Property and Casualty Unpaid Claims and Claim Expenses

9 Months Ended

Sep. 30, 2017

Property and Casualty Unpaid Claims and Claim Expenses

The following table is a summary reconciliation of the beginning and ending Property and Casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both gross and net (after reinsurance) bases. The total net Property and Casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations. The end of the period gross reserve (before reinsurance) balances and the reinsurance recoverable balances are reflected on a gross basis in the Consolidated Balance Sheets.



($ in thousands)	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Property and Casualty segment
Beginning Gross reserves (1)	$	329,831		$	320,961		$	307,757		$	301,569
Less: reinsurance recoverables	58,897			60,499			61,199			50,332
Net reserves, beginning of period (2)	270,934			260,462			246,558			251,237
Incurred claims and claim expenses:
Claims occurring in the current period	115,393			116,709			386,945			351,270
Decrease in estimated reserves for claims occurring in prior periods (3)	(500		)	(700		)	(2,100		)	(4,300		)
Total claims and claim expenses incurred (4)	114,893			116,009			384,845			346,970
Claims and claim expense payments for claims occurring during:
Current period	97,188			99,832			245,213			228,462
Prior periods	28,054			27,976			125,605			121,082
Total claims and claim expense payments	125,242			127,808			370,818			349,544
Net reserves, end of period (2)	260,585			248,663			260,585			248,663
Plus: reinsurance recoverables	57,302			61,893			57,302			61,893
Ending Gross reserves (1)	$	317,887		$	310,556		$	317,887		$	310,556


(1)	Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for the Life and Retirement segments of $23,897 thousand and $22,231 thousand as of September 30, 2017 and 2016, respectively, in addition to Property and Casualty segment reserves.


(2)	Reserves net of anticipated reinsurance recoverables.


(3)	Shows the amounts by which the Company decreased its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs.

(4)

Benefits, claims and settlement expenses as reported in the Consolidated Statements of Operations also include amounts for the Life and Retirement segments of $20,002 thousand and $60,025 thousand for the three and nine month periods ended September 30, 2017, respectively, in addition to the Property and Casualty segment amounts. Benefits, claims and settlement expenses for the Life and Retirement segments for the three and nine month periods ended September 30, 2016 were $19,701 thousand and $56,661 thousand, respectively.

Net favorable development of total reserves for Property and Casualty claims occurring in prior years was $2,100 thousand and $4,300 thousand for the nine month periods ended September 30, 2017 and 2016, respectively. The favorable development for both of the nine month periods ended September 30, 2017 and 2016 was predominantly the result of favorable severity trends in homeowners loss emergence. This favorable development was for accident years 2015 and prior for the nine month period ended September 30, 2017 and accident years 2014 and prior for the nine month period ended September 30, 2016.