6. Property and Casualty Insurance Activity (Tables)

3 Months Ended

Mar. 31, 2020

Insurance [Abstract]

Schedule of earned premiums

	Direct	Assumed	Ceded	Net
Three months ended March 31, 2020
Premiums written	$    36,696,929	$                     -	$(13,506,255)	$  23,190,674
Change in unearned premiums	5,904,700	-	(2,153,924)	3,750,776
Premiums earned	$    42,601,629	$                     -	$(15,660,179)	$  26,941,450
Three months ended March 31, 2019
Premiums written	$    37,488,548	$                (34)	$  (7,127,909)	$  30,360,605
Change in unearned premiums	(628,067)	195	(136,844)	(764,716)
Premiums earned	$    36,860,481	$                161	$  (7,264,753)	$  29,595,889

Schedule of loss and loss adjustment expenses

	Three months ended
	March 31,
	2020	2019
Balance at beginning of period	$  80,498,611	$  56,197,106
Less reinsurance recoverables	(15,728,224)	(15,671,247)
Net balance, beginning of period	64,770,387	40,525,859
Incurred related to:
Current year	16,512,475	24,655,975
Prior years	(126,654)	4,478,249
Total incurred	16,385,821	29,134,224
Paid related to:
Current year	5,787,129	7,731,086
Prior years	13,777,236	8,405,440
Total paid	19,564,365	16,136,526
Net balance at end of period	61,591,843	53,523,557
Add reinsurance recoverables	16,259,256	15,586,714
Balance at end of period	$  77,851,099	$  69,110,271

Allocated claim adjustment expenses

All Lines of Business
(in thousands, except reported claims data)
											As of
	Incurred Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance										March 31, 2020
	For the Years Ended December 31,									For the three months ended March 31, 2020	IBNR	Cumulative Number of Reported Claims by Accident Year
Accident Year	2011	2012	2013	2014	2015	2016	2017	2018	2019
	(Unaudited 2011 - 2019)									(Unaudited)
2011	$7,603	$7,678	$8,618	$9,440	$9,198	$9,066	$9,144	$9,171	$9,127	$      9,128	$      (1)	1,914
2012		9,539	9,344	10,278	10,382	10,582	10,790	10,791	11,015	10,792	87	4,704	(1)
2013			10,728	9,745	9,424	9,621	10,061	10,089	10,607	10,607	(12)	1,561
2014				14,193	14,260	14,218	14,564	15,023	16,381	16,376	289	2,136
2015					22,340	21,994	22,148	22,491	23,386	23,042	154	2,555
2016						26,062	24,941	24,789	27,887	27,961	538	2,877
2017							31,605	32,169	35,304	35,873	631	3,380
2018								54,455	56,351	58,073	2,391	4,188
2019									75,092	73,173	12,027	4,365
2020										15,760	6,202	731
									Total	$  280,784
(1) Reported claims for accident year 2012 includes 3,406 claims from Superstorm Sandy.
All Lines of Business
(in thousands)
	Cumulative Paid Loss and Allocated Loss Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,									For the three months ended March 31, 2020
Accident Year	2011	2012	2013	2014	2015	2016	2017	2018	2019
	(Unaudited 2011 - 2019)									(Unaudited)
2011	$3,740	$5,117	$6,228	$7,170	$8,139	$8,540	$8,702	$8,727	$8,789	$      8,991
2012		3,950	5,770	7,127	8,196	9,187	10,236	10,323	10,428	10,442
2013			3,405	5,303	6,633	7,591	8,407	9,056	9,717	9,728
2014				5,710	9,429	10,738	11,770	13,819	14,901	15,150
2015					12,295	16,181	18,266	19,984	21,067	21,448
2016						15,364	19,001	21,106	23,974	24,371
2017							16,704	24,820	28,693	28,969
2018								32,383	44,516	46,178
2019									40,933	50,983
2020										5,469
									Total	$  221,729
Net liability for unpaid loss and allocated loss adjustment expenses for the accident years presented										$    59,055
All outstanding liabilities before 2011, net of reinsurance										100
Liabilities for loss and allocated loss adjustment expenses, net of reinsurance										$    59,154

