Reserves for Losses and Loss Settlement Expenses (Tables)

12 Months Ended

Dec. 31, 2021

Insurance Loss Reserves [Abstract]

Summary of Changes in Property and Casualty Losses and Loss Settlement Expense Reserves

The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves for 2021, 2020 and 2019 (net of reinsurance amounts):

Years Ended December 31,	2021		2020		2019
Gross liability for losses and loss settlement expenses at beginning of year	$	1,578,131	$	1,421,754	$	1,312,483
Ceded losses and loss settlement expenses	(131,843)		(68,536)		(57,094)
Net liability for losses and loss settlement expenses at beginning of year	$	1,446,288	$	1,353,218	$	1,255,389
Losses and loss settlement expenses incurred for claims occurring during
Current year	$	701,064	$	887,119	$	835,507
Prior years	(48,909)		(17,652)		(5,335)
Total incurred	$	652,155	$	869,467	$	830,172
Losses and loss settlement expense payments for claims occurring during
Current year	$	277,115	$	354,635	$	333,975
Prior years	419,963		421,762		398,368
Total paid	$	697,078	$	776,397	$	732,343
Net liability for losses and loss settlement expenses at end of year	$	1,401,365	$	1,446,288	$	1,353,218
Ceded loss and loss settlement expenses	112,900		131,843		68,536
Gross liability for losses and loss settlement expenses at end of year	$	1,514,265	$	1,578,131	$	1,421,754

Schedule of Incurred and Paid Losses and Loss Settlement Expense Development

The following tables provide information about incurred and paid losses and loss settlement expense development as of December 31, 2021, net of reinsurance, as well as cumulative development, cumulative claim frequency and IBNR liabilities. Claim data for Mercer Insurance Group, Inc., which was acquired on March 28, 2011, is presented retrospectively.

The cumulative number of reported claims, for calendar year 2021, 2020 and 2019, are counted for all lines of business on a per claimant per coverage basis and a single event may result in multiple claims due to the involvement of multiple individual claimants and / or multiple independent coverages. Claim counts for calendar years 2016 and prior are counted on a per claim and per coverage basis. Claim counts include open claims, claims that have been paid and closed, and reported claims that have been closed without the need for any payment.

Line of business: Commercial other liability
	Incurred losses and allocated loss settlement expenses, net of reinsurance																				As of December 31, 2021
	For the years ended December 31,																				Total of incurred but not reported liabilities plus expected development on reported claims		Cumulative development	Cumulative number of reported claims
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	100,389	$	96,158	$	94,195	$	91,980	$	92,537	$	91,346	$	89,731	$	91,571	$	89,900	$	89,445	$	11,818	(10,944)	5,905
2013			104,982		91,460		90,502		86,119		85,399		88,816		86,082		85,999		94,808		3,962		(10,174)	6,489
2014					118,928		117,958		106,486		97,809		102,487		105,507		107,417		111,517		3,837		(7,411)	6,680
2015							137,386		125,307		120,005		127,091		129,945		131,325		132,694		8,651		(4,692)	7,849
2016									139,144		130,041		136,275		142,397		140,784		148,324		12,640		9,180	9,132
2017											139,602		139,032		152,547		156,369		159,653		19,305		20,051	9,063
2018													163,059		172,894		176,496		187,841		29,864		24,782	8,872
2019															149,173		169,344		183,918		37,331		34,745	8,102
2020																	171,013		158,022		43,673		(12,991)	5,673
2021																			145,822		76,825			2,343
																	Total		$	1,412,044

