Reserves for unpaid losses and loss adjustment expenses

The following table summarizes the loss and LAE reserve activities of Sirius Group for the three and six months ended June 30, 2020 and 2019:



	Three months ended June 30,						Six months ended June 30,
(Millions)	2020			2019			2020			2019
Gross beginning balance	$	2,519.6		$	1,976.3		$	2,331.5		$	2,016.7
Less beginning reinsurance recoverable on unpaid losses	(444.2		)	(349.3		)	(410.3		)	(350.2		)
Net loss and LAE reserve balance	2,075.4			1,627.0			1,921.2			1,666.5
Losses and LAE incurred relating to:
Current year losses	239.1			214.1			662.0			381.4
Prior years losses	1.2			63.9			5.4			80.5
Total net incurred losses and LAE	240.3			278.0			667.4			461.9
Foreign currency translation adjustment to net loss and LAE reserves	13.2			3.4			(8.6		)	—
Accretion of fair value adjustment to net loss and LAE reserves	—			0.1			—			0.1
Loss and LAE paid relating to:
Current year losses	24.5			120.9			67.6			157.1
Prior years losses	231.5			121.7			439.5			305.5
Total loss and LAE payments	256.0			242.6			507.1			462.6
Net ending balance	2,072.9			1,665.9			2,072.9			1,665.9
Plus ending reinsurance recoverable on unpaid losses	442.2			357.4			442.2			357.4
Gross ending balance	$	2,515.1		$	2,023.3		$	2,515.1		$	2,023.3

Loss and LAE development - Three Months Ended June 30, 2020

For the three months ended June 30, 2020, Sirius Group had net unfavorable loss reserve development of $1.2 million. Increases in loss reserve estimates for Global Reinsurance ($4.5 million) were partially offset by favorable loss reserve development in Global A&H ($3.3 million). Within Global Reinsurance, unfavorable loss reserve development in Other Property ($8.2 million) and Casualty Reinsurance ($4.8 million) was partially offset by favorable loss reserve development in Property Catastrophe Excess Reinsurance ($7.6 million). The reduction in Property Catastrophe Excess Reinsurance was due to reductions in reserve estimates for prior year catastrophe events, mainly Typhoon Faxai and Typhoon Hagibis.

Loss and LAE development - Three Months Ended June 30, 2019

For the three months ended June 30, 2019, Sirius Group had net unfavorable loss reserve development of $63.9 million. Increases in loss reserve estimates were recorded in Global Reinsurance ($61.6 million) and Runoff & Other ($3.0 million).The unfavorable loss reserve development in Global Reinsurance was primarily attributable to higher prior year catastrophe events, including $46.4 million from Typhoon Jebi.

Loss and LAE development - Six Months Ended June 30, 2020

For the six months ended June 30, 2020, Sirius Group had net unfavorable loss reserve development of $5.4 million. Increases in loss reserve estimates for Global Reinsurance ($13.6 million) were partially offset by favorable loss reserve development in Global A&H ($7.5 million). Within Global Reinsurance, net unfavorable loss reserve development was recorded primarily in Aviation & Space ($8.8 million) and Casualty Reinsurance ($5.6 million). The unfavorable loss reserve development in Aviation & Space was mainly from a loss on the Lion Air crash.

Loss and LAE development - Six Months Ended June 30, 2019

For the six months ended June 30, 2019, Sirius Group had net unfavorable loss reserve development of $80.5 million. Increases in loss reserve estimates were recorded in Global Reinsurance ($71.8 million), Global A&H ($4.5 million) and Runoff & Other ($4.2 million). The unfavorable loss reserve development in Global Reinsurance was primarily attributable to higher prior year catastrophe events, including $46.4 million from Typhoon Jebi, $7.3 million from Hurricane Florence, $7.2 million from Hurricane Irma, and $6.3 million from Hurricane Michael.