| Reserve for Losses and Loss Adjustment Expenses | Reserve for Losses and Loss Adjustment Expenses In establishing the reserve for losses and loss adjustment expenses, the Company’s internal actuaries estimate an initial expected ultimate loss ratio for each of our lines of business by accident year (or for the Casualty Reinsurance segment, on a contract by contract basis). Input from the Company’s underwriting and claims departments, including premium pricing assumptions and historical experience, are considered by the Company’s internal actuaries in estimating the initial expected loss ratios. The Company’s internal actuaries generally utilize five actuarial methods in their estimation process for the reserve for losses and loss adjustment expenses. These five methods utilize, to varying degrees, the initial expected loss ratio, detailed statistical analysis of past claims reporting and payment patterns, claims frequency and severity, paid loss experience, industry loss experience, and changes in market conditions, policy forms, exclusions, and exposures. In applying these methods to develop an estimate of the reserve for losses and loss adjustment expenses, our internal actuaries use judgment to determine three key parameters for each accident year and line of business: the initial expected loss ratios, the incurred and paid loss development factors and the weighting of the five actuarial methods to be used for each accident year and line of business. For the Excess and Surplus Lines segment, the internal actuaries perform a study on each of these parameters at least annually and make recommendations for the initial expected loss ratios, the incurred and paid loss development factors and the weighting of the five actuarial methods by accident year and line of business. Members of management’s Reserve Committee review and approve the parameter review actuarial recommendations, and absent any developments requiring an earlier review, these approved parameters are used in the reserve estimation process for the next four quarters at which time a new parameter study is performed. For the Specialty Admitted Insurance segment, expected loss ratios, loss development factors, and loss cost trends are reviewed and updated at least annually. For the Casualty Reinsurance segment, periodic assessments are made on a contract by contract basis. Method weights are generally less rigid for the Casualty Reinsurance segment given the heterogeneous nature of the various contracts, and the potential for significant changes in mix of business within individual treaties. Different reserving methods are appropriate in different situations, and the Company’s internal actuaries use their judgment and experience to determine the weighting of the methods to use for each accident year and each line of business and, for the Casualty Reinsurance segment, on a contract by contract basis. For example, the current accident year has very little incurred and paid loss development data on which to base reserve projections. As a result, the Company relies heavily on the initial expected loss ratio in estimating reserves for the current accident year. The Company generally sets the initial expected loss ratio for the current accident year consistent with the internal actuaries’ pricing assumptions adjusted upward where warranted based on management's judgment in order to produce the best estimate. We believe that this is a reasonable and appropriate reserving assumption for the current accident year since our pricing assumptions are actuarially driven and since the Company expects to make an acceptable return on the new business written. If actual loss emergence is better than our initial expected loss ratio assumptions, we will experience favorable development and if it is worse than our initial expected loss ratio assumptions, we will experience adverse development. Conversely, sufficient incurred and paid loss development data is available for the oldest accident years, so more weight is given to this development data and less weight