Line of business: Commercial other liability
	Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
	For the years ended December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	6,875	$	24,620	$	39,948	$	55,316	$	64,574	$	69,800	$	71,773	$	73,819	$	74,644	$	75,187
2013			9,835		25,228		39,953		54,559		65,773		72,115		75,961		78,448		83,491
2014					10,207		29,679		50,211		70,363		83,109		93,060		96,509		102,042
2015							11,185		27,182		53,901		74,292		96,339		104,472		109,540
2016									13,782		38,184		63,526		88,885		102,757		115,107
2017											17,716		43,172		70,500		91,984		111,085
2018													16,200		44,772		79,168		105,515
2019															18,221		46,986		72,179
2020																	17,011		43,596
2021																			12,434
																	Total		$	830,176
					All outstanding liabilities for unpaid losses and loss settlement expenses before 2012, net of reinsurance														30,242
					Liabilities for unpaid losses and loss settlement expenses, net of reinsurance														$	612,108

Line of business: Commercial fire and allied
	Incurred losses and allocated loss settlement expenses, net of reinsurance																				As of December 31, 2021
	For the years ended December 31,																				Total of incurred but not reported liabilities plus expected development on reported claims		Cumulative development	Cumulative number of reported claims
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	138,602	$	110,448	$	108,774	$	108,047	$	107,958	$	108,623	$	109,687	$	109,480	$	110,245	$	109,911	$	318	(28,691)	6,477
2013			91,521		88,550		91,498		92,212		93,826		93,858		92,988		92,855		93,498		62		1,977	6,675
2014					126,216		131,198		128,762		128,185		128,503		126,811		127,068		128,180		70		1,964	7,940
2015							103,177		108,293		110,633		108,235		105,218		104,646		105,043		209		1,866	7,592
2016									147,473		144,208		143,721		143,724		143,108		144,109		493		(3,364)	9,860
2017											155,139		160,240		160,946		161,693		161,232		676		6,093	13,478
2018													143,280		146,951		146,378		146,010		1,765		2,730	10,746
2019															164,030		155,482		158,475		3,614		(5,555)	11,146
2020																	207,207		201,391		6,528		(5,816)	14,354
2021																			156,794		27,009			4,796
																	Total		$	1,404,643

Line of business: Commercial fire and allied
	Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
	For the years ended December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	71,008	$	94,380	$	100,078	$	103,197	$	105,250	$	106,521	$	106,740	$	107,992	$	108,123	$	108,859
2013			59,331		78,226		82,853		86,115		89,200		91,493		92,012		92,472		93,200
2014					84,456		113,663		116,750		122,370		123,697		125,745		126,307		127,883
2015							67,217		90,454		95,515		101,367		104,115		103,975		104,127
2016									92,895		125,962		132,429		137,909		139,353		141,104
2017											99,484		137,058		145,900		152,219		157,512
2018													92,770		123,559		133,703		137,794
2019															100,980		136,084		142,342
2020																	128,704		173,055
2021																			97,451
																	Total		$	1,283,327
					All outstanding liabilities for unpaid losses and loss settlement expenses before 2012, net of reinsurance														1,422
					Liabilities for unpaid losses and loss settlement expenses, net of reinsurance														$	122,739

Line of business: Commercial automobile
	Incurred losses and allocated loss settlement expenses, net of reinsurance																				As of December 31, 2021
	For the years ended December 31,																				Total of incurred but not reported liabilities plus expected development on reported claims		Cumulative development	Cumulative number of reported claims
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	100,039	$	90,848	$	94,755	$	95,321	$	96,594	$	96,389	$	96,305	$	96,059	$	96,176	$	96,174	$	—	(3,865)	14,365
2013			104,356		98,037		102,943		103,726		104,980		105,248		104,886		106,140		106,288		323		1,932	15,528
2014					107,723		106,076		113,720		118,869		120,385		121,077		120,599		119,214		381		11,491	17,326
2015							125,506		129,816		132,206		138,987		137,395		137,335		136,826		271		11,320	20,085
2016									174,018		175,357		174,337		175,657		173,823		174,588		843		570	27,302
2017											227,919		224,553		235,110		233,159		233,007		2,581		5,088	32,878
2018													236,629		245,173		253,045		255,017		5,739		18,388	34,440
2019															279,229		291,139		289,929		12,144		10,700	34,669
2020																	243,360		216,951		19,907		(26,409)	23,949
2021																			179,880		33,802			11,104
																	Total		$	1,807,874

