Reserve For Unpaid Losses

6 Months Ended

Jun. 30, 2021

Insurance [Abstract]

Reserve for Unpaid Losses

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. The Company estimates its IBNR reserves by projecting its 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 June 30,						Six Months Ended June 30,
	2021			2020			2021			2020
	(In thousands)
Balance, beginning of period	$	637,882		$	607,177		$	659,341		$	613,533
Less: reinsurance recoverable on unpaid losses		366,412			387,637			397,688			393,630
Net balance, beginning of period		271,470			219,540			261,653			219,903
Incurred related to:
Current year		101,445			83,822			200,949			156,153
Prior years		(611	)		(4,953	)		(2,206	)		(9,103	)
Total incurred		100,834			78,869			198,743			147,050
Paid related to:
Current year		69,795			55,372			95,621			76,608
Prior years		43,409			26,689			105,675			73,997
Total paid		113,204			82,061			201,296			150,605
Net balance, end of period		259,100			216,348			259,100			216,348
Plus: reinsurance recoverable on unpaid losses		366,879			404,370			366,879			404,370
Balance, end of period	$	625,979		$	620,718		$	625,979		$	620,718

As of June 30, 2021, the Company reported $259.1 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $190.9 million attributable to IBNR net of reinsurance recoverable, or 73.6% of net reserves for unpaid losses and loss adjustment expenses.