Unpaid Claims and Claim Expenses (Tables)

6 Months Ended

Jun. 30, 2020

Reconciliation of property and casualty unpaid claims and claim expense

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 a gross and net (after reinsurance) basis. 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 June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
Property and Casualty
Beginning gross reserves⁽¹⁾	$	382,248		$	359,701		$	386,976		$	367,180
Less: reinsurance recoverables	119,045			78,328			120,506			89,725
Net reserves, beginning of period ⁽²⁾	263,203			281,373			266,470			277,455
Incurred claims and claim expenses:
Claims occurring in the current period	109,167			134,411			214,621			253,178
Decrease in estimated reserves for claims occurring in prior periods⁽³⁾	(1,000		)	(2,000		)	(2,000		)	(4,000		)
Total claims and claim expenses incurred ⁽⁴⁾	108,167			132,411			212,621			249,178
Claims and claim expense payments for claims occurring during:
Current period	61,420			83,755			104,883			129,469
Prior periods	37,542			39,512			101,800			106,647
Total claims and claim expense payments	98,962			123,267			206,683			236,116
Net reserves, end of period⁽²⁾	272,408			290,517			272,408			290,517
Plus: reinsurance recoverables	116,083			77,345			116,083			77,345
Ending gross reserves⁽¹⁾	$	388,491		$	367,862		$	388,491		$	367,862


⁽¹⁾	Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for Supplemental, Life and Retirement of $56.1 million and $30.5 million as of June 30, 2020 and 2019, 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 Supplemental, Life and Retirement of $34.8 million and $69.1 million for the three and six months ended June 30, 2020, respectively, in addition to Property and Casualty amounts. Benefits, claims and settlement expenses for Life and Retirement were $20.3 million and $42.9 million for the three and six months ended June 30, 2019, respectively.