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Loss And Loss Adjustment Expense Reserves
 12 Months Ended
Dec. 31, 2023
Insurance Loss Reserves [Abstract]  
Loss And Loss Adjustment Expense Reserves Loss and Loss Adjustment Expense Reserves
The following table presents the activity in loss and loss adjustment expense reserves:
 Year Ended December 31,
 202320222021
 (Amounts in thousands)
Gross reserves at January 1$2,584,910 $2,226,430 $1,991,304 
Reinsurance recoverables on unpaid losses(25,323)(41,379)(54,461)
Net reserves at January 12,559,587 2,185,051 1,936,843 
Incurred losses and loss adjustment expenses related to:
Current year3,553,801 3,314,938 2,786,246 
Prior years(35,948)47,281 (26,091)
Total incurred losses and loss adjustment expenses3,517,853 3,362,219 2,760,155 
Loss and loss adjustment expense payments related to:
Current year2,080,690 1,862,006 1,601,998 
Prior years1,243,196 1,125,677 909,949 
Total payments3,323,886 2,987,683 2,511,947 
Net reserves at December 312,753,554 2,559,587 2,185,051 
Reinsurance recoverables on unpaid losses32,148 25,323 41,379 
Gross reserves at December 31$2,785,702 $2,584,910 $2,226,430 

During 2022, inflationary trends accelerated to their highest level in decades, which had a significant impact on the cost of automobile parts and labor as well as medical expenses for bodily injuries, and supply chain and labor shortage issues lengthened the time to repair vehicles. Bodily injury costs were also under pressure from social inflation. The severe inflationary trend continued into 2023, but began moderating as the year progressed. These factors contributed to higher losses and loss adjustment expenses related to the current accident year for 2023 and 2022 compared to 2021.

The decrease in the provision for insured events of prior years in 2023 of approximately $35.9 million primarily resulted from lower than estimated losses and loss adjustment expenses in the private passenger automobile and homeowners lines of insurance business, partially offset by unfavorable reserve development in the commercial property line of insurance business. The moderating inflationary trend in 2023 relative to 2022 discussed above was the major contributor to the favorable reserve development in the private passenger automobile line of insurance business for 2023.

The increase in the provision for insured events of prior years in 2022 of approximately $47.3 million primarily resulted from higher than estimated losses and loss adjustment expenses in the automobile line of insurance business. The inflationary pressures and the supply chain and labor shortage issues discussed above were major contributors to the adverse reserve development in the automobile line of insurance business for 2022.

The decrease in the provision for insured events of prior years in 2021 of approximately $26.1 million primarily resulted from lower than estimated losses and loss adjustment expenses in the homeowners and private passenger automobile lines of insurance business.

The Company recorded catastrophe losses net of reinsurance of approximately $239 million, $102 million, and $104 million in 2023, 2022, and 2021, respectively. Catastrophe losses due to the events that occurred in 2023 totaled approximately
$247 million, with no reinsurance benefits used for these losses, resulting primarily from rainstorms and hail in Texas and Oklahoma, winter storms and rainstorms in California, and the impact of Tropical Storm Hilary in California. In addition, the Company experienced favorable development of approximately $8 million on prior years' catastrophe losses in 2023. Catastrophe losses due to the events that occurred in 2022 totaled approximately $101 million, with no reinsurance benefits used for these losses, resulting primarily from the deep freeze of Winter Storm Elliott and other extreme weather events in Texas, Oklahoma and Georgia, winter storms in California, and the impact of Hurricane Ian in Florida. In addition, the Company experienced unfavorable development of approximately $1 million on prior years' catastrophe losses in 2022. Catastrophe losses due to the events that occurred in 2021 totaled approximately $109 million, with no reinsurance benefits used for these losses, resulting primarily from the deep freeze of Winter Storm Uri and other extreme weather events in Texas and Oklahoma, rainstorms, wildfires and winter storms in California, and the impact of Hurricane Ida in New Jersey and New York. In addition, the Company experienced favorable development of approximately $5 million on prior years' catastrophe losses in 2021.

The following is information about incurred and paid claims development as of December 31, 2023, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts for our two major product lines: automobile and homeowners lines of business. As the information presented is for these two major product lines only, the total incurred and paid claims development shown below does not correspond to the aggregate development presented in the table above, which is for all product lines and includes unallocated claims adjustment expenses. The cumulative number of reported claims represents open claims, claims closed with payment, and claims closed without payment. It does not include an estimated amount for unreported claims. The number of claims is measured by claim event (such as a car accident or storm damage) and an individual claim event may result in more than one reported claim. The Company considers a claim that does not result in a liability as a claim closed without payment. 

The information about incurred and paid claims development for the years ended December 31, 2014 to 2022 is presented as unaudited supplementary information.

Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Automobile Insurance)As of December 31, 2023
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident YearFor the Years Ended December 31,
2014(1)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023
(Amounts in thousands)(Amounts in thousands)
2014$1,467,175 $1,454,366 $1,473,545 $1,486,322 $1,498,504 $1,501,075 $1,501,713 $1,501,850 $1,502,161 $1,502,313 $58 180
20151,551,105 1,588,443 1,610,839 1,634,435 1,645,950 1,649,170 1,653,878 1,654,843 1,655,267 336 170
20161,672,853 1,669,642 1,713,696 1,731,997 1,732,410 1,740,807 1,743,417 1,745,513 2,544 155
20171,703,857 1,727,277 1,741,825 1,733,425 1,748,289 1,755,702 1,754,356 4,910 149
20181,781,817 1,773,502 1,785,071 1,806,240 1,807,297 1,811,302 12,992 147
20191,916,269 1,911,268 1,959,262 1,954,151 1,951,924 22,464 148
20201,514,551 1,448,083 1,452,343 1,430,973 36,124 91
20211,811,064 1,879,751 1,854,319 96,072 104
20222,255,032 2,264,193 238,987 116
20232,349,659 673,888 100
Total$18,319,819 
__________ 
(1) The information for the years 2014 to 2022 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
2014(1)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023
(Amounts in thousands)
2014$967,481 $1,231,413 $1,358,472 $1,432,472 $1,476,944 $1,490,366 $1,496,814 $1,500,243 $1,501,483 $1,502,305 
20151,040,253 1,336,223 1,466,368 1,560,480 1,614,188 1,634,780 1,643,443 1,651,465 1,654,069 
20161,094,006 1,395,199 1,554,217 1,656,192 1,699,069 1,722,293 1,736,697 1,740,902 
20171,076,079 1,399,202 1,561,850 1,648,328 1,701,298 1,733,196 1,746,147 
20181,082,127 1,417,637 1,588,049 1,697,228 1,757,923 1,784,876 
20191,134,859 1,494,342 1,698,121 1,828,410 1,896,186 
2020825,398 1,089,096 1,242,000 1,328,686 
2021992,705 1,410,748 1,599,756 
20221,237,725 1,743,364 
20231,313,943 
Total$16,310,234 
All outstanding liabilities before 2014, net of reinsurance
10 
Loss and allocated loss adjustment expense reserves, net of reinsurance$2,009,595 
__________ 
(1) The information for the years 2014 to 2022 is presented as unaudited supplemental information.


Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance (Homeowners Insurance)As of December 31, 2023
Total of Incurred But Not Reported Liabilities Plus Expected Development on Reported ClaimsCumulative Number of Reported Claims
Accident YearFor the Years Ended December 31,
2014(1)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023
(Amounts in thousands)(Amounts in thousands)
2014$199,298 $202,621 $203,218 $202,513 $204,986 $208,003 $208,743 $209,622 $209,071 $208,990 $— 25
2015234,800 234,881 233,501 236,855 238,652 239,941 240,927 237,872 237,994 150 24
2016250,691 259,489 259,497 259,708 260,496 259,984 259,722 259,701 48 24
2017309,491 295,163 288,322 289,869 289,294 291,360 290,909 227 30
2018311,798 308,361 310,695 305,292 306,347 308,345 3,131 25
2019359,643 366,139 361,421 360,609 360,140 1,278 30
2020420,257 411,404 413,882 411,408 5,728 29
2021510,724 511,311 504,086 11,687 31
2022578,489 562,562 23,284 30
2023717,988 147,258 39
Total$3,862,123 
__________ 
(1) The information for the years 2014 to 2022 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
2014(1)
2015(1)
2016(1)
2017(1)
2018(1)
2019(1)
2020(1)
2021(1)
2022(1)
2023
(Amounts in thousands)
2014$139,615 $186,996 $194,605 $198,758 $202,193 $203,333 $207,524 $207,801 $208,737 $208,866 
2015163,196 213,994 224,178 230,480 234,683 235,971 236,143 236,983 237,651 
2016173,537 234,215 245,878 253,919 256,642 258,477 259,045 259,875 
2017217,900 269,254 278,341 283,311 286,531 290,291 290,984 
2018213,038 271,534 286,658 294,099 300,742 303,053 
2019240,240 324,953 340,237 350,288 355,697 
2020271,208 365,910 386,297 395,412 
2021316,314 458,124 473,644 
2022339,242 501,075 
2023474,712 
Total$3,500,969 
All outstanding liabilities before 2014, net of reinsurance
1,044 
Loss and allocated loss adjustment expense reserves, net of reinsurance$362,198 
__________ 
(1) The information for the years 2014 to 2022 is presented as unaudited supplemental information.


The following is unaudited supplementary information about average historical claims duration as of December 31, 2023.

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Automobile insurance59.1 %19.0 %9.4 %5.7 %3.1 %1.4 %0.6 %0.3 %0.1 %0.1 %

Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance
Years12345678910
Homeowners insurance66.8 %23.0 %4.1 %2.4 %1.5 %0.8 %0.6 %0.3 %0.4 %0.1 %
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, 2023
(Amounts in thousands)
Net outstanding liabilities
Automobile insurance$2,009,595 
Homeowners insurance362,198 
Other short-duration insurance lines236,069 
Loss and loss adjustment expense reserves, net of reinsurance recoverables on unpaid losses2,607,862 
Reinsurance recoverables on unpaid losses
Automobile insurance27,528 
Homeowners insurance3,903 
Other short-duration insurance lines717 
Total reinsurance recoverables on unpaid losses32,148 
Insurance lines other than short-duration1,072 
Unallocated claims adjustment expenses144,620 
145,692 
Total gross loss and loss adjustment expense reserves$2,785,702