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Liability for Losses and Loss Expenses (Tables)

12 Months Ended

Dec. 31, 2019

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:


	2019			2018			2017
Balance at January 1	$	814,665,224		$	676,671,727		$	606,664,590
Less reinsurance recoverable		(339,267,525	)		(293,271,257	)		(259,147,147	)

Net balance at January 1		475,397,699			383,400,470			347,517,443

Incurred related to:
Current year		519,319,941			540,826,810			480,646,641
Prior years		(12,932,277	)		35,631,610			6,621,413

Total incurred		506,387,664			576,458,420			487,268,054

Paid related to:
Current year		278,923,614			308,578,285			288,379,600
Prior years		195,956,327			175,882,906			163,005,427

Total paid		474,879,941			484,461,191			451,385,027

Net balance at December 31		506,905,422			475,397,699			383,400,470
Plus reinsurance recoverable		362,768,427			339,267,525			293,271,257

Balance at December 31	$	869,673,849		$	814,665,224		$	676,671,727

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

, 2019

, 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

, 2010

through 2018

, which we present as supplementary information.

Personal Automobile																					At December 31, 2019
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2010	$	117,967	$	117,552	$	118,562	$	118,876	$	118,916	$	118,587	$	118,385	$	118,289	$	118,314	$	118,294	$	27		70
2011				127,929		131,678		132,987		133,229		133,617		133,218		133,145		133,142		133,207		73		75
2012						130,415		133,201		135,592		136,493		136,552		136,463		136,141		136,677		215		69
2013								124,965		130,737		131,594		132,643		132,604		132,934		132,853		175		66
2014										124,426		124,806		124,210		126,200		126,779		126,734		264		71
2015												137,596		139,333		139,181		142,493		142,408		732		70
2016														150,216		153,937		157,516		157,943		2,372		73
2017																166,690		176,728		175,939		4,884		79
2018																		186,580		183,358		10,675		80
2019																				161,056		28,339		66

Total																			$	1,468,469

Personal Automobile

	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	Unaudited
(in thousands)
2010	$	75,889	$	96,749	$	107,662	$	113,243	$	116,748	$	117,812	$	117,978	$	118,054	$	118,093	$	118,119
2011				87,191		110,249		121,621		127,545		131,319		132,479		132,714		132,777		132,835
2012						87,517		111,941		124,652		130,862		133,428		134,581		135,132		136,137
2013								84,241		109,051		120,118		125,946		130,026		131,326		131,642
2014										85,377		104,736		114,893		120,491		123,815		124,926
2015												93,611		116,303		128,395		135,027		139,121
2016														102,433		129,507		143,321		151,159
2017																111,964		142,372		159,879
2018																		115,585		150,175
2019																				103,101

Total																				1,347,094
All outstanding liabilities before 2010, net of reinsurance																				719

Liabilities for claims and claims adjustment expenses, net of reinsurance																			$	122,094


Homeowners																					At December 31, 2019
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		Total IBNR Plus Expected Development on Reported Claims			Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2010	$	60,315	$	60,729	$	60,248	$	59,972	$	60,355	$	60,440	$	60,443	$	60,542	$	60,624	$	60,641	$	—			25
2011				71,256		70,461		70,436		70,381		70,297		70,351		70,479		70,642		70,682		—			27
2012						53,962		54,794		54,468		54,351		54,281		54,381		54,523		54,537		—			19
2013								50,887		51,121		51,122		50,874		50,988		50,971		51,008		—			13
2014										56,916		58,378		57,680		57,332		57,288		57,402		(4	)		18
2015												63,359		63,925		63,053		63,071		63,099		45			14
2016														62,443		64,064		63,735		63,355		78			13
2017																79,283		79,911		79,305		724			18
2018																		81,965		83,385		1,657			19
2019																				73,294		6,775			14