Line of business: Commercial automobile
	Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
	For the years ended December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	39,247	$	57,201	$	71,469	$	82,944	$	90,292	$	93,179	$	94,747	$	94,983	$	96,176	$	96,174
2013			43,592		67,630		79,663		90,780		96,375		100,058		101,580		103,037		103,368
2014					45,704		68,033		87,590		99,922		109,682		113,751		116,843		117,770
2015							50,782		78,225		99,201		118,395		129,317		134,100		135,462
2016									66,013		103,528		128,157		148,224		164,341		168,950
2017											81,311		126,644		166,170		197,893		212,947
2018													81,572		138,092		187,405		211,123
2019															91,919		153,244		205,614
2020																	67,660		109,686
2021																			64,381
																	Total		$	1,425,475
					All outstanding liabilities for unpaid losses and loss settlement expenses before 2012, net of reinsurance														749
					Liabilities for unpaid losses and loss settlement expenses, net of reinsurance														$	383,149

Line of business: Workers' compensation
	Incurred losses and allocated loss settlement expenses, net of reinsurance																				As of December 31, 2021
	For the years ended December 31,																				Total of incurred but not reported liabilities plus expected development on reported claims		Cumulative development	Cumulative number of reported claims
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	48,848	$	46,279	$	42,158	$	38,423	$	38,553	$	39,015	$	39,182	$	39,063	$	38,290	$	38,562	$	228	(10,286)	4,001
2013			64,048		62,579		56,369		54,584		52,761		51,753		50,984		50,349		49,801		215		(14,247)	4,259
2014					64,051		60,729		58,284		56,630		54,636		53,023		52,889		52,388		637		(11,663)	4,804
2015							53,788		55,578		51,003		46,682		46,019		44,706		43,751		377		(10,037)	5,678
2016									70,419		66,575		61,648		55,168		53,964		52,870		571		(17,549)	7,959
2017											76,184		69,528		55,982		51,874		49,362		688		(26,822)	8,194
2018													71,972		67,883		59,192		56,109		1,075		(15,863)	8,022
2019															52,136		49,189		49,336		1,373		(2,800)	7,332
2020																	45,365		46,612		2,153		1,247	4,389
2021																			45,177		5,142			1,623
																	Total		$	483,968

Line of business: Workers' compensation
	Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
	For the years ended December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	11,802	$	23,023	$	28,397	$	30,933	$	33,063	$	34,330	$	35,388	$	36,060	$	36,520	$	36,762
2013			14,136		30,209		38,023		42,941		45,078		47,071		47,572		48,093		48,327
2014					13,965		30,289		38,441		42,964		45,193		45,825		46,299		46,664
2015							12,063		27,304		35,229		38,424		39,305		40,034		41,006
2016									14,413		32,345		40,680		45,743		47,082		48,277
2017											14,647		31,309		38,083		41,672		43,833
2018													16,949		35,369		43,189		47,173
2019															13,582		29,668		38,382
2020																	17,603		29,605
2021																			17,949
																	Total		$	397,978
					All outstanding liabilities for unpaid losses and loss settlement expenses before 2012, net of reinsurance														17,864
					Liabilities for unpaid losses and loss settlement expenses, net of reinsurance														$	103,856

