Reserve For Unpaid Losses

3 Months Ended

Mar. 31, 2021

NOTE 13. RESERVE FOR UNPAID LOSSES

The Company determines the reserve for unpaid losses on an individual-case basis for all incidents reported. The liability also includes amounts which are commonly referred to as incurred but not reported, or “IBNR”, claims as of the balance sheet date. We estimate our IBNR reserves by projecting our ultimate losses using industry accepted actuarial methods and then deducting actual loss payments and case reserves from the projected ultimate losses.

The table below summarizes the activity related to the Company’s reserve for unpaid losses:

	Three Months Ended March 31,
	2021			2020
	(In thousands)
Balance, beginning of period	$	659,341		$	613,533
Less: reinsurance recoverable on unpaid losses		397,688			393,630
Net balance, beginning of period		261,653			219,903
Incurred related to:
Current year		99,504			72,331
Prior years		(1,595	)		(4,150	)
Total incurred		97,909			68,181
Paid related to:
Current year		25,826			21,236
Prior years		62,266			47,308
Total paid		88,092			68,544
Net balance, end of period		271,470			219,540
Plus: reinsurance recoverable on unpaid losses		366,412			387,637
Balance, end of period	$	637,882		$	607,177

As of March 31, 2021, the Company reported $271.5 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $205.0 million attributable to IBNR net of reinsurance recoverable, or 75.5% of net reserves for unpaid losses and loss adjustment expenses.