Historical Loss And LAE Development

6 Months Ended

Jun. 30, 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 six months of 2023 and 2022:

	For the Six Months
	Ended June 30,
(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	$	339,951	$	293,158
Prior accident years		(71,520)		(69,720)
Total incurred	$	268,431	$	223,438
Loss and LAE payments for claims incurred
Current accident year	$	(30,978)	$	(21,628)
Prior accident years		(172,282)		(153,490)
Total paid	$	(203,260)	$	(175,118)
Net unpaid losses and LAE at June 30,	$	1,640,719	$	1,483,789
Unpaid losses and LAE at June 30,
Gross	$	2,361,577	$	2,150,519
Ceded		(720,858)		(666,730)
Net	$	1,640,719	$	1,483,789

For the first six months of 2023, incurred losses and LAE included $72 million of favorable development on prior years’ loss reserves, largely from accident years 2018 through 2022. Commercial excess, professional services, surety, general liability, personal umbrella, marine and commercial property were drivers of the favorable development. No products experienced significant adverse development.

For the first six months of 2022, incurred losses and LAE included $70 million of favorable development on prior years’ loss reserves, largely from accident years 2018 through 2021. General liability, professional services, transportation, marine and surety were drivers of the favorable development. No products experienced significant adverse development.