v3.25.2
Loss and Loss Adjustment Expense Reserves
 6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
Loss and Loss Adjustment Expense Reserves Loss and Loss Adjustment Expense Reserves
P&C Insurance and Reinsurance

The following table summarizes the loss and loss adjustment expense (“LAE”) reserve activity of the Ