Property and Casualty Unpaid Claims and Claim Expenses

3 Months Ended

Mar. 31, 2019

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,
	2019			2018
Property and Casualty
Beginning gross reserves⁽¹⁾	$	367,180		$	319,182
Less: reinsurance recoverables	89,725			57,409
Net reserves, beginning of period ⁽²⁾	277,455			261,773
Incurred claims and claim expenses:
Claims occurring in the current period	118,767			120,988
Decrease in estimated reserves for claims occurring in prior periods⁽³⁾	(2,000		)	(300		)
Total claims and claim expenses incurred ⁽⁴⁾	116,767			120,688
Claims and claim expense payments for claims occurring during:
Current period	45,714			47,048
Prior periods	67,135			67,075
Total claims and claim expense payments	112,849			114,123
Net reserves, end of period⁽²⁾	281,373			268,338
Plus: reinsurance recoverables	78,328			62,917
Ending gross reserves⁽¹⁾	$	359,701		$	331,255

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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 $33,848 thousand and $27,062 thousand as of March 31, 2019 and 2018, 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 $22,617 thousand and $22,874 thousand for the three month periods ended March 31, 2019 and 2018, respectively, in addition to Property and Casualty amounts.

Net favorable development of total reserves for Property and Casualty claims occurring in prior years was $2.0 million and $0.3 million for the three month periods ended March 31, 2019 and 2018, respectively. The favorable development for the three month period ended March 31, 2019 was predominately the result of favorable loss trends in homeowners and auto physical damage emergence for accident years 2018 and prior. The favorable development of the three month period ended March 31, 2018 was predominately the result of favorable loss trends in homeowners emergence for accident years 2017 and prior.