Insurance Reserves for Losses and Claims (Tables)

6 Months Ended

Jun. 30, 2022

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 six months ended June 30, 2022 and 2021 is as follows:

	Six Months Ended June 30,
	2022			2021
Beginning insurance reserves for losses and claims, gross	$	85,620		$	79,147
Less: Reinsurance recoverable on unpaid losses		(17,690	)		(17,600	)
Beginning insurance reserves for losses and claims, net		67,930			61,547

Incurred related to:
Current accident year		66,260			63,836
Prior accident year development ⁽¹⁾		(3,195	)⁽²⁾		589	⁽³⁾
Total incurred		63,065			64,425

Paid related to:
Current accident year		32,630			33,295
Prior accident years		28,754			28,429
Total paid		61,384			61,724
Ending insurance reserves for losses and claims, net		69,611			64,248
Plus: Reinsurance recoverable on unpaid losses		17,487			17,225
Ending insurance reserves for losses and claims, gross	$	87,098		$	81,473

(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 favorable development in the property and casualty operations, as well as favorable development in the Medicare supplement line of business in the life and health operations.

(3)	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.

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:

	Six Months Ended June 30,
	2022			2021
Total incurred losses	$	63,065		$	64,425
Cash surrender value and matured endowments		1,154			1,692
Benefit reserve changes		(297	)		(1,142	)
Total insurance benefits and losses incurred	$	63,922		$	64,975