LOSS AND LOSS ADJUSTMENT RESERVES (Tables)

3 Months Ended

Mar. 31, 2018

Liability for Future Policy Benefits [Abstract]

Activity in Liability for Loss and LAE Reserves

Activity in the liability for loss and LAE reserves is summarized as follows:

	Three Months Ended
	March 31,
	2018			2017
	(In thousands)
Gross reserves, beginning of period	$	230,515		$	158,110
Less: reinsurance recoverable (1)	(98,345		)	(40,412		)
Net reserves, beginning of period	132,170			117,698
Incurred loss, net of reinsurance, related to:
Current year	48,459			60,277
Prior year loss development (2)	(653		)	2,905
Ceded losses subject to offsetting experience account adjustments (3)	(1,735		)	(6,283		)
Prior years	(2,388		)	(3,378		)
Total incurred loss and LAE, net of reinsurance	46,071			56,899
Paid loss, net of reinsurance, related to:
Current year	22,543			18,416
Prior years	30,911			36,316
Total paid loss and LAE, net of reinsurance	53,454			54,732
Net reserves, end of period	124,787			119,865
Plus: reinsurance recoverable (1)	111,427			34,472
Gross reserves, end of period	$	236,214		$	154,337

(1) Reinsurance recoverable in this table includes only ceded loss and LAE reserves.

(2) Reflects loss development from prior accident years impacting pre-tax net income. Excludes losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment.

(3) Reflects losses ceded under retrospective reinsurance treaties to the extent there is an offsetting experience account adjustment, such that there is no impact on pre-tax net income.