• Filing Date: 2020-03-06
  • Form Type: 10-K
  • Description: Annual report
v3.19.3.a.u2
Losses and Loss Adjustment Expenses (Tables)
12 Months Ended
Dec. 31, 2019
Insurance [Abstract]  
Liability for Losses and Loss Adjustment Expenses

Activity in the liability for losses and LAE is summarized as follows:

 

 

 

Years Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Net balance, beginning of year*

 

$

94,826

 

 

$

97,818

 

 

$

70,492

 

Incurred, net of reinsurance, related to:

 

 

 

 

 

 

 

 

 

 

 

 

Current year

 

 

96,955

 

 

 

96,860

 

 

 

146,922

 

Prior years

 

 

10,559

 

 

 

12,468

 

 

 

18,707

 

Total incurred, net of reinsurance

 

 

107,514

 

 

 

109,328

 

 

 

165,629

 

Paid, net of reinsurance, related to:

 

 

 

 

 

 

 

 

 

 

 

 

Current year

 

 

(48,456

)

 

 

(54,698

)

 

 

(87,770

)

Prior years

 

 

(55,710

)

 

 

(57,622

)

 

 

(50,533

)

Total paid, net of reinsurance

 

 

(104,166

)

 

 

(112,320

)

 

 

(138,303

)

Net balance, end of year

 

 

98,174

 

 

 

94,826

 

 

 

97,818

 

Add: reinsurance recoverable

 

 

116,523

 

 

 

112,760

 

 

 

100,760

 

Gross balance, end of year

 

$

214,697

 

 

$

207,586

 

 

$

198,578

 

 

*

Net balance represents beginning-of-period liability for unpaid losses and LAE less beginning-of-period reinsurance recoverable for unpaid losses and LAE.

Schedule of Incurred and Paid Claims Development

The following is information about incurred and paid claims development as of December 31, 2019, net of reinsurance, as well as cumulative claim frequency and the total of incurred-but-not-reported liabilities plus expected development on reported claims included within the net incurred claims amounts. The information about incurred and paid claims development for the years ended December 31, 2015 to 2012 is presented as supplementary information and is unaudited.

 

Homeowners Multi-peril and Dwelling Fire Insurance (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

 

 

Total of

IBNR Plus

Expected

Development

Reported

 

 

Cumulative

Number of

Reported

Claims

(Not in Dollar

 

Year

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

 

Claims

 

 

Amounts)(b)

 

2012

 

$

66,425

 

 

$

62,742

 

 

$

64,083

 

 

$

66,505

 

 

$

67,058

 

 

$

66,465

 

 

$

67,220

 

 

$

67,469

 

 

$

137

 

 

 

6,620

 

2013

 

 

 

 

 

67,579

 

 

 

69,932

 

 

 

69,906

 

 

 

72,015

 

 

 

71,604

 

 

 

73,763

 

 

 

74,043

 

 

 

306

 

 

 

7,008

 

2014

 

 

 

 

 

 

 

 

75,810

 

 

 

81,773

 

 

 

84,917

 

 

 

88,053

 

 

 

90,084

 

 

 

92,454

 

 

 

805

 

 

 

7,659

 

2015

 

 

 

 

 

 

 

 

 

 

 

78,017

 

 

 

90,902

 

 

 

96,173

 

 

 

101,272

 

 

 

102,149

 

 

 

1,489

 

 

 

7,660

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

81,446

 

 

 

90,879

 

 

 

92,684

 

 

 

92,986

 

 

 

2,795

 

 

 

6,922

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

91,443

 

 

 

88,937

 

 

 

89,652

 

 

 

8,567

 

 

 

5,748

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

79,436

 

 

 

83,976

 

 

 

16,499

 

 

 

4,657

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

95,467

 

 

 

37,702

 

 

 

4,393

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

698,196

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

 

Year

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

2012

 

$

36,914

 

 

$

53,225

 

 

$

59,041

 

 

$

62,836

 

 

$

64,667

 

 

$

65,903

 

 

$

67,059

 

 

$

67,203

 

2013

 

 

 

 

 

40,240

 

 

 

57,374

 

 

 

64,257

 

 

 

68,106

 

 

 

70,224

 

 

 

72,492

 

 

 

73,420

 

2014

 

 

 

 

 

 

 

 

47,650

 

 

 

68,897

 

 

 

77,712

 

 

 

82,463

 

 

 

87,125

 

 

 

90,707

 

2015

 

 

 

 

 

 

 

 

 

 

 

50,939

 

 

 

76,042

 

 

 

87,784

 

 

 

95,179

 

 

 

99,200

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

51,663

 

 

 

73,037

 

 

 

83,311

 

 

 

89,144

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,039

 

 

 

66,996

 

 

 

78,808

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41,014

 

 

 

63,958

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,471

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

609,911

 

All outstanding liabilities before 2012, net of

   reinsurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

298

 

Liabilities for LAE, net of reinsurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

88,583

 

 

(a)

Excludes losses from Wind-only insurance (2012 through 2019) and any hurricane event prior to 2019.

(b)

 The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company.

