Activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands):

The $58.3 million unfavorable net development and $60.9 million unfavorable net development in prior accident years recognized in 2020 and 2019, respectively, represent changes in our loss reserve estimates. In 2020 and 2019, the aggregate loss reserve estimates for prior years were increased to reflect unfavorable loss development when the available information indicated a reasonable likelihood that the ultimate losses would be more than the previous estimates. The unfavorable prior year reserve development during the twelve months ended December 31, 2020 was primarily driven by the continued emergence of increased frequency and severity trends in our primary commercial automobile lines of business within our Commercial Auto business unit, which was representative of industry trends, as well as unfavorable development in our general liability lines within our E&S Casualty business unit and our Standard Commercial Segment, as well as our personal automobile liability line in our Specialty Personal Lines business unit. The unfavorable prior year reserve development during the twelve months ended December 31, 2019 was primarily driven by increased frequency and severity trends in our primary commercial auto lines of business within our Commercial Auto business unit, which was representative of industry trends, as well as unfavorable development in our general liability lines within our E&S Casualty business unit. Generally, changes in reserves are caused by variations between actual experience and previous expectations and by reduced emphasis on the Bornhuetter-Ferguson method due to the aging of the accident years.

The impact from the unfavorable (favorable) net prior years’ loss development on each reporting segment is presented below:

The following describes the primary factors behind each segment’s prior accident year loss reserve development for the years ended December 31, 2020 and 2019:

Year ended December 31, 2019:

●

Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2017 and prior accident years primarily in the commercial automobile liability line of business, partially offset by favorable development primarily in the commercial automobile line of business in the 2018 accident year. Our E&S Casualty business unit experienced net unfavorable development primarily in our E&S package insurance products in the 2018 and prior accident years. We experienced net favorable development in our E&S Property and Professional Liability business units, partially offset by net unfavorable development in our Aerospace & Programs business unit.

●

Standard Commercial Segment. Our Commercial Accounts business operating unit experienced net unfavorable development in the 2017, 2016, 2015 and 2013 and prior accident years primarily in the general liability line of business, partially offset by net favorable development primarily in the commercial property line of business in the 2018 and 2014 accident years and net favorable development primarily in the 2015 accident year in the occupational accident line of business. Our former Workers Compensation operating unit experienced net favorable development primarily in the 2015 accident year.

●

Personal Segment. Net unfavorable development in our Specialty Personal Lines business unit was mostly attributable to the 2018, 2016, 2014 and 2012 and prior accidents years, partially offset by favorable development in the 2017, 2015 and 2013 accident years.

Reserves for unpaid losses and LAE represent management’s best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future favorable or unfavorable loss development, which may be material, will not occur.

Short-Duration Contract Disclosures

ASU 2015-09, “Disclosures about Short-Duration Contracts (Topic 944)", requires insurers to make disclosures about their liability for unpaid claims and claim adjustment expenses for short-duration insurance contracts. These disclosures include tables showing incurred and paid claims development information (net of reinsurance and excluding unallocated loss adjustment expenses) which are disaggregated based on the characteristics of the insurance contracts that the insurer writes and other factors specific to the reporting entity. The information should be disclosed by accident year for the number of years claims typically remain outstanding, but need not be more than 10 years, including a reconciliation of the disaggregated information to the consolidated statement of financial position. We have evaluated the disaggregation criteria and concluded that the basis for our disaggregation of this information is the similar claim duration period of our primary lines of business (certain lines of business have short settlement periods versus long settlement periods).

Reserves for Incurred But Not Reported (“IBNR”) Claims

Reserves for IBNR claims are based on the estimated ultimate cost of settling claims, including the effects of inflation and other social and economic factors, using past experience adjusted for current trends and any other factors that would modify past experience. We use a variety of statistical and actuarial techniques to analyze current claims costs, including frequency and severity data and prevailing economic, social and legal factors. Each such method has its own set of assumptions and outputs, and each has strengths and weaknesses in different areas. Since no single estimation method is superior to another method in all situations, the methods and assumptions used to project loss reserves will vary by coverage and product. We use what we believe to be the most appropriate set of actuarial methods and assumptions for each product line grouping and coverage. While the loss projection methods may vary by product line and coverage, the general approach for calculating IBNR remains the same: ultimate losses are forecasted first, and that amount is reduced by the amount of cumulative paid claims and case reserves. Reserves established in prior years are adjusted as loss experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the results of operations in the year in which they are made.

