v3.26.1
Unpaid Losses and Loss Adjustment Expenses
 6 Months Ended
Jun. 30, 2026
Unpaid Losses and Loss Adjustment Expenses [Abstract]  
Unpaid Losses and Loss Adjustment Expenses

7.       Unpaid Losses and Loss Adjustment Expenses

 

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:

 

    Six Months Ended June 30,  
    2026     2025  
Balance, beginning of period:            
Liability for unpaid losses and loss adjustment expenses   $ 137,855     $ 137,288  
Reinsurance recoverables on losses     11,957       12,561  
Net balance, beginning of period     125,898       124,727  
                 
Incurred related to:                
Current year     81,898       93,894  
Prior years     (10,125 )     11,238  
Total incurred     71,773       105,132  
                 
Paid related to:                
Current year     29,959       30,151  
Prior years     45,396       47,456  
Total paid     75,355       77,607  
                 
Balance, end of period:                
Liability for unpaid losses and loss adjustment expenses     134,757       203,530  
Reinsurance recoverables on losses     12,441       51,278  
Net balance, end of period   $ 122,316     $ 152,252  

 

During the three and six months ended June 30, 2026, the Company’s incurred reported losses and loss adjustment expense included $6,077 and $10,125, respectively, of net favorable development on prior accident years. This was primarily attributable to favorable development for the Non-Standard Auto and Home and Farm segments. During the three and six months ended June 30, 2025, the Company’s incurred reported losses and loss adjustment expenses included $9,820 and $11,238, respectively, of net unfavorable development on prior accident years. This was primarily attributable to unfavorable development for the Non-Standard Auto segment.

 

Changes in unpaid losses and loss adjustment expense reserves are generally the result of ongoing analysis of recent loss development trends. As additional information becomes known regarding individual claims, original estimates are increased or decreased accordingly.