Liability for Unpaid Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2025

Liability for Unpaid Losses and Loss Adjustment Expenses

7.	Liability for Unpaid Losses and Loss Adjustment Expenses

The liability for unpaid losses and loss adjustment expenses (“LAE”) includes an amount determined from loss reports and individual cases and an amount, based on past experience, for losses incurred but not yet reported.

The following table provides a reconciliation of changes in the liability for unpaid losses and LAE:


	Three Months Ended March 31,
	2025		2024
Unpaid Loss and LAE beginning of period	$	475,708	$	279,392
Less: Reinsurance recoverables on unpaid losses and LAE		415,086		214,718

Net unpaid loss and LAE at beginning of period		60,622		64,674

Add: Losses and LAE, net of reinsurance, incurred related to:
Current period		20,283		19,865
Prior period		579		500

Total net losses and LAE incurred		20,862		20,365

Less: Losses and LAE paid, net of reinsurance, related to:
Current period		4,017		4,824
Prior period		15,701		17,213

Total net paid losses and LAE		19,718		22,037

Unpaid loss and LAE, net of reinsurance at end of period		61,766		63,001
Add: Reinsurance recoverables on unpaid losses and LAE		369,854		198,617

Unpaid loss and LAE at end of period	$	431,620	$	261,619

During the three months ended March 31, 2025, the liability for unpaid losses and loss adjustment expenses, prior to reinsurance, increased by $1,144 from $60,622 as of December 31, 2024 to $61,766 as of March 31, 2025. The increase was principally the result of an increase in reserves for Citizens assumed business of $3,201, partially offset by a decrease in reserves related to catastrophe and

non-catastrophe

storms.

Prior period development includes changes in estimated losses and LAE for all events occurring in prior periods including hurricanes and other weather. In 2025, the Company’s net loss and LAE incurred for the three months ended March 31, 2025 reflected an unfavorable development of $579, which was a result of

re-estimation

of unpaid losses and LAE. These adjustments are generally the result of ongoing analysis of recent loss development trends. Original estimates are decreased or increased as additional information becomes known regarding individual claims.