Loss and Loss Adjustment Expense Reserves (Tables)

9 Months Ended

Sep. 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 nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30,				Nine Months Ended September 30,
Millions	2023		2022		2023		2022
Gross beginning balance	$	1,421.0	$	1,022.1	$	1,296.5	$	894.7
Less: beginning reinsurance recoverable on unpaid losses (1)	(362.7)		(375.5)		(505.0)		(428.9)
Net loss and LAE reserves	1,058.3		646.6		791.5		465.8

Loss and LAE incurred relating to:
Current year losses	266.4		222.9		562.1		491.8
Prior year losses	(.6)		(9.2)		19.0		(35.6)
Net incurred losses and LAE	265.8		213.7		581.1		456.2



Loss and LAE paid relating to:
Current year losses	(8.8)		(6.1)		(18.4)		(20.8)
Prior year losses	(90.4)		(37.0)		(281.1)		(130.8)
Net paid loss and LAE	(99.2)		(43.1)		(299.5)		(151.6)

Change in TPC Providers’ participation (2)	—		—		145.4		57.5
Foreign currency translation and other adjustments to loss and LAE reserves	(5.5)		(9.2)		.9		(19.9)

Net ending balance	1,219.4		808.0		1,219.4		808.0
Plus: ending reinsurance recoverable on unpaid losses (3)	352.4		521.4		352.4		521.4
Gross ending balance	$	1,571.8	$	1,329.4	$	1,571.8	$	1,329.4

(1) The beginning reinsurance recoverable on unpaid losses includes amounts attributable to TPC Providers of $0.0 and $182.4 for the three months ended September 30, 2023 and 2022 and $145.4 and $276.8 for the nine months ended September 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 $168.0 as of September 30, 2023 and 2022.