Losses And Loss Adjustment Expense Reserves (Tables)

12 Months Ended

Dec. 31, 2016

Activity In The Reserves For Losses And Loss Adjustment Expenses

The following table presents the activity in loss and loss adjustment expense reserves:



	Year Ended December 31,
	2016			2015			2014
	(Amounts in thousands)
Gross reserves at January 1	$	1,146,688		$	1,091,797		$	1,038,984
Less reinsurance recoverable	(14,253		)	(14,192		)	(13,635		)
Net reserves at January 1	1,132,435			1,077,605			1,025,349
Acquisition of WAIC reserves	—			18,677			—
Incurred losses and loss adjustment expenses related to:
Current year	2,269,769			2,132,837			1,989,315
Prior years	85,369			12,658			(3,193		)
Total incurred losses and loss adjustment expenses	2,355,138			2,145,495			1,986,122
Loss and loss adjustment expense payments related to:
Current year	1,508,362			1,455,245			1,347,967
Prior years	702,124			654,097			585,899
Total payments	2,210,486			2,109,342			1,933,866
Net reserves at December 31	1,277,087			1,132,435			1,077,605
Reinsurance recoverable	13,161			14,253			14,192
Gross reserves at December 31	$	1,290,248		$	1,146,688		$	1,091,797

Incurred and Paid Claims Development

The information about incurred and paid claims development for the years ended December 31, 2007 to 2015 is presented as unaudited supplementary information.



Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance)																					As of December 31, 2016
																					Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
Accident Year	For the Years Ended December 31,
Accident Year	2007⁽¹⁾		2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016
	(Amounts in thousands)																				(Amounts in thousands)
2007	$	1,591,217	$	1,610,874	$	1,614,648	$	1,624,875	$	1,633,606	$	1,633,169	$	1,634,127	$	1,635,529	$	1,636,379	$	1,636,065	$	52	230
2008			1,505,732		1,440,301		1,442,691		1,455,858		1,461,084		1,463,659		1,465,623		1,466,108		1,466,137		82		199
2009					1,372,833		1,349,025		1,361,116		1,361,652		1,365,551		1,371,779		1,372,694		1,372,259		166		186
2010							1,367,547		1,357,750		1,364,307		1,374,638		1,379,336		1,381,056		1,386,105		390		184
2011									1,343,919		1,367,000		1,380,557		1,388,363		1,393,878		1,398,518		4,069		181
2012											1,424,754		1,408,222		1,409,104		1,414,878		1,426,735		4,531		181
2013													1,448,567		1,431,058		1,447,881		1,458,421		10,873		185
2014															1,467,175		1,454,366		1,473,545		32,532		180
2015																	1,551,105		1,588,443		90,010		169
2016																			1,672,853		303,353		145
																	Total		$	14,879,081

__________

⁽¹⁾The information for the years 2007 to 2015 is presented as unaudited supplemental information.



Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance)
	For the Years Ended December 31,
Accident Year	2007⁽¹⁾		2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016
	(Amounts in thousands)
2007	$	1,040,933	$	1,365,854	$	1,496,543	$	1,581,001	$	1,615,964	$	1,628,413	$	1,633,178	$	1,634,888	$	1,635,631	$	1,636,204
2008			992,844		1,226,787		1,345,354		1,418,274		1,450,172		1,459,216		1,463,384		1,464,763		1,465,832
2009					913,340		1,137,807		1,260,424		1,326,439		1,355,210		1,363,526		1,370,564		1,371,956
2010							908,954		1,143,984		1,268,142		1,335,871		1,365,464		1,375,799		1,384,333
2011									926,983		1,152,459		1,277,808		1,347,082		1,378,920		1,391,101
2012											955,647		1,194,648		1,304,511		1,372,828		1,409,911
2013													974,445		1,217,906		1,340,724		1,413,999
2014															967,481		1,231,413		1,358,472
2015																	1,040,253		1,336,223
2016																			1,094,006
																	Total		$	13,862,037
							All outstanding liabilities before 2007, net of reinsurance												(212		)
							Loss and allocated loss adjustment expense reserves, net of reinsurance												$	1,016,832

__________

⁽¹⁾The information for the years 2007 to 2015 is presented as unaudited supplemental information.



Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners' Insurance)																					As of December 31, 2016
																					Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported Claims			Cumulative Number of Reported Claims
Accident Year	For the Years Ended December 31,
Accident Year	2007⁽¹⁾		2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016
	(Amounts in thousands)																				(Amounts in thousands)
2007	$	119,505	$	116,950	$	112,042	$	111,378	$	109,836	$	110,052	$	110,092	$	110,161	$	110,142	$	110,204	$	42		14
2008			146,486		139,549		138,605		139,142		138,190		138,803		139,149		139,156		139,216		5			16
2009					135,889		135,000		131,680		133,087		133,121		134,718		134,597		134,478		(3		)	17
2010							165,727		157,566		160,983		160,472		160,206		160,015		159,608		(17		)	21
2011									167,414		170,623		170,052		169,600		169,390		169,621		325			23
2012											196,063		188,010		190,376		191,548		192,057		585			25
2013													191,903		188,915		188,026		186,795		775			23
2014															199,298		202,621		203,218		2,993			25
2015																	234,800		234,881		9,431			24
2016																			250,440		36,538			23
																	Total		$	1,780,518

__________

⁽¹⁾The information for the years 2007 to 2015 is presented as unaudited supplemental information.



Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners' Insurance)
	For the Years Ended December 31,
Accident Year	2007⁽¹⁾		2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016
	(Amounts in thousands)
2007	$	71,165	$	100,774	$	104,340	$	108,404	$	109,305	$	109,874	$	109,932	$	109,949	$	110,064	$	110,075
2008			86,954		122,239		129,821		135,500		137,284		138,137		138,680		138,809		138,922
2009					86,034		119,306		126,591		130,928		132,180		134,381		134,378		134,301
2010							95,057		137,628		149,084		155,191		156,853		158,053		158,943
2011									111,909		153,845		162,870		166,375		167,806		168,621
2012											128,618		175,029		182,756		188,121		190,373
2013													133,528		174,295		180,858		183,860
2014															139,615		186,996		194,605
2015																	163,196		213,994
2016																			173,435
																	Total		$	1,667,129
							All outstanding liabilities before 2007, net of reinsurance												2,661
							Loss and allocated loss adjustment expense reserves, net of reinsurance												$	116,050

__________

⁽¹⁾The information for the years 2007 to 2015 is presented as unaudited supplemental information.

Schedule of Historical Claims Duration

The following is unaudited supplementary information about average historical claims duration as of December 31, 2016.



Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years	1		2		3		4		5		6		7		8		9		10
Automobile insurance	66.0	%	17.1	%	8.5	%	4.9	%	2.2	%	0.7	%	0.4	%	0.1	%	0.1	%	—



Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance

Years	1		2		3		4		5		6		7		8	9		10
Homeowners insurance	66.1	%	24.3	%	4.6	%	3.0	%	1.0	%	0.7	%	0.2	%	—	0.1	%	—

Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Loss and Loss Adjustment Expense Reserves

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheets is as follows.

Reconciliation of the Disclosure of Incurred and Paid Claims Development

to the Loss and Loss Adjustment Expense Reserves



	December 31, 2016
	(Amounts in thousands)
Net outstanding liabilities
Automobile insurance	$	1,016,832
Homeowners' insurance	116,050
WAIC automobile insurance	12,232
Other short-duration insurance lines	51,320
Loss and loss adjustment expense reserves, net of reinsurance	1,196,434
Reinsurance recoverable on unpaid claims
Automobile insurance	12,601
Homeowners' insurance	199
Other short-duration insurance lines	360
Total reinsurance recoverable on unpaid claims	13,160
Insurance lines other than short-duration	1,480
Unallocated claims adjustment expenses	79,174
	80,654
Total gross loss and loss adjustment expense reserves	$	1,290,248