v3.25.2
Reserves for Unpaid Losses and Loss Adjustment Expenses
 6 Months Ended
Jun. 30, 2025
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]  
Reserves for Unpaid Losses and Loss Adjustment Expenses Reserves For Unpaid Losses and Loss Adjustment Expenses
The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses:
June 30,
20252024
(in thousands)
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year
$2,285,668 $1,692,875 
Less: reinsurance recoverable on unpaid losses
323,060 241,357 
Net reserves for unpaid losses and loss adjustment expenses, beginning of year
1,962,608 1,451,518 
Incurred losses and loss adjustment expenses:
Current year480,430 398,058 
Prior years(30,095)(17,947)
Total net losses and loss adjustment expenses incurred450,335 380,111 
Payments:
Current year28,574 8,114 
Prior years142,674 102,829 
Total payments171,248 110,943 
Net reserves for unpaid losses and loss adjustment expenses, end of period
2,241,695 1,720,686 
Reinsurance recoverable on unpaid losses381,958 292,369 
Gross reserves for unpaid losses and loss adjustment expenses, end of period
$2,623,653 $2,013,055 
During the six months ended June 30, 2025, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2024 developed favorably by $30.1 million, of which $35.8 million was attributable to the 2020 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in the property lines of business. This favorable development was offset in part by adverse development
primarily in the construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures. Current accident year incurred losses and loss adjustment expenses for the six months ended June 30, 2025 included $26.3 million of net catastrophe losses primarily related to the Palisades Fire.
During the six months ended June 30, 2024, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2023 developed favorably by $17.9 million, of which $30.7 million was attributable to the 2021 through 2023 accident years due to lower emergence of reported losses than expected across most lines of business. This favorable development was offset in part by adverse development primarily from the 2017 through 2019 accident years due to construction defect claims that are more exposed to inflation and from the 2020 accident year due to a large property claim.