is given to the initial expected loss ratio. The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $612,000, $631,000, and $335,000 at December 31, 2022, 2021, and 2020, respectively. Year Ended December 31, 2022 2021 2020 (in thousands) Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period $ 1,399,214 $ 1,386,061 $ 1,377,461 Add: Incurred losses and loss adjustment expenses net of reinsurance: Current year 515,653 466,574 386,341 Prior years - retroactive reinsurance 20,091 — — Prior years - excluding retroactive reinsurance 9,070 325,778 92,204 Total incurred losses and loss and adjustment expenses 544,814 792,352 478,545 Deduct: Loss and loss adjustment expense payments net of reinsurance: Current year 35,102 35,006 31,952 Prior years 357,366 487,741 437,993 Total loss and loss adjustment expense payments 392,468 522,747 469,945 Deduct: Deferred reinsurance gain - retroactive reinsurance 20,091 — — Deduct: Loss reserves ceded in loss portfolio transfers 299,493 256,452 — Add: Changes in reinsurance recoverable of Casualty Re LPT unrelated to net reserve activity 16,294 — — Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period 1,248,270 1,399,214 1,386,061 Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period 1,520,725 1,349,259 806,019 Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period $ 2,768,995 $ 2,748,473 $ 2,192,080 The foregoing reconciliation shows that $9.1 million of adverse development was experienced in 2022 on the reserve for losses and loss adjustment expenses held at December 31, 2021 (excluding adverse prior year development on the loss portfolio transfers subject to retroactive reinsurance accounting - see Loss Portfolio Transfers below). This adverse reserve development included $210,000 of favorable development in the Excess and Surplus Lines segment, $4.2 million of favorable development in the Specialty Admitted Insurance segment, and $13.4 million of adverse development in the Casualty Reinsurance segment, including $6.8 million of net adverse reserve development in the three months ended March 31, 2022 associated with the Casualty Re LPT. The Company also experienced $5.0 million of net catastrophe losses in the current accident year in 2022 related to Hurricane Ian. The foregoing reconciliation shows that $325.8 million of adverse development was experienced in 2021 on the reserve for losses and loss adjustment expenses held at December 31, 2020. This adverse reserve development included $190.7 million of adverse development in the Excess and Surplus Lines segment including $200.1 million of adverse development in the commercial auto line of business that was primarily related to the 2019 and prior accident years with Rasier LLC and its affiliates (collectively, “Rasier”) . The adverse development for commercial auto was partially offset by $9.4 million of favorable development in other Excess and Surplus Lines underwriting divisions. Favorable reserve development in the Specialty Admitted Insurance segment was $2.5 million as losses on our workers’ compensation business written prior to 2020 continued to develop more favorably than we had anticipated. The Casualty Reinsurance segment experienced $137.6 million of adverse development on prior accident years. Actual reported and paid losses in the Casualty Reinsurance segment significantly exceeded expectations in 2021, particularly in the fourth quarter of 2021, causing us to refine some of the assumptions used to determine our best estimate of ultimate losses for this segment. Specifically, we responded to this highly elevated loss emergence by making significant adjustments to our assumed tail factors, other development factors, initial expected loss ratios, and weights given to various actuarial methods. In particular, we gave significantly more weight to incurred loss development methods and Bornhuetter – Ferguson incurred loss development methods than had been done previously. These actuarial refinements resulted in material deterioration in ultimate loss selections for underwriting years 2014 through 