Liability for Unpaid Losses and Loss Adjustment Expenses

Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:


	Quarters Ended June 30,					Six Months Ended June 30,
(Dollars in thousands)	2025		2024			2025		2024
Balance at beginning of period	$	794,848	$	853,602		$	800,391	$	850,599
Less: ceded reinsurance receivables		62,731		71,814			60,754		72,829
Net balance at beginning of period		732,117		781,788			739,637		777,770
Net losses and loss adjustment expenses related to:
Current year		52,946		53,744			119,681		107,127
Prior years		2		(82	)		5		(81	)
Total net losses and loss adjustment expenses		52,948		53,662			119,686		107,046
Paid net losses and loss adjustment expenses related to:
Current year		15,785		18,489			33,776		24,086
Prior years		52,631		43,147			108,898		86,916
Total paid net losses and loss adjustment expenses		68,416		61,636			142,674		111,002
Net balance at end of period		716,649		773,814			716,649		773,814
Plus: ceded reinsurance receivables		59,478		70,392			59,478		70,392
Balance at end of period	$	776,127	$	844,206		$	776,127	$	844,206

When analyzing unpaid losses and loss adjustment expenses ("loss reserves") and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

Belmont Insurance Companies - Core (“Belmont Core”) had an increase of $1.4 million consisting of (i) $4.2 million decrease for property lines primarily related to the 2022 through 2024 accident years and (ii) $5.6 million increase for casualty lines primarily related to the 2020 through 2022 accident years.

Belmont Insurance Companies - Non-Core ("Belmont Non-Core") had an decrease of $1.4 million mainly driven by its property lines for the 2020 through 2022 accident years.

Belmont Core had a decrease of $0.5 million consisting of (i) $0.4 million decrease for property lines related to the 2020 through 2022 accident years and (ii) $0.1 million decrease for casualty lines across various accident years.

Belmont Non-Core had an increase of $0.4 million driven by its casualty lines across various accident years.

Belmont Core had an increase of $1.4 million consisting of (i) $4.6 million decrease for property lines primarily related to the 2022 through 2024 accident years and (ii) $6.0 million increase for casualty lines primarily related to the 2020 through 2022 accident years.

Belmont Non-Core had a decrease of $1.4 million mainly driven by its property lines for the 2020 through 2022 accident years.

Belmont Core had a decrease of $0.4 million consisting of (i) $0.3 million decrease for property lines related to the 2020 and 2021 accident years and (ii) $0.1 million decrease for casualty lines across various accident years.

Belmont Non-Core had an increase of $0.3 million consisting of (i) $0.5 million increase for property lines in the 2019, 2020 and 2022 accident years, (ii) a $0.5 million increase in aggregate for casualty lines across various accident years, and (iii) $0.7 million decrease in reinsurance across various accident years.