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Historical Loss And LAE Development
3 Months Ended
Mar. 31, 2026
Historical Loss And L A E Development Disclosure [Abstract]  
Historical Loss And LAE Development

4. HISTORICAL LOSS AND LAE DEVELOPMENT

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first three months of 2026 and 2025:

For the Three Months

Ended March 31,

(in thousands)

 

2026

 

2025

Unpaid losses and LAE at beginning of year

Gross

$

2,886,819

$

2,693,470

Ceded

(746,798)

(755,425)

Net

$

2,140,021

$

1,938,045

Increase (decrease) in incurred losses and LAE

Current accident year

$

228,708

$

208,243

Prior accident years

(35,464)

(31,005)

Total incurred

$

193,244

$

177,238

Loss and LAE payments for claims incurred

Current accident year

$

(10,045)

$

(9,827)

Prior accident years

(135,794)

(115,040)

Total paid

$

(145,839)

$

(124,867)

Net unpaid losses and LAE at March 31,

$

2,187,426

$

1,990,416

Unpaid losses and LAE at March 31,

Gross

$

2,927,929

$

2,743,245

Ceded

(740,503)

(752,829)

Net

$

2,187,426

$

1,990,416

For the first three months of 2026, incurred losses and LAE included $35 million of favorable development on prior years’ loss reserves, primarily related to accident years 2018, 2019, 2022, 2024 and 2025. Favorable development was driven by commercial property, marine, executive products, professional services and commercial transportation. While personal umbrella experienced adverse development, no products had significant adverse development.

For the first three months of 2025, incurred losses and LAE included $31 million of favorable development on prior years’ loss reserves, primarily related to accident years 2019 through 2022 and 2024. Favorable development was driven by marine, surety, commercial property, commercial excess liability, general liability and our mortgage reinsurance program. Personal umbrella and commercial transportation had adverse development related to auto exposures, but no products experienced significant adverse development.