Liability for Losses and Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Text Block [Abstract]

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:

	2018			2017			2016
Balance at January 1	$	676,671,727		$	606,664,590		$	578,205,109
Less reinsurance recoverable		(293,271,257	)		(259,147,147	)		(256,150,860	)
Net balance at January 1		383,400,470			347,517,443			322,054,249
Incurred related to:
Current year		540,826,810			480,646,641			420,327,164
Prior years		35,631,610			6,621,413			2,988,739
Total incurred		576,458,420			487,268,054			423,315,903
Paid related to:
Current year		308,578,285			288,379,600			248,106,788
Prior years		175,882,906			163,005,427			149,745,921
Total paid		484,461,191			451,385,027			397,852,709
Net balance at December 31		475,397,699			383,400,470			347,517,443
Plus reinsurance recoverable		339,267,525			293,271,257			259,147,147
Balance at December 31	$	814,665,224		$	676,671,727		$	606,664,590

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, 2018, 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, 2009 through 2017, 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, 2018
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2009	$	105,707	$	106,313	$	106,841	$	107,589	$	107,190	$	106,705	$	106,549	$	106,499	$	106,713	$	106,685	$	10		65
2010				117,967		117,552		118,562		118,876		118,916		118,587		118,385		118,289		118,314		35		70
2011						127,929		131,678		132,987		133,229		133,617		133,218		133,145		133,142		76		74
2012								130,415		133,201		135,592		136,493		136,552		136,463		136,141		159		69
2013										124,965		130,737		131,594		132,643		132,604		132,934		254		66
2014												124,426		124,806		124,210		126,200		126,779		539		71
2015														137,596		139,333		139,181		142,493		1,719		70
2016																150,216		153,937		157,516		4,833		73
2017																		166,690		176,728		9,368		79
2018																				186,580		31,914		78
																		Total	$	1,417,312

Personal Automobile
		Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
		Unaudited
(in thousands)
	2009	$	69,585	$	89,089	$	97,349	$	102,332	$	104,779	$	105,577	$	105,922	$	106,017	$	106,477	$	106,497
	2010				75,889		96,749		107,662		113,243		116,748		117,812		117,978		118,054		118,093
	2011						87,191		110,249		121,621		127,545		131,319		132,479		132,714		132,777
	2012								87,517		111,941		124,652		130,862		133,428		134,581		135,132
	2013										84,241		109,051		120,118		125,946		130,026		131,326
	2014												85,377		104,736		114,893		120,491		123,815
	2015														93,611		116,303		128,395		135,027
	2016																102,433		129,507		143,321
	2017																		111,964		142,372
	2018																				115,585
																			Total		1,283,945
							All outstanding liabilities before 2009, net of reinsurance														590
							Liabilities for claims and claims adjustment expenses, net of reinsurance													$	133,957

Homeowners																					At December 31, 2018
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR Plus Expected Development on Reported Claims			Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2009	$	51,054	$	50,621	$	50,333	$	49,998	$	50,137	$	50,405	$	50,419	$	50,433	$	50,435	$	50,435	$	—			18
2010				60,315		60,729		60,248		59,972		60,355		60,440		60,443		60,542		60,624		—			25
2011						71,256		70,461		70,436		70,381		70,297		70,351		70,479		70,642		—			27
2012								53,962		54,794		54,468		54,351		54,281		54,381		54,523		(2	)		19
2013										50,887		51,121		51,122		50,874		50,988		50,971		8			13
2014												56,916		58,378		57,680		57,332		57,288		11			18
2015														63,359		63,925		63,053		63,071		112			14
2016																62,443		64,064		63,735		365			13
2017																		79,283		79,911		1,211			18
2018																				81,965		4,886			19
																		Total	$	633,165