Line of business: Personal
	Incurred losses and allocated loss settlement expenses, net of reinsurance																				As of December 31, 2021
	For the years ended December 31,																				Total of incurred but not reported liabilities plus expected development on reported claims		Cumulative development	Cumulative number of reported claims
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	47,924	$	46,199	$	46,403	$	46,150	$	44,715	$	44,352	$	44,165	$	44,158	$	44,160	$	44,178	$	—	(3,746)	10,792
2013			39,232		38,525		37,262		37,086		36,729		36,661		36,486		36,467		36,466		—		(2,766)	9,252
2014					53,910		52,661		52,944		52,782		52,615		52,702		52,810		52,854		21		(1,056)	10,963
2015							42,848		41,088		40,336		40,368		40,220		40,194		40,189		11		(2,659)	9,553
2016									48,072		45,840		45,379		45,961		45,113		45,297		39		(2,775)	11,905
2017											60,330		59,342		58,695		58,544		59,023		107		(1,307)	14,709
2018													51,639		51,721		52,715		52,062		183		423	13,677
2019															59,547		58,378		58,745		554		(802)	13,576
2020																	81,206		73,761		899		(7,445)	16,884
2021																			28,537		2,644			2,437
																	Total		$	491,112

Line of business: Personal
	Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
	For the years ended December 31,
Accident Year	2012		2013		2014		2015		2016		2017		2018		2019		2020		2021
	(Unaudited)
2012	$	30,415	$	41,979	$	43,375	$	44,448	$	43,569	$	44,139	$	44,158	$	44,158	$	44,159	$	44,178
2013			25,505		32,788		34,297		35,306		36,155		36,323		36,397		36,466		36,466
2014					37,055		47,912		49,710		51,837		52,018		52,543		52,519		52,526
2015							29,551		37,431		39,027		39,428		39,865		40,029		40,053
2016									32,999		40,910		42,660		44,046		44,618		44,737
2017											42,135		53,111		55,982		57,169		57,824
2018													37,410		47,433		49,464		50,185
2019															40,544		52,390		54,935
2020																	54,181		68,124
2021																			20,298
																	Total		$	469,326
					All outstanding liabilities for unpaid losses and loss settlement expenses before 2012, net of reinsurance														719
					Liabilities for unpaid losses and loss settlement expenses, net of reinsurance														$	22,503

Schedule of Unpaid Losses and Loss Settlement Expenses Liability

The reconciliation of the net incurred and loss development tables to the liability for unpaid losses and loss settlement expenses in the consolidated statement of financial position is as follows.

	December 31, 2021
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses:
Commercial other liability	$	612,108
Commercial fire and allied	122,739
Commercial automobile	383,149
Commercial workers' compensation	103,856
Personal	22,503
All other lines	64,083
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses	1,308,438
Net outstanding liabilities for unpaid unallocated loss settlement expenses	92,084
Fair value adjustment (purchase accounting adjustment for Mercer acquisition)	843
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance	1,401,365
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses:
Commercial other liability	22,522
Commercial fire and allied	21,309
Commercial automobile	4,819
Commercial workers' compensation	53,189
Personal	3,236
All other lines	8,631
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses	113,706
Reinsurance fair value amortization (purchase accounting adjustment for Mercer acquisition)	(806)
Total reinsurance recoverable on unpaid losses and loss settlement expenses	112,900
Total gross liability for unpaid losses and loss settlement expenses	$	1,514,265

Schedule of Average 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
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
	(Unaudited)
Commercial other liability	9.4	%	16.2	%	17.2	%	15.8	%	11.9	%	7.2	%	3.3	%	3.3	%	3.1	%	0.6	%
Commercial fire and allied	63.7	%	22.0	%	4.8	%	3.8	%	2.2	%	1.3	%	0.3	%	1.0	%	0.4	%	0.7	%
Commercial automobile	36.1	%	20.4	%	15.8	%	11.6	%	7.5	%	3.2	%	1.7	%	0.8	%	0.8	%	—	%
Commercial workers' compensation	30.5	%	31.8	%	15.5	%	8.0	%	3.8	%	2.5	%	1.7	%	1.2	%	0.8	%	0.6	%
Personal	71.2	%	20.1	%	4.0	%	2.4	%	0.7	%	0.7	%	0.1	%	0.1	%	—	%	—	%