Reserve for Losses and Loss Adjustment Expenses (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Reserve for Losses and Loss Adjustment Expenses

Activity in the reserve for losses and loss adjustment expenses is summarized as follows:


(In thousands)	Nine Months Ended September 30, 2025		Nine Months Ended September 30, 2024		Year Ended December 31, 2024
Balance, beginning of year	$	3,257,696	$	3,401,281	$	3,401,281
Less reinsurance recoverables on unpaid losses and loss adjustment expenses	409,069		445,573		445,573
Net balance, beginning of year	2,848,627		2,955,708		2,955,708

Net losses:
Current year	566,072		585,734		779,650
(Favorable) unfavorable development of reserves established in prior years, net (1)	(29,975)		(28,709)		(40,215)
Total	536,097		557,025		739,435
Paid related to:
Current year	(61,076)		(71,191)		(106,443)
Prior years	(583,766)		(564,602)		(733,248)
Total paid	(644,842)		(635,793)		(839,691)
Foreign currency exchange rate (gains) losses (2)	15,392		1,441		(6,825)
Net balance, end of period	2,755,274		2,878,381		2,848,627
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses	363,663		461,302		409,069
Balance, end of period	$	3,118,937	$	3,339,683	$	3,257,696

(1) Net prior year reserve development recognized for the nine months ended September 30, 2025 and 2024 as well as the year ended December 31, 2024 included $2.7 million, $4.3 million and $5.3 million, respectively, of amortization of the purchase accounting fair value adjustment on NORCAL's assumed net reserve and amortization of the negative VOBA associated with NORCAL's DDR reserve which is recorded as a reduction to prior accident year net losses and loss adjustment expenses.

(2) Foreign currency exchange rate (gains) losses are related to foreign currency denominated loss reserves associated with international insurance exposures in the Specialty P&C segment, primarily related to a strategic partnership with an international medical professional liability insured. Foreign currency exchange rate (gains) losses on foreign currency denominated loss reserves are reflected through net income (loss) as a component of other income (expense) in the Condensed Consolidated Statements of Income and Comprehensive Income and reported in the Corporate segment.