Unpaid Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2017

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 as follows (dollars in thousands):

	December 31,
	2017		2016		2015
Gross reserves - beginning of period	$	54,651	$	35,422	$	31,531
Less: reinsurance recoverables on unpaid losses	6,658		5,405		3,224
Net reserves - beginning of period	47,993		30,017		28,307
Add: incurred losses and loss adjustment expenses, net of reinsurance
Current period	64,458		48,782		37,422
Prior period	9,459		10,221		1,460
Total net incurred losses and loss adjustment expenses	73,917		59,003		38,882
Deduct: loss and loss adjustment expense payments, net of reinsurance
Current period	24,547		20,828		20,635
Prior period	29,533		20,199		16,537
Total net loss and loss adjustment expense payments	54,080		41,027		37,172
Net reserves - end of period	67,830		47,993		30,017
Plus: reinsurance recoverables on unpaid losses	20,066		6,658		5,405
Gross reserves - end of period	$	87,896	$	54,651	$	35,422

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 allocated loss adjustment expenses, net of reinsurance, by accident year, for the years ended December 31, 2009 to 2017, as well as total IBNR and the cumulative number of reported claims for the year ended December 31, 2017, by reportable segment and accident year (dollars in thousands).

Commercial Lines
	Incurred loss and allocated loss adjustment expenses, net of reinsurance										Total IBNR	Cumulative number of reported claims
Accident Year	For the years ended December 31,
	2009*	2010*	2011*	2012*	2013*	2014*	2015*	2016	2017		2017	2017
2009	$11,400	$12,066	$10,312	$8,943	$8,232	$8,403	$8,359	$8,414	$8,442		$0	877
2010		7,346	8,568	7,255	6,357	6,170	6,074	6,207	6,292		—	771
2011			6,753	5,758	5,326	5,049	4,932	4,903	4,935		—	590
2012				7,745	6,421	6,288	6,384	6,253	6,190		40	560
2013					10,018	9,435	9,893	10,237	11,252		181	600
2014						19,709	19,907	22,711	26,367		754	1,740
2015							22,442	26,633	31,861		2,083	2,327
2016								32,396	34,935		6,078	3,462
2017									44,251		20,897	5,276
							Total		$174,525
Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident Year	For the years ended December 31,
	2009*	2010*	2011*	2012*	2013*	2014*	2015*	2016	2017
2009	$4,436	$5,942	$6,410	$7,233	$7,800	$7,867	$7,933	$8,321	$8,441
2010		3,066	4,488	5,219	5,910	6,040	6,065	6,166	6,258
2011			2,645	3,534	3,964	4,449	4,641	4,744	4,872
2012				2,325	3,703	4,696	5,558	5,994	6,065
2013					3,979	6,211	7,643	8,622	10,147
2014						8,715	13,977	17,458	22,446
2015							10,470	17,817	22,549
2016								10,255	19,135
2017									12,448
							Total		112,361
		Unpaid losses and ALAE - years 2009 through 2017							62,164
Unpaid losses and ALAE - prior to 2009 (1)*									148
Unpaid ADC									(6,065	)
Unpaid losses and ALAE, net of reinsurance									$56,247

* Presented as unaudited required supplementary information.

(1) The Company's formation was in 2009, however, as a result of the acquisition of WPIC in 2010, incurred losses prior to the 2009 accident year remain outstanding.

