Unpaid Losses and Loss Adjustment Reserve

6 Months Ended

Jun. 30, 2023

Unpaid Losses and Loss Adjustment Reserve

Unpaid Losses and Loss Adjustment Reserve

11. Unpaid Losses and Loss Adjustment Reserve

The following table summarizes the changes in the reserve balances for unpaid losses and LAE, gross of reinsurance for the six months ended June 30, 2023:

Reserve for unpaid losses and LAE, at December 31, 2022	$	100,632
Reinsurance recoverables on losses and LAE		(76,999)
Reserve for unpaid losses and LAE reserve, net of reinsurance recoverables at December 31, 2022		23,633
Add provisions (reductions) for losses and LAE occurring in:
Current year		110,624
Prior years		3,384
Net incurred losses and LAE during the current year		114,008
Deduct payments for losses and LAE occurring in:
Current year		(44,510)
Prior years		(16,718)
Net claim and LAE payments during the current year		(61,228)
Reserve for losses and LAE, net of reinsurance recoverables, at end of period		76,413
Reinsurance recoverables on losses and LAE		89,296
Reserve for unpaid losses and LAE at June 30, 2023	$	165,709

As a result of additional information on claims occurring in prior years becoming available to management, changes in estimates of provisions of losses and loss adjustment expenses were made resulting in an increase of $3.4 million for the six months ended June 30, 2023.