Liability for Losses and Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Insurance Subsidiaries' Liability for Losses and Loss Expenses

We summarize activity in our insurance subsidiaries’ liability for losses and loss expenses as follows:


	2017			2016			2015
Balance at January 1	$	606,664,590		$	578,205,109		$	538,258,406
Less reinsurance recoverable		(259,147,147	)		(256,150,860	)		(245,957,364	)

Net balance at January 1		347,517,443			322,054,249			292,301,042

Incurred related to:
Current year		480,646,641			420,327,164			391,166,740
Prior years		6,621,413			2,988,739			7,200,134

Total incurred		487,268,054			423,315,903			398,366,874

Paid related to:
Current year		288,379,600			248,106,788			236,834,666
Prior years		163,005,427			149,745,921			131,779,001

Total paid		451,385,027			397,852,709			368,613,667

Net balance at December 31		383,400,470			347,517,443			322,054,249
Plus reinsurance recoverable		293,271,257			259,147,147			256,150,860

Balance at December 31	$	676,671,727		$	606,664,590		$	578,205,109

Summary of Incurred and Paid Claims Development, Net of Reinsurance and Cumulative Claim Frequency and Total of IBNR Reserves Plus Expected Development on Reported Claims

The following tables present information about incurred and paid claims development as of December 31, 2017, net of reinsurance, as well as cumulative claim frequency and the total of IBNR reserves plus expected development on reported claims that our insurance subsidiaries included within their net incurred claims amounts. The tables include unaudited information about incurred and paid claims development for the years ended December 31, 2008 through 2016, which we present as supplementary information. We present amounts retrospectively for MICO, which we acquired in December 2010, for all accident years prior to 2010.


Personal Automobile																					At December 31, 2017
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(in thousands)
2008	$	98,139	$	101,937	$	100,782	$	101,388	$	101,119	$	100,819	$	100,984	$	100,923	$	100,918	$	100,915	$	9		61
2009				105,707		106,313		106,841		107,589		107,190		106,705		106,549		106,499		106,713		15		65
2010						117,967		117,552		118,562		118,876		118,916		118,587		118,385		118,289		45		70
2011								127,929		131,678		132,987		133,229		133,617		133,218		133,145		97		74
2012										130,415		133,201		135,592		136,493		136,552		136,463		249		69
2013												124,965		130,737		131,594		132,643		132,604		438		66
2014														124,426		124,806		124,210		126,200		905		71
2015																137,569		139,334		139,181		2,713		70
2016																		150,215		153,937		7,327		73
2017																				166,690		26,640		77

																		Total	$	1,314,137


Personal Automobile
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
(in thousands)
2008	$	66,648	$	85,262	$	93,325	$	97,134	$	99,110	$	100,153	$	100,642	$	100,712	$	100,778	$	100,790
2009				69,585		89,089		97,349		102,332		104,779		105,577		105,922		106,017		106,477
2010						75,889		96,749		107,662		113,243		116,748		117,812		117,978		118,054
2011								87,191		110,249		121,621		127,545		131,319		132,479		132,714
2012										87,517		111,941		124,652		130,862		133,428		134,581
2013												84,241		109,051		120,118		125,946		130,026
2014														85,377		104,736		114,893		120,491
2015																93,611		116,303		128,395
2016																		102,433		129,507
2017																				111,964

																		Total		1,212,999
						All outstanding liabilities before 2008, net of reinsurance														540

						Liabilities for claims and claims adjustment expenses, net of reinsurance													$	101,678


Homeowners																					At December 31, 2017
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR Plus Expected Development on Reported Claims			Cumulative Number of Reported Claims
	Unaudited
(in thousands)
2008	$	40,989	$	42,790	$	42,944	$	42,700	$	42,839	$	42,897	$	42,862	$	42,852	$	42,844	$	42,833	$	—			18
2009				51,054		50,621		50,333		49,998		50,137		50,405		50,419		50,433		50,435		—			18
2010						60,315		60,729		60,248		59,972		60,355		60,440		60,443		60,542		—			25
2011								71,256		70,461		70,436		70,381		70,297		70,351		70,479		(3	)		27
2012										53,962		54,794		54,468		54,351		54,281		54,381		44			19
2013												50,887		51,121		51,122		50,874		50,988		47			13
2014														56,916		58,378		57,680		57,332		6			18
2015																63,359		63,925		63,053		157			14
2016																		62,443		64,064		833			13
2017																				79,283		4,166			17