 

 

Homeowners Wind-only Insurance (a) *

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

 

 

Total of

IBNR Plus

Expected

Development

Reported

 

 

Cumulative

Number of

Reported

Claims

(Not in Dollar

 

Year

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

 

Claims

 

 

Amounts)(b)

 

2015

 

$

 

 

$

 

 

$

 

 

$

308

 

 

$

401

 

 

$

569

 

 

$

692

 

 

$

605

 

 

$

24

 

 

 

100

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,005

 

 

 

1,314

 

 

 

1,814

 

 

 

1,853

 

 

 

77

 

 

 

228

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,529

 

 

 

1,119

 

 

 

815

 

 

 

26

 

 

 

155

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

798

 

 

 

708

 

 

 

28

 

 

 

130

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,132

 

 

 

46

 

 

 

134

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

5,113

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

 

Year

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

2015

 

$

 

 

$

 

 

$

 

 

$

156

 

 

$

332

 

 

$

465

 

 

$

582

 

 

$

582

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

689

 

 

 

1,155

 

 

 

1,405

 

 

 

1,772

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

484

 

 

 

786

 

 

 

789

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

216

 

 

 

607

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

828

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

4,578

 

All outstanding liabilities before 2012, net of

   reinsurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities for LAE, net of reinsurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

535

 

 

*

The Company began writing Homeowners Wind-only insurance in 2015.

 

(a) 

Excludes losses from multi-peril and dwelling fire insurance (2012 through 2019) and any hurricane event prior to 2019.

(b)

 The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company.

Losses Specific to Any Hurricane Event prior to 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2019

 

 

 

Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

 

 

Total of

IBNR Plus

Expected

Development

Reported

 

 

Cumulative

Number of

Reported

Claims

(Not in Dollar

 

Year

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

 

Claims

 

 

Amounts)(b)

 

2016

 

$

 

 

$

 

 

$

 

 

$

 

 

$

21,414

 

 

$

24,126

 

 

$

26,211

 

 

$

28,133

 

 

$

1,824

 

 

 

2,418

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

53,602

 

 

 

54,080

 

 

 

53,557

 

 

 

5,992

 

 

 

20,867

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,543

 

 

 

16,532

 

 

 

432

 

 

 

1,699

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

35

 

 

 

136

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

98,222

 

 

 

 

 

 

 

 

 

 

 

 

Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance

For the Years Ended December 31,

 

Year

 

2012

 

 

2013

 

 

2014

 

 

2015

 

 

2016

 

 

2017

 

 

2018

 

 

2019

 

2016

 

$

 

 

$

 

 

$

 

 

$

 

 

$

12,227

 

 

$

20,025

 

 

$

23,316

 

 

$

25,849

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43,905

 

 

 

47,514

 

 

 

47,524

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

13,391

 

 

 

15,992

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

89,365

 

All outstanding liabilities before 2012, net of

   reinsurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities for LAE, net of reinsurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

8,857

 

 

(b)

 The cumulative number of reported claims is measured as the number of per-policyholder, per-event claims for all coverages regardless of whether the claim results in loss or expense to the Company.

Reconciliation of Net Incurred and Paid Loss Development Tables to Liability for Losses and Loss Adjustment Expenses

The reconciliation of the net incurred and paid loss development tables to the liability for losses and loss adjustment expenses is as follows:

 

 

 

December 31,

 

 

 

2019

 

 

2018

 

Net outstanding liabilities

 

 

 

 

 

 

 

 

Homeowners multi-peril and dwelling fire insurance

 

$

88,583

 

 

$

80,767

 

Homeowners Wind-only insurance

 

 

535

 

 

 

1,434

 

Losses specific to any hurricane event prior to 2019

 

 

8,857

 

 

 

12,612

 

Other short-duration insurance lines

 

 

199

 

 

 

13

 

Liabilities for unpaid losses and loss adjustment expenses, net of reinsurance

 

 

98,174

 

 

 

94,826

 

Reinsurance recoverables

 

 

116,523

 

 

 

112,760

 

Total gross liability for unpaid losses and loss adjustment expenses

 

$

214,697

 

 

$

207,586

 

Supplementary and Unaudited Information about Average Historical Claims Duration

The following is supplementary and unaudited information about average historical claims duration as of December 31, 2019:

 

Average Annual Percentage Payout of Incurred

Losses by Age,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net of Reinsurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years

 

1

 

 

2

 

 

3

 

 

4

 

 

5

 

 

6

 

 

7

 

 

8

 

Homeowners multi-peril and dwelling fire insurance

 

 

51.4

%

 

 

21.2

%

 

 

7.9

%

 

 

0.7

%

 

 

1.8

%

 

 

1.0

%

 

 

0.3

%

 

 

0.0

%

Homeowners Wind-only insurance

 

 

46.4

%

 

 

26.1

%

 

 

7.5

%

 

 

1.9

%

 

 

0.0

%

 

*

 

 

*

 

 

*

 

Losses specific to any hurricane prior to 2019

 

 

70.6

%

 

 

14.4

%

 

 

3.4

%

 

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

The Company began writing Homeowners Wind-only insurance in 2015.