Property and Casualty Unpaid Claims and Claim Expenses

6 Months Ended

Jun. 30, 2018

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.



($ in thousands)	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018			2017
Property and Casualty
Beginning gross reserves (1)	$	331,255	$	316,173		$	319,182		$	307,757
Less: reinsurance recoverables	62,917		61,804			57,409			61,199
Net reserves, beginning of period (2)	268,338		254,369			261,773			246,558
Incurred claims and claim expenses:
Claims occurring in the current period	147,005		148,348			267,993			271,552
Decrease in estimated reserves for claims occurring in prior periods (3)	—		(600		)	(300		)	(1,600		)
Total claims and claim expenses incurred (4)	147,005		147,748			267,693			269,952
Claims and claim expense payments for claims occurring during:
Current period	80,403		95,645			127,451			148,025
Prior periods	45,006		35,538			112,081			97,551
Total claims and claim expense payments	125,409		131,183			239,532			245,576
Net reserves, end of period (2)	289,934		270,934			289,934			270,934
Plus: reinsurance recoverables	62,883		58,897			62,883			58,897
Ending gross reserves (1)	$	352,817	$	329,831		$	352,817		$	329,831

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(1)	Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for Life and Retirement of $27,016 thousand and $22,682 thousand as of June 30, 2018 and 2017, respectively, in addition to Property and Casualty 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 Life and Retirement of $21,273 thousand and $44,147 thousand for the three and six month periods ended June 30, 2018, respectively, in addition to Property and Casualty amounts. Benefits, claims and settlement expenses for Life and Retirement were $18,131 thousand and $40,023 thousand for the three and six month periods ended June 30, 2017, respectively

Net favorable development of total reserves for Property and Casualty claims occurring in prior years was $300 thousand and $1,600 thousand for the six month periods ended June 30, 2018 and 2017, respectively. The favorable development for both of the six month periods ended June 30, 2018 and 2017 was predominantly the result of favorable severity trends in homeowners loss emergence for accident years 2016 and prior.