Total																			$	656,708


Homeowners
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	Unaudited
(in thousands)
2010	$	47,419	$	57,334	$	59,283	$	59,875	$	60,239	$	60,486	$	60,501	$	60,525	$	60,540	$	60,557
2011				57,588		69,345		70,125		70,351		70,541		70,626		70,648		70,692		70,692
2012						46,566		53,619		54,028		54,298		54,317		54,356		54,557		54,557
2013								40,949		49,410		50,210		50,478		51,043		50,902		50,967
2014										45,823		56,255		56,990		57,195		56,995		57,243
2015												51,885		61,542		62,204		62,590		62,844
2016														50,125		61,145		62,760		63,144
2017																67,077		77,663		78,006
2018																		70,385		79,892
2019																				58,074

Total																				635,976
All outstanding liabilities before 2010, net of reinsurance																				30

Liabilities for claims and claims adjustment expenses, net of reinsurance																			$	20,762


Commercial Automobile																					At December 31, 2019
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2010	$	19,315	$	19,913	$	20,695	$	21,477	$	21,490	$	21,756	$	21,746	$	21,713	$	21,726	$	21,768	$	9		7
2011				26,642		27,157		28,570		28,893		29,112		29,107		29,487		29,751		29,542		18		9
2012						26,557		27,720		30,606		31,435		31,278		31,648		31,803		31,896		28		8
2013								32,902		33,749		34,751		35,240		36,404		36,435		36,569		89		9
2014										42,760		44,544		47,326		48,213		49,284		49,168		270		11
2015												46,526		48,323		51,412		54,259		54,517		662		12
2016														54,302		57,353		65,905		67,127		2,134		13
2017																61,484		67,927		67,697		5,149		14
2018																		79,307		81,396		11,763		15
2019																				88,864		27,764		15

Total																			$	528,544

Commercial Automobile
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	Unaudited
(in thousands)
2010	$	10,778	$	14,180	$	16,426	$	19,030	$	20,804	$	21,014	$	21,482	$	21,549	$	21,558	$	21,559
2011				13,876		19,106		24,267		26,973		28,014		28,758		28,836		29,102		29,474
2012						13,642		20,240		23,718		27,417		29,873		30,402		31,104		31,228
2013								16,306		23,557		26,879		31,053		34,083		36,004		36,106
2014										22,707		31,089		39,436		44,374		47,290		48,418
2015												23,875		35,342		41,678		48,261		51,605
2016														27,033		38,237		48,837		57,237
2017																28,707		40,213		49,703
2018																		33,862		47,941
2019																				36,948

Total																				410,219
All outstanding liabilities before 2010, net of reinsurance																				47

Liabilities for claims and claims adjustment expenses, net of reinsurance																			$	118,372

Commercial Multi-Peril																					At December 31, 2019
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2010	$	28,745	$	29,656	$	29,390	$	29,169	$	29,373	$	29,453	$	29,463	$	29,779	$	29,925	$	30,105	$	—		6
2011				33,054		35,411		35,942		37,576		37,385		38,270		38,105		38,160		38,434		—		7
2012						29,789		30,716		32,449		34,117		35,755		36,214		36,525		36,876		—		6
2013								35,683		35,679		37,292		37,205		37,981		37,365		37,453		38		6
2014										48,204		50,135		51,843		52,336		53,294		53,116		147		7
2015												42,070		43,874		44,728		45,104		45,873		519		6
2016														43,005		46,988		48,267		48,871		2,015		6
2017																56,185		56,043		56,517		4,604		7
2018																		66,265		66,470		10,568		7
2019																				71,865		21,633		6

Total																			$	485,580

Commercial Multi-Peril
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	Unaudited
(in thousands)
2010	$	17,007	$	22,017	$	24,749	$	26,832	$	27,768	$	28,681	$	28,906	$	29,632	$	29,721	$	29,923
2011				18,773		24,767		30,286		33,526		36,722		37,759		38,240		38,366		38,413
2012						16,666		23,384		26,634		29,370		33,327		35,331		35,909		36,329
2013								19,875		26,216		29,159		33,614		35,104		36,321		37,333
2014										27,920		35,520		40,936		47,021		50,017		51,615
2015												21,837		29,419		34,323		39,162		42,849
2016														19,660		29,402		34,612		41,193
2017																27,399		36,926		42,691
2018																		30,597		42,296
2019																				28,210

