Loss and Loss Adjustment Expense Reserves (Tables)

6 Months Ended

Jun. 30, 2022

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table summarizes the loss and LAE reserve activity of Ark’s insurance and reinsurance subsidiaries for the three and six months ended June 30, 2022 and 2021:


	Three Months Ended June 30,				Six Months Ended June 30,
Millions	2022		2021		2022		2021
Gross beginning balance	$	999.6	$	751.9	$	894.7	$	696.0
Less: beginning reinsurance recoverable on unpaid losses (1)	(396.0)		(447.5)		(428.9)		(433.4)
Net loss and LAE reserves	603.6		304.4		465.8		262.6

Loss and LAE incurred relating to:
Current year losses	143.2		61.6		268.9		127.1
Prior year losses	(22.7)		(9.0)		(26.4)		(8.5)
Net incurred losses and LAE	120.5		52.6		242.5		118.6



Loss and LAE paid relating to:
Current year losses	(14.1)		(1.1)		(14.7)		(2.5)
Prior year losses	(54.4)		(18.3)		(93.8)		(41.8)
Net paid loss and LAE	(68.5)		(19.4)		(108.5)		(44.3)

Change in TPC Providers’ participation (2)	—		—		57.5		(2.2)
Foreign currency translation and other adjustments to loss and LAE reserves	(9.0)		(2.9)		(10.7)		—

Net ending balance	646.6		334.7		646.6		334.7
Plus: ending reinsurance recoverable on unpaid losses (3)	375.5		425.3		375.5		425.3
Gross ending balance	$	1,022.1	$	760.0	$	1,022.1	$	760.0

(1) The beginning reinsurance recoverable on unpaid losses includes amounts attributable to TPC Providers of $207.3 and $331.0 for the three months ended June 30, 2022 and 2021 and $276.8 and $319.2 for the six months ended June 30, 2022 and 2021.

(2) Amount represents the impact to net loss and LAE reserves due to a change in the TPC Providers’ participation related to the annual reinsurance to close (“RITC”) process.

(3) The ending reinsurance recoverable on unpaid losses includes amounts attributable to TPC Providers of $182.4 and $314.6 as of June 30, 2022 and 2021.