Reserves for unpaid losses and loss adjustment expenses

The following table summarizes the loss and LAE reserve activities of Sirius Group for the three months ended March 31, 2020 and 2019:



	Three months ended March 31,
(Millions)	2020			2019
Gross beginning balance	$	2,331.5		$	2,016.7
Less beginning reinsurance recoverable on unpaid losses	(410.3		)	(350.2		)
Net loss and LAE reserve balance	1,921.2			1,666.5
Losses and LAE incurred relating to:
Current year losses	422.9			167.3
Prior years losses	4.2			16.6
Total net incurred losses and LAE	427.1			183.9
Foreign currency translation adjustment to net loss and LAE reserves	(21.8		)	(3.4		)
Loss and LAE paid relating to:
Current year losses	43.1			36.2
Prior years losses	208.0			183.8
Total loss and LAE payments	251.1			220.0
Net ending balance	2,075.4			1,627.0
Plus ending reinsurance recoverable on unpaid losses	444.2			349.3
Gross ending balance	$	2,519.6		$	1,976.3

Loss and LAE development - Three Months Ended March 31, 2020

For the three months ended March 31, 2020, Sirius Group had net unfavorable loss reserve development of $4.2 million. Increases in loss reserve estimates were primarily recorded in Global Reinsurance ($9.1 million) primarily from a loss on a Lion Air crash in the Aviation & Space line of business. These increases were partially offset by favorable loss reserve development in Global A&H ($4.2 million).

Loss and LAE development - Three Months Ended March 31, 2019

For the three months ended March 31, 2019, Sirius Group had net unfavorable loss reserve development of $16.6 million. The most significant increases in loss reserve estimates were recorded in Global Reinsurance ($10.3 million) and Global A&H ($5.1 million). The unfavorable loss reserve development in Global Reinsurance was primarily attributable to higher than expected reporting from prior year catastrophe events ($15.6 million) mainly Hurricanes Irma, Michael, and Florence. In addition, there was unfavorable loss reserve development in Runoff & Other ($1.2 million).