Homeowners
		Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
		Unaudited
(in thousands)
	2009	$	39,961	$	49,180	$	49,827	$	50,021	$	50,301	$	50,430	$	50,429	$	50,433	$	50,435	$	50,435
	2010				47,419		57,334		59,283		59,875		60,239		60,486		60,501		60,525		60,540
	2011						57,588		69,345		70,125		70,351		70,541		70,626		70,648		70,692
	2012								46,566		53,619		54,028		54,298		54,317		54,356		54,557
	2013										40,949		49,410		50,210		50,478		51,043		50,902
	2014												45,823		56,255		56,990		57,195		56,995
	2015														51,885		61,542		62,204		62,590
	2016																50,125		61,145		62,760
	2017																		67,077		77,663
	2018																				70,385
																			Total		617,519
							All outstanding liabilities before 2009, net of reinsurance														15
							Liabilities for claims and claims adjustment expenses, net of reinsurance													$	15,661

Commercial Automobile																					At December 31, 2018
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2009	$	18,735	$	18,549	$	18,998	$	19,015	$	19,346	$	19,569	$	19,430	$	19,461	$	19,449	$	19,475	$	2		6
2010				19,315		19,913		20,695		21,477		21,490		21,756		21,746		21,713		21,726		9		7
2011						26,642		27,157		28,570		28,893		29,112		29,107		29,487		29,751		1		9
2012								26,557		27,720		30,606		31,435		31,278		31,648		31,803		2		8
2013										32,902		33,749		34,751		35,240		36,404		36,435		76		9
2014												42,760		44,544		47,326		48,213		49,284		380		11
2015														46,526		48,323		51,412		54,259		1,440		12
2016																54,302		57,353		65,905		3,985		13
2017																		61,484		67,927		10,847		14
2018																				79,307		24,366		15
																		Total	$	455,872

Commercial Automobile
		Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
		Unaudited
(in thousands)
	2009	$	9,309	$	12,872	$	15,479	$	17,160	$	18,696	$	19,389	$	19,386	$	19,408	$	19,413	$	19,426
	2010				10,778		14,180		16,426		19,030		20,804		21,014		21,482		21,549		21,558
	2011						13,876		19,106		24,267		26,973		28,014		28,758		28,836		29,102
	2012								13,642		20,240		23,718		27,417		29,873		30,402		31,104
	2013										16,306		23,557		26,879		31,053		34,083		36,004
	2014												22,707		31,089		39,436		44,374		47,290
	2015														23,875		35,342		41,678		48,261
	2016																27,033		38,237		48,837
	2017																		28,707		40,213
	2018																				33,862
																			Total		355,657
							All outstanding liabilities before 2009, net of reinsurance														1
							Liabilities for claims and claims adjustment expenses, net of reinsurance													$	100,216

Commercial Multi-Peril																					At December 31, 2018
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2009	$	26,712	$	26,454	$	27,357	$	27,357	$	27,739	$	27,959	$	27,625	$	27,484	$	27,508	$	27,590	$	—		6
2010				28,745		29,656		29,390		29,169		29,373		29,453		29,463		29,779		29,925		—		6
2011						33,054		35,411		35,942		37,576		37,385		38,270		38,105		38,160		—		7
2012								29,789		30,716		32,449		34,117		35,755		36,214		36,525		4		6
2013										35,683		35,679		37,292		37,205		37,981		37,365		2		6
2014												48,204		50,135		51,843		52,336		53,294		204		7
2015														42,070		43,874		44,728		45,104		1,540		6
2016																43,005		46,988		48,267		3,652		6
2017																		56,185		56,043		8,127		6
2018																				66,265		17,175		6
																		Total	$	438,538

