Reinsurance

12 Months Ended

Dec. 31, 2020

Reinsurance [Abstract]

Reinsurance

REINSURANCE

A summary of reinsurance activity is as follows:

(In millions)	For the Years Ended December 31,
	2020		2019		2018
Net assumed written premiums	$	61.7	$	51.8	$	55.8
Net premiums earned	57.3		51.0		46.6
Provision for claims	37.9		30.1		26.0
Amortization of capitalized acquisition costs	1.4		1.3		1.2

The trust assets and related reinsurance liabilities are as follows:

(In millions)		As of December 31,
	Balance Sheet location	2020		2019
Trust assets	Restricted cash and cash equivalents	$	0.7	$	0.9
Trust assets	Restricted securities available for sale	66.1		59.3
Unearned premium	Accounts payable and accrued liabilities	48.5		44.1
Claims reserve (1)	Accounts payable and accrued liabilities	2.3		1.8

(1)    The claims reserve represents our liability for incurred-but-not-reported claims and is estimated based on historical claims experience.

The following tables present information about incurred and paid claims development for the five-year period ended December 31, 2020:

(Dollars in millions)
	Cumulative Incurred Claims										As of December 31, 2020
Incident Year	As of December 31,										Claims Reserve		Cumulative Number of Reported Claims
	2016		2017		2018		2019		2020
2016	$	25.7	$	26.0	$	26.0	$	26.0	$	26.0	$	—	25,215
2017			22.3		22.5		22.6		22.6		—		20,462
2018					25.8		25.7		25.8		—		22,309
2019							30.1		30.2		—		24,411
2020									37.7		2.3		27,404
Total									$	142.3	$	2.3	119,801

(In millions)	Cumulative Paid Claims
	As of December 31,
Incident Year	2016		2017		2018		2019		2020
2016	$	24.7	$	26.0	$	26.0	$	26.0	$	26.0
2017			21.3		22.5		22.6		22.6
2018					24.2		25.7		25.8
2019							28.3		30.2
2020									35.4
Total									$	140.0

Average Annual Percentage Payout of Incurred Claims by Age
Claim Age (Years)	1		2		3		4		5
Payout Percentage	94.0	%	5.7	%	0.3	%	—	%	—	%