Property and Casualty Insurance Reserves (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021, 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, 2017 through 2020 is presented as supplementary information and is unaudited.

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Specialty Personal Automobile Insurance—Liability1

DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS											As of December 31, 2021
	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	2017		2018		2019		2020		2021
2017	$	1,170.2	$	1,175.6	$	1,185.6	$	1,181.6	$	1,197.4	$	15.1	458,261
2018			1,324.0		1,310.5		1,307.8		1,314.5		24.0		508,623
2019					1,461.5		1,494.7		1,506.1		54.8		546,521
2020							1,401.2		1,406.4		111.6		474,346
2021									1,856.9		607.1		544,207
Total									7,281.3
	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2017		2018		2019		2020		2021
2017	$	498.3	$	945.5	$	1,092.9	$	1,141.9	$	1,169.3
2018			541.3		1,050.8		1,211.8		1,265.5
2019					567.3		1,200.7		1,382.0
2020							555.2		1,107.6
2021									657.1
Total									5,581.5
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance									22.5
Loss and Allocated LAE Reserves, Net of Reinsurance									$	1,722.3

1Tables retrospectively include Infinity and AAC’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, 2021
	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	2017		2018		2019		2020		2021
2017	$	533.1	$	522.5	$	522.0	$	522.5	$	522.4	$	(0.1)	296,392
2018			558.9		548.6		548.0		547.8		(0.6)		309,577
2019					624.3		630.3		629.6		(10.5)		324,321
2020							650.5		659.5		(6.4)		296,167
2021									958.0		2.1		348,244
Total									3,317.3
	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2017		2018		2019		2020		2021
2017	$	493.2	$	525.6	$	523.0	$	522.7	$	522.5
2018			509.4		553.1		549.0		548.3
2019					570.8		634.8		630.6
2020							585.5		663.8
2021									890.1
Total									3,255.3
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance									1.6
Loss and Allocated LAE Reserves, Net of Reinsurance									$	63.6

1Tables retrospectively include Infinity and AAC’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, 2021
	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	2017		2018		2019		2020		2021
2017	$	120.5	$	120.0	$	118.3	$	114.3	$	114.4	$	2.3	19,967
2018			123.2		116.5		113.0		110.9		4.7		20,195
2019					128.4		126.1		126.6		11.5		19,572
2020							140.5		152.0		25.5		19,354
2021									225.6		99.1		24,690
Total									729.5
	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
	For the Years Ended December 31,
Accident Year	2017		2018		2019		2020		2021
2017	$	36.3	$	72.3	$	90.7	$	101.7	$	107.2
2018			36.8		68.8		88.1		98.1
2019					32.4		75.7		99.5
2020							37.0		87.6
2021									50.8
Total									443.2
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance									14.1
Loss and Allocated LAE Reserves, Net of Reinsurance									$	300.4

1Tables retrospectively include 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, 2021
	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	2017		2018		2019		2020		2021
2017	$	24.2	$	23.5	$	23.5	$	23.4	$	23.4	$	—	9,792
2018			23.6		23.5		23.6		23.6		0.1		9,569
2019					26.0		27.1		26.9		(0.5)		9,305
2020							31.9		32.2		—		11,011
2021									52.4		0.4		16,494
Total									158.5
	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance and Indemnification
	For the Years Ended December 31,
Accident Year	2017		2018		2019		2020		2021
2017	$	22.2	$	23.5	$	23.4	$	23.4	$	23.4
2018			21.7		23.6		23.6		23.6
2019					23.0		26.9		26.8
2020							26.2		31.9
2021									43.3
Total									149.0
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance									0.4
Loss and Allocated LAE Reserves, Net of Reinsurance									$	9.9

1Tables retrospectively include 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, 2021
	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	2017		2018		2019		2020		2021
2017	$	164.4	$	157.8	$	155.8	$	158.2	$	160.0	$	0.6	33,734
2018			157.6		156.3		161.7		163.4		1.7		31,922
2019					172.2		195.5		200.0		4.9		34,633
2020							148.9		153.6		16.1		24,438
2021									176.9		54.1		25,149
Total									853.9
	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2017		2018		2019		2020		2021
2017	$	59.2	$	108.9	$	134.1	$	143.2	$	150.6
2018			55.5		107.6		132.7		147.4
2019					62.7		127.9		160.8
2020							44.4		92.8
2021									50.3
Total									601.9
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance									10.2
Loss and Allocated LAE Reserves, Net of Reinsurance									$	262.2

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, 2021
	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	2017		2018		2019		2020		2021
2017	$	109.2	$	105.8	$	105.2	$	105.1	$	105.2	$	—	62,685
2018			113.9		111.0		110.4		110.4		0.1		61,921
2019					126.4		125.8		125.9		0.3		67,181
2020							96.1		98.0		(0.5)		47,603
2021									118.5		(0.7)		50,533
Total									558.0
	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2017		2018		2019		2020		2021
2017	$	104.4	$	106.1	$	105.2	$	105.1	$	105.2
2018			107.2		111.4		110.4		110.3
2019					120.7		126.5		125.6
2020							90.9		98.4
2021									113.1
Total									552.6
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance									—
Loss and Allocated LAE Reserves, Net of Reinsurance									$	5.4

