RESERVE FOR LOSSES AND LOSS EXPENSES (Tables)

9 Months Ended

Sep. 30, 2019

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 reserves for unpaid losses and loss expenses:



	Nine months ended September 30,
	2019			2018

Gross reserve for losses and loss expenses, beginning of period	$	12,280,769		$	12,997,553
Less reinsurance recoverable on unpaid losses, beginning of period	(3,501,669		)	(3,159,514		)
Net reserve for unpaid losses and loss expenses, beginning of period	8,779,100			9,838,039

Net incurred losses and loss expenses related to:
Current year	2,252,424			2,323,028
Prior years	(65,021		)	(160,083		)
	2,187,403			2,162,945
Net paid losses and loss expenses related to:
Current year	(329,519		)	(381,158		)
Prior years	(1,791,233		)	(1,770,667		)
	(2,120,752		)	(2,151,825		)

Foreign exchange and other	(53,037		)	(1,040,999		)

Net reserve for unpaid losses and loss expenses, end of period	8,792,714			8,808,160
Reinsurance recoverable on unpaid losses, end of period	3,705,793			3,217,787
Gross reserve for losses and loss expenses, end of period	$	12,498,507		$	12,025,947

NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT

The Company's net favorable prior year reserve development arises from changes to estimates of losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net prior year reserve development by segment:



	Three months ended September 30,				Nine months ended September 30,
	2019		2018		2019		2018

Insurance	$	14,609	$	13,478	$	42,849	$	60,547
Reinsurance	12,118		32,182		22,172		99,536
Total	$	26,727	$	45,660	$	65,021	$	160,083

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

The following tables map the Company's lines of business to reserve classes and the expected claim tails:



Insurance segment
	Reserve class and tail

	Property and other	Marine	Aviation	Credit and political risk	Professional lines	Liability

	Short	Short	Short/Medium	Medium	Medium	Long

Reported lines of business
Property	X
Marine		X
Terrorism	X
Aviation			X
Credit and political risk				X
Professional lines					X
Liability						X
Accident and health	X
Discontinued lines - Novae	X				X	X



Reinsurance segment
	Reserve class and tail

	Property and other	Credit and surety	Professional lines	Motor	Liability

	Short	Medium	Medium	Long	Long

Reported lines of business
Catastrophe	X
Property	X
Credit and surety		X
Professional lines			X
Motor				X
Liability					X
Engineering	X
Agriculture	X
Marine and other	X
Accident and health	X
Discontinued lines - Novae	X			X	X