Historical Loss And LAE Development

9 Months Ended

Sep. 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 nine months of 2024 and 2023:

	For the Nine Months
	Ended September 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	$	599,183	$	551,975
Prior accident years		(85,442)		(93,986)
Total incurred	$	513,741	$	457,989
Loss and LAE payments for claims incurred
Current accident year	$	(76,148)	$	(113,010)
Prior accident years		(273,868)		(252,786)
Total paid	$	(350,016)	$	(365,796)
Net unpaid losses and LAE at September 30,	$	1,852,401	$	1,667,741
Unpaid losses and LAE at September 30,
Gross	$	2,611,941	$	2,488,695
Ceded		(759,540)		(820,954)
Net	$	1,852,401	$	1,667,741

For the first nine months of 2024, incurred losses and LAE included $85 million of favorable development on prior years’ loss reserves, largely from accident years 2016, 2017, 2019, 2020, 2022 and 2023. Marine, surety, commercial property, commercial excess, general liability, professional services, executive products and personal umbrella were drivers of the favorable development. No products experienced significant adverse development.

For the first nine months of 2023, incurred losses and LAE included $94 million of favorable development on prior years’ loss reserves, largely from accident years 2016 through 2018 and 2020 through 2022. Commercial excess, executive products, general liability, professional services, personal umbrella, surety and commercial property were drivers of the favorable development. No products experienced significant adverse development.