LOSS AND LOSS ADJUSTMENT RESERVES (Tables)

12 Months Ended

Dec. 31, 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:

	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Gross reserves, beginning-of-period	$	324,362	$	296,230	$	230,515
Less: reinsurance recoverable (1)	(164,429)		(166,396)		(98,345)
Net reserves, beginning-of-period	159,933		129,834		132,170
Net reserves from the Maison Companies acquisition	—		11,825		—
Incurred loss, net of reinsurance, related to:
Current year	358,952		262,118		231,133
Prior year loss development (redundancy) (2)	18,367		13,460		2,166
Ceded losses subject to offsetting experience account adjustments (3)	(816)		(2,489)		(4,883)
Prior years	17,551		10,971		(2,717)
Amortization of acquisition fair value adjustment	(54)		(9)		—
Total incurred loss and LAE, net of reinsurance	376,449		273,080		228,416
Paid loss, net of reinsurance, related to:
Current year	253,344		173,313		155,462
Prior years	100,799		81,493		75,290
Total paid loss and LAE, net of reinsurance	354,143		254,806		230,752
Net reserves, end-of-period	182,239		159,933		129,834
Plus: reinsurance recoverable (1)	358,128		164,429		166,396
Gross reserves, end-of-period	$	540,367	$	324,362	$	296,230

(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).

The following tables provide incurred losses and allocated LAE ("ALAE") and cumulative paid losses and ALAE, net of reinsurance, for the prior 10 accident years, and the total of IBNR reserves plus expected development on reported claims and the cumulative number of reported claims (in thousands, except number of reported claims), as of the most recent reporting period, by the Company’s significant lines of business, which are homeowners, commercial general liability and automobile.

																					IBNR & Expected		Cumulative
	Homeowners Incurred Losses and ALAE, Net of Reinsurance																				Development on		Number of
	For the Years Ended December 31,																				Reported Claims		Reported Claims (1)
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	20,492	$	21,344	$	23,007	$	23,932	$	24,582	$	25,957	$	26,143	$	26,394	$	26,394	$	26,375	$	12	2,428
2012			23,032		23,301		24,186		24,468		25,889		26,356		26,836		26,951		26,984		85		2,694
2013					43,807		42,021		35,834		35,859		37,185		37,880		37,978		38,088		15		3,431
2014							64,312		63,300		61,770		62,206		61,817		62,043		62,535		378		7,606
2015									99,497		92,411		95,129		94,760		94,703		96,144		1,522		13,038
2016											171,264		162,043		158,764		157,880		156,316		1,394		22,614
2017													202,844		192,769		188,548		179,327		47,728		67,165
2018															210,158		213,128		216,570		20,849		35,817
2019																	257,644		261,541		23,909		19,661
2020																			342,119		236,080		35,117
																	Total		$	1,405,999

(1)The cumulative number of reported claims is measured by individual claimant at a coverage level.

	Homeowners Cumulative Paid Losses and ALAE, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	11,119	$	19,250	$	21,323	$	22,723	$	24,047	$	25,580	$	25,982	$	26,287	$	26,340	$	26,342
2012			13,693		20,728		23,120		23,923		25,186		26,113		26,777		26,861		26,901
2013					19,986		31,606		33,867		35,123		35,803		37,473		37,688		37,915
2014							37,033		53,831		57,891		59,722		60,555		61,441		61,692
2015									52,214		79,359		86,647		90,415		92,327		93,405
2016											102,556		142,716		148,274		152,258		153,997
2017													135,589		176,580		179,327		178,013
2018															141,173		194,160		206,133
2019																	157,768		236,090
2020																			236,197
																			$	1,256,685
All outstanding liabilities for unpaid claims and ALAE prior to 2011, net of reinsurance																			—
Total outstanding liabilities for unpaid claims and ALAE, net of reinsurance																			$	149,314

The following table provides supplementary information about the average annual percentage payout of incurred losses and ALAE, net of reinsurance, for homeowners policies, as of December 31, 2020:

	Average Annual Payout of Losses and ALAE, Net of Reinsurance
	(Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Homeowners	62.0	%	25.6	%	4.6	%	1.9	%	1.8	%	2.3	%	1.0	%	0.6	%	0.2	%	—	%

																					IBNR & Expected		Cumulative
	Commercial General Liability Incurred Losses and ALAE, Net of Reinsurance																				Development on		Number of
	For the Years Ended December 31,																				Reported Claims		Reported Claims
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	6,436	$	5,854	$	4,749	$	4,603	$	4,760	$	5,409	$	6,254	$	6,828	$	7,817	$	9,394	$	1,572	1,367
2012			5,279		4,952		4,801		4,700		4,658		4,346		4,509		5,109		6,431		1,209		817
2013					7,095		5,069		5,221		5,502		5,704		5,580		5,984		7,588		1,245		759
2014							7,475		7,709		6,384		6,620		6,348		6,697		9,028		1,549		1,016
2015									8,082		7,008		6,020		5,377		7,947		9,141		2,043		877
2016											10,727		5,809		6,561		8,502		12,267		3,086		845
2017													8,289		7,853		6,558		8,519		3,369		639
2018															6,553		6,233		7,280		4,281		420
2019																	1,604		2,535		1,826		114
2020																			37		—		6
																	Total		$	72,220

