Insurance Reserves for Losses and Claims (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2022 and 2021 is as follows:

	Nine Months Ended September 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		96,897			98,972
Prior accident year development ⁽¹⁾		(3,544	)⁽²⁾		678	⁽³⁾
Total incurred		93,353			99,650

Paid related to:
Current accident year		57,478			59,492
Prior accident years		34,647			33,060
Total paid		92,125			92,552
Ending insurance reserves for losses and claims, net		69,158			68,645
Plus: Reinsurance recoverable on unpaid losses		17,420			18,528
Ending insurance reserves for losses and claims, gross	$	86,578		$	87,173

(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:

	Nine Months Ended September 30,
	2022			2021
Total incurred losses	$	93,353		$	99,650
Cash surrender value and matured endowments		1,326			1,961
Benefit reserve changes		(127	)		(1,591	)
Total insurance benefits and losses incurred	$	94,552		$	100,020