Reserves for Losses and Loss Adjustment Expenses (Tables)

3 Months Ended

Mar. 31, 2024

Reserves for Losses and Loss Adjustment Expenses

The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”):


	Successor		Predecessor
(in millions)	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
Net reserves - beginning of the year	$	2,747.1	$	2,213.1


Add:
Losses and LAE incurred during current calendar year, net of reinsurance:
Current accident year	195.2		236.0
Prior accident years	24.8		48.6
Losses and LAE incurred during calendar year, net of reinsurance	220.0		284.6
Deduct:
Losses and LAE payments made during current calendar year, net of reinsurance:
Current accident year	6.7		36.8
Prior accident years	174.8		149.1
Losses and LAE payments made during current calendar year, net of reinsurance:	181.5		185.9
Add/(Deduct):
Divestitures (1)	—		24.4


Retroactive reinsurance (2)	—		21.7



Total net reserve adjustments	—		46.1
Foreign exchange adjustments	(1.3)		2.1
Net reserves - end of period	2,784.3		2,360.0
Add:
Reinsurance recoverables on unpaid losses and LAE, end of period	2,758.8		2,824.1
Gross reserves - end of period	$	5,543.1	$	5,184.1

(1)For the three months ended March 31, 2023, the adjustment relates to the quarterly activity of Syndicate 1200 and on reinsurance contracts with AUA subsidiaries. Refer to the sale of Argo Underwriting Agency Limited in Note 1, “Business and Significant Accounting Policies” for additional information.

(2) In connection with the sale of AUA, the Company entered into two retroactive reinsurance agreements with AUA subsidiaries.

Impact from (Favorable) Unfavorable Development of Prior Accident Years’ Loss and LAE Reserves on Each Reporting Segment

The impact from the unfavorable (favorable) development of prior accident years’ loss and LAE reserves on each reporting segment is presented below:


	Successor		Predecessor
(in millions)	Three Months Ended March 31, 2024		Three Months Ended March 31, 2023
U.S. Operations	$	13.6	$	39.7
International Operations	10.9		7.8
Run-off Lines	0.3		1.1
Total unfavorable (favorable) prior-year development	$	24.8	$	48.6