	Commercial General Liability Cumulative Paid Losses and ALAE, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	764	$	2,763	$	3,366	$	3,673	$	4,246	$	4,866	$	5,831	$	6,349	$	7,365	$	7,693
2012			871		1,714		2,632		3,342		3,686		3,841		4,098		4,521		4,790
2013					882		2,233		3,366		3,867		4,606		5,033		5,467		5,847
2014							717		2,593		3,855		4,375		5,130		6,270		6,901
2015									798		2,296		3,249		3,827		5,866		6,566
2016											1,515		3,657		5,088		6,606		8,382
2017													1,592		2,478		3,293		4,225
2018															963		1,554		2,604
2019																	147		424
2020																			5
																	Total		$	47,437
All outstanding liabilities for unpaid claims and ALAE prior to 2011, net of reinsurance																			3,545
Total outstanding liabilities for unpaid claims and ALAE, net of reinsurance																			$	28,328

The following table provides supplementary information about the average annual percentage payout of incurred losses and ALAE, net of reinsurance, for commercial general liability policies, as of December 31, 2020:

	Average Annual Payout of Losses and ALAE, Net of Reinsurance
	(Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Commercial general liability	10.2	%	14.1	%	10.4	%	7.2	%	10.3	%	6.5	%	6.3	%	5.0	%	7.2	%	4.7	%

																					IBNR & Expected		Cumulative
	Automobile Incurred Losses and ALAE, Net of Reinsurance																				Development on		Number of
	For the Years Ended December 31,																				Reported Claims		Reported Claims
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	3,580	$	3,350	$	2,954	$	2,912	$	2,762	$	2,848	$	2,796	$	2,756	$	2,762	$	2,760	$	—	789
2012			1,735		1,741		1,717		1,424		1,455		1,491		1,448		1,444		1,448		4		824
2013					1,517		1,863		1,826		1,829		2,161		2,123		2,127		2,127		6		3,471
2014							2,038		3,213		3,551		4,315		4,379		4,417		4,413		4		6,019
2015									3,045		2,882		2,781		2,878		2,915		2,944		14		6,553
2016											13,414		20,205		24,346		25,918		25,923		251		67,655
2017													20,411		22,472		24,579		24,669		740		52,885
2018															3,513		4,623		4,439		887		9,604
2019																	(3)		—		2		101
2020																			—		—		1
																	Total		$	68,723

	Automobile Cumulative Paid Losses and ALAE, Net of Reinsurance
	For the Years Ended December 31,
	(Unaudited)
Accident Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	1,417	$	2,381	$	2,562	$	2,644	$	2,726	$	2,755	$	2,755	$	2,755	$	2,755	$	2,755
2012			867		1,293		1,333		1,384		1,393		1,430		1,444		1,447		1,449
2013					907		1,609		1,906		2,069		2,109		2,112		2,116		2,116
2014							1,455		3,120		3,678		4,122		4,291		4,383		4,396
2015									1,393		2,293		2,670		2,807		2,890		2,897
2016											8,084		17,258		23,053		25,582		26,132
2017													12,821		20,762		23,860		24,468
2018															2,331		3,626		3,137
2019																	(5)		—
2020																			—
																	Total		$	67,350
All outstanding liabilities for unpaid claims and ALAE prior to 2011, net of reinsurance																			15
Total outstanding liabilities for unpaid claims and ALAE, net of reinsurance																			$	1,388

The following table provides supplementary information about the average annual percentage payout of incurred losses and ALAE, net of reinsurance, for automobile policies, as of December 31, 2020:

	Average Annual Payout of Losses and ALAE, Net of Reinsurance
	(Unaudited)
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Automobile	42.3	%	33.5	%	14.2	%	6.2	%	2.3	%	1.2	%	0.3	%	—	%	—	%	—	%

Reconciliation of Claims Development To Liability

The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in the consolidated balance sheets is as follows:

	December 31,
	2020		2019
	(In thousands)
Liabilities for unpaid losses and ALAE:
Homeowners	$	149,314	$	137,168
Commercial general liability	28,328		17,014
Automobile	1,388		2,142
Flood	—		—
Total liabilities for unpaid losses and ALAE, net of reinsurance	179,030		156,324
Reinsurance recoverables:
Homeowners	353,741		160,578
Commercial general liability	—		500
Automobile	1,424		3,228
Flood	2,963		123
Total reinsurance recoverables	358,128		164,429
Unallocated loss adjustment expenses	3,209		3,609
Gross liability for unpaid losses and LAE	$	540,367	$	324,362