
	June 30, 2025		June 30, 2024
Gross reserves for loss and loss adjustment expenses, beginning of period	$	5,653.9	$	5,608.1
Less: loss and loss adjustment expenses recoverable, beginning of period	(2,315.3)		(2,295.1)
Less: deferred gains on retroactive reinsurance contracts	8.5		27.5
Net reserves for loss and loss adjustment expenses, beginning of period	3,347.1		3,340.5

Increase (decrease) in net loss and loss adjustment expenses incurred in respect of losses occurring in:
Current year	817.3		721.9
Prior years	(42.9)		(40.0)
Total incurred loss and loss adjustment expenses	774.4		681.9
Net loss and loss adjustment expenses paid in respect of losses occurring in:
Current year	(297.9)		(94.4)
Prior years	(325.7)		(511.2)
Total net paid losses	(623.6)		(605.6)
Foreign currency translation	55.6		20.5

Net reserves for loss and loss adjustment expenses, end of period	3,553.5		3,437.3
Plus: loss and loss adjustment expenses recoverable, end of period	2,263.9		2,191.5
Plus: deferred gains on retroactive reinsurance (1)	—		(22.8)
Gross reserves for loss and loss adjustment expenses, end of period	$	5,817.4	$	5,606.0

For the six months ended June 30, 2025, the Company recorded $42.9 million of net favorable prior year loss reserve development primarily driven by favorable development in Property, mainly from reserve releases relating to prior year’s catastrophe events, as well as favorable development in A&H, due to lower than expected reported attritional losses.

For the six months ended June 30, 2024, the Company recorded $40.0 million of net favorable prior year loss reserve development primarily resulting from favorable development on one contract in runoff, as well as decreased ultimate losses in Credit in the Reinsurance segment and A&H, partially offset by increases in the Environmental business.

On April 30, 2024, SiriusPoint America Insurance Company (“SiriusPoint America”), a subsidiary of the Company, entered into the Master Agreement, dated as of April 30, 2024, made by and between SiriusPoint America and Clarendon National Insurance Company (“Clarendon National”), an insurer domiciled in Texas and an affiliate of Enstar Group Limited, a Bermuda exempted company (“Enstar”). The Company received the appropriate regulatory approvals and the transaction closed on October 1, 2024.

Pursuant to the Master Agreement, on the closing of the transactions contemplated therein, among other documents, (a) SiriusPoint America and Clarendon National entered into a Loss Portfolio Transfer Reinsurance Agreement (the “2024 LPT”), pursuant to which SiriusPoint America cedes and Clarendon National assumes 100% of the net liability with respect to certain workers’ compensation insurance exposures of SiriusPoint America (the “Subject Business”) on a funds withheld basis, subject to the terms and conditions of the 2024 LPT including an aggregate limit; (b) SiriusPoint America and an affiliate of Clarendon National (the “Administrator”) entered into an Administrative Services Agreement concerning the Administrator’s authority and responsibility for certain administrative services related to the Subject Business, including claims handling; and (c) Enstar issued a Parental Guarantee in favor of SiriusPoint America guaranteeing Clarendon National’s obligations under the 2024 LPT. In certain circumstances and in lieu of the guarantee obligations provided thereunder, Clarendon National may post letters of credit as collateral securing Clarendon National’s reinsurance obligations with respect to the Subject Business. Immediately prior to the effective date of the 2024 LPT, SiriusPoint commuted certain ceded workers’ compensation reinsurance contracts, and the liabilities related to those commuted contracts are included in the Subject Business.

The transaction price of approximately $400 million covered SiriusPoint loss and unearned premium reserves, including commuted liabilities, and the reinsurance premium as of the December 31, 2023 valuation date. The subject loss reserves are included in Loss and loss adjustment expenses recoverable in the Company’s consolidated balance sheets. The agreement between SiriusPoint America and Clarendon National is on a funds withheld basis, and the funds held liability (including reinsurance premium) of $256.6 million as of June 30, 2025 is included within Reinsurance balances payable in the Company’s consolidated balance sheets. The aggregate limit under the 2024 LPT is 150% of the premium paid.

On March 2, 2023, the Company agreed, subject to applicable regulatory approvals and other closing conditions, to enter into a loss portfolio transfer transaction (the “2023 LPT”), on a funds withheld basis, with Pallas Reinsurance Company Ltd., a subsidiary of the Compre Group, an insurance and reinsurance legacy specialist. The transaction covered loss reserves ceded initially estimated at $1.3 billion as of the valuation date of September 30, 2022, which were reduced to $905.6 million as of June 30, 2023 at closing, as a result of paid losses and favorable prior accident year reserve development recognized during the interim period, and included in Loss and loss adjustment expenses recoverable in the Company’s consolidated balance sheets. As of June 30, 2025, the Company recorded funds held payable of $469.9 million in Reinsurance balances payable and reinsurance recoverable of $484.1 million. The 2023 LPT comprises several classes of business from 2021 and prior underwriting years. The aggregate limit under the 2023 LPT is 130% of roll forward reserves at the inception of the contract.