Loss and Loss Adjustment Expense Reserves

9 Months Ended

Sep. 30, 2025

Insurance [Abstract]

Loss and Loss Adjustment Expense Reserves

Loss and Loss Adjustment Expense Reserves

P&C Insurance and Reinsurance

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, 2025 and 2024:

	Three Months Ended September 30,				Nine Months Ended September 30,
Millions	2025		2024		2025		2024
Gross beginning balance	$	2,288.5	$	1,890.1	$	2,127.5	$	1,605.1
Less: beginning reinsurance recoverable on unpaid losses	(468.5)		(458.5)		(434.4)		(340.8)
Net loss and LAE reserves	1,820.0		1,431.6		1,693.1		1,264.3
Loss and LAE incurred relating to:
Current year losses	254.7		313.1		722.1		676.0
Prior year losses	(.1)		(24.8)		(70.0)		(32.0)
Net incurred loss and LAE	254.6		288.3		652.1		644.0
Loss and LAE paid relating to:
Current year losses	(33.3)		(19.1)		(146.0)		(27.4)
Prior year losses	(84.9)		(86.3)		(264.7)		(261.8)
Net paid loss and LAE	(118.2)		(105.4)		(410.7)		(289.2)
Foreign currency translation and other adjustments    to loss and LAE reserves	(1.0)		11.3		20.9		6.7
Net ending balance	1,955.4		1,625.8		1,955.4		1,625.8
Plus: ending reinsurance recoverable on unpaid losses	522.5		507.2		522.5		507.2
Gross ending balance	$	2,477.9	$	2,133.0	$	2,477.9	$	2,133.0

For the three and nine months ended September 30, 2025, the Ark/WM Outrigger segment recognized $0.1 million and $70.0 million of net favorable prior year loss reserve development, driven primarily by favorable development in the property and specialty lines of business, partially offset by unfavorable development related to aviation losses from the conflict in Ukraine and Russia. For the three and nine months ended September 30, 2024, the Ark/WM Outrigger segment recognized $24.8 million and $32.0 million of net favorable prior year loss reserve development, driven primarily by the property line of business.

Financial Guarantee

As of September 30, 2025 and December 31, 2024, HG Re did not have any outstanding loss and LAE reserves. For the three and nine months ended September 30, 2025, HG Re did not recognize any incurred loss and LAE. For the three and nine months ended September 30, 2024, HG Re recognized gross incurred loss and LAE of $0.3 million related to a delinquent payment by a reinsured BAM policyholder. Net of recoveries, HG Re recognized no incurred loss and LAE for the three and nine months ended September 30, 2024.

P&C Insurance Distribution

As of September 30, 2025 and December 31, 2024, the Bamboo Captive recorded loss and LAE reserves of $28.5 million and $17.8 million. For the three and nine months ended September 30, 2025, the Bamboo Captive recognized incurred loss and LAE of $3.3 million and $15.9 million. For the three and nine months ended September 30, 2024, the Bamboo Captive recognized incurred loss and LAE of $4.4 million and $14.5 million.

Other Operations

As of September 30, 2025 and December 31, 2024, the Bamboo CRV recorded loss and LAE reserves of $14.7 million and $12.1 million. For the three and nine months ended September 30, 2025, the Bamboo CRV recognized incurred loss and LAE of $0.6 million and $18.8 million. For the three and nine months ended September 30, 2024, the Bamboo CRV recognized incurred loss and LAE of $4.2 million and $8.1 million.