The Company regularly updates its reserve estimates as new information becomes available and further events occur which may impact the resolution of unsettled claims. Reserve adjustments are reflected in results of operations as adjustments to losses and loss adjustment expenses (“LAE”). Often these adjustments are recognized in periods subsequent to the period in which the underlying policy was written, and loss event occurred. These types of subsequent adjustments are described as “prior years’ loss reserves.” Such development can be either favorable or unfavorable to the Company’s financial results and may vary by line of business. In this section, all amounts presented include catastrophe losses and LAE, unless otherwise indicated.

The table below provides a reconciliation of the gross beginning and ending reserve for unpaid losses and loss adjustment expenses.


	Six Months Ended
	June 30,
(in millions)	2022			2021
Gross reserve for losses and LAE, beginning of period	$	6,447.6		$	6,024.0
Reinsurance recoverable on unpaid losses		1,693.8			1,641.6
Net reserve for losses and LAE, beginning of period		4,753.8			4,382.4
Net incurred losses and LAE in respect of losses occurring in:
Current year		1,660.2			1,562.2
Prior years		(27.2	)		(35.8	)
Total incurred losses and LAE		1,633.0			1,526.4
Net payments of losses and LAE in respect of losses occurring in:
Current year		571.0			531.5
Prior years		913.7			739.9
Total payments		1,484.7			1,271.4
Net reserve for losses and LAE, end of period		4,902.1			4,637.4
Reinsurance recoverable on unpaid losses		1,704.8			1,706.0
Gross reserve for losses and LAE, end of period	$	6,606.9		$	6,343.4

As a result of continuing trends in the Company’s business, reserves, including catastrophes, have been re-estimated for all prior accident years and were decreased by $27.2 million and $35.8 million in 2022 and 2021, respectively.

For the six months ended June 30, 2022, net favorable loss and LAE development was $27.2 million, primarily as a result of favorable Core Commercial development of $20.1 million and favorable Specialty development of $17.5 million, partially offset by unfavorable Personal Lines development of $10.4 million. Core Commercial favorable development was primarily due to lower than expected losses of $14.2 million in the workers' compensation line primarily in accident years 2013 through 2017 and 2020, and lower than expected losses of $11.3 million in the commercial multiple peril line, partially offset by higher than expected losses in the commercial automobile line. Specialty favorable development was primarily due to lower than expected losses within the surety, marine, and Professional and Executive lines, partially offset by higher than expected losses in the Specialty P&C lines. Personal Lines unfavorable development was due to higher than expected losses of $14.1 million, in the homeowners line, primarily due to higher severity and longer cycle times in repair activity, primarily related to claims incurred in the fourth quarter of 2021.

For the six months ended June 30, 2021, net favorable loss and LAE development was $35.8 million, as a result of favorable Core Commercial development of $16.1 million, favorable Personal Lines development of $13.2 million, and favorable Specialty development of $7.1 million. Core Commercial favorable development was primarily due to lower than expected losses of $10.5 million in the workers' compensation line primarily in accident years 2014 through 2019, and lower than expected losses in the commercial multiple peril line. Personal Lines favorable development was primarily due to lower than expected losses in the personal automobile line, driven by lower bodily injury and personal injury protection losses, primarily in accident year 2020. Specialty favorable development was primarily due to lower than expected losses in the marine line.