Loss and Loss Expense Reserves

3 Months Ended

Mar. 31, 2021

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 three months ended March 31, 2021 and 2020 is summarized as follows.  All amounts are shown net of reinsurance, unless otherwise indicated.

	Three Months Ended
	March 31
	2021			2020
Reserves, gross of reinsurance recoverable, at the beginning of the year	$	1,089,669		$	988,305
Reinsurance recoverable on unpaid losses at the beginning of the year		424,368			398,305
Reserves at the beginning of the year, net of reinsurance		665,301			590,000
Provision for losses and loss expenses, net:
Claims occurring during the current period		83,143			81,839
Claims occurring during prior periods		(825	)		(8	)
Total incurred		82,318			81,831
Loss and loss expense payments, net:
Claims occurring during the current period		8,082			8,169
Claims occurring during prior periods		52,847			61,812
Total paid		60,929			69,981
Reserves at the end of the period, net of reinsurance		686,690			601,850
Reinsurance recoverable on unpaid losses at the end of the period		421,442			399,749
Reserves, gross of reinsurance recoverable, at the end of the period	$	1,108,132		$	1,001,599

The $825 prior accident year favorable development during the three months ended March 31, 2021 was primarily due to favorable loss development in the Company's commercial automobile liability line of business for more recent accident years due to better than expected reported loss development.  This savings compares to flat loss development for the three months ended March 31, 2020.  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 as part of the normal reserving process.