Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2020

Unpaid Losses And Loss Adjustment Expenses

Unpaid losses and loss adjustment expenses

Crusader’s loss and loss adjustment expense case and incurred but not reported (“IBNR”) reserves are as follows:

	Year ended December 31
	2020		2019
Gross reserves:
Case reserves	$	26,363,695	$	23,663,743
IBNR reserves		48,529,814		31,402,737
Total gross reserves	$	74,893,509	$	55,066,480
Reserves net of reinsurance:
Case reserves	$	21,027,703	$	18,128,008
IBNR reserves		31,612,164		22,212,617
Total net reserves	$	52,639,867	$	40,340,625

Reserves for loss and loss adjustment expenses by line of business

Reserves for losses and loss adjustment expenses before reinsurance for each of Crusader’s lines of business are as follows:

	Year ended December 31
Line of Business	2020				2019
CMP	$	73,545,181	98.2	%	$	54,270,633	98.6	%
Other liability		1,283,174	1.7	%		776,957	1.4	%
Other		65,154	0.1	%		18,890	0.0	%
Total	$	74,893,509	100.0	%	$	55,066,480	100.0	%

Rollforward of loss and loss adjustment expense reserves

The following table provides an analysis of the roll forward of Crusader’s loss and loss adjustment expense reserves, including a reconciliation of the ending balance sheet liability for the periods indicated:

	Year ended December 31
	2020		2019
Reserve for unpaid losses and loss adjustment expenses at beginning of year – net of reinsurance	$	40,340,625	$	42,125,553
Incurred losses and loss adjustment expenses:
Provision for insured events of current year		26,683,872		19,384,942
Provision for incurred events of prior years		7,959,048		3,191,185
Total incurred losses and loss adjustment expenses		34,642,920		22,576,127
Payments:
Losses and loss adjustment expenses attributable to insured events of the current year		8,285,021		6,210,475
Losses and loss adjustment expenses attributable to insured events of prior years		14,058,657		18,150,580
Total payments		22,343,678		24,361,055
Reserve for unpaid losses and loss adjustment expenses at end of year – net of reinsurance		52,639,867		40,340,625
Reinsurance recoverable on unpaid losses and loss adjustment expenses at end of year		22,253,642		14,725,855
Reserve for unpaid losses and loss adjustment expenses at end of year per balance sheet, gross of reinsurance	$	74,893,509	$	55,066,480

Incurred and paid claim development

The following table presents loss development information by accident year, including cumulative incurred and paid losses and allocated loss adjustment expenses (“ALAE”), net of reinsurance, as well as cumulative claim frequency and the total of incurred but not reported liabilities plus expected development on reported claims as of December 31, 2020:

Accident Year		Cumulative Incurred		Cumulative Paid		Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims	Cumulative Number of Reported Claims
2011	$	19,150,281	$	19,150,278	$	—	1,020
2012		18,327,346		18,020,565		222	967
2013		22,802,931		22,802,275		2	849
2014		18,048,285		17,806,537		150,672	760
2015		24,495,614		21,502,400		635,716	749
2016		26,337,621		23,326,143		1,565,938	803
2017		25,091,934		18,869,369		3,060,474	807
2018		20,670,880		12,129,118		6,146,217	605
2019		19,182,851		7,603,418		7,134,966	639
2020		24,302,958		6,004,292		12,910,459	699
Total	$	218,410,701	$	167,214,395	$	31,604,666

Reconciliation of cumulative incurred and paid claims to unpaid losses and loss adjustment expenses

The following table reconciles the above cumulative incurred and paid data to Crusader’s loss and loss adjustment expense reserves:

	Year ended December 31
	2020			2019
Cumulative incurred losses and ALAE	$	218,410,701		$	203,000,161
Less cumulative paid losses and ALAE		(167,214,395	)		(164,132,073	)
Reserve for unpaid losses and ALAE (latest 10 accident years)		51,196,306			38,868,088
Reserves for unpaid losses and ALAE (beyond latest 10 accident years)		79,703			126,042
Reserves for unpaid unallocated loss adjustment expenses		1,363,858			1,346,495
Reserve for unpaid losses and loss adjustment expenses, net of reinsurance		52,639,867			40,340,625
Reinsurance recoverable on unpaid losses and loss adjustment expenses		22,253,642			14,725,855
Reserve for unpaid losses and loss adjustment expenses, gross of reinsurance	$	74,893,509		$	55,066,480