Loss and Loss Expense Reserves

6 Months Ended

Jun. 30, 2019

Loss and Loss Expense Reserves [Abstract]

Loss and Loss Expense Reserves

(4)  Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the six months ended June 30, 2019 and 2018 is summarized as follows.  All amounts are shown net of reinsurance, unless otherwise indicated.

	Six Months Ended
	June 30
	2019			2018
Reserves, gross of reinsurance recoverable, at the beginning of the year	$	865,339		$	680,274
Reinsurance recoverable on unpaid losses at the beginning of the year		375,935			308,143
Reserves at the beginning of the year		489,404			372,131
Provision for losses and loss expenses:
Claims occurring during the current period		179,211			151,462
Claims occurring during prior periods		(1,656	)		(1,675	)
Total incurred		177,555			149,787
Loss and loss expense payments:
Claims occurring during the current period		30,573			28,903
Claims occurring during prior periods		92,822			88,965
Total paid		123,395			117,868
Reserves at the end of the period		543,564			404,050
Reinsurance recoverable on unpaid losses at the end of the period		389,899			312,231
Reserves, gross of reinsurance recoverable, at the end of the period	$	933,463		$	716,281

The table above shows a reserve savings of $1,656 that developed during the six months ended June 30, 2019 in the settlement of claims occurring on or before December 31, 2018.  Losses incurred from claims occurring during prior years reflect the development from prior accident years, composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported.

The $1,656 prior accident year savings that developed during the six months ended June 30, 2019 was primarily due to favorable loss development in workers' compensation and independent contractor coverages.  This savings compares to a savings of $1,675 for the six months ended June 30, 2018, which was also related to favorable loss development from workers' compensation and independent contractor coverages.