Personal Lines
	Incurred loss and allocated loss adjustment expenses, net of reinsurance										Total IBNR	Cumulative number of reported claims
Accident Year	For the years ended December 31,
	2009*	2010*	2011*	2012*	2013*	2014*	2015*	2016	2017		2017	2017
2009	$667	$639	$634	$634	$634	$634	$634	$634	$634		$0	65
2010		320	188	184	184	184	184	184	184		—	77
2011			1,678	1,758	1,981	2,031	2,030	2,045	2,027		1	717
2012				9,960	11,690	11,740	12,159	12,390	12,365		17	3,328
2013					18,034	17,996	18,925	19,138	19,167		43	5,138
2014						17,951	17,471	17,735	17,880		49	3,660
2015							10,877	13,445	14,721		71	2,120
2016								11,619	13,418		202	1,806
2017									14,058		3,190	2,450
							Total		$94,454
Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident Year	For the years ended December 31,
	2009*	2010*	2011*	2012*	2013*	2014*	2015*	2016	2017
2009	$537	$634	$634	$634	$634	$634	$634	$634	$634
2010		151	174	184	184	184	184	184	184
2011			787	1,292	1,633	1,859	1,983	2,021	2,024
2012				5,665	9,251	10,844	11,777	12,202	12,306
2013					9,955	15,883	18,052	18,600	19,014
2014						12,819	16,515	17,260	17,746
2015							7,771	11,873	13,844
2016								7,119	11,238
2017									8,320
							Total		85,310
Unpaid losses and ALAE - years 2009 through 2017									9,144
Unpaid losses and ALAE - prior to 2009 (1)*									—
Unpaid ADC									(1,132	)
Unpaid losses and ALAE, net of reinsurance									$8,012

* 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 Year	For the years ended December 31,
	2009*	2010*	2011*	2012*	2013*	2014*	2015*	2016	2017		2017	2017
2009	$12,066	$12,705	$10,946	$9,577	$8,866	$9,037	$8,993	$9,048	$9,076		$0	942
2010		7,666	8,756	7,439	6,541	6,354	6,258	6,391	6,476		—	848
2011			8,431	7,517	7,307	7,081	6,963	6,949	6,964		1	1,307
2012				17,705	18,111	18,028	18,544	18,642	18,554		57	3,888
2013					28,052	27,431	28,817	29,375	30,419		224	5,738
2014						37,660	37,378	40,446	44,247		803	5,400
2015							33,319	40,078	46,581		2,154	4,447
2016								44,015	48,353		6,280	5,268
2017									58,309		24,087	7,726
							Total		$268,979
Cumulative paid loss and allocated loss adjustment expenses, net of reinsurance
Accident Year	For the years ended December 31,
	2009*	2010*	2011*	2012*	2013*	2014*	2015*	2016	2017
2009	$4,973	$6,576	$7,043	$7,867	$8,434	$8,501	$8,567	$8,955	$9,075
2010		3,217	4,662	5,403	6,094	6,223	6,248	6,350	6,442
2011			3,432	4,826	5,597	6,308	6,624	6,766	6,897
2012				7,990	12,954	15,540	17,335	18,195	18,369
2013					13,934	22,094	25,695	27,223	29,162
2014						21,534	30,492	34,718	40,192
2015							18,241	29,690	36,393
2016								17,374	30,373
2017									20,768
							Total		197,671
		Unpaid losses and ALAE - years 2009 through 2017							71,308
Unpaid losses and ALAE - prior to 2009 (1)*									148
Unpaid ADC									(7,197	)
Unpaid losses and ALAE, net of reinsurance									$64,259

* Presented as unaudited required supplementary information.

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

The following table reconciles the claim development information to the consolidated balance sheet for the year ended December 31, 2017, by reportable segment (dollars in thousands).

	December 31, 2017
Net outstanding liabilities for unpaid claims and ALAE
Commercial Lines	$	56,247
Personal Lines	8,012
Liabilities for unpaid claims and ALAE, net of reinsurance	64,259
Reinsurance recoverable on unpaid claims
Commercial Lines	17,265
Personal Lines	2,801
Total reinsurance recoverable on unpaid claims	20,066
ULAE Expense	3,571
Total gross liability for unpaid claims and LAE	$	87,896

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	34.6	%	21.7	%	18.0	%	12.3	%	6.4	%	3.4	%	1.9	%	1.0	%	0.6	%	0.1	%
Personal Lines	60.8	%	19.3	%	10.8	%	4.9	%	2.6	%	1.5	%	0.1	%	—	%	—	%	—	%
Total Lines	37.9	%	21.4	%	17.1	%	11.4	%	6.0	%	3.1	%	1.7	%	0.8	%	0.5	%	0.1	%