Historical Loss And LAE Development

3 Months Ended

Mar. 31, 2023

Historical Loss And L A E Development Disclosure [Abstract]

Historical Loss And LAE Development

3. 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 2023 and 2022:

	For the Three Months
	Ended March 31,
(in thousands)	2023		2022
Unpaid losses and LAE at beginning of year
Gross	$	2,315,637	$	2,043,555
Ceded		(740,089)		(608,086)
Net	$	1,575,548	$	1,435,469
Increase (decrease) in incurred losses and LAE
Current accident year	$	166,270	$	150,999
Prior accident years		(51,782)		(45,475)
Total incurred	$	114,488	$	105,524
Loss and LAE payments for claims incurred
Current accident year	$	(7,983)	$	(7,875)
Prior accident years		(95,905)		(82,851)
Total paid	$	(103,888)	$	(90,726)
Net unpaid losses and LAE at March 31,	$	1,586,148	$	1,450,267
Unpaid losses and LAE at March 31,
Gross	$	2,286,063	$	2,081,712
Ceded		(699,915)		(631,445)
Net	$	1,586,148	$	1,450,267

For the first three months of 2023, incurred losses and LAE included $52 million of favorable development on prior years’ loss reserves, largely from accident years 2016 and 2018 through 2022. Marine, general liability, professional services, commercial excess, executive products, personal umbrella, surety and commercial property were drivers of the favorable development. No products experienced significant adverse development.

For the first three months of 2022, incurred losses and LAE included $45 million of favorable development on prior years’ loss reserves, largely from accident years 2018 through 2021. Professional services, general liability, transportation, commercial excess, personal umbrella, marine, commercial property and surety were drivers of the favorable development. No products experienced significant adverse development.