Insurance Reserves for Losses and Claims (Tables)

9 Months Ended

Sep. 30, 2021

Insurance Reserves for Losses and Claims [Abstract]

Roll-forward of Insurance Reserves for Losses and Claims

The roll-forward of insurance reserves for losses and claims for the nine months ended September 30, 2021 and 2020 is as follows:

	Nine Months Ended September 30,
	2021			2020
Beginning insurance reserves for losses and claims, gross	$	79,147		$	81,448
Less: Reinsurance recoverable on unpaid losses		(17,600	)		(18,339	)
Beginning insurance reserves for losses and claims, net		61,547			63,109

Incurred related to:
Current accident year		98,972			91,788
Prior accident year development ⁽¹⁾		678	⁽²⁾		(2,740	)⁽³⁾
Total incurred		99,650			89,048

Paid related to:
Current accident year		59,492			57,676
Prior accident years		33,060			34,435
Total paid		92,552			92,111
Ending insurance reserves for losses and claims, net		68,645			60,046
Plus: Reinsurance recoverable on unpaid losses		18,528			18,111
Ending insurance reserves for losses and claims, gross	$	87,173		$	78,157

(1)

In establishing property and casualty reserves, the Company initially reserves for losses at the higher end of the reasonable range if no other value within the range is determined to be more probable. Selection of such an initial loss estimate is an attempt by management to give recognition that initial claims information received generally is not conclusive with respect to legal liability, is generally not comprehensive with respect to magnitude of loss and generally, based on historical experience, will develop more adversely as time passes and more information becomes available. Accordingly, the Company generally experiences reserve redundancies when analyzing the development of prior year losses in a current period.

(2)	Prior years’ development was primarily the result of unfavorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity. Partially offsetting the unfavorable development was favorable development in the property and casualty operations.

(3)	Prior years’ development was primarily the result of favorable development in the loss and claim reserves for the Medicare supplement line of business in Bankers Fidelity.

Reconciliation of Total Incurred Losses to Total Insurance Benefits and Losses

Following is a reconciliation of total incurred losses to total insurance benefits and losses incurred:

	Nine Months Ended September 30,
	2021			2020
Total incurred losses	$	99,650		$	89,048
Cash surrender value and matured endowments		1,961			962
Benefit reserve changes		(1,591	)		(132	)
Total insurance benefits and losses incurred	$	100,020		$	89,878