Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2023

Insurance Loss Reserves [Abstract]

Schedule of the Changes in the Reserves for Losses and Loss Adjustment Expense

The table below provides the changes in the reserves for losses and LAE, net of recoverables from reinsurers, for the periods indicated (dollars in thousands):

	December 31,
	2023		2022
Gross reserves - beginning of period	$	165,539	$	139,085
Less: reinsurance recoverables on unpaid losses		82,651		40,344
Net reserves - beginning of period		82,888		98,741
Add: incurred losses and loss adjustment expenses, net   of reinsurance
Current period		64,580		57,156
Prior period		17,833		24,284
Total net incurred losses and loss adjustment   expenses		82,413		81,440
Deduct: loss and loss adjustment expense payments,   net of reinsurance
Current period		27,001		20,894
Prior period		34,495		76,399
Total net loss and loss adjustment expense   payments		61,496		97,293
Net reserves - end of period		103,805		82,888
Plus: reinsurance recoverables on unpaid losses		70,807		82,651
Gross reserves - end of period	$	174,612	$	165,539

Short-duration Insurance Contracts, Claims Development

The following tables represent cumulative incurred loss and allocated loss adjustment expenses ("ALAE"), net of reinsurance, by accident year and cumulative paid loss and ALAE, net of reinsurance, by accident year, for the years ended December 31, 2014 to 2023, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2023, by reportable segment and accident year (dollars in thousands). The tables do not include reinsurance recoverables from the LPT. The 2023 and 2022 columns in the commercial lines incurred and paid loss tables below do not

include reinsurance recoverables on reserves of $10.9 million and $25.9 million and reinsurance recoverables on paid losses of $3.8 million and $3.9 million, respectively, related to the LPT.

Commercial Lines
			Incurred loss and allocated loss adjustment expenses, net of reinsurance																		Total IBNR		Cumulative number of reported claims
Accident
Year	2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023		2023		2023
2014		19,709		19,907		22,711		26,367		28,145		28,766		29,045		29,175		29,011		29,093		—		1,755
2015				22,442		26,633		31,861		34,478		36,372		37,795		38,824		39,093		39,311		—		2,363
2016						32,396		34,935		40,440		44,355		46,089		46,993		48,677		49,162		19		3,559
2017								44,251		44,495		49,749		51,883		55,589		56,649		59,149		234		5,835
2018										42,624		42,432		49,741		55,261		60,102		61,881		568		6,128
2019												41,286		42,129		46,329		55,263		59,028		1,611		6,337
2020														33,867		35,328		39,193		43,918		3,012		3,866
2021																40,388		42,266		48,650		5,557		2,947
2022																		41,708		49,751		10,142		2,323
2023																				39,456		20,752		1,644
																	Total		$	479,399	$	41,895

Commercial lines
Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident
Year	2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023
2014		8,715		13,977		17,458		22,446		25,609		27,544		28,389		28,648		28,608		28,688
2015				10,470		17,817		22,549		30,475		34,497		35,833		37,563		38,685		39,116
2016						10,255		19,135		27,785		37,967		41,945		43,644		46,957		48,557
2017								12,448		23,020		34,205		42,308		47,148		52,800		57,304
2018										10,375		19,799		31,633		41,577		50,508		57,114
2019												10,078		20,462		28,958		39,893		50,369
2020														10,217		17,332		24,225		33,354
2021																12,870		21,313		30,478
2022																		12,839		22,892
2023																				8,486
																	Total		$	376,358
	Net Unpaid losses and ALAE, years 2014 through 2023																		$	103,041
	Unpaid losses and ALAE, prior to 2014*																			160
	Unpaid Losses, LPT																			(10,928	)
	Unpaid losses and ALAE, net of reinsurance																		$	92,273

* Presented as unaudited required supplementary information.

Personal Lines
			Incurred loss and allocated loss adjustment expenses, net of reinsurance																		Total IBNR		Cumulative number of reported claims
Accident					For the years ended December 31,
Year	2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023		2023		2023
2014		17,951		17,471		17,735		17,880		17,929		18,082		18,095		18,097		18,052		18,028		—		3,737
2015				10,877		13,445		14,721		15,285		15,364		15,427		15,427		15,448		15,456		—		2,154
2016						11,619		13,418		14,949		15,550		15,655		15,634		15,679		15,681		—		1,815
2017								14,058		13,550		14,493		14,793		14,911		14,957		14,955		—		2,914
2018										5,893		6,378		6,283		6,382		6,298		6,336		—		803
2019												3,099		2,712		2,898		2,862		2,867		—		341
2020														2,339		2,590		2,636		2,619		—		324
2021																4,409		4,332		4,240		—		48
2022																		9,404		8,122		—		714
2023																				19,444		1,156		1,584
																	Total		$	107,748	$	1,156

