XML 48 R42.htm IDEA: XBRL DOCUMENT

Property and Casualty Insurance Reserves (Tables)

12 Months Ended

Dec. 31, 2019

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Short-duration Insurance Contracts, Claims Development

The following tables contain information about incurred and paid claims development as of and for the year ended December 31, 2019, net of reinsurance and indemnification, as well as cumulative claim frequency and the total of IBNR liabilities, including expected development on reported claims included within the net incurred losses and allocated LAE amounts. The tables are grouped by major product line and, if relevant, coverage. The information about incurred and paid claims development for the years ended December 31, 2015 through 2018 is presented as supplementary information and is unaudited.

Specialty Personal Automobile Insurance—Liability¹



DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS											As of December 31, 2019
	Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31,										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	965.1	$	855.1	$	965.1	$	972.3	$	969.6	$	8.1	401,025
2016			969.4		1,021.6		1,027.2		1,026.0		22.5		417,016
2017					997.7		999.9		1,004.5		40.6		396,578
2018							1,128.1		1,119.1		93.0		445,229
2019									1,270.7		383.0		447,558
Total									5,389.9


	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	450.5	$	794.9	$	898.9	$	934.7	$	954.0
2016			459.7		831.1		943.4		987.7
2017					441.9		808.6		926.7
2018							467.5		903.8
2019									497.2
Total									4,269.4
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance									20.4
Loss and Allocated LAE Reserves, Net of Reinsurance									$	1,140.9

¹ Table retrospectively includes Alliance United and Infinity’s historical incurred and paid accident year claim information for all periods presented.

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Specialty Personal Automobile Insurance—Physical Damage¹



DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS												As of December 31, 2019
	Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31,											Total of IBNR Liabilities Plus Expected Development on Reported Claims			Cumulative Number of Reported Claims
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	403.8	$	407.1	$	406.7	$	406.5	$	406.6		$	0.9		231,007
2016			462.2		456.9		456.9		457.0			(0.1		)	246,183
2017					475.6		465.6		465.1			—			251,872
2018							504.9		496.9			(1.6		)	269,782
2019									574.7			47.5			276,797
Total									2,400.3


	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	382.4	$	408.8	$	406.7	$	406.4	$	406.1
2016			436.4		460.2		458.0		457.5
2017					443.0		468.7		466.0
2018							463.6		501.5
2019									525.8
Total									2,356.9
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance									(1.2		)
Loss and Allocated LAE Reserves, Net of Reinsurance									$	42.2

¹ Table retrospectively includes Alliance United and Infinity’s historical incurred and paid accident year claim information for all periods presented.

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Commercial Automobile Insurance—Liability¹



DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS											As of December 31, 2019
	Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31,										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	102.5	$	106.9	$	112.9	$	112.3	$	110.7	$	0.6	19,292
2016			120.5		112.4		115.6		117.7		3.5		20,417
2017					120.5		120.0		118.3		9.1		19,925
2018							123.2		116.5		19.8		19,969
2019									128.4		59.2		17,772
Total									591.6


	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
	For the Years Ended December 31,
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	34.8	$	70.2	$	88.6	$	100.3	$	107.6
2016			36.2		71.6		89.7		102.3
2017					36.3		72.3		90.7
2018							36.8		68.8
2019									32.4
Total									401.8
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance									1.4
Loss and Allocated LAE Reserves, Net of Reinsurance									$	191.2

¹ Table retrospectively includes Infinity’s historical incurred and paid accident year claim information for all periods presented.

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Commercial Automobile Insurance—Physical Damage¹



DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS											As of December 31, 2019
	Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31,										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	21.5	$	21.6	$	21.7	$	21.7	$	21.7	$	—	9,643
2016			24.2		24.2		24.1		24.2		—		10,560
2017					24.2		23.5		23.5		0.2		9,788
2018							23.6		23.5		0.3		9,558
2019									26.0		3.5		8,803
Total									118.9


	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
	For the Years Ended December 31,
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	20.2	$	21.6	$	21.7	$	21.7	$	21.7
2016			22.4		24.2		24.1		24.2
2017					22.2		23.5		23.4
2018							21.7		23.6
2019									23.0
Total									115.9
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance									—
Loss and Allocated LAE Reserves, Net of Reinsurance									$	3.0

¹ Table retrospectively includes Infinity’s historical incurred and paid accident year claim information for all periods presented.

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Preferred Personal Automobile Insurance—Liability



DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS											As of December 31, 2019
	Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31,										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	168.3	$	171.8	$	176.5	$	177.6	$	177.1	$	0.9	38,961
2016			162.1		174.5		179.1		176.8		2.1		36,721
2017					164.4		157.8		155.8		4.5		33,663
2018							157.6		156.3		15.6		32,020
2019									172.2		51.3		32,848
Total									838.2


	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	73.1	$	122.4	$	147.5	$	163.1	$	169.3
2016			61.2		114.6		145.6		161.1
2017					59.2		108.9		134.1
2018							55.5		107.6
2019									62.7
Total									634.8
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance									9.5
Loss and Allocated LAE Reserves, Net of Reinsurance									$	212.9

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Preferred Personal Automobile Insurance—Physical Damage



DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS												As of December 31, 2019
	Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31,											Total of IBNR Liabilities Plus Expected Development on Reported Claims			Cumulative Number of Reported Claims
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	101.2	$	100.7	$	100.6	$	100.6	$	100.6		$	—		68,409
2016			106.6		106.6		106.3		106.2			(0.1		)	65,348
2017					109.2		105.8		105.2			(0.1		)	62,553
2018							113.9		111.0			(0.5		)	60,749
2019									126.4			(0.9		)	60,548
Total									549.4


	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	100.1	$	101.0	$	100.7	$	100.6	$	100.6
2016			105.2		106.9		106.3		106.3
2017					104.4		106.1		105.2
2018							107.2		111.4
2019									120.7
Total									544.2
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance									(0.1		)
Loss and Allocated LAE Reserves, Net of Reinsurance									$	5.1

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Homeowners Insurance



DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS											As of December 31, 2019
	Incurred Losses and Allocated LAE, Net of Reinsurance For the Years Ended December 31,										Total of IBNR Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	178.9	$	164.9	$	163.2	$	164.3	$	164.4	$	0.5	19,731
2016			200.3		201.7		204.2		202.2		1.4		20,380
2017					261.2		259.5		245.2		0.9		20,982
2018							185.9		183.0		1.2		17,122
2019									162.9		19.2		13,931
Total									957.7


	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2015 (Unaudited)		2016 (Unaudited)		2017 (Unaudited)		2018 (Unaudited)		2019
2015	$	116.9	$	154.4	$	158.0	$	161.3	$	162.7
2016			141.2		190.1		195.8		198.9
2017					165.8		242.5		235.7
2018							127.4		180.2
2019									111.1
Total									888.6
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2015, Net of Reinsurance									3.2
Loss and Allocated LAE Reserves, Net of Reinsurance									$	72.3

Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability

The following table reconciles the net incurred and paid claims development tables presented above to the Company's liability for Property and Casualty Insurance Reserves included in the Consolidated Balance Sheet at December 31, 2019.



DOLLARS IN MILLIONS	2019
Property and Casualty Insurance Reserves, Net of Reinsurance:
Specialty Personal Automobile Insurance—Liability	1,140.9
Specialty Personal Automobile Insurance—Physical Damage	42.2
Commercial Automobile Insurance—Liability	191.2
Commercial Automobile Insurance—Physical Damage	3.0
Preferred Personal Automobile Insurance—Liability	212.9
Preferred Personal Automobile Insurance—Physical Damage	5.1
Homeowners Insurance	72.3
Other	57.5
Total	1,725.1
Reinsurance Recoverables on Unpaid Losses and Allocated LAE:
Specialty Personal Automobile Insurance—Liability	8.7
Commercial Automobile Insurance—Liability	9.4
Preferred Personal Automobile Insurance—Liability	25.2
Homeowners Insurance	15.5
Other	6.8
Total	65.6
Unallocated LAE	179.1
Property and Casualty Insurance Reserves, Gross of Reinsurance	$	1,969.8

Short-duration Insurance Contracts, Schedule of Historical Claims Duration

The following is supplementary information about average historical claims duration as of December 31, 2019.



Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Years	1		2		3		4		5
Specialty Personal Automobile Insurance—Liability	43.2	%	81.1	%	92.3	%	96.3	%	98.4	%
Specialty Personal Automobile Insurance—Physical Damage	93.9	%	100.7	%	100.1	%	100.0	%	99.9	%
Commercial Automobile Insurance—Liability	29.9	%	61.1	%	77.6	%	88.8	%	97.2	%
Commercial Automobile Insurance—Physical Damage	92.2	%	100.0	%	99.7	%	100.0	%	100.0	%
Preferred Personal Automobile Insurance—Liability	37.2	%	68.2	%	83.9	%	91.6	%	95.6	%
Preferred Personal Automobile Insurance—Physical Damage	98.0	%	100.6	%	100.1	%	100.0	%	100.0	%
Homeowners Insurance	69.3	%	96.3	%	96.4	%	98.2	%	99.0	%

Liability for Unpaid Claims Adjustment Expense by Expense Type

Property and Casualty Insurance Reserve activity for the years ended December 31, 2019, 2018 and 2017 was:



DOLLARS IN MILLIONS	2019			2018			2017
Beginning Property and Casualty Insurance Reserves:
Gross of Reinsurance at Beginning of Year	$	1,874.9		$	1,016.8		$	931.4
Less Reinsurance Recoverables at Beginning of Year	101.9			53.1			50.2
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year	1,773.0			963.7			881.2
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance	3.6			695.1			—
Incurred Losses and LAE related to:
Current Year	2,879.5			2,093.4			1,454.1
Prior Years	(71.1		)	(7.4		)	18.9
Total Incurred Losses and LAE	2,808.4			2,086.0			1,473.0
Paid Losses and LAE related to:
Current Year:	1,682.1			1,300.8			868.1
Prior Years	998.7			671.0			522.4
Total Paid Losses and LAE	2,680.8			1,971.8			1,390.5
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year	1,904.2			1,773.0			963.7
Plus Reinsurance Recoverables at End of Year	65.6			101.9			53.1
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year	$	1,969.8		$	1,874.9		$	1,016.8