Reserve For Losses, LAE And Future Policy Benefit Reserve

9 Months Ended

Sep. 30, 2020

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

Reserve For Losses, LAE And Future Policy Benefit Reserve

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

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

Nine Months Ended

September 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

4,572,640

3,559,505

 Prior years

1,426

(44,401)

 Total incurred losses and LAE

4,574,066

3,515,104

Paid related to:

 Current year 

1,015,538

550,724

 Prior years

2,042,712

2,406,753

 Total paid losses and LAE

3,058,250

2,957,477

Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU

2016-13

(28,024)

(52,125)

Net reserves end of period

13,458,393

12,004,952

 Plus reinsurance recoverables

1,774,732

1,632,687

 Gross reserves end of period

$

15,233,125

$

13,637,639

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $

4,572,640

 thousand and $

3,559,505

 thousand for the nine months ended

September 30, 2020 and 2019, respectively. The increase in current year incurred losses in 2020 compared to

2019 was primarily due to $

434,918

 thousand of incurred losses due to COVID-19 as well as the impact of the

increase in premiums earned.