LOSS AND LOSS ADJUSTMENT RESERVES (Tables)

9 Months Ended

Sep. 30, 2019

Liability for Future Policy Benefit, before Reinsurance [Abstract]

Activity in Liability for Loss and LAE Reserves

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

	Nine Months Ended
	September 30,
	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	195,024		159,998
Prior year loss development (redundancy) (2)	1,238		330
Ceded losses subject to offsetting experience account adjustments (3)	(1,978)		(4,230)
Prior years	(740)		(3,900)
Total incurred loss and LAE, net of reinsurance	194,284		156,098
Paid loss, net of reinsurance, related to:
Current year	114,790		87,960
Prior years	77,398		71,266
Total paid loss and LAE, net of reinsurance	192,188		159,226
Net reserves, end-of-period	131,930		129,042
Plus: reinsurance recoverable (1)	155,018		92,072
Gross reserves, end-of-period	$	286,948	$	221,114

(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).