Property and Casualty Unpaid Claims and Claim Expenses

3 Months Ended

Mar. 31, 2018

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 March 31,
	2018			2017
Property and Casualty
Beginning gross reserves (1)	$	319,182		$	307,757
Less: reinsurance recoverables	57,409			61,199
Net reserves, beginning of period (2)	261,773			246,558
Incurred claims and claim expenses:
Claims occurring in the current period	120,988			123,204
Decrease in estimated reserves for claims occurring in prior periods (3)	(300		)	(1,000		)
Total claims and claim expenses incurred (4)	120,688			122,204
Claims and claim expense payments for claims occurring during:
Current period	47,048			52,380
Prior periods	67,075			62,013
Total claims and claim expense payments	114,123			114,393
Net reserves, end of period (2)	268,338			254,369
Plus: reinsurance recoverables	62,917			61,804
Ending gross reserves (1)	$	331,255		$	316,173

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(1)	Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for Life and Retirement of $27,062 thousand and $23,860 thousand as of March 31, 2018 and 2017, respectively, in addition to Property and Casualty 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 Life and Retirement of $22,874 thousand and $21,892 thousand for the three month periods ended March 31, 2018 and 2017, respectively, in addition to Property and Casualty amounts.

Net favorable development of total reserves for Property and Casualty claims occurring in prior years was $300 thousand and $1,000 thousand for the three month periods ended March 31, 2018 and 2017, respectively. The favorable development for both of the three month periods ended March 31, 2018 and 2017 was predominantly the result of favorable severity trends in homeowners loss emergence for accident years 2016 and prior.