Losses and Loss Adjustment Expenses Incurred and Paid (Tables)

12 Months Ended

Dec. 31, 2016

Information Regarding the Reserve for Unpaid Losses and Loss Adjustment Expenses

Information regarding the reserve for unpaid losses and loss adjustment expenses (“LAE”) is as follows (in thousands).

	Year Ended December 31,
	2016			2015			2014
Liability for unpaid losses and LAE at beginning of year, gross	$	122,071		$	96,613		$	84,286
Reinsurance balances receivable		(464	)		(362	)		(305	)
Liability for unpaid losses and LAE at beginning of year, net		121,607			96,251			83,981
Add: Provision for losses and LAE:
Current year		278,366			218,186			166,179
Prior year		30,636			845			(4,877	)
Net losses and LAE incurred		309,002			219,031			161,302
Less: Losses and LAE paid:
Current year		163,792			129,216			98,437
Prior year		106,507			64,459			50,595
Net losses and LAE paid		270,299			193,675			149,032
Liability for unpaid losses and LAE at end of year, net		160,310			121,607			96,251
Reinsurance balances receivable		769			464			362
Liability for unpaid losses and LAE at end of year, gross	$	161,079		$	122,071		$	96,613

Schedule of Incurred and Cumulative Paid Losses and Loss Adjustment Expenses, Net of Reinsurance

Incurred losses and loss adjustment expenses, net of reinsurance, by accident year are as follows (in thousands).

	For the years ended December 31,
Accident year	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
Accident year	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
2007	$	233,004	$	230,360	$	228,601	$	228,716	$	231,729	$	231,931	$	231,058	$	230,931	$	230,877	$	230,862
2008				187,583		174,921		174,312		175,044		175,849		176,468		176,947		177,190		177,226
2009						146,584		140,539		140,501		141,936		142,819		142,772		142,546		142,705
2010								135,458		133,283		134,470		134,446		134,191		134,144		133,983
2011										126,384		126,886		126,272		126,373		125,810		125,670
2012												144,231		140,111		140,249		140,673		141,375
2013														145,878		140,775		142,053		144,076
2014																166,179		165,991		171,827
2015																		218,186		240,419
2016																				278,366
Total																			$	1,786,509

Cumulative paid losses and loss adjustment expenses, net of reinsurance, by accident year are as follows (in thousands).

	For the years ended December 31,
Accident	2007		2008		2009		2010		2011		2012		2013		2014		2015		2016
year	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
2007	$	157,162	$	210,678	$	222,406	$	225,978	$	228,304	$	231,493	$	230,891	$	230,892	$	230,873	$	230,860
2008				122,207		160,366		169,373		172,768		174,688		175,700		176,331		176,907		177,154
2009						92,372		127,355		135,701		139,436		141,399		142,294		142,441		142,654
2010								87,319		120,301		128,843		131,878		132,989		133,648		133,896
2011										82,945		113,199		120,790		123,888		125,012		125,383
2012												89,159		123,869		133,397		137,968		139,781
2013														88,726		124,021		134,931		141,444
2014																98,437		144,943		162,702
2015																		129,216		208,533
2016																				163,792
Total																			$	1,626,199
Total outstanding reserves for unpaid losses and LAE, net of reinsurance																			$	160,310

Schedule of Frequency of Claims

As of December 31, 2016, frequency of claims by accident based on number of claimants is as follows.

Accident year	Incurred losses and LAE, net of reinsurance		Total of incurred but not reported liabilities plus expected development on reported claims		Cumulative number of reported claims
2007	$	230,862	$	3		117,206
2008		177,226		33		100,188
2009		142,705		26		78,607
2010		133,983		62		71,008
2011		125,670		211		65,831
2012		141,375		597		73,164
2013		144,076		1,784		73,714
2014		171,827		6,003		84,791
2015		240,419		21,968		108,755
2016		278,366		69,261		112,441

Schedule of Average Historical Annual Percentage Payout of Incurred Losses By Age, Net of Reinsurance (Unaudited)

The average historical annual percentage payout of incurred losses by age, net of reinsurance is as follows. The amounts reflected below represent the average length of time between the occurrence of a loss and its payment. These percentages are averages of the years present and therefore may not equal 100%.

	(Unaudited)
	Year 1			Year 2			Year 3			Year 4			Year 5			Year 6			Year 7			Year 8			Year 9			Year 10
Non-standard auto		62.7	%		25.2	%		6.6	%		2.7	%		1.1	%		0.7	%		0.1	%		0.2	%		0.1	%		0.0	%