2018. The adverse development was concentrated in a few large treaties for general liability and professional liability lines of business. Of the $137.6 million of adverse development recognized in 2021, $113.4 million was concentrated in these treaties. The Company also experienced $5.0 million of net catastrophe losses in the current accident year in 2021 related to Hurricane Ida. The foregoing reconciliation shows that $92.2 million of adverse development was experienced in 2020 on the reserve for losses and loss adjustment expenses held at December 31, 2019. This adverse reserve development included $59.4 million of adverse development in the Excess and Surplus Lines segment including $91.4 million of adverse development in the commercial auto line of business that was primarily related to the 2018 and prior accident years with Rasier. The adverse development for commercial auto was partially offset by $32.0 million of favorable development in other Excess and Surplus Lines underwriting divisions that was primarily related to the 2018 and 2019 accident years. The Company also experienced $5.0 million of favorable development on prior accident years in the Specialty Admitted Insurance segment, as losses on our workers’ compensation business written prior to 2019 continued to develop more favorably than we had anticipated. The Casualty Reinsurance segment experienced $37.8 million of adverse development on prior accident years primarily in accident years 2014 through 2018. This adverse development was mainly in the general liability and commercial auto lines of business. Loss Portfolio Transfers Loss portfolio transfers are a form of reinsurance utilized by the Company to transfer losses and loss adjustment expenses and associated risk of adverse development on covered subject business, as defined in the respective agreements, to an assuming reinsurer in exchange for a reinsurance premium. Loss portfolio transfers can bring economic finality on the subject risks when they no longer meet the Company's appetite or are no longer aligned with the Company's risk management guidelines. Commercial Auto Loss Portfolio Transfer On September 27, 2021, James River Insurance Company and James River Casualty Company (together, “James River”) entered into a loss portfolio transfer transaction (the “Commercial Auto LPT”) with Aleka Insurance, Inc. (“Aleka”), a captive insurance company affiliate of Rasier LLC, to reinsure substantially all of the Excess and Surplus Lines segment's legacy portfolio of commercial auto policies previously issued to Rasier LLC and its affiliates (collectively, “Rasier”) for which James River is not otherwise indemnified by Rasier. Under the terms of the transaction, effective as of July 1, 2021, James River ceded to Aleka approximately $345.1 million of commercial auto liabilities relating to Rasier policies written in the years 2013-2019, which amount constituted the reinsurance premium. The reinsurance coverage is structured to be fully collateralized, is not subject to an aggregate limit, and is subject to certain exclusions. A pre-tax loss of $29.6 million was recognized as adverse loss and loss adjustment reserve development in the Excess and Surplus Lines segment for the third quarter of 2021 associated with the loss portfolio transfer. Casualty Re Loss Portfolio Transfer On February 23, 2022, JRG Re entered into a loss portfolio transfer retrocession agreement (the “Casualty Re LPT”) with Fortitude Reinsurance Company Ltd. (“FRL”) under which FRL reinsures the majority of the reserves in the Company’s Casualty Reinsurance segment. Under the terms of the transaction, which closed on March 31, 2022 (the “Retrocession Closing Date”), JRG Re (a) ceded to FRL all existing and future claims for losses arising under certain casualty reinsurance agreements with underlying insurance companies with treaty inception dates ranging from 2011 to 2020 (the “Subject Business”), in each case net of third-party reinsurance and other recoveries, up to an aggregate limit of $400.0 million; (b) continues