was predominantly the result of favorable severity trends in homeowners loss emergence for accident years 2014 and prior.