Historical Loss And LAE Development

6 Months Ended

Jun. 30, 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 six months of 2024 and 2023:

	For the Six Months
	Ended June 30,
(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	$	376,546	$	339,951
Prior accident years		(64,923)		(71,520)
Total incurred	$	311,623	$	268,431
Loss and LAE payments for claims incurred
Current accident year	$	(40,078)	$	(30,978)
Prior accident years		(197,887)		(172,282)
Total paid	$	(237,965)	$	(203,260)
Net unpaid losses and LAE at June 30,	$	1,762,334	$	1,640,719
Unpaid losses and LAE at June 30,
Gross	$	2,544,622	$	2,361,577
Ceded		(782,288)		(720,858)
Net	$	1,762,334	$	1,640,719

For the first six months of 2024, incurred losses and LAE included $65 million of favorable development on prior years’ loss reserves, largely from accident years 2016, 2017, 2019, 2020, 2022 and 2023. Marine, surety, general liability, commercial property, executive products, personal umbrella, professional services and commercial excess were drivers of the favorable development. No products experienced significant adverse development.

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.