Loss and Loss Expense Reserves

6 Months Ended

Jun. 30, 2020

Loss and Loss Expense Reserves [Abstract]

Loss and Loss Expense Reserves

(4)  Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the six months ended June 30, 2020 and 2019 is summarized as follows.  All amounts are shown net of reinsurance, unless otherwise indicated.

	Six Months Ended
	June 30
	2020			2019
Reserves, gross of reinsurance recoverable, at the beginning of the year	$	988,305		$	865,339
Reinsurance recoverable on unpaid losses at the beginning of the year		398,305			375,935
Reserves at the beginning of the year		590,000			489,404
Provision for losses and loss expenses:
Claims occurring during the current period		150,366			179,211
Claims occurring during prior periods		(326	)		(1,656	)
Total incurred		150,040			177,555
Loss and loss expense payments:
Claims occurring during the current period		26,246			30,573
Claims occurring during prior periods		103,798			92,822
Total paid		130,044			123,395
Reserves at the end of the period		609,996			543,564
Reinsurance recoverable on unpaid losses at the end of the period		405,364			389,899
Reserves, gross of reinsurance recoverable, at the end of the period	$	1,015,360		$	933,463

The $326 prior accident year favorable development during the six months ended June 30, 2020 was primarily due to favorable loss development in the Company's occupational accident line of business for accident years 2018 and 2019, partially offset by unfavorable loss development in excess automobile liability and public transportation primarily for accident year 2018.  This savings compares to a prior accident year savings of $1,656 for the six months ended June 30, 2019, which related to favorable loss development in workers' compensation and independent contractor coverages.  Losses incurred from claims occurring during prior years reflect the development from prior accident years, composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported as part of the normal reserving process.