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Unpaid Losses And Loss Adjustment Expenses
 3 Months Ended
Mar. 31, 2021
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract]  
Unpaid Losses And Loss Adjustment Expenses Unpaid Losses and Loss Adjustment Expenses
The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses.

Three Months Ended March 31,
(dollars in thousands)20212020
Net reserves for losses and loss adjustment expenses, beginning of year$10,485,717 $9,475,261 
Effect of foreign currency rate changes on beginning of year balance(9,485)(96,339)
Effect of adoption of ASU No. 2016-13— 3,849 
Adjusted net reserves for losses and loss adjustment expenses, beginning of year10,476,232 9,382,771 
Incurred losses and loss adjustment expenses:
Current accident year970,748 1,180,365 
Prior accident years(90,870)(104,072)
Total incurred losses and loss adjustment expenses879,878 1,076,293 
Payments:
Current accident year52,770 58,699 
Prior accident years633,025 591,513 
Total payments685,795 650,212 
Effect of foreign currency rate changes on current year activity475 (488)
Net reserves for losses and loss adjustment expenses, end of period10,670,790 9,808,364 
Reinsurance recoverables on unpaid losses5,929,710 5,230,448 
Gross reserves for losses and loss adjustment expenses, end of period$16,600,500 $15,038,812 

For the three months ended March 31, 2021, current accident year losses and loss adjustment expenses included $64.3 million of net losses and loss adjustment expenses from Winter Storm Uri. The net losses and loss adjustment expenses from Winter Storm Uri as of March 31, 2021 represent the Company's best estimates based upon information currently available. The estimates for these losses are based on claims received to date, detailed policy and reinsurance contract level reviews, preliminary industry loss estimates and output from both industry and proprietary models, as well as analysis of the Company's ceded reinsurance contracts. Due to the limited claims activity thus far, these estimates are based on various assumptions about coverage, liability and reinsurance and are therefore subject to change. While the Company believes its reserves for Winter Storm Uri as of March 31, 2021 are adequate, it continues to closely monitor reported claims and will adjust estimates of gross and net losses as new information becomes available.

For the three months ended March 31, 2020, current accident year losses and loss adjustment expenses included $325.0 million of net losses and loss adjustment expenses attributed to the COVID-19 pandemic.

For the three months ended March 31, 2021, prior accident years' losses and loss adjustment expenses included $90.9 million of favorable development on prior years' loss reserves, which included $89.1 million of favorable development on the Company's marine and energy, general liability, workers' compensation and property product lines within the Insurance segment. Favorable development on prior years' loss reserves for the three months ended March 31, 2021 was partially offset by $18.6 million of adverse development within the Reinsurance segment related to COVID-19. The Company's estimate of ultimate losses directly attributed to COVID-19 is based on assumptions about coverage, liability and reinsurance, for which significant uncertainty still exists, and represents the Company's best estimate as of March 31, 2021 based upon information currently available. While the Company believes the net reserves for losses and loss adjustment expenses for COVID-19 as of March 31, 2021 are adequate based on information available at this time, the Company will continue to closely monitor reported claims, government actions, judicial decisions and changes in the levels of worldwide social disruption and economic activity arising from the pandemic and will adjust the estimates of gross and net losses as new information becomes available. Such adjustments to the Company's reserves for COVID-19 losses and loss adjustment expenses may be material to the Company's results of operations, financial condition and cash flows.
For the three months ended March 31, 2020, prior accident years' losses and loss adjustment expenses included $104.1 million of favorable development on prior years' loss reserves, which included $89.6 million of favorable development on the Company's professional liability, workers' compensation and marine and energy product lines within the Insurance segment. Favorable development on prior years' loss reserves for the three months ended March 31, 2020 was partially offset by $13.9 million of adverse development within the Reinsurance segment.