Sorrento, Florida. The real estate includes 5.42 acres of outparcel land intended for ground lease or resale and a retail shopping center with 61,400 square feet of net rentable area. Approximately 74% of the rentable space is currently leased to Publix supermarket. Approximately 94% of the rentable space is leased to non-affiliates and the remaining space is available for lease.
Expense under all facility leases was $456,000, $407,000 and $336,000 during the years ended December 31, 2019, 2018 and 2017, respectively. Expense for 2019 reflects lease expense under a new lease accounting standard adopted on January 1, 2019. See Adoption of New Accounting Standards in Note 2 -- “Summary of Significant Accounting Policies” to our consolidated financial statements under Item 8 of this Annual Report on Form 10-K for additional information.
Our Losses and Loss Adjustment Expenses amounted to approximately $107,514,000 and $109,328,000 for the years ended December 31, 2019 and 2018, respectively. Losses and loss adjustment expenses in 2019 included net losses related to a severe storm event in March 2019 of approximately $7,400,000 as well as adverse development related to Hurricane Matthew in 2016 of approximately $1,923,000 and adverse development related to non-catastrophe claims of approximately $9,100,000 primarily related to assignment of benefits litigation. During 2018, losses and loss adjustment expenses included net losses of approximately $16,520,000 for Hurricane Michael as well as adverse development related to Hurricane Matthew of approximately $2,100,000 and adverse development related to non-catastrophe claims of approximately $9,900,000 primarily related to assignment of benefits litigation See “Reserves for Losses and Loss Adjustment Expenses” under “Critical Accounting Policies and Estimates.”
The following is a reconciliation of our Net Premiums Written to Net Premiums Earned for the years ended December 31, 2018 and 2017 (amounts in thousands):
Represents the unfunded balance of capital commitments under the subscription agreements related to limited partnerships in which we hold interests.
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-02 (“ASU 2016-02”), Leases (Topic 842). The guidance establishes new principles that lessees and lessors will apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. ASU 2016-02 is effective for the Company January 1, 2019 and supersedes accounting for leases prescribed in Topic 840, Leases. ASU 2016-02 leaves lessor accounting substantially unchanged. The key change affecting the Company is the requirement that operating leases be recorded on the balance sheet. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; ASU No. 2018-11, Targeted Improvements; ASU No. 2018-20, Narrow-Scope Improvements for Lessors; and ASU No. 2019-01, Codification Improvements to Topic 842. The new standard establishes a right-of-use (“ROU”) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. The Company was initially required to use a modified retrospective method and apply this standard at the beginning of the earliest comparative period presented in the financial statements. Subsequently, the FASB permitted the application of this standard at the beginning of the adoption period as an alternative.
The following tables present information about the Company’s financial assets measured at estimated fair value on a recurring basis. The table indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value as of December 31, 2019 and 2018:
Depreciation and amortization expense under property and equipment was $1,550, $1,370 and $1,237, respectively, for the years ended December 31, 2019, 2018 and 2017.
The following is supplementary and unaudited information about average historical claims duration as of December 31, 2019:
At December 31, 2019 and 2018, there were no Series A Cumulative Convertible Preferred Stock issued or outstanding.
The Bermuda Monetary Authority requires Claddaugh Casualty Insurance Company, Ltd. (“Claddaugh”), the Company’s Bermuda domiciled reinsurance subsidiary, to maintain minimum capital and surplus of $2,000. At December 31, 2019 and 2018, Claddaugh’s statutory capital and surplus was approximately $34,500 and $45,000, respectively. For the years ended December 31, 2019, 2018 and 2017, Claddaugh reported statutory net losses of approximately $4,400, $8,100 and $5,200, respectively. During 2019 and 2018, Claddaugh made returns of capital distribution of $6,000 and $10,000, respectively, to the Company. During 2017, Claddaugh made a dividend payment of $20,000 to the Company.