As described above, various actuarial methods are utilized to determine the reserves for losses and LAE recorded in our consolidated balance sheets. Weightings of methods at a detailed level may change from evaluation to evaluation based on a number of observations, measures, and time elements.

Methodology for Determining Cumulative Number of Reported Claims

A claim file is created when the Company is notified of an actual demand for payment, notified of an event that may lead to a demand for payment or it is determined that a demand for payment could possibly lead to a future demand for payment on another coverage on the same policy or on another policy.The cumulative number of reported claims is predominately measured at the claim level for our Commercial Accounts, Aviation, Personal, Primary Commercial Auto Liability, and certain Programs lines of business and at a coverage level by occurrence for our other lines of business. The Company does not generate claim counts for ceded business.

Incurred & Paid Claims Development Disclosures

The following tables provide information about incurred and cumulative paid losses and allocated loss adjustment expenses (“ALAE”), net of reinsurance for our primary lines of business with similar claims duration periods. The incurred and paid losses by accident year information presented for all lines of business with similar claim duration periods in the below tables for calendar years prior to 2016 is required supplementary information and is unaudited. The following tables also include IBNR reserves plus expected development on reported claims and the cumulative number of reported claims as of December 31, 2020 ($ in thousands):

Commercial Auto Liability


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	49,933	$	52,099	$	55,934	$	55,853	$	55,259	$	53,587	$	53,691	$	55,775	$	57,499	$	57,502	$	52	3,299
2012				60,844		69,628		68,225		71,515		73,153		75,464		75,657		76,333		75,907		4	3,645
2013						93,692		86,902		90,726		96,974		102,031		103,379		103,571		105,448		(132)	4,694
2014								102,053		93,187		99,280		106,138		113,357		116,373		120,417		(1,657)	5,258
2015										106,133		106,608		125,161		133,574		135,774		141,197		443	5,919
2016												111,913		115,044		121,714		137,690		140,794		(47)	6,118
2017														125,315		119,583		148,563		154,993		(437)	6,265
2018																119,070		118,334		110,052		6,965	5,257
2019																		118,351		128,652		46,179	3,886
2020																				101,568		65,968	2,645
																		Total	$	1,136,532


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	8,288	$	27,773	$	44,227	$	49,793	$	52,261	$	52,928	$	53,203	$	53,276	$	53,275	$	57,450
2012				12,859		30,046		46,510		59,883		69,026		72,907		75,190		75,039		75,893
2013						13,333		40,670		63,255		83,184		93,554		101,146		106,894		105,194
2014								17,145		43,078		67,410		88,823		107,912		112,617		121,683
2015										18,108		48,239		95,056		123,668		141,678		139,605
2016												19,788		53,398		106,707		129,761		133,918
2017														22,578		77,884		133,880		143,791
2018																26,101		49,912		86,894
2019																		16,812		39,632
2020																				14,491
																		Total	$	918,550
								All outstanding liabilities before 2011, net of reinsurance												1,017
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	218,999

Casualty


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	14,331	$	11,675	$	12,942	$	12,529	$	11,855	$	11,510	$	11,407	$	11,265	$	11,660	$	11,542	$	103	720
2012				13,020		11,301		13,098		12,230		13,330		12,390		11,852		12,944		13,400		(393)	655
2013						13,379		12,002		12,384		12,792		12,874		12,205		13,330		13,274		(394)	629
2014								15,590		14,007		12,034		11,663		11,676		13,167		13,140		(344)	708
2015										17,362		16,746		15,046		15,266		15,945		16,931		(298)	741
2016												16,039		16,513		16,927		18,625		17,508		(897)	757
2017														17,845		15,751		20,360		18,023		(781)	1,208
2018																23,056		24,590		23,856		766	1,827
2019																		34,610		43,426		10,666	2,693
2020																				62,464		40,788	6,752
																		Total	$	233,564


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	2,340	$	4,292	$	6,007	$	8,334	$	9,292	$	9,642	$	9,868	$	11,149	$	11,204	$	11,294
2012				1,337		2,666		6,096		8,037		10,255		10,938		11,357		12,572		12,725
2013						1,331		3,190		5,461		9,212		11,134		11,866		12,255		12,478
2014								1,829		4,196		5,499		8,075		11,327		12,365		13,003
2015										1,420		4,133		8,258		13,553		16,158		15,729
2016												1,753		5,672		11,269		16,442		17,111
2017														2,900		5,884		11,268		16,264
2018																2,708		8,027		15,363
2019																		2,526		17,177
2020																				6,176
																		Total	$	137,320
								All outstanding liabilities before 2011, net of reinsurance												1,059
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	97,302

