LOSS AND LOSS ADJUSTMENT RESERVES (Tables)

3 Months Ended

Mar. 31, 2019

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,
	2019			2018
	(In thousands)
Gross reserves, beginning-of-period	$	296,230		$	230,515
Less: reinsurance recoverable (1)	(166,396		)	(98,345		)
Net reserves, beginning-of-period	129,834			132,170
Incurred loss, net of reinsurance, related to:
Current year	67,048			48,459
Prior year loss development (redundancy) (2)	721			(653		)
Ceded losses subject to offsetting experience account adjustments (3)	(930		)	(1,735		)
Prior years	(209		)	(2,388		)
Total incurred loss and LAE, net of reinsurance	66,839			46,071
Paid loss, net of reinsurance, related to:
Current year	14,868			22,543
Prior years	41,974			30,911
Total paid loss and LAE, net of reinsurance	56,842			53,454
Net reserves, end-of-period	139,831			124,787
Plus: reinsurance recoverable (1)	234,293			111,427
Gross reserves, end-of-period	$	374,124		$	236,214

(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 (loss).