LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

3 Months Ended

Mar. 31, 2025

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:


	Three Months Ended March 31,
	2025		2024
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	413.2	$	284.2
Reinsurance recoverable on unpaid losses	(48.0)		(43.8)
Net loss and LAE reserves, January 1	365.2		240.4
Net incurred loss and LAE related to:
Current year	218.7		169.4
Prior years	(13.1)		(3.0)
Total incurred	205.6		166.4
Net paid loss and LAE related to:
Current year	69.6		52.1
Prior years	123.8		79.2
Total paid	193.4		131.3
Net loss and LAE reserves, March 31	377.4		275.5
Plus reinsurance recoverable on unpaid losses	41.1		46.5
Gross loss and LAE reserves, March 31	$	418.5	$	322.0

Incurred losses and LAE attributable to prior accident years was a decrease of $13.1 million and $3.0 million for the three months ended March 31, 2025 and 2024, respectively. For the three months ended March 31, 2025, the development of incurred losses and LAE related to prior periods was primarily driven by lower-than-expected reported losses and LAE from accident year 2024 on both liability and physical damage coverages. For the three months ended March 31, 2024, the development of incurred losses and LAE related to prior periods was primarily driven by lower-than-expected reported losses from accident year 2023.