Reconciliation of the net incurred and paid claims

	As of
(in thousands)	March 31, 2020
Liabilities for loss and loss adjustment expenses, net of reinsurance	$                   59,154
Total reinsurance recoverable on unpaid losses	16,259
Unallocated loss adjustment expenses	2,437
Total gross liability for loss and LAE reserves	$                   77,851

Schedule of line of business

	Treaty Year
	December 15, 2019	July 1, 2019	July 1, 2018
	to	to	to
Line of Business	December 31, 2020	December 14, 2019	June 30, 2019
Personal Lines:
Homeowners, dwelling fire and
and canine legal liability
Quota share treaty:
Percent ceded	25%	None	10%
	Treaty Year
	December 15, 2019	July 1, 2019	July 1, 2018
	to	to	to
Line of Business	June 30, 2020	December 14, 2019	June 30, 2019
Personal Lines:
Homeowners, dwelling fire and
and canine legal liability
Quota share treaty:
Risk retained on intial $1,000,000
of losses	$                750,000	$             1,000,000	$               900,000
Losses per occurrence subject to
quota share reinsurance coverage	$             1,000,000	None	$            1,000,000
Excess of loss coverage and facultative
facility coverage (1)	$             9,000,000	$             9,000,000	$            9,000,000
	in excess of	in excess of	in excess of
	$             1,000,000	$             1,000,000	$            1,000,000
Total reinsurance coverage per occurrence	$             9,250,000	$             9,000,000	$            9,100,000
Losses per occurrence subject to
reinsurance coverage	$           10,000,000	$           10,000,000	$          10,000,000
Expiration date	June 30, 2020	June 30, 2020	June 30, 2019
Catastrophe Reinsurance:
Initial loss subject to personal lines
quota share treaty	$             7,500,000	None	$            5,000,000
Risk retained per catastrophe
occurrence (2)	$             5,625,000	$             7,500,000	$            4,500,000
Catastrophe loss coverage in excess of
quota share coverage (3)	$         602,500,000	$         602,500,000	$        445,000,000
Reinstatement premium
protection (4) (5)	Yes	Yes	Yes

(1) For personal lines, includes the addition of an automatic facultative facility allowing KICO to obtain homeowners single risk coverage up to $10,000,000 in total insured value, which covers direct losses from $3,500,000 to $10,000,000.

(2) Plus losses in excess of catastrophe coverage.

(3) Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. Duration of 168 consecutive hours for a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone.

(4) Effective July 1, 2018, reinstatement premium protection for $210,000,000 of catastrophe coverage in excess of $5,000,000.

(5) Effective July 1, 2019, reinstatement premium protection for $292,500,000 of catastrophe coverage in excess of $7,500,000.

	Treaty Year
	July 1, 2019	July 1, 2018
	to	to
Line of Business	June 30, 2020	June 30, 2019
Personal Lines:
Personal Umbrella
Quota share treaty:
Percent ceded - first $1,000,000 of coverage	90%	90%
Percent ceded - excess of $1,000,000 dollars of coverage	100%	100%
Risk retained	$        100,000	$        100,000
Total reinsurance coverage per occurrence	$     4,900,000	$     4,900,000
Losses per occurrence subject to quota share reinsurance coverage	$     5,000,000	$     5,000,000
Expiration date	June 30, 2020	June 30, 2019
Commercial Lines:
General liability commercial policies
Quota share treaty	None	None
Risk retained	$        750,000	$        750,000
Excess of loss coverage above risk retained	$     3,750,000	$     3,750,000
	in excess of	in excess of
	$        750,000	$        750,000
Total reinsurance coverage per occurrence	$     3,750,000	$     3,750,000
Losses per occurrence subject to reinsurance coverage	$     4,500,000	$     4,500,000
Commercial Umbrella
Quota share treaty:	None
Percent ceded - first $1,000,000 of coverage		90%
Percent ceded - excess of $1,000,000 of coverage		100%
Risk retained		$        100,000
Total reinsurance coverage per occurrence		$     4,900,000
Losses per occurrence subject to quota share reinsurance coverage		$     5,000,000
Expiration date		June 30, 2019

Schedule of ceding commission revenue

	Three months ended
	March 31,
	2020	2019
Provisional ceding commissions earned	$   3,720,360	$   1,317,751
Contingent ceding commissions earned	110,739	(40,068)
	$   3,831,099	$   1,277,683