Historical Loss And LAE Development

3 Months Ended

Mar. 31, 2024

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 2024 and 2023:

	For the Three Months
	Ended March 31,
(in thousands)	2024		2023
Unpaid losses and LAE at beginning of year
Gross	$	2,446,025	$	2,315,637
Ceded		(757,349)		(740,089)
Net	$	1,688,676	$	1,575,548
Increase (decrease) in incurred losses and LAE
Current accident year	$	186,217	$	166,270
Prior accident years		(42,393)		(51,782)
Total incurred	$	143,824	$	114,488
Loss and LAE payments for claims incurred
Current accident year	$	(12,975)	$	(7,983)
Prior accident years		(102,011)		(95,905)
Total paid	$	(114,986)	$	(103,888)
Net unpaid losses and LAE at March 31,	$	1,717,514	$	1,586,148
Unpaid losses and LAE at March 31,
Gross	$	2,532,190	$	2,286,063
Ceded		(814,676)		(699,915)
Net	$	1,717,514	$	1,586,148

For the first three months of 2024, incurred losses and LAE included $42 million of favorable development on prior years’ loss reserves, largely from accident years 2016 through 2019 and 2023. Marine, commercial property, personal umbrella, general liability, executive products, transportation and surety were drivers of the favorable development. No products experienced significant adverse development.

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.