Our liabilities for unpaid losses and loss adjustment expenses (also referred to as “claim liabilities”) under insurance contracts are based upon estimates of the ultimate claim costs associated with claim occurrences as of the balance sheet date and include estimates for incurred-but-not-reported (“IBNR”) claims. A reconciliation of the changes in claim liabilities, net of reinsurance, for each of the six-month periods ended June 30, 2026 and 2025 follows.


	June 30, 2026		June 30, 2025
Balances at beginning of year:
Gross liabilities	$	19,346	$	18,028
Reinsurance recoverable on unpaid losses	(1,126)		(778)
Net liabilities	18,220		17,250
Incurred losses and loss adjustment expenses:
Current accident year	23,338		23,594
Prior accident years	(2,833)		872
Total	20,505		24,466
Paid losses and loss adjustment expenses:
Current accident year	15,708		18,663
Prior accident years	4,004		5,850
Total	19,712		24,513
Balances at June 30:
Net liabilities	19,013		17,203
Reinsurance recoverable on unpaid losses	1,305		612
Gross liabilities	$	20,318	$	17,815

We recorded net reductions of $2,833 for estimated ultimate liabilities for prior accident years in the first six months of 2026, and net increases of $872 in the first six months of 2025. These changes as a percentage of the net liabilities at the beginning of each year were 15.5% in 2026 and 5.1% in 2025.