Workers' Compensation Claims (Tables)

6 Months Ended

Jun. 30, 2021

Summarizes Aggregate Workers' Compensation Reserve Activity

The following table summarizes the aggregate workers’ compensation reserve activity (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2021			2020			2021			2020
Beginning balance
Workers' compensation claims liabilities	$	362,663		$	445,310		$	357,746		$	438,986
Add: claims expense accrual
Current period		35,743			32,729			69,013			71,221
Prior periods		(5,483	)		(1,373	)		(6,663	)		(2,186	)
		30,260			31,356			62,350			69,035
Less: claim payments related to
Current period		3,927			4,527			4,979			6,077
Prior periods ⁽¹⁾		73,240			135,853			99,005			165,530
		77,167			140,380			103,984			171,607

Change in claims incurred in excess of retention limits		(23	)		218			(379	)		90

Ending balance
Workers' compensation claims liabilities	$	315,733		$	336,504		$	315,733		$	336,504
Incurred but not reported (IBNR)	$	190,818		$	206,521		$	190,818		$	206,521

Ratio of IBNR to workers' compensation claims liabilities		60	%		61	%		60	%		61	%

(1) Claim payments related to prior periods includes an amount payable to a third-party insurance carrier of $47.4 million, which represents consideration for the loss portfolio transfer agreement entered into on June 30, 2021.

Summary of Risk Retained by Insured Program after Considering Loss Portfolio Transfers and Current Insurance Arrangements

The following is a summary of the risk retained by the Company under its insured program after considering the effects of the loss portfolio transfers and current insurance arrangements:

Year	Claims risk retained
2014	No
2015	No
2016	No
2017	No
2018 ⁽¹⁾	No
2019 ⁽¹⁾	Yes
2020	Yes
2021 - Through June 30	Yes
2021 - July 1 and after	No

(1) LPT 2 excluded approximately 10% of claims from 2018 and included an approximately offsetting amount of claims from 2019.