Losses And Loss Adjustment Expense Reserves

3 Months Ended

Mar. 31, 2017

Losses And Loss Adjustment Expense Reserves

Loss and Loss Adjustment Expense Reserves

The following table presents the activity in loss and loss adjustment expense reserves:



	Three Months Ended March 31,
	2017			2016

	(Amounts in thousands)
Gross reserves at January 1	$	1,290,248		$	1,146,688
Less reinsurance recoverable	(13,161		)	(14,253		)
Net reserves at January 1	1,277,087			1,132,435
Incurred losses and loss adjustment expenses related to:
Current year	602,541			554,280
Prior years	4,124			39,802
Total incurred losses and loss adjustment expenses	606,665			594,082
Loss and loss adjustment expense payments related to:
Current year	275,890			261,753
Prior years	303,333			303,842
Total payments	579,223			565,595
Net reserves at March 31	1,304,529			1,160,922
Reinsurance recoverable	12,404			14,046
Gross reserves at March 31	$	1,316,933		$	1,174,968

The increase in the provision for insured events of prior years in 2017 of approximately $4.1 million was primarily attributable to higher than estimated California property losses.

The increase in the provision for insured events of prior years in 2016 of approximately $39.8 million primarily resulted from the re-estimation of losses for California and Florida automobile liability coverages, mostly related to 2014 and prior accident years.

For the three months ended March 31, 2017 and 2016, the Company recorded catastrophe losses of approximately $30 million and $8 million, respectively. The 2017 catastrophe losses were primarily due to severe rainstorms in California, while the 2016 catastrophe losses were mainly attributable to winter storms in Texas and northern California.