																		Total	$	593,390


Homeowners
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
(in thousands)
2008	$	32,548	$	40,037	$	41,582	$	42,095	$	42,511	$	42,699	$	42,797	$	42,817	$	42,812	$	42,833
2009				39,961		49,180		49,827		50,021		50,301		50,430		50,429		50,433		50,435
2010						47,419		57,334		59,283		59,875		60,239		60,486		60,501		60,525
2011								57,588		69,345		70,125		70,351		70,541		70,626		70,648
2012										46,566		53,619		54,028		54,298		54,317		54,356
2013												40,949		49,410		50,210		50,478		51,043
2014														45,823		56,255		56,990		57,195
2015																51,885		61,542		62,204
2016																		50,125		61,145
2017																				67,077

																		Total		577,461
						All outstanding liabilities before 2008, net of reinsurance														15

						Liabilities for claims and claims adjustment expenses, net of reinsurance													$	15,944


Commercial Automobile																					At December 31, 2017
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(in thousands)
2008	$	18,164	$	17,889	$	17,719	$	17,941	$	17,960	$	18,158	$	18,063	$	18,054	$	18,051	$	18,049	$	—		6
2009				18,735		18,549		18,998		19,015		19,346		19,569		19,430		19,461		19,449		3		6
2010						19,315		19,913		20,695		21,477		21,490		21,756		21,746		21,713		5		7
2011								26,642		27,157		28,570		28,893		29,112		29,107		29,487		1		9
2012										26,557		27,720		30,606		31,435		31,278		31,648		12		8
2013												32,902		33,749		34,751		35,240		36,404		196		9
2014														42,760		44,544		47,326		48,213		747		11
2015																46,526		48,323		51,412		2,639		12
2016																		54,302		57,353		4,793		13
2017																				61,484		17,554		13

																		Total	$	375,212


Commercial Automobile
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
(in thousands)
2008	$	9,204	$	12,330	$	14,115	$	16,077	$	17,110	$	17,548	$	18,052	$	18,051	$	18,051	$	18,049
2009				9,309		12,872		15,479		17,160		18,696		19,389		19,386		19,408		19,413
2010						10,778		14,180		16,426		19,030		20,804		21,014		21,482		21,549
2011								13,876		19,106		24,267		26,973		28,014		28,758		28,836
2012										13,642		20,240		23,718		27,417		29,873		30,402
2013												16,306		23,557		26,879		31,053		34,083
2014														22,707		31,089		39,436		44,374
2015																23,875		35,342		41,678
2016																		27,033		38,237
2017																				28,707

																		Total		305,328
						All outstanding liabilities before 2008, net of reinsurance														10

						Liabilities for claims and claims adjustment expenses, net of reinsurance													$	69,894


Commercial Multi-Peril																					At December 31, 2017
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(in thousands)
2008	$	26,868	$	27,693	$	26,796	$	26,906	$	27,286	$	27,023	$	27,182	$	27,258	$	27,184	$	26,998	$	—		5
2009				26,712		26,454		27,357		27,357		27,739		27,959		27,625		27,484		27,508		—		6
2010						28,745		29,656		29,390		29,169		29,373		29,453		29,463		29,779		—		6
2011								33,054		35,411		35,942		37,576		37,385		38,270		38,105		13		7
2012										29,789		30,716		32,449		34,117		35,755		36,214		33		6
2013												35,683		35,679		37,292		37,205		37,981		155		6
2014														48,204		50,135		51,843		52,336		608		7
2015																42,070		43,874		44,728		3,028		6
2016																		43,005		46,988		4,991		6
2017																				56,185		13,847		6

