Reserve for Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2025

Insurance [Abstract]

Reserve for Losses and Loss Adjustment Expenses

Reserve for Losses and Loss Adjustment Expenses

The table below provides a reconciliation of the beginning and ending reserve balances for the nine months ended September 30, 2025 and September 30, 2024:

	September 30, 2025		September 30, 2024
	($ in thousands)
Gross reserves for losses and loss adjustment expenses, beginning of year	$	756,859	$	431,186
Reinsurance recoverable on unpaid losses, beginning of year	246,915		136,273
Net reserves for unpaid losses and loss adjustment expenses, beginning of year	$	509,944	$	294,913
Net incurred losses and loss adjustment expenses related to:
Current accident year	234,926		181,162
Prior accident years	2,009		—
	236,935		181,162
Net paid losses and loss adjustment expenses related to:
Current accident year	2,663		2,106
Prior accident years	56,838		17,071
	59,501		19,177
Net reserves for unpaid losses and loss adjustment expenses, end of period	$	687,378	$	456,897
Reinsurance recoverable on unpaid losses, end of period	347,793		222,671
Gross reserves for losses and loss adjustment expenses, end of period	$	1,035,171	$	679,568

During the nine months ended September 30, 2025 and 2024, there was a $2.0 million and nil increase in prior accident year losses, respectively. The $2.0 million increase in prior accident year losses was driven by expected loss ratios applied to audit premiums earned in the period but associated with prior accident years. The increase was not based on actual losses settling for more than reserved, and did not represent an increase in estimated reserves on unresolved claims.