Commercial Accounts


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	49,375	$	46,540	$	45,723	$	41,721	$	41,081	$	40,745	$	40,100	$	38,585	$	38,585	$	38,492	$	145	2,915
2012				47,194		48,085		44,625		42,632		41,451		40,350		38,669		38,669		39,462		228	2,711
2013						46,413		47,385		46,990		43,917		42,822		39,567		40,211		40,141		216	2,804
2014								46,280		46,470		43,806		43,806		43,673		42,463		42,503		411	2,741
2015										40,966		42,580		41,429		38,385		39,287		39,206		931	2,576
2016												43,327		43,449		41,983		43,111		45,267		1,662	2,539
2017														40,943		42,704		43,579		44,732		1,971	2,733
2018																42,898		41,290		44,590		4,879	2,591
2019																		37,984		34,616		4,149	2,689
2020																				40,356		19,332	2,574
																		Total	$	409,365


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	22,002	$	30,811	$	33,701	$	35,333	$	36,302	$	37,214	$	38,253	$	38,311	$	38,228	$	38,278
2012				22,264		30,096		32,378		34,597		35,943		37,808		38,044		38,211		38,518
2013						19,386		29,586		33,927		36,225		37,947		38,892		39,329		39,560
2014								21,322		31,150		33,544		36,775		39,185		41,162		41,658
2015										16,557		28,501		30,974		35,238		35,611		37,135
2016												19,776		29,456		35,035		39,417		40,828
2017														16,644		28,813		36,650		41,631
2018																19,233		29,381		33,546
2019																		17,490		26,233
2020																				13,942
																		Total	$	351,328
								All outstanding liabilities before 2011, net of reinsurance												1,566
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	59,603

Aviation


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	12,330	$	11,299	$	9,759	$	9,729	$	9,829	$	9,884	$	10,045	$	10,028	$	10,028	$	10,028	$	—	305
2012				10,988		10,738		10,353		10,336		10,024		10,021		9,941		9,941		9,446		—	229
2013						10,236		11,304		10,295		9,563		10,057		10,649		10,252		10,297		—	231
2014								3,179		3,654		3,627		3,558		3,566		3,567		3,567		—	201
2015										1,870		1,709		1,643		1,631		1,630		1,635		1	198
2016												2,330		2,241		2,119		2,219		2,220		4	292
2017														2,325		2,082		2,079		2,178		11	320
2018																2,382		1,990		2,565		49	336
2019																		5,246		4,525		119	290
2020																				3,487		884	270
																		Total	$	49,948


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	6,313	$	8,894	$	8,924	$	9,311	$	9,546	$	9,628	$	10,028	$	10,028	$	10,028	$	10,028
2012				5,641		8,486		9,672		10,049		10,041		10,041		10,041		9,941		9,446
2013						6,537		9,493		9,584		9,356		9,944		10,456		10,242		10,281
2014								2,779		3,105		3,259		3,327		3,565		3,567		3,567
2015										958		1,405		1,520		1,601		1,630		1,634
2016												1,469		1,907		1,918		2,082		2,216
2017														1,260		1,837		2,021		2,054
2018																1,716		2,237		2,368
2019																		2,911		3,787
2020																				2,120
																		Total	$	47,501
								All outstanding liabilities before 2011, net of reinsurance												—
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	2,448

Runoff


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	10,861	$	9,949	$	9,433	$	7,547	$	6,185	$	6,678	$	6,741	$	6,659	$	6,637	$	4,666	$	106	965
2012				4,804		4,469		3,597		3,358		2,821		2,636		2,752		2,752		2,773		91	714
2013						9,069		10,143		9,713		9,257		9,257		9,472		9,486		9,483		228	1,337
2014								9,208		9,338		9,762		10,076		10,452		10,463		10,292		719	1,027
2015										8,605		7,277		8,624		8,892		8,420		8,526		186	822
2016												3,553		4,733		4,365		4,416		4,425		—	462
2017														450		465		415		403		60	66
2018																—		—		—		—	—
2019																		—		—		—	—
2020																				—		—	—
																		Total	$	40,568


