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.