to manage and retain the benefit of other third-party reinsurance on the Subject Business; (c) paid FRL a reinsurance premium of $335.0 million, $310.0 million of which JRG Re credited to a notional funds withheld account (the “Funds Withheld Account”) and $25.0 million of which was paid in cash to FRL; and (d) pays FRL a 2% per annum crediting rate on the Funds Withheld Account balance on a quarterly basis. The total premium, initial Funds Withheld Account credit, and aggregate limit was adjusted for claims paid from October 1, 2021 to the Retrocession Closing Date. The Casualty Reinsurance segment incurred $6.8 million of net adverse reserve development in the three months ended March 31, 2022 associated with the Casualty Re LPT. Retroactive Reinsurance Accounting The Company periodically reevaluates the remaining reserves subject to the Commercial Auto LPT and the Casualty Re LPT (the “Loss Portfolio Transfers”), and when recognized adverse prior year development on the subject business causes the cumulative amounts ceded under a loss portfolio transfer to exceed the consideration paid, the loss portfolio transfer moves into a gain position subject to retroactive reinsurance accounting under GAAP. Gains are deferred under retroactive reinsurance accounting and recognized in earnings in proportion to actual paid recoveries under the loss portfolio transfer using the recovery method. While the deferral of gains can introduce volatility in our results in the short-term, over the life of the contract, we would expect no economic impact to the Company as long as any additional losses are within the limit of the loss portfolio transfer and the counterparty performs under the contract. The impact of retroactive reinsurance accounting is not indicative of our current and ongoing operations. For the year ended December 31, 2022, due to adverse paid loss trends on the legacy Rasier business, the Company recognized adverse prior year development of $46.7 million on the reserves subject to the Commercial Auto LPT, resulting in a corresponding additional amount ceded under the Commercial Auto LPT. As a result, the cumulative amounts ceded under the Commercial Auto LPT exceed the consideration paid, moving the Commercial Auto LPT into a gain position. Similarly, due to adverse paid and reported loss trends on the business subject to the Casualty Re LPT, the Company ceded an additional $6.1 million of losses recoverable under the Casualty Re LPT for the year ended December 31, 2022, moving the Casualty Re LPT also into a gain position and, accordingly, the Company has applied retroactive reinsurance accounting to both loss portfolio transfers. Retroactive reinsurance benefits totaling $32.7 million ($31.0 million for the Commercial Auto LPT and $1.7 million for the Casualty Re LPT) were recorded in losses and loss adjustment expenses on the Consolidated Statements of Income (Loss) and Comprehensive (Loss) Income for the year ended December 31, 2022 using the recovery method. As of December 31, 2022, the cumulative amounts ceded under the Loss Portfolio Transfers was $732.9 million ($391.8 million under the Commercial Auto LPT and $341.1 million under the Casualty Re LPT). At December 31, 2021, $345.1 million was ceded under the Commercial Auto LPT. The total unrecognized deferred retroactive reinsurance gain of $20.1 million ($15.7 million related to the Commercial Auto LPT and $4.4 million related to the Casualty Re LPT) at December 31, 2022 under the Loss Portfolio Transfers is separately presented on the Company's Consolidated Balance Sheets. The Company has $58.9 million of aggregate limit remaining under the Casualty Re LPT at December 31, 2022. The following tables present incurred and paid losses and loss adjustment expenses, net of reinsurance as of December 31, 2022 for: (1) the Excess and Surplus Lines segment split between all excess and surplus lines business excluding commercial auto, and separately, commercial auto, (2) the Specialty Admitted Insurance segment split between individual risk workers’ compensation and fronting and programs, and (3) the Casualty Reinsurance segment. The information provided herein about incurred and paid accident year claims development for the years ended December 31, 2021 and prior is presented as “unaudited” supplementary information. Excess and Surplus Lines — Excluding Commercial Auto Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 96,729 $ 96,064 $ 85,433 $ 81,009 $ 82,830 $ 83,855 $ 82,732 $ 82,517 $ 83,594 $ 84,376 2014 114,942 104,092 90,267 82,232 84,074 88,904 90,191 90,944 91,391 2015 126,443 113,417 104,847 102,434 103,688 110,466 114,398 116,085 2016 138,507 125,093 126,050 126,971 125,097 132,235 135,491 2017 144,349 131,897 132,136 124,265 128,674 134,272 2018 167,004 158,458 146,633 150,687 151,563 2019 214,653 194,759 189,671 188,061 2020 239,897 211,732 207,210 2021 304,435 286,343 2022 340,436 Total $ 1,735,228 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 3,867 $ 14,509 $ 30,382 $ 44,421 $ 59,641 $ 66,553 $ 71,035 $ 74,635 $ 76,295 $ 80,137 2014 3,412 16,969 28,212 43,891 58,774 71,549 76,523 79,980 85,433 2015 4,048 17,164 34,801 55,911 73,455 87,344 94,494 103,138 2016 5,180 22,852 46,045 70,105 90,166 102,072 116,059 2017 5,290 22,956 42,764 64,924 81,303 102,866 2018 6,000 26,160 50,679 76,494 105,538 2019 8,235 31,346 62,227 103,836 2020 8,642 34,561 73,106 2021 11,693 55,070 2022 12,713 Total $ 837,896 All outstanding losses and loss adjustment expenses prior to 2013, net of reinsurance (53 claims outstanding) $ 10,383 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 907,715 Excess and Surplus Lines — Commercial Auto Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 1,255 $ 1,300 $ 1,451 $ 1,351 $ 1,301 $ 1,277 $ 1,277 $ 1,277 $ 1,277 $ 1,277 2014 20,487 14,071 17,233 18,953 19,779 18,303 19,196 20,013 20,222 2015 30,109 33,113 35,149 36,139 36,636 37,839 38,046 37,915 2016 74,340 109,286 126,791 147,122 157,712 164,399 164,046 2017 207,355 208,743 272,421 319,472 355,713 366,636 2018 255,881 230,220 283,408 349,067 371,637 2019 262,306 240,773 339,771 365,279 2020 19,133 10,899 12,324 2021 21,154 16,565 2022 26,126 Total $ 1,382,027 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 60 $ 1,182 $ 1,285 $ 1,291 $ 1,275 $ 1,275 $ 1,275 $ 1,275 $ 1,275 $ 1,275 2014 6,166 8,645 12,679 16,359 18,678 17,745 18,301 19,163 20,070 2015 8,356 15,234 24,282 31,592 34,819 35,983 36,710 37,462 2016 18,295 54,054 89,381 125,108 141,545 152,030 158,819 2017 41,467 107,377 192,961 252,169 309,860 344,235 2018 45,136 119,099 184,686 257,346 329,009 2019 44,225 107,182 192,982 285,725 2020 628 2,854 7,304 2021 2,810 4,313 2022 1,897 Total $ 1,190,109 Total outstanding losses and loss adjustment expenses, net of reinsurance before Rasier LPT $ 191,918 Reinsurance recoverable for Rasier LPT $ 132,049 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 59,869 Specialty Admitted — Individual Risk Workers’ Compensation Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 12,525 $ 13,668 $ 12,786 $ 11,578 $ 10,907 $ 10,909 $ 10,909 $ 10,598 $ 10,573 $ 10,438 2014 16,638 16,652 14,620 13,890 12,704 12,704 12,573 12,685 12,553 2015 20,938 21,274 19,741 18,376 17,626 16,492 16,468 16,409 2016 21,678 20,299 18,050 15,800 14,050 13,069 12,790 2017 24,869 22,071 19,779 18,810 16,606 15,487 2018 16,432 16,288 16,038 14,200 12,139 2019 20,253 21,056 20,631 18,129 2020 20,137 22,240 19,389 2021 14,519 14,713 2022 14,507 Total $ 146,554 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 4,487 $ 8,723 $ 9,846 $ 10,246 $ 10,263 $ 10,309 $ 10,337 $ 10,335 $ 10,336 $ 10,337 2014 4,633 10,648 12,041 12,236 12,282 12,282 12,276 12,287 12,306 2015 6,604 13,285 15,118 15,889 15,901 16,068 16,069 16,071 2016 4,664 10,227 12,135 12,432 12,481 12,483 12,483 2017 6,546 12,782 14,285 15,195 15,210 15,236 2018 4,497 9,034 11,412 11,746 11,765 2019 5,473 13,776 16,254 16,909 2020 7,394 14,668 16,665 2021 5,874 10,780 2022 5,943 Total $ 128,495 All outstanding losses and loss adjustment expenses prior to 2013, net of reinsurance (7 claims outstanding) $ 809 