Commercial Multi-Peril
		Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
		Unaudited
(in thousands)
	2009	$	13,675	$	19,356	$	21,560	$	24,977	$	26,612	$	26,780	$	27,287	$	27,357	$	27,409	$	27,577
	2010				17,007		22,017		24,749		26,832		27,768		28,681		28,906		29,632		29,721
	2011						18,773		24,767		30,286		33,526		36,722		37,759		38,240		38,366
	2012								16,666		23,384		26,634		29,370		33,327		35,331		35,909
	2013										19,875		26,216		29,159		33,614		35,104		36,321
	2014												27,920		35,520		40,936		47,021		50,017
	2015														21,837		29,419		34,323		39,162
	2016																19,660		29,402		34,612
	2017																		27,399		36,926
	2018																				30,597
																			Total		359,208
							All outstanding liabilities before 2009, net of reinsurance														484
							Liabilities for claims and claims adjustment expenses, net of reinsurance													$	79,814

Workers’ Compensation																					At December 31, 2018
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2009		2010		2011		2012		2013		2014		2015		2016		2017		2018		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2009	$	21,571	$	22,497	$	21,894	$	21,826	$	22,848	$	22,278	$	22,172	$	22,114	$	22,079	$	22,053	$	32		4
2010				27,304		27,859		27,010		26,637		26,944		27,121		27,037		26,984		26,801		63		5
2011						32,490		35,757		36,614		36,369		35,670		35,039		35,194		34,926		82		6
2012								39,142		39,516		38,827		37,926		37,163		36,468		35,954		132		6
2013										46,325		47,027		44,289		42,828		42,327		42,555		307		6
2014												51,508		51,553		49,288		48,537		47,540		431		6
2015														53,332		49,615		45,991		44,986		1,613		6
2016																58,814		49,802		47,883		2,869		6
2017																		60,450		56,351		7,290		6
2018																				62,197		19,729		6
																		Total	$	421,246

Workers’ Compensation
		Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year		2009		2010		2011		2012		2013		2014		2015		2016		2017		2018
		Unaudited
(in thousands)
	2009	$	6,490	$	12,627	$	16,516	$	18,329	$	19,665	$	20,476	$	20,939	$	21,117	$	21,400	$	21,511
	2010				8,066		15,937		21,176		23,137		24,539		25,337		25,804		26,050		26,295
	2011						9,157		21,450		27,517		31,905		32,394		33,067		33,577		33,963
	2012								11,097		22,963		28,812		31,244		33,196		34,177		34,460
	2013										13,052		26,043		32,783		36,351		38,877		39,617
	2014												13,932		28,513		36,284		40,393		42,465
	2015														13,071		27,531		34,192		36,929
	2016																14,709		30,344		37,178
	2017																		15,581		31,990
	2018																				17,644
																			Total		322,052
							All outstanding liabilities before 2009, net of reinsurance														3,482
							Liabilities for claims and claims adjustment expenses, net of reinsurance													$	102,676

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:

	At December 31,
(in thousands)	2018
Net outstanding liabilities:
Personal automobile	$	133,957
Homeowners		15,661
Commercial automobile		100,216
Commercial multi-peril		79,814
Workers’ compensation		102,676
Other		9,390
		441,714
Reinsurance recoverable:
Personal automobile	$	111,660
Homeowners		10,272
Commercial automobile		61,588
Commercial multi-peril		48,907
Workers’ compensation		82,660
Other		10,634
		325,721
Unallocated loss adjustment expenses	$	47,230
Gross liability for unpaid losses and loss expenses	$	814,665

Supplementary Information about Average Historical Claims Duration

The following table presents supplementary information about average historical claims duration as of December 31, 2018:

	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		64.6	%		17.3	%		8.6	%		4.6	%		2.6	%		0.9	%		0.3	%		0.1	%		0.2	%		—	%
Homeowners		81.5			16.1			1.6			0.5			0.3			—			—			—			—			—
Commercial automobile		44.8			18.3			13.2			10.7			6.9			2.8			1.2			0.4			—			0.1
Commercial multi-peril		49.1			17.4			10.0			9.9			6.1			3.3			1.4			1.0			0.2			0.6
Workers’ compensation		29.2			31.2			16.5			8.3			4.7			2.6			1.5			0.9			1.1			0.5