v3.25.2
Unpaid Losses And Loss Adjustment Expenses
 6 Months Ended
Jun. 30, 2025
Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract]  
Unpaid Losses And Loss Adjustment Expenses Unpaid Losses and Loss Adjustment Expenses
The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses.

Six Months Ended June 30,
(dollars in thousands)20252024
Gross reserves for losses and loss adjustment expenses, beginning of year$26,633,094 $23,483,321 
Reinsurance recoverables on unpaid losses, beginning of year11,120,367 8,820,567 
Net reserves for losses and loss adjustment expenses, beginning of year15,512,727 14,662,754 
Effect of foreign currency rate changes on beginning of year balance183,407 (41,045)
Adjusted net reserves for losses and loss adjustment expenses, beginning of year15,696,134 14,621,709 
Incurred losses and loss adjustment expenses:
Current accident year2,771,538 2,741,620 
Prior accident years(228,839)(221,298)
Total incurred losses and loss adjustment expenses2,542,699 2,520,322 
Payments:
Current accident year211,521 196,079 
Prior accident years1,856,906 1,639,765 
Total payments2,068,427 1,835,844 
Effect of foreign currency rate changes on current year activity824 (1,272)
Change in net reserves for losses and loss adjustment expenses of Markel CATCo Re
(2,005)(25,726)
Net reserves for losses and loss adjustment expenses, end of period16,169,225 15,279,189 
Reinsurance recoverables on unpaid losses12,346,166 9,367,429 
Gross reserves for losses and loss adjustment expenses, end of period$28,515,391 $24,646,618 

For the six months ended June 30, 2025, current accident year losses and loss adjustment expenses included $60.9 million of net losses and loss adjustment expenses attributed to the series of wildfires that occurred in southern California in January 2025 (California Wildfires). The net losses and loss adjustment expenses attributed to the California Wildfires as of June 30, 2025 represent the Company's best estimate based upon information currently available. This loss estimate was based on claims received, policy level reviews and an analysis of ceded reinsurance contracts. The Company's estimate is based on various assumptions about coverage and liability and is therefore subject to change. While the Company believes its net reserves for the California Wildfires as of June 30, 2025 are adequate, it continues to closely monitor reported claims and may adjust the estimate of ultimate net losses as new information becomes available.

For the six months ended June 30, 2025, losses and loss adjustment expenses included $228.8 million of favorable development on prior years loss reserves, which included $177.9 million of net favorable development on the Company's marine and energy, property, professional liability and workers' compensation product lines within its Markel Insurance segment. Favorable development on the Markel Insurance segment's professional liability product lines was net of $127.9 million of adverse development on run-off risk-managed directors and officers product lines.

For the six months ended June 30, 2024, losses and loss adjustment expenses included $221.3 million of favorable development on prior years loss reserves, which included $165.7 million of net favorable development on the Company's international professional liability and marine and energy product lines, as well as its property product lines, within its Markel Insurance segment.