NOTE 6. PROPERTY AND CASUALTY INSURANCE RESERVES (Continued)

Homeowners Insurance

DOLLARS IN MILLIONS, EXCEPT CUMULATIVE INCURRED CLAIMS											As of December 31, 2021
	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	2017		2018		2019		2020		2021
2017	$	261.2	$	259.5	$	245.2	$	243.8	$	243.9	$	1.3	19,619
2018			185.9		183.0		183.6		185.3		4.1		16,212
2019					162.9		161.8		163.1		2.5		14,670
2020							157.0		149.8		4.3		13,887
2021									149.9		19.1		12,422
Total									892.0
	Cumulative Paid Losses and Allocated LAE, Net of Reinsurance
	For the Years Ended December 31,
Accident Year	2017		2018		2019		2020		2021
2017	$	165.8	$	242.5	$	235.7	$	239.5	$	241.7
2018			127.4		180.2		180.0		183.1
2019					111.1		150.4		157.7
2020							94.6		130.8
2021									100.6
Total									813.9
Outstanding Loss and Allocated LAE Reserves on Accident Years before 2017, Net of Reinsurance									3.3
Loss and Allocated LAE Reserves, Net of Reinsurance									$	81.4

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, 2021.

DOLLARS IN MILLIONS	2021
Property and Casualty Insurance Reserves, Net of Reinsurance:
Specialty Personal Automobile Insurance—Liability	$	1,722.3
Specialty Personal Automobile Insurance—Physical Damage	63.6
Commercial Automobile Insurance—Liability	300.4
Commercial Automobile Insurance—Physical Damage	9.9
Preferred Personal Automobile Insurance—Liability	262.2
Preferred Personal Automobile Insurance—Physical Damage	5.4
Homeowners Insurance	81.4
Other	46.7
Total	$	2,491.9
Reinsurance Recoverables on Unpaid Losses and Allocated LAE:
Specialty Personal Automobile Insurance—Liability	$	10.3
Specialty Personal Automobile Insurance—Physical Damage	—
Commercial Automobile Insurance—Liability	3.2
Commercial Automobile Insurance—Physical Damage	—
Preferred Personal Automobile Insurance—Liability	19.2
Preferred Personal Automobile Insurance—Physical Damage	—
Homeowners Insurance	5.0
Other	4.2
Total	41.9
Unallocated LAE	238.9
Property and Casualty Insurance Reserves, Gross of Reinsurance	$	2,772.7

Short-duration Insurance Contracts, Schedule of Historical Claims Duration

The following is supplementary information about average historical claims duration as of December 31, 2021.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (Unaudited)
Years	1		2		3		4		5
Specialty Personal Automobile Insurance—Liability	39.1	%	79.3	%	91.7	%	95.8	%	97.7	%
Specialty Personal Automobile Insurance—Physical Damage	91.9		100.8		100.2		100.1		100.0
Commercial Automobile Insurance—Liability	27.5		60.7		79.1		88.7		93.7
Commercial Automobile Insurance—Physical Damage	87.2		99.9		99.9		100.0		100.0
Preferred Personal Automobile Insurance—Liability	31.9		64.6		81.8		89.9		94.2
Preferred Personal Automobile Insurance—Physical Damage	96.1		100.7		99.9		99.9		100.0
Homeowners Insurance	67.0		94.0		96.8		98.5		99.1

Liability for Unpaid Claims Adjustment Expense by Expense Type

Property and Casualty Insurance Reserve activity for the years ended December 31, 2021, 2020 and 2019 was:

DOLLARS IN MILLIONS	2021		2020		2019
Property and Casualty Insurance Reserves:
Gross of Reinsurance at Beginning of Year	$	1,982.5	$	1,969.8	$	1,874.9
Less Reinsurance Recoverables at Beginning of Year	50.1		65.6		101.9
Property and Casualty Insurance Reserves, Net of Reinsurance at Beginning of Year	1,932.4		1,904.2		1,773.0
Property and Casualty Insurance Reserves Acquired, Net of Reinsurance	211.1		—		3.6
Incurred Losses and LAE related to:
Current Year	4,052.7		2,873.6		2,879.5
Prior Years	106.7		36.4		(71.1)
Total Incurred Losses and LAE	4,159.4		2,910.0		2,808.4
Paid Losses and LAE related to:
Current Year:	2,303.4		1,679.1		1,682.1
Prior Years	1,268.7		1,202.7		998.7
Total Paid Losses and LAE	3,572.1		2,881.8		2,680.8
Property and Casualty Insurance Reserves, Net of Reinsurance at End of Year	2,730.8		1,932.4		1,904.2
Plus Reinsurance Recoverables at End of Year	41.9		50.1		65.6
Property and Casualty Insurance Reserves, Gross of Reinsurance at End of Year	$	2,772.7	$	1,982.5	$	1,969.8

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, 2021.

(Dollars in Millions)	Receivables from Policyholders, Net of Allowance for Expected Credit Losses		Allowance for Expected Credit Losses
Balance at Beginning of Year	$	1,194.5	$	20.9
Provision for Expected Credit Losses			50.5
Write-offs of Uncollectible Receivables from Policyholders			(57.8)
Balance at End of Period	$	1,418.7	$	13.6

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