Reserve for losses and loss adjustment expenses

3 Months Ended

Mar. 31, 2020

Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract]

Reserve for losses and loss adjustment expenses

The following table represents an analysis of losses and loss adjustment expenses and a reconciliation of the beginning and ending reserve for losses and loss adjustment expenses for the three months ended March 31, 2020 and 2019.

	Three Months Ended March 31,
	2020			2019
	($ in thousands)
Gross reserve for losses and loss adjustment expenses at beginning of period	$	1,263,628		$	1,032,760
Unpaid losses and loss adjustment expenses recoverable	165,549			81,267
Net reserve for losses and loss adjustment expenses at beginning of period	1,098,079			951,493
Net incurred losses and loss adjustment expenses relating to losses occurring in:
Current period	110,856			110,901
Prior years	(180		)	(51		)
Total net losses and loss adjustment expenses	110,676			110,850
Foreign exchange (gains) losses	(26,015		)	4,163
Net paid losses and loss adjustment expenses relating to losses occurring in:
Current period	(10,585		)	(6,330		)
Prior years	(62,585		)	(54,598		)
Total paid losses and loss adjustment expenses	(73,170		)	(60,928		)
Net reserve for losses and loss adjustment expenses at end of period	1,109,570			1,005,578
Unpaid losses and loss adjustment expenses recoverable	190,679			98,954
Gross reserve for losses and loss adjustment expenses at end of period	$	1,300,249		$	1,104,532

During the three months ended March 31, 2020, the Company recorded net favorable development on prior year loss reserves of $0.2 million. Net favorable development was experienced on casualty reinsurance losses of $4.0 million, property catastrophe reinsurance losses of $0.5 million, and other specialty reinsurance losses $0.1 million, offset by unfavorable development on insurance losses of $4.4 million.

During the three months ended March 31, 2019, the Company recorded net favorable development on prior year loss reserves of $0.1 million. Net favorable development was experienced on casualty reinsurance losses of $1.8 million, offset by unfavorable development on property catastrophe reinsurance losses of $0.8 million, insurance programs and coinsurance losses of $0.6 million, and other specialty reinsurance losses of $0.4 million.