Historical Loss And LAE Development

6 Months Ended

Jun. 30, 2025

Historical Loss And L A E Development Disclosure [Abstract]

3. HISTORICAL LOSS AND LAE DEVELOPMENT

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first six months of 2025 and 2024:


	For the Six Months
	Ended June 30,
(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	$	420,433	$	376,546
Prior accident years		(58,617)		(64,923)
Total incurred	$	361,816	$	311,623

Loss and LAE payments for claims incurred
Current accident year	$	(35,903)	$	(40,078)
Prior accident years		(218,788)		(197,887)
Total paid	$	(254,691)	$	(237,965)

Net unpaid losses and LAE at June 30,	$	2,045,170	$	1,762,334

Unpaid losses and LAE at June 30,
Gross	$	2,806,889	$	2,544,622
Ceded		(761,719)		(782,288)
Net	$	2,045,170	$	1,762,334

For the first six months of 2025, incurred losses and LAE included $59 million of favorable development on prior years’ loss reserves, largely from accident years 2019 through 2022 and 2024. Marine, commercial excess, surety, commercial property, general liability and our mortgage reinsurance program were drivers of the favorable development. While no products experienced significant adverse development, auto liability exposures developed adversely for some products, most notably in commercial transportation.

For the first six months of 2024, incurred losses and LAE included $65 million of favorable development on prior years’ loss reserves, largely from accident years 2016, 2017, 2019, 2020, 2022 and 2023. Marine, surety, general liability, commercial property, executive products, personal umbrella, professional services and commercial excess were drivers of the favorable development. No products experienced significant adverse development.