RESERVE FOR LOSSES AND LOSS EXPENSES (Tables)

6 Months Ended

Jun. 30, 2018

RECONCILIATION OF BEGINNING AND ENDING GROSS RESERVE FOR LOSSES AND LOSS EXPENSES AND NET RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES

The following table presents a reconciliation of the Company's beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses for the periods indicated:



	Six months ended June 30,
	2018			2017

Gross reserve for losses and loss expenses, beginning of period	$	12,997,553		$	9,697,827
Less reinsurance recoverable on unpaid losses, beginning of period	(3,159,514		)	(2,276,109		)
Net reserve for unpaid losses and loss expenses, beginning of period	9,838,039			7,421,718

Net incurred losses and loss expenses related to:
Current year	1,482,409			1,308,000
Prior years	(114,423		)	(95,727		)
	1,367,986			1,212,273
Net paid losses and loss expenses related to:
Current year	(186,576		)	(140,018		)
Prior years	(1,233,793		)	(969,153		)
	(1,420,369		)	(1,109,171		)

Foreign exchange and other	(985,628		)	242,973

Net reserve for unpaid losses and loss expenses, end of period	8,800,028			7,767,793
Reinsurance recoverable on unpaid losses, end of period	3,152,706			2,110,869
Gross reserve for losses and loss expenses, end of period	$	11,952,734		$	9,878,662

NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT

Prior year reserve development arises from changes to loss and loss expense estimates related to loss events that occurred in previous calendar years. The following table presents prior year reserve development by segment:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017

Insurance	$	24,294	$	19,787	$	47,068	$	27,652
Reinsurance	35,822		51,146		67,355		68,075
Total	$	60,116	$	70,933	$	114,423	$	95,727

SCHEDULE OF THE LINE OF BUSINESS CATEGORIES AND THE EXPECTED CLAIM TAILS

The following tables reconcile reserve classes to the lines of business categories and the expected claim tails:



Insurance Segment
		Reported Lines of Business

Reserve Classes	Tail	Property	Marine	Terrorism	Aviation	Credit and Political Risk	Professional Lines	Liability	Accident and Health	Discontinued lines - Novae

Property and Other	Short	X		X					X	X
Marine	Short		X
Aviation	Short				X
Credit and Political Risk	Medium					X
Professional Lines	Medium						X			X
Liability	Long							X		X

Reinsurance Segment

Reported Lines of Business

Reserve Classes

Tail

Catastrophe

Property

Credit and Surety

Professional Lines

Motor

Liability

Engineering

Agriculture

Marine and Other

Accident and Health

Discontinued lines - Novae

Property and Other

Short