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Unpaid Losses And Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2024
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.

Nine Months Ended September 30,
(dollars in thousands)20242023
Gross reserves for losses and loss adjustment expenses, beginning of year$23,483,321 $20,947,898 
Reinsurance recoverables on unpaid losses, beginning of year8,820,567 7,994,884 
Net reserves for losses and loss adjustment expenses, beginning of year14,662,754 12,953,014 
Effect of foreign currency rate changes on beginning of year balance45,503 16,246 
Adjusted net reserves for losses and loss adjustment expenses, beginning of year14,708,257 12,969,260 
Incurred losses and loss adjustment expenses:
Current accident year4,155,146 3,934,969 
Prior accident years(344,212)(169,754)
Total incurred losses and loss adjustment expenses3,810,934 3,765,215 
Payments:
Current accident year444,221 419,998 
Prior accident years2,415,104 2,018,199 
Total payments2,859,325 2,438,197 
Effect of foreign currency rate changes on current year activity1,861 416 
Change in net reserves for losses and loss adjustment expenses of Markel CATCo Re (see note 12)
(78,091)(146,895)
Reinsurance recoverable for retroactive reinsurance transaction— (125,067)
Net reserves for losses and loss adjustment expenses, end of period15,583,636 14,024,732 
Reinsurance recoverables on unpaid losses10,293,842 8,119,634 
Gross reserves for losses and loss adjustment expenses, end of period$25,877,478 $22,144,366 
For the nine months ended September 30, 2024, current accident year losses and loss adjustment expenses included $62.0 million of net losses and loss adjustment expenses attributed to Hurricane Helene. The net losses and loss adjustment expenses attributed to Hurricane Helene as of September 30, 2024 represent the Company's best estimate based upon information currently available. Due to limited claims activity, the estimate for these losses is based on preliminary industry loss estimates and output from industry, broker and proprietary models, as well as policy level reviews and analysis of ceded reinsurance contracts. This estimate is based on various assumptions about coverage and liability and is therefore subject to change. While the Company believes its net reserves for Hurricane Helene as of September 30, 2024 are adequate, it continues to closely monitor reported claims and may adjust the estimate of net losses as new information becomes available.

For the nine months ended September 30, 2024, prior accident years losses and loss adjustment expenses included $344.2 million of favorable development on prior years loss reserves. Favorable development in 2024 was most significant on the Insurance segment's international professional liability product lines, as well as its general liability, property and credit and surety product lines, totaling $322.1 million across these product lines.

In July 2024, the Company, through its program services operations, entered into a retroactive reinsurance contract on behalf of a third-party capacity provider under which it assumed a layer of loss reserves for a portfolio of casualty policies that were concurrently ceded to the third-party capacity provider. As a result of these transactions, the Company recorded $302.6 million of gross losses and loss adjustment expenses and $302.6 million of corresponding reinsurance recoverables. The transactions had no impact on the Company's net reserves for losses and loss adjustment expenses.

For the nine months ended September 30, 2023, current accident year losses and loss adjustment expenses included $46.2 million of net losses and loss adjustment expenses attributed to the Hawaiian wildfires and Hurricane Idalia.

For the nine months ended September 30, 2023, prior accident years losses and loss adjustment expenses included $169.8 million of favorable development on prior years loss reserves. Favorable development in 2023 was most significant on the Insurance segment's international professional liability product lines, as well as its property, marine and energy, workers' compensation and personal lines product lines and on the Reinsurance segment's professional liability and property product lines, totaling $276.6 million across these product lines. This favorable development was partially offset by $70.5 million of adverse development on the Insurance segment's general liability product lines and $60.9 million of adverse development on the Reinsurance segment's public entity and general liability product lines.

In March 2023, the Company completed a retroactive reinsurance transaction to cede its portfolio of policies comprised of liabilities for its run-off book of United Kingdom motor casualty business in exchange for payments totaling $125.1 million, which approximated the carrying value of the Company's reserves for losses and loss adjustment expenses on the ceded policies.