Personal lines
Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident					For the years ended December 31,
Year	2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023
2014		12,819		16,515		17,260		17,746		17,855		18,047		18,068		18,070		18,025		18,027
2015				7,771		11,873		13,844		15,159		15,250		15,290		15,416		15,444		15,452
2016						7,119		11,238		14,442		15,110		15,351		15,452		15,679		15,681
2017								8,320		12,944		14,004		14,526		14,866		14,957		14,955
2018										4,296		5,618		6,100		6,242		6,244		6,333
2019												2,119		2,604		2,692		2,850		2,859
2020														1,307		2,455		2,605		2,619
2021																3,022		3,980		4,081
2022																		5,397		7,923
2023																				16,170
																	Total		$	104,100
	Net Unpaid losses and ALAE, years 2014 through 2023																		$	3,648
	Unpaid losses and ALAE, prior to 2014*																			—
	Unpaid losses and ALAE, net of reinsurance																		$	3,648

* Presented as unaudited required supplementary information.

Total Lines
Incurred loss and allocated loss adjustment expenses, net of reinsurance																					Total IBNR		Cumulative number of reported claims
Accident	For the years ended December 31,
Year	2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023		2023		2023
2014		37,660		37,378		40,446		44,247		46,074		46,848		47,140		47,272		47,063		47,121		—		5,492
2015				33,319		40,078		46,581		49,763		51,736		53,222		54,251		54,541		54,767		—		4,517
2016						44,015		48,353		55,389		59,905		61,744		62,627		64,356		64,843		19		5,374
2017								58,309		58,045		64,242		66,676		70,500		71,606		74,104		234		8,749
2018										48,517		48,810		56,024		61,643		66,400		68,217		568		6,931
2019												44,385		44,841		49,227		58,125		61,895		1,611		6,678
2020														36,206		37,918		41,829		46,537		3,012		4,190
2021																44,797		46,598		52,890		5,557		2,995
2022																		51,112		57,873		10,142		3,037
2023																				58,900		21,908		3,228
																	Total			587,147		43,051

Total lines
Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident			For the years ended December 31,
Year	2014*		2015*		2016*		2017*		2018*		2019*		2020*		2021*		2022*		2023
2014		21,534		30,492		34,718		40,192		43,464		45,591		46,457		46,718		46,633		46,715
2015				18,241		29,690		36,393		45,634		49,747		51,123		52,979		54,129		54,568
2016						17,374		30,373		42,227		53,077		57,296		59,096		62,636		64,238
2017								20,768		35,964		48,209		56,834		62,014		67,757		72,259
2018										14,671		25,417		37,733		47,819		56,752		63,447
2019												12,197		23,066		31,650		42,743		53,228
2020														11,524		19,787		26,830		35,973
2021																15,892		25,293		34,559
2022																		18,236		30,815
2023																		—		24,656
																	Total		$	480,458
	Net Unpaid losses and ALAE, years 2014 through 2023																		$	106,689
	Unpaid losses and ALAE, prior to 2014*																		160
	Unpaid losses, LPT																			(10,928	)
	Unpaid losses and ALAE, net of reinsurance																		$	95,921

* Presented as unaudited required supplementary information.

Short-duration Insurance Contracts, Reconciliation of Loss Development to Liability

The following table reconciles the loss development information to the consolidated balance sheet for the year ended December 31, 2023, by reportable segment (dollars in thousands).

	December 31, 2023
Net unpaid losses claims and ALAE
Commercial Lines	$	92,273
Personal Lines		3,648
Total unpaid losses and LAE, net of reinsurance		95,921
Reinsurance recoverable on losses and LAE
Commercial Lines		68,981
Personal Lines		1,826
Total reinsurance recoverable on unpaid losses and LAE		70,807
ULAE expense		7,884
Total gross unpaid losses and LAE	$	174,612

Loss Duration Schedule

The following table represents the average annual percentage payout of incurred losses by age, net of reinsurance, for each reportable segment.

	Average annual percentage payout of incurred losses by age, net of reinsurance
	Year 1	Year 2	Year 3	Year 4	Year 5	Year 6	Year 7	Year 8	Year 9	Year 10+
Commercial Lines	27.3%	21.6%	18.6%	12.8%	9.2%	4.9%	2.9%	1.5%	0.7%	0.5%
Personal Lines	83.1%	11.3%	5.3%	0.3%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%
Total Lines	29.2%	21.3%	18.2%	12.4%	8.9%	4.7%	2.8%	1.4%	0.7%	0.4%