Short-Duration Insurance Contracts

3 Months Ended

Mar. 31, 2026

Property & casualty Unpaid Claims and Claim Expense Reserves

The following table is a summary reconciliation of the beginning and ending property & casualty unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net property & casualty insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets. Also included in property & casualty claims expense reserves are legacy commercial line exposures, which are included in the Corporate & Other segment for segment reporting purposes.


($ in millions)	Three Months Ended March 31,
		2026		2025
Property & Casualty
Beginning gross reserves		$	404.5	$	420.6
Less: reinsurance recoverables		101.2		100.8
Net reserves, beginning of period(1)		303.3		319.8
Incurred claims and claim expenses:
Claims occurring in the current period		119.2		123.7
Increase (decrease) in estimated reserves for claims occurring in prior periods(2)		(5.0)		(5.3)
Total claims and claim expenses incurred		114.2		118.4
Claims and claim expense payments for claims occurring during:
Current period		44.8		50.0
Prior periods		67.3		69.8
Total claims and claim expense payments		112.1		119.8
Net reserves, end of period(1)		305.4		318.4
Plus: reinsurance recoverables		101.5		98.3
Ending gross reserves		$	406.9	$	416.7

(1)Reserves net of expected reinsurance recoverables.

(2)Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development.

The Company recognized $5.0 million and $5.3 million of net favorable prior years' reserve development for the three months ended March 31, 2026 and 2025. The net favorable development for the three months ended March 31, 2026 was primarily a result of favorable loss trends in auto and property for accident years 2025 and prior. The net favorable development for the three months ended March 31, 2025 was primarily a result of favorable loss trends in auto and property for accident years 2024 and prior.

Group Benefits Unpaid Claims and Claim Expense Reserves

The following table is a summary reconciliation of the beginning and ending Group Benefits unpaid claims and claim expense reserves for the periods indicated. The table presents reserves on both a gross and net (after reinsurance) basis. The total net Group Benefits insurance claims and claim expense incurred amounts are reflected in the Consolidated Statements of Operations and Comprehensive Income (Loss). The end of period gross reserves (before reinsurance balances and reinsurance recoverable balances) are reflected on a gross basis in the Consolidated Balance Sheets.


($ in millions)	Three Months Ended March 31,
		2026		2025
Group Benefits
Beginning gross reserves		$	113.2	$	104.9
Less: reinsurance recoverables		26.5		25.2
Net reserves, beginning of period(1)		86.7		79.7
Incurred claims and claim expenses:
Claims occurring in the current period		21.8		18.3
Increase (decrease) in estimated reserves for claims occurring in prior periods(2)		(2.7)		0.4
Total claims and claim expenses incurred		19.1		18.7
Claims and claim expense payments for claims occurring during:
Current period		4.7		3.8
Prior periods		11.3		11.6
Total claims and claim expense payments		16.0		15.4
Net reserves, end of period(1)		89.7		83.1
Plus: reinsurance recoverables		27.0		25.9
Ending gross reserves		$	116.7	$	109.0

(1) Reserves net of expected reinsurance recoverables.

(2) Shows the amounts by which the Company increased (decreased) its reserves in each of the periods indicated for claims occurring in previous periods to reflect subsequent information on such claims and changes in their projected final settlement costs - also known as prior years' reserve development.

Net favorable prior years' reserve development for Group Benefits was $2.7 million and $(0.4) million for the three months ended March 31, 2026 and 2025, respectively. The favorable development for the three months ended March 31, 2026 was primarily the result of favorable loss trends in group life for loss years 2025 and prior. The unfavorable development for the three months ended March 31, 2025 was primarily the result of unfavorable loss trends in group life and disability for loss years 2024 and prior.

Reconciliation of Property & Casualty and Group Benefits Unpaid Claims and Claim Expense Reserves to the Consolidated Balance Sheets


($ in millions)	As of March 31, 2026		As of December 31, 2025
Ending gross reserves
Property & Casualty	$	406.9	$	404.5
Group Benefits	116.7		113.2
Total short-duration insurance contracts	523.6		517.7
Other than short-duration(1)	50.2		47.5
Total unpaid claims and claims expenses	$	573.8	$	565.2

(1) This line includes Life & Retirement, Supplemental, and other certain group benefit reserves.