Reserve for losses and loss adjustment expenses

6 Months Ended

Jun. 30, 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 six months ended June 30, 2020 and 2019.

	Six Months Ended June 30,
	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	215,849			222,395
Prior years	(387		)	(129		)
Total net losses and loss adjustment expenses	215,462			222,266
Foreign exchange (gains) losses	(23,999		)	64
Net paid losses and loss adjustment expenses relating to losses occurring in:
Current period	(27,050		)	(13,956		)
Prior years	(128,021		)	(153,229		)
Total paid losses and loss adjustment expenses	(155,071		)	(167,185		)
Net reserve for losses and loss adjustment expenses at end of period	1,134,471			1,006,638
Unpaid losses and loss adjustment expenses recoverable	218,578			119,442
Gross reserve for losses and loss adjustment expenses at end of period	$	1,353,049		$	1,126,080

During the six months ended June 30, 2020, the Company recorded net favorable development on prior year loss reserves of $0.4 million. Net favorable development was experienced on other specialty reinsurance losses of $4.1 million, casualty reinsurance losses of $3.7 million and property catastrophe reinsurance losses of $1.0 million, offset by unfavorable development on insurance losses of $8.4 million.

During the six months ended June 30, 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 $2.2 million, offset by unfavorable development on insurance losses of $0.8 million, property catastrophe reinsurance losses of $0.7 million and other specialty reinsurance losses of $0.6 million.