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Loss and Loss Adjustment Expense Reserves
 9 Months Ended
Sep. 30, 2016
Insurance Loss Reserves [Abstract]  
Loss and Loss Adjustment Expense Reserves
Loss and Loss Adjustment Expense Reserves
 
The following table summarizes the loss and loss adjustment expense (“LAE”) reserve activities of White Mountains’s insurance and reinsurance subsidiaries for the three and nine months ended September 30, 2016 and 2015:
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
Millions
 
2016
 
2015
 
2016
 
2015
Gross beginning balance
 
$
1,376.6

 
$
1,350.8

 
$
1,389.8

 
$
1,342.2

Less beginning reinsurance recoverable on unpaid losses
 
(162.8
)
 
(147.1
)
 
(186.0
)
 
(161.6
)
Net loss and LAE reserves
 
1,213.8

 
1,203.7

 
1,203.8

 
1,180.6

 
 
 
 
 
 
 
 
 
SSIE reserves held for sale at beginning of the period (1)
 
5.3

 
6.1

 
5.5

 
7.7

 
 
 
 
 
 
 
 
 
Loss and LAE incurred relating to:
 
 
 
 
 
 

 
 

Current year losses
 
164.9

 
170.4

 
492.8

 
536.7

Prior year losses
 
0.1

 
(.4
)
 
15.3

 
(2.6
)
Total incurred losses and LAE
 
165.0

 
170.0

 
508.1

 
534.1

 
 
 
 
 
 
 
 
 
Loss and LAE paid relating to:
 
 
 
 
 
 

 
 

Current year losses
 
(55.0
)
 
(53.0
)
 
(116.2
)
 
(120.2
)
Prior year losses
 
(131.1
)
 
(108.1
)
 
(403.2
)
 
(383.5
)
Total loss and LAE payments
 
(186.1
)
 
(161.1
)
 
(519.4
)
 
(503.7
)
 
 
 
 
 
 
 
 
 
SSIE reserves held for sale at end of the period (1)
 
(5.4
)
 
(5.5
)
 
(5.4
)
 
(5.5
)
 
 
 
 
 
 
 
 
 
Net ending balance
 
1,192.6

 
1,213.2

 
1,192.6

 
1,213.2

Plus ending reinsurance recoverable on unpaid losses
 
169.4

 
214.2

 
169.4

 
214.2

Gross ending balance
 
$
1,362.0

 
$
1,427.4

 
$
1,362.0

 
$
1,427.4

(1) See Note 17 - “Held for Sale and Discontinued Operations”.

Loss and LAE incurred relating to prior year losses for the three and nine months ended September 30, 2016
For the three and nine months ended September 30, 2016, White Mountains experienced net unfavorable loss reserve development of $0.1 million and $15.3 million.
During the three months ended September 30, 2016, OneBeacon did not experience any net loss reserve development. During the nine months ended September 30, 2016, OneBeacon experienced $15.4 million of net unfavorable loss reserve development, primarily related to OneBeacon's Healthcare business described below as well as Other Professional Lines and Programs businesses, partially offset by favorable loss reserve development in its Technology, Accident and Financial Services businesses.
During the second quarter of 2016, OneBeacon recognized $20.0 million of unfavorable loss reserve development and also increased the current accident year provision related to its Healthcare business. Paid and incurred activity in the second quarter for extended care facilities coverage within OneBeacon's Healthcare business increased above expectations and above what was experienced in the first quarter of 2016. Extended care facilities coverage provides liability insurance for assisted living, memory care and continuing care facilities, among others. In addition, there were two large claims from the managed care errors and omissions coverage within OneBeacon's Healthcare business that contributed to the adverse loss reserve development.
For the three months ended September 30, 2016, SSIE had net unfavorable loss reserve development of $0.1 million. For the nine months ended September 30, 2016, SSIE had net favorable loss reserve development of $0.1 million.

Loss and LAE incurred relating to prior year losses for the three and nine months ended September 30, 2015
For the three and nine months ended September 30, 2015, White Mountains experienced net favorable loss reserve development of $0.4 million and $2.6 million.
During the three months ended September 30, 2015, OneBeacon experienced no net loss reserve development on prior accident year reserves. For the nine months ended September 30, 2015, OneBeacon had net favorable loss reserve development of $1.8 million. For the three and nine months ended September 30, 2015, SSIE had net favorable loss reserve development of $0.4 million and $0.8 million.