Losses And Loss Adjustment Expense Reserves (Tables)

12 Months Ended

Dec. 31, 2017

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,
	2017			2016			2015
	(Amounts in thousands)
Gross reserves at January 1	$	1,290,248		$	1,146,688		$	1,091,797
Less reinsurance recoverables on unpaid losses	(13,161		)	(14,253		)	(14,192		)
Net reserves at January 1	1,277,087			1,132,435			1,077,605
Acquisition of WAIC reserves	—			—			18,677
Incurred losses and loss adjustment expenses related to:
Current year	2,390,453			2,269,769			2,132,837
Prior years	54,431			85,369			12,658
Total incurred losses and loss adjustment expenses	2,444,884			2,355,138			2,145,495
Loss and loss adjustment expense payments related to:
Current year	1,550,789			1,508,362			1,455,245
Prior years	724,570			702,124			654,097
Total payments	2,275,359			2,210,486			2,109,342
Net reserves at December 31	1,446,612			1,277,087			1,132,435
Reinsurance recoverables on unpaid losses	64,001			13,161			14,253
Gross reserves at December 31	$	1,510,613		$	1,290,248		$	1,146,688

Incurred and Paid Claims Development

The information about incurred and paid claims development for the years ended December 31, 2008 to 2016 is presented as unaudited supplementary information.



Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance)																					As of December 31, 2017
																					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	2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017
	(Amounts in thousands)																				(Amounts in thousands)
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	$	1,466,687	$	55	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		1,371,812		82		186
2010					1,367,547		1,357,750		1,364,307		1,374,638		1,379,336		1,381,056		1,386,105		1,388,077		158		184
2011							1,343,919		1,367,000		1,380,557		1,388,363		1,393,878		1,398,518		1,405,112		9,367		181
2012									1,424,754		1,408,222		1,409,104		1,414,878		1,426,735		1,436,034		1,756		181
2013											1,448,567		1,431,058		1,447,881		1,458,421		1,464,071		4,011		185
2014													1,467,175		1,454,366		1,473,545		1,486,322		12,959		180
2015															1,551,105		1,588,443		1,610,839		40,444		170
2016																	1,672,853		1,669,642		102,672		154
2017																			1,703,857		347,296		140
																	Total		$	15,002,453

__________

⁽¹⁾The information for the years 2008 to 2016 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	2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017
	(Amounts in thousands)
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	$	1,466,704
2009			913,340		1,137,807		1,260,424		1,326,439		1,355,210		1,363,526		1,370,564		1,371,956		1,371,933
2010					908,954		1,143,984		1,268,142		1,335,871		1,365,464		1,375,799		1,384,333		1,387,835
2011							926,983		1,152,459		1,277,808		1,347,082		1,378,920		1,391,101		1,394,684
2012									955,647		1,194,648		1,304,511		1,372,828		1,409,911		1,422,705
2013											974,445		1,217,906		1,340,724		1,413,999		1,447,004
2014													967,481		1,231,413		1,358,472		1,432,472
2015															1,040,253		1,336,223		1,466,368
2016																	1,094,006		1,395,199
2017																			1,076,079
																	Total		$	13,860,983
							All outstanding liabilities before 2008, net of reinsurance												(169		)
							Loss and allocated loss adjustment expense reserves, net of reinsurance												$	1,141,300

__________

⁽¹⁾The information for the years 2008 to 2016 is presented as unaudited supplemental information.



Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners' Insurance)																					As of December 31, 2017
																					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	2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017
	(Amounts in thousands)																				(Amounts in thousands)
2008	$	146,486	$	139,549	$	138,605	$	139,142	$	138,190	$	138,803	$	139,149	$	139,156	$	139,216	$	139,188	$	—	16
2009			135,889		135,000		131,680		133,087		133,121		134,718		134,597		134,478		134,359		26		17
2010					165,727		157,566		160,983		160,472		160,206		160,015		159,608		159,662		117		21
2011							167,414		170,623		170,052		169,600		169,390		169,621		170,126		234		23
2012									196,063		188,010		190,376		191,548		192,057		191,804		428		25
2013											191,903		188,915		188,026		186,795		187,165		524		23
2014													199,298		202,621		203,218		202,513		1,330		25
2015															234,800		234,881		233,501		4,368		24
2016																	250,691		259,489		9,995		24
2017																			309,491		47,502		28
																	Total		$	1,987,298

__________

⁽¹⁾The information for the years 2008 to 2016 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	2008⁽¹⁾		2009⁽¹⁾		2010⁽¹⁾		2011⁽¹⁾		2012⁽¹⁾		2013⁽¹⁾		2014⁽¹⁾		2015⁽¹⁾		2016⁽¹⁾		2017
	(Amounts in thousands)
2008	$	86,954	$	122,239	$	129,821	$	135,500	$	137,284	$	138,137	$	138,680	$	138,809	$	138,922	$	138,963
2009			86,034		119,306		126,591		130,928		132,180		134,381		134,378		134,301		134,229
2010					95,057		137,628		149,084		155,191		156,853		158,053		158,943		159,268
2011							111,909		153,845		162,870		166,375		167,806		168,621		168,914
2012									128,618		175,029		182,756		188,121		190,373		190,649
2013											133,528		174,295		180,858		183,860		185,168
2014													139,615		186,996		194,605		198,758
2015															163,196		213,994		224,178
2016																	173,537		234,215
2017																			217,900
																	Total		$	1,852,242
							All outstanding liabilities before 2008, net of reinsurance												2,141
							Loss and allocated loss adjustment expense reserves, net of reinsurance												$	137,195

__________

⁽¹⁾The information for the years 2008 to 2016 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, 2017.



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	65.8	%	17.1	%	8.5	%	5	%	2.3	%	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	66.5	%	23.9	%	4.8	%	2.7	%	1.0	%	0.7	%	0.3	%	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, 2017
	(Amounts in thousands)
Net outstanding liabilities
Automobile insurance	$	1,141,300
Homeowners' insurance	137,195
WAIC automobile insurance	12,076
Other short-duration insurance lines	69,327
Loss and loss adjustment expense reserves, net of reinsurance recoverables on unpaid losses	1,359,898
Reinsurance recoverables on unpaid losses
Automobile insurance	10,004
Homeowners' insurance	53,323
Other short-duration insurance lines	674
Total reinsurance recoverables on unpaid losses	64,001
Insurance lines other than short-duration	1,183
Unallocated claims adjustment expenses	85,531
	86,714
Total gross loss and loss adjustment expense reserves	$	1,510,613