Total																				390,852
All outstanding liabilities before 2010, net of reinsurance																				425

Liabilities for claims and claims adjustment expenses, net of reinsurance																			$	95,153


Workers’ Compensation																					At December 31, 2019
	Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019		Total IBNR Plus Expected Development on Reported Claims		Cumulative Number of Reported Claims
	Unaudited
(dollars and reported claims in thousands)
2010	$	27,304	$	27,859	$	27,010	$	26,637	$	26,944	$	27,121	$	27,037	$	26,984	$	26,801	$	26,829	$	37		5
2011				32,490		35,757		36,614		36,369		35,670		35,039		35,194		34,926		35,034		53		6
2012						39,142		39,516		38,827		37,926		37,163		36,468		35,954		35,932		75		6
2013								46,325		47,027		44,289		42,828		42,327		42,555		42,651		187		6
2014										51,508		51,553		49,288		48,537		47,540		47,693		264		6
2015												53,332		49,615		45,991		44,986		43,006		836		6
2016														58,814		49,802		47,883		44,969		1,630		6
2017																60,450		56,351		52,687		3,362		6
2018																		62,197		55,291		7,081		6
2019																				60,998		19,280		6

Total																			$	445,090

Workers’ Compensation
	Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Year Ended December 31,
Accident Year	2010		2011		2012		2013		2014		2015		2016		2017		2018		2019
	Unaudited
(in thousands)
2010	$	8,066	$	15,937	$	21,176	$	23,137	$	24,539	$	25,337	$	25,804	$	26,050	$	26,295	$	26,301
2011				9,157		21,450		27,517		31,905		32,394		33,067		33,577		33,963		34,109
2012						11,097		22,963		28,812		31,244		33,196		34,177		34,460		34,622
2013								13,052		26,043		32,783		36,351		38,877		39,617		40,361
2014										13,932		28,513		36,284		40,393		42,465		43,866
2015												13,071		27,531		34,192		36,929		37,936
2016														14,709		30,344		37,178		40,570
2017																15,581		31,990		39,684
2018																		17,644		31,928
2019																				16,939

Total																				346,316
All outstanding liabilities before 2010, net of reinsurance																				3,261

Liabilities for claims and claims adjustment expenses, net of reinsurance																			$	102,035

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)	2019
Net outstanding liabilities:
Personal automobile	$	122,094
Homeowners		20,762
Commercial automobile		118,372
Commercial multi-peril		95,153
Workers ’ compensation		102,035
Other		12,524

		470,940

Reinsurance recoverable:
Personal automobile	$	119,364
Homeowners		10,216
Commercial automobile		70,973
Commercial multi-peril		58,765
Workers ’ compensation		81,837
Other		7,177

		348,332

Unallocated loss adjustment expenses	$	50,402

Gross liability for unpaid losses and loss expenses	$	869,674

Supplementary Information about Average Historical Claims Duration

The following table presents supplementary information about average historical claims duration as of December 31, 2019:


	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	%		8.8	%		4.6	%		2.7	%		0.9	%		0.2	%		0.3	%		—	%		—	%
Homeowners		81.5			15.3			1.5			0.6			0.3			0.2			0.1			—			—			—
Commercial automobile		44.0			18.1			13.3			11.3			6.6			2.5			1.2			0.5			0.7			—
Commercial multi-peril		47.8			17.0			10.2			10.0			6.6			3.5			1.6			1.3			0.2			0.7
Workers’ compensation		29.9			31.5			16.3			8.2			4.1			2.5			1.4			0.8			0.7			—