Loss and Loss Adjustment Expense Reserves (Tables)

6 Months Ended

Jun. 30, 2023

Schedule of Liability for Unpaid Claims and Claims Adjustment Expense

The following table summarizes the loss and loss adjustment expense (“LAE”) reserve activity of the Ark/WM Outrigger segment for the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,				Six Months Ended June 30,
Millions	2023		2022		2023		2022
Gross beginning balance	$	1,345.6	$	999.6	$	1,296.5	$	894.7
Less: beginning reinsurance recoverable on unpaid losses (1)	(348.9)		(396.0)		(505.0)		(428.9)
Net loss and LAE reserves	996.7		603.6		791.5		465.8

Loss and LAE incurred relating to:
Current year losses	156.5		143.2		295.7		268.9
Prior year losses	11.0		(22.7)		19.6		(26.4)
Net incurred losses and LAE	167.5		120.5		315.3		242.5



Loss and LAE paid relating to:
Current year losses	(5.6)		(14.1)		(9.6)		(14.7)
Prior year losses	(103.0)		(54.4)		(190.7)		(93.8)
Net paid loss and LAE	(108.6)		(68.5)		(200.3)		(108.5)

Change in TPC Providers’ participation (2)	—		—		145.4		57.5
Foreign currency translation and other adjustments to loss and LAE reserves	2.7		(9.0)		6.4		(10.7)

Net ending balance	1,058.3		646.6		1,058.3		646.6
Plus: ending reinsurance recoverable on unpaid losses (3)	362.7		375.5		362.7		375.5
Gross ending balance	$	1,421.0	$	1,022.1	$	1,421.0	$	1,022.1

(1) The beginning reinsurance recoverable on unpaid losses includes amounts attributable to TPC Providers of $0.0 and $207.3 for the three months ended June 30, 2023 and 2022 and $145.4 and $276.8 for the six months ended June 30, 2023 and 2022.

(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 process.

(3) The ending reinsurance recoverable on unpaid losses includes amounts attributable to TPC Providers of $0.0 and $182.4 as of June 30, 2023 and 2022.