Reserve For Losses, LAE And Future Policy Benefit Reserve

6 Months Ended

Jun. 30, 2020

Reserve For Losses, LAE And Future Policy Benefit Reserve [Abstract]

Reserve For Losses, LAE And Future Policy Benefit Reserve

5. RESERVE FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE

Activity in the reserve for losses and LAE is summarized for the periods indicated:

	Six Months Ended
	June 30,
(Dollars in thousands)	2020		2019
Gross reserves beginning of period	$	13,611,313	$	13,119,090
Less reinsurance recoverables		(1,640,712)		(1,619,641)
Net reserves beginning of period		11,970,601		11,499,449
Incurred related to:
Current year		2,835,129		2,135,335
Prior years		2,727		7,845
Total incurred losses and LAE		2,837,856		2,143,180
Paid related to:
Current year		570,460		374,123
Prior years		1,579,931		1,598,544
Total paid losses and LAE		2,150,391		1,972,667
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(74,372)		(57,392)
Net reserves end of period		12,583,694		11,612,570
Plus reinsurance recoverables		1,692,947		1,636,918
Gross reserves end of period	$	14,276,641	$	13,249,488
(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $2,835,129 thousand and $2,135,335 thousand for the six months ended June 30, 2020 and 2019, respectively. The increase in current year incurred losses in 2020 compared to 2019 was primarily due to $309,978 thousand of incurred losses due to COVID-19 as well as the impact of the increase in premiums earned.