Unpaid Claims and Claim Expenses

3 Months Ended

Mar. 31, 2021

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 millions)	Three Months Ended March 31,
		2021		2020
Property and Casualty
Beginning gross reserves(1)		$	372.2	$	387.0
Less: reinsurance recoverables		112.9		120.5
Net reserves, beginning of period(2)		259.3		266.5
Incurred claims and claim expenses:
Claims occurring in the current period		94.8		105.5
Decrease in estimated reserves for claims occurring in prior periods(3)		—		(1.0)
Total claims and claim expenses incurred(4)		94.8		104.5
Claims and claim expense payments for claims occurring during:
Current period		34.4		43.5
Prior periods		58.1		64.3
Total claims and claim expense payments		92.5		107.8
Net reserves, end of period(2)		261.6		263.2
Plus: reinsurance recoverables		112.5		119.0
Ending gross reserves(1)		$	374.1	$	382.2

(1)Unpaid claims and claim expenses as reported in the Consolidated Balance Sheets also include reserves for Supplemental, Retirement and Life of $78.4 million and $56.2 million as of March 31, 2021 and 2020, 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, Retirement and Life of $39.5 million and $34.2 million for the three months ended March 31, 2021 and 2020, respectively, in addition to Property and Casualty amounts.

Net favorable development of total reserves for Property and Casualty claims occurring in prior years was $0.0 million and $1.0 million for the three months ended March 31, 2021 and 2020, respectively. The favorable development for the three months ended March 31, 2020 was the result of favorable loss trends in automobile for accident years 2019 and prior.