																		Total	$	396,822


Commercial Multi-Peril
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
(in thousands)
2008	$	16,128	$	21,645	$	22,991	$	24,161	$	25,154	$	25,983	$	26,760	$	26,956	$	27,017	$	26,996
2009				13,675		19,356		21,560		24,977		26,212		26,780		27,287		27,357		27,409
2010						17,007		22,017		24,749		26,832		27,768		28,681		28,906		29,632
2011								18,773		24,767		30,286		33,526		36,722		37,759		38,240
2012										16,666		23,384		26,634		29,370		33,327		35,331
2013												19,875		26,216		29,159		33,614		35,104
2014														27,920		35,520		40,936		47,021
2015																21,837		29,419		34,323
2016																		19,660		29,402
2017																				27,399

																		Total		330,857
		All outstanding liabilities before 2008, net of reinsurance																		266

		Liabilities for claims and claims adjustment expenses, net of reinsurance																	$	66,231


Workers’ Compensation																					At December 31, 2017
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(in thousands)
2008	$	24,034	$	26,361	$	27,037	$	26,791	$	26,471	$	26,226	$	25,941	$	25,963	$	25,713	$	25,797	$	61		5
2009				21,571		22,497		21,894		21,826		22,848		22,278		22,172		22,114		22,079		65		4
2010						27,304		27,859		27,010		26,637		26,944		27,121		27,037		26,984		98		5
2011								32,490		35,757		36,614		36,369		35,670		35,039		35,194		138		6
2012										39,142		39,516		38,827		37,926		37,163		36,468		211		6
2013												46,325		47,027		44,289		42,828		42,327		447		6
2014														51,508		51,553		49,288		48,537		996		6
2015																53,332		49,615		45,991		2,470		6
2016																		58,814		49,802		6,741		6
2017																				60,450		21,116		6

																		Total	$	393,629


Workers’ Compensation
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	Unaudited
(in thousands)
2008	$	6,562	$	14,776	$	19,199	$	21,933	$	23,782	$	24,551	$	24,880	$	25,017	$	25,112	$	25,250
2009				6,490		12,627		16,516		18,329		19,665		20,476		20,939		21,117		21,400
2010						8,066		15,937		21,176		23,137		24,539		25,337		25,804		26,050
2011								9,157		21,450		27,517		31,905		32,394		33,067		33,577
2012										11,097		22,963		28,812		31,244		33,196		34,177
2013												13,052		26,043		32,783		36,351		38,877
2014														13,932		28,513		36,284		40,393
2015																13,071		27,531		34,192
2016																		14,709		30,344
2017																				15,581

																		Total		299,841
						All outstanding liabilities before 2008, net of reinsurance														3,445

						Liabilities for claims and claims adjustment expenses, net of reinsurance													$	97,233

Reconciliation of Net Incurred and Paid Claims Development Tables to Liability for Claims and Claim Adjustment Expenses

The following table presents a reconciliation of the net incurred and paid claims development tables to the liability for claims and claims adjustment expenses in our consolidated balance sheet:


(in thousands)	At December 31, 2017
Net outstanding liabilities:
Personal automobile	$	101,678
Homeowners		15,944
Commercial automobile		69,894
Commercial multi-peril		66,231
Workers’ compensation		97,233
Other		5,404

		356,384

Reinsurance recoverable:
Personal automobile	$	94,091
Homeowners		11,465
Commercial automobile		45,201
Commercial multi-peril		40,685
Workers’ compensation		85,528
Other		3,831

		280,801

Unallocated loss adjustment expenses	$	39,487

Gross liability for unpaid losses and loss expenses	$	676,672

Supplementary Information about Average Historical Claims Duration

The following table presents 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
Personal automobile		65.7	%		17.5	%		8.5	%		4.4	%		2.5	%		0.9	%		0.3	%		0.1	%		0.2	%		—	%
Homeowners		80.6			16.6			1.7			0.6			0.6			0.3			0.1			—			—			—
Commercial automobile		47.1			18.8			12.6			10.6			6.9			2.2			1.3			0.1			—			—
Commercial multi-peril		50.7			17.9			9.3			9.0			5.8			3.3			1.7			1.1			0.2			—
Workers’ compensation		28.4			31.1			16.7			8.9			5.2			2.8			1.6			0.7			0.8			0.5