Historical Loss And LAE Development

3 Months Ended

Mar. 31, 2025

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 2025 and 2024:

	For the Three Months
	Ended March 31,
(in thousands)	2025		2024
Unpaid losses and LAE at beginning of year
Gross	$	2,693,470	$	2,446,025
Ceded		(755,425)		(757,349)
Net	$	1,938,045	$	1,688,676
Increase (decrease) in incurred losses and LAE
Current accident year	$	208,243	$	186,217
Prior accident years		(31,005)		(42,393)
Total incurred	$	177,238	$	143,824
Loss and LAE payments for claims incurred
Current accident year	$	(9,827)	$	(12,975)
Prior accident years		(115,040)		(102,011)
Total paid	$	(124,867)	$	(114,986)
Net unpaid losses and LAE at March 31,	$	1,990,416	$	1,717,514
Unpaid losses and LAE at March 31,
Gross	$	2,743,245	$	2,532,190
Ceded		(752,829)		(814,676)
Net	$	1,990,416	$	1,717,514

For the first three months of 2025, incurred losses and LAE included $31 million of favorable development on prior years’ loss reserves, largely from accident years 2019 through 2022 and 2024. Marine, surety, commercial property, commercial excess, general liability and our mortgage reinsurance program were drivers of the favorable development. Personal umbrella and commercial transportation had adverse development related to auto exposures, but no products experienced significant adverse development.

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.