Loss and Loss Expense Reserves

9 Months Ended

Sep. 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 nine months ended September 30, 2020 and 2019 is summarized as follows.  All amounts are shown net of reinsurance, unless otherwise indicated.

	Nine Months Ended
	September 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		234,718			263,925
Claims occurring during prior periods		(5	)		(1,589	)
Total incurred		234,713			262,336
Loss and loss expense payments:
Claims occurring during the current period		47,852			53,836
Claims occurring during prior periods		136,231			133,196
Total paid		184,083			187,032
Reserves at the end of the period		640,630			564,708
Reinsurance recoverable on unpaid losses at the end of the period		413,827			395,987
Reserves, gross of reinsurance recoverable, at the end of the period	$	1,054,457		$	960,695

The $5 prior accident year favorable development during the nine months ended September 30, 2020 was primarily due to favorable loss development in the Company's occupational accident line of business for accident years 2018 and 2019, mostly 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 $1,589 for the nine months ended September 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.