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	2,897	$	4,308	$	5,208	$	4,968	$	4,838	$	5,227	$	5,427	$	5,483	$	5,357	$	5,630
2012				1,181		2,107		2,411		2,594		2,583		2,600		2,602		2,675		2,675
2013						3,737		6,825		7,882		8,350		8,809		8,961		9,010		9,050
2014								2,933		5,972		7,970		9,004		9,210		9,323		9,487
2015										2,528		5,744		7,328		8,049		8,495		8,512
2016												1,732		2,550		3,743		4,418		4,425
2017														111		171		203		282
2018																—		—		—
2019																		—		—
2020																				—
																		Total	$	40,062
								All outstanding liabilities before 2011, net of reinsurance												1,720
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	2,226

Programs


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	317	$	196	$	196	$	196	$	196	$	196	$	196	$	196	$	196	$	196	$	—
2012				3,001		2,045		2,045		3,885		2,045		2,045		2,045		2,045		2,045		—	3
2013						1,595		2,543		1,561		2,076		2,302		2,302		2,302		2,302		—	2
2014								1,623		666		2,039		1,575		1,575		1,575		1,575		—	5
2015										1,683		1,629		752		752		752		752		—	2
2016												478		1,200		1,178		1,178		1,178		—	1
2017														955		1,775		1,801		1,982		15	65
2018																3,598		4,368		4,222		104	770
2019																		5,407		9,150		809	977
2020																				6,737		2,130	652
																		Total	$	30,139


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	196	$	196	$	196	$	196	$	196	$	196	$	196	$	196	$	196	$	196
2012				2,045		2,045		2,045		2,045		2,045		2,045		2,045		2,045		2,045
2013						1,489		1,561		1,561		2,076		2,302		2,302		2,302		2,302
2014								758		1,502		1,575		1,575		1,575		1,575		1,575
2015										1,515		1,629		752		752		752		752
2016												1,139		1,139		1,178		1,178		1,178
2017														36		1,556		1,551		1,967
2018																911		1,290		3,778
2019																		4,501		7,794
2020																				2,908
																		Total	$	24,495
								All outstanding liabilities before 2011, net of reinsurance												—
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	5,644

Personal Segment


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	75,746	$	77,652	$	87,810	$	86,757	$	86,804	$	86,948	$	86,853	$	87,199	$	87,198	$	87,087	$	—	31,615
2012				58,604		73,795		70,552		71,513		72,042		72,037		72,076		72,100		72,123		—	23,940
2013						55,706		59,132		60,100		60,211		60,379		60,328		60,310		60,286		—	23,472
2014								5,452		5,340		6,243		6,699		6,504		6,518		6,578		—	19,293
2015										23,104		25,682		25,307		25,136		25,102		25,185		—	23,376
2016												32,260		32,893		32,728		32,803		33,042		—	23,757
2017														23,342		21,968		21,926		22,547		—	16,810
2018																18,334		18,353		19,972		30	15,321
2019																		56,009		63,722		(1,025)	25,627
2020																				47,938		5,351	17,510
																		Total	$	438,481


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	46,416	$	67,939	$	83,497	$	85,533	$	86,217	$	86,593	$	86,660	$	86,989	$	87,045	$	87,042
2012				37,860		64,278		68,849		70,807		71,995		72,055		72,094		72,124		72,138
2013						45,901		54,514		58,047		59,775		60,277		60,297		60,279		60,279
2014								2,515		4,418		5,631		6,428		6,566		6,580		6,583
2015										11,570		22,281		24,262		25,243		25,098		25,169
2016												21,669		30,646		32,260		32,777		32,991
2017														15,776		21,061		21,972		22,488
2018																11,137		18,009		19,628
2019																		41,524		60,870
2020																				32,746
																		Total	$	419,934
								All outstanding liabilities before 2011, net of reinsurance												50
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	18,597

Property


Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance																					As of December 31,
																							Cumulative
																							Number of
	For the Years Ended December 31,																						Reported
Accident	Unaudited																				IBNR		Claims
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020		2020		2020
2011	$	11,768	$	12,289	$	12,228	$	12,406	$	12,598	$	12,616	$	12,494	$	12,551	$	12,549	$	12,549	$	—	1,512
2012				18,518		17,541		18,119		17,743		17,768		18,005		17,974		17,963		17,963		—	1,629
2013						21,644		22,363		22,264		22,578		22,914		22,936		22,935		22,935		—	1,893
2014								22,551		21,950		21,862		21,793		21,852		21,876		21,932		(81)	2,037
2015										20,256		19,919		20,014		20,091		20,202		20,107		142	1,993
2016												20,734		22,838		22,632		22,789		22,781		(0)	2,031
2017														24,182		23,003		24,490		24,287		1	2,007
2018																22,822		18,694		19,611		114	1,064
2019																		20,214		20,984		181	1,182
2020																				41,487		12,769	1,330
																		Total	$	224,636


Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance
	For the Years Ended December 31,
Accident	Unaudited
Year	2011		2012		2013		2014		2015		2016		2017		2018		2019		2020
2011	$	10,317	$	12,354	$	12,343	$	12,370	$	12,492	$	12,541	$	12,550	$	12,551	$	12,549	$	12,549
2012				15,773		17,679		17,743		17,666		17,693		17,978		17,974		17,963		17,963
2013						17,785		21,452		21,864		22,197		22,826		22,936		22,935		22,935
2014								19,586		21,749		21,778		21,849		21,911		21,955		22,013
2015										17,513		19,500		19,928		20,134		19,953		19,965
2016												17,248		22,500		22,613		22,789		22,781
2017														18,703		22,059		23,821		24,179
2018																10,923		16,914		18,138
2019																		11,344		18,895
2020																				18,215
																		Total	$	197,634
								All outstanding liabilities before 2011, net of reinsurance												—
				Liabilities for claims and claim adjustment expenses, net of reinsurance															$	27,002

The reconciliation of the net incurred and paid development tables to the liability for unpaid losses and LAE in our consolidated balance sheets is as follows (in thousands):


	2020		2019
Net outstanding liabilities for losses and LAE

Commercial Auto Liability	$	218,999	$	189,896
Casualty		97,302		63,528
Commercial Accounts		59,603		51,200
Aviation		2,448		2,514
Runoff		2,226		3,109
Programs		5,644		4,234
Personal Segment		18,597		15,027
Property		27,002		11,489
Liabilities for unpaid losses and allocated loss adjustment expenses, net of reinsurance		431,821		340,997

Reinsurance recoverable on unpaid losses and LAE
Commercial Auto Liability		91,040		112,931
Casualty		122,341		91,900
Commercial Accounts		20,464		13,671
Aviation		10,143		9,469
Runoff		1,184		1,326
Programs		968		3,618
Personal Segment		5,613		11,752
Property		97,832		27,937
Total reinsurance recoverable on unpaid losses and LAE		349,585		272,604

Unallocated loss adjustment expenses
Commercial Auto Liability		1,850		1,383
Casualty		1,681		760
Commercial Accounts		2,643		2,732
Aviation		104		85
Runoff		170		170
Programs		61		63
Personal Segment		1,250		1,250
Property		603		311
Total unallocated loss adjustment expenses		8,362		6,754
Total reserves for unpaid losses and loss adjustment expenses	$	789,768	$	620,355

Claims Duration

The following table provides supplementary unaudited information about the annual percentage payout of incurred losses and ALAE, net of reinsurance, as of December 31, 2020:


	Average Annual Percentage Payout of Incurred Claims by Age, Net of Reinsurance (1)
	Unaudited
	Year 1		Year 2		Year 3		Year 4		Year 5		Year 6		Year 7		Year 8		Year 9		Year 10
Commercial Auto Liability	16.4	%	24.6	%	25.5	%	15.9	%	9.6	%	4.8	%	1.6	%	1.0	%	0.6	%	—	%
Casualty	9.7	%	20.1	%	22.6	%	23.3	%	12.6	%	3.2	%	3.0	%	2.8	%	1.9	%	0.8	%
Commercial Accounts	44.8	%	26.3	%	7.7	%	7.1	%	3.7	%	3.1	%	2.6	%	2.1	%	1.6	%	1.0	%
Aviation	64.5	%	23.7	%	5.0	%	3.8	%	3.2	%	1.2	%	0.6	%	(2.0)	%	—	%	—	%
Runoff	38.1	%	27.9	%	16.3	%	8.5	%	2.4	%	1.9	%	1.4	%	1.4	%	1.2	%	0.9	%
Programs	58.5	%	35.8	%	5.7	%	—	%	—	%	—	%	—	%	—	%	—	%	—	%
Personal Segment	56.0	%	28.8	%	8.9	%	4.7	%	0.9	%	0.3	%	0.1	%	0.2	%	0.1	%	—	%
Property	67.5	%	25.0	%	3.6	%	2.2	%	1.1	%	0.6	%	—	%	—	%	—	%	—	%

(1)

The average annual percentage payout is calculated from a paid losses and ALAE development pattern based on an actuarial analysis of the paid losses and ALAE movements by accident year for each disaggregation category. The paid losses and ALAE development pattern provides the expected percentage of ultimate losses and ALAE to be paid in each year. The pattern considers all accident years included in the claims development tables.