LOSS AND LOSS ADJUSTMENT RESERVES (Tables)

9 Months Ended

Sep. 30, 2020

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,
	2020		2019
	(In thousands)
Gross reserves, beginning-of-period	$	324,362	$	296,230
Less: reinsurance recoverable (1)	(164,429)		(166,396)
Net reserves, beginning-of-period	159,933		129,834
Incurred loss, net of reinsurance, related to:
Current year	291,741		195,024
Prior year loss development (redundancy) (2)	6,912		1,238
Ceded losses subject to offsetting experience account adjustments (3)	(744)		(1,978)
Prior years	6,168		(740)
Amortization of acquisition fair value adjustment	(47)		—
Total incurred loss and LAE, net of reinsurance	297,862		194,284
Paid loss, net of reinsurance, related to:
Current year	143,106		114,790
Prior years	109,930		77,398
Total paid loss and LAE, net of reinsurance	253,036		192,188
Net reserves, end-of-period	204,759		131,930
Plus: reinsurance recoverable (1)	349,221		155,018
Gross reserves, end-of-period	$	553,980	$	286,948

(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).