Outstanding losses and loss adjustment expenses assumed from involuntary workers’ compensation pools $ 3,564 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 22,432 Specialty Admitted — Fronting and Programs Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 104 $ 80 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 2014 3,460 3,468 3,818 3,425 3,228 3,083 3,081 3,068 3,061 2015 7,136 9,632 9,358 8,974 8,384 8,444 8,436 8,279 2016 11,542 15,670 14,682 15,522 14,468 15,090 14,304 2017 21,229 24,271 25,201 24,728 25,097 24,893 2018 21,758 20,677 19,822 20,158 19,268 2019 18,832 19,020 19,991 18,956 2020 25,433 28,131 31,555 2021 39,999 44,857 2022 47,262 Total $ 212,487 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 28 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 $ 52 2014 883 1,687 2,369 2,728 2,854 2,916 2,917 2,926 2,939 2015 2,058 4,666 6,165 6,919 7,329 7,654 7,728 7,824 2016 1,894 5,123 6,888 10,732 10,896 11,711 12,142 2017 1,223 6,682 13,065 15,854 18,219 20,655 2018 885 4,972 10,495 12,631 14,059 2019 4,358 5,125 9,958 13,007 2020 5,375 15,678 20,903 2021 8,347 18,106 2022 13,018 Total $ 122,705 All outstanding losses and loss adjustment expenses, net of reinsurance $ 89,782 Outstanding losses and loss adjustment expenses, assumed from involuntary pools $ 967 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 90,749 Casualty Reinsurance Incurred losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 133,230 $ 130,361 $ 131,352 $ 134,446 $ 137,801 $ 143,124 $ 146,760 $ 149,682 $ 153,622 $ 154,225 2014 118,881 115,927 114,636 116,981 121,200 126,160 130,822 139,208 139,341 2015 119,157 108,870 108,699 109,117 114,517 120,185 133,790 135,112 2016 112,759 105,533 103,544 108,222 114,979 132,058 133,990 2017 134,628 128,472 129,800 138,831 176,828 179,757 2018 121,529 119,098 125,715 163,957 165,417 2019 86,022 85,549 100,895 101,462 2020 80,374 81,800 82,626 2021 82,610 85,582 2022 108,751 Total $ 1,286,263 Cumulative paid losses and loss adjustment expenses, net of reinsurance (in thousands) Accident Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2013 $ 59,756 $ 75,094 $ 93,902 $ 108,396 $ 119,256 $ 127,732 $ 134,644 $ 139,250 $ 142,824 $ 146,765 2014 41,421 58,601 76,302 89,899 101,366 110,374 117,971 125,444 131,196 2015 40,021 53,986 68,002 80,208 90,661 100,548 110,692 121,675 2016 36,268 50,905 65,409 78,145 90,356 104,115 117,831 2017 47,739 72,891 90,117 106,942 126,747 151,158 2018 30,903 50,274 69,123 90,054 118,445 2019 12,646 25,453 37,488 56,907 2020 5,589 15,270 26,690 2021 2,082 11,078 2022 1,787 Total $ 883,532 All outstanding losses and loss adjustment expenses prior to 2013, net of reinsurance $ 9,431 Total outstanding losses and loss adjustment expenses, net of reinsurance before Casualty Re LPT $ 412,162 Reinsurance recoverable for Casualty Re LPT 244,657 Total outstanding losses and loss adjustment expenses, net of reinsurance $ 167,505 The reconciliation of the net incurred and paid claims development tables to the reserve for losses and loss adjustment expenses in the consolidated balance sheet at December 31, 2022 is as follows (in thousands): E&S – excluding commercial auto $ 907,715 E&S – commercial auto 59,869 Specialty Admitted – individual risk workers’ compensation 22,432 Specialty Admitted – fronting and programs 90,749 Casualty Reinsurance 167,505 Net reserve for losses and loss adjustment expenses 1,248,270 Reinsurance recoverables on unpaid losses (gross of $612,000 allowance for credit losses on reinsurance recoverables) 1,520,725 Gross reserve for losses and loss adjustment expenses $ 2,768,995 The following is unaudited supplementary information about average annual percentage payouts of incurred claims by age, net of reinsurance, as of December 31, 2022. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 E&S – excluding commercial auto 3.9 % 13.2 % 16.2 % 17.9 % 16.0 % 11.8 % 6.8 % 5.2 % 4.0 % 4.6 % E&S – commercial auto 13.4 % 24.7 % 21.7 % 17.3 % 10.6 % 2.8 % 2.2 % 2.1 % 2.2 % 0.0 % Specialty Admitted – individual risk workers’ compensation 28.5 % 31.4 % 15.1 % 8.7 % 6.4 % 3.2 % 2.0 % 1.0 % 1.1 % 0.9 % Specialty Admitted – fronting and programs 18.8 % 21.4 % 21.8 % 12.5 % 8.3 % 6.4 % 3.6 % 3.8 % 1.4 % 2.0 % Casualty Reinsurance 19.4 % 11.6 % 11.6 % 11.3 % 10.1 % 8.6 % 6.9 % 5.5 % 3.2 % 2.6 % In determining the cumulative number of reported claims, the Company measures claim counts by individual claimant for individual risk workers’ compensation policies in the Specialty Admitted Insurance segment. In the Excess and Surplus Lines insurance segment and for fronting and programs in the Specialty Admitted Insurance segment, the Company measures claim counts by claim event. The claim counts include all claims reported, even if the Company does not establish a liability for the claim (i.e. reserve for losses and loss adjustment expenses). The Casualty Reinsurance segment typically assumes written premium under quota share arrangements. The Company typically does not have direct access to claim frequency information underlying its assumed quota share arrangements given the nature of that business. In addition, multiple claims are often aggregated by the ceding company before being reported to the Company. We do not use claim frequency information in the Casualty Reinsurance segment in the determination of loss reserves or for other internal purposes. Based on these considerations, the Company does not believe providing claims frequency information is practicable as it relates to the Casualty Reinsurance segment. The table below provides information on IBNR liabilities and claims frequency for: (1) the Excess and Surplus Lines segment split between commercial auto and all non commercial auto, and (2) the Specialty Admitted Insurance segment split between individual risk workers’ compensation and fronting and programs: Excess and Surplus Lines — Excluding Commercial Auto Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2013 $ 84,376 $ 1,198 2,525 2014 91,391 1,446 2,255 2015 116,085 2,250 2,668 2016 135,491 3,187 3,167 2017 134,272 5,842 3,261 2018 151,563 16,626 4,561 2019 188,061 34,591 5,834 2020 207,210 74,904 5,071 2021 286,343 180,621 4,151 2022 340,436 301,739 2,694 Excess and Surplus Lines — Commercial Auto Accident Year Incurred Losses IBNR before Rasier LPT IBNR net of Rasier LPT Cumulative # of ($ in thousands) 2013 $ 1,277 $ 1 $ 1 54 2014 20,222 152 3 7,764 2015 37,915 414 22 41,771 2016 164,046 1,305 165 89,117 2017 366,636 3,189 197 134,150 2018 371,637 3,473 301 97,339 2019 365,279 3,711 421 71,444 2020 12,324 234 234 622 2021 16,565 7,434 7,434 771 2022 26,126 22,093 22,093 427 Specialty Admitted - Individual Risk Workers’ Compensation Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2013 $ 10,438 $ 101 540 2014 12,553 156 851 2015 16,409 338 975 2016 12,790 307 836 2017 15,487 156 1,093 2018 12,139 313 1,238 2019 18,129 548 1,554 2020 19,389 1,203 1,378 2021 14,713 1,945 1,290 2022 14,507 2,709 997 Specialty Admitted — Fronting and Programs Accident Year Incurred Losses IBNR Cumulative # of ($ in thousands) 2013 $ 52 $ — 22 2014 3,061 122 858 2015 8,279 101 1,363 2016 14,304 1,394 2,819 2017 24,893 2,684 6,798 2018 19,268 2,244 7,390 2019 18,956 2,756 8,117 2020 31,555 4,392 8,763 2021 44,857 15,991 10,049 2022 47,262 26,836 7,540 The table below provides information on IBNR liabilities for the Casualty Reinsurance segment: Accident Year Incurred Losses IBNR before Casualty Re LPT IBNR Net of Casualty Re LPT ($ in thousands) 2013 $ 154,225 $ 1,134 $ 480 2014 139,341 2,217 414 2015 135,112 5,467 996 2016 133,990 7,782 1,401 2017 179,757 18,491 2,613 2018 165,417 25,512 4,001 2019 101,462 31,177 4,572 2020 82,626 47,915 8,806 2021 85,582 62,416 26,045 2022 108,751 65,167 56,748 The Company has not provided insurance coverage that could reasonably be expected to produce material levels of asbestos claims activity. In addition, management does not believe that the Company is exposed to environmental liability claims other than those which it has specifically underwritten and priced as an environmental exposure. |
