Property and Casualty Insurance Reserves (Tables)

12 Months Ended

Dec. 31, 2020

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

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, 2020.

DOLLARS IN MILLIONS	2020
Property and Casualty Insurance Reserves, Net of Reinsurance:
Specialty Personal Automobile Insurance—Liability	$	1,112.5
Specialty Personal Automobile Insurance—Physical Damage	53.5
Commercial Automobile Insurance—Liability	209.1
Commercial Automobile Insurance—Physical Damage	6.3
Preferred Personal Automobile Insurance—Liability	232.6
Preferred Personal Automobile Insurance—Physical Damage	4.4
Homeowners Insurance	88.4
Other	49.9
Total	$	1,756.7
Reinsurance Recoverables on Unpaid Losses and Allocated LAE:
Specialty Personal Automobile Insurance—Liability	$	9.3
Commercial Automobile Insurance—Liability	5.8
Preferred Personal Automobile Insurance—Liability	23.2
Homeowners Insurance	7.6
Other	4.2
Total	50.1
Unallocated LAE	175.7
Property and Casualty Insurance Reserves, Gross of Reinsurance	$	1,982.5

Short-duration Insurance Contracts, Schedule of Historical Claims Duration

The following is supplementary information about average historical claims duration as of December 31, 2020.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Years	1		2		3		4		5
Specialty Personal Automobile Insurance—Liability	41.9	%	80.9	%	92.6	%	96.7	%	98.6	%
Specialty Personal Automobile Insurance—Physical Damage	93.0	%	100.8	%	100.1	%	100.0	%	100.0	%
Commercial Automobile Insurance—Liability	29.5	%	61.5	%	78.3	%	88.7	%	94.9	%
Commercial Automobile Insurance—Physical Damage	89.3	%	99.9	%	99.9	%	100.0	%	100.0	%
Preferred Personal Automobile Insurance—Liability	33.6	%	66.4	%	83.0	%	90.7	%	95.5	%
Preferred Personal Automobile Insurance—Physical Damage	97.2	%	100.8	%	100.1	%	100.0	%	100.0	%
Homeowners Insurance	67.3	%	96.3	%	97.4	%	98.6	%	99.2	%

Liability for Unpaid Claims Adjustment Expense by Expense Type

Property and Casualty Insurance Reserve activity for the years ended December 31, 2020, 2019 and 2018 was:

DOLLARS IN MILLIONS	2020		2019		2018
Beginning Property and Casualty Insurance Reserves:
Gross of Reinsurance at Beginning of Year	$	1,969.8	$	1,874.9	$	1,016.8
Less Reinsurance Recoverables at Beginning of Year	65.6		101.9		53.1
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year	1,904.2		1,773.0		963.7
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance	—		3.6		695.1
Incurred Losses and LAE related to:
Current Year	2,873.6		2,879.5		2,093.4
Prior Years	36.4		(71.1)		(7.4)
Total Incurred Losses and LAE	2,910.0		2,808.4		2,086.0
Paid Losses and LAE related to:
Current Year:	1,679.1		1,682.1		1,300.8
Prior Years	1,202.7		998.7		671.0
Total Paid Losses and LAE	2,881.8		2,680.8		1,971.8
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year	1,932.4		1,904.2		1,773.0
Plus Reinsurance Recoverables at End of Year	50.1		65.6		101.9
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year	$	1,982.5	$	1,969.8	$	1,874.9

Premium Receivable, Allowance for Credit Loss

The following table presents receivables from policyholders, net of the allowance for expected credit losses including a rollforward of changes in the allowance for expected credit losses for the year ended December 31, 2020.

(Dollars in Millions)	Receivables from Policyholders, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance at Beginning of Year	$	1,117.1	$	22.3
Provision for Expected Credit Losses			45.5
Write-offs of Uncollectible Receivables from Policyholders			(46.9)
Balance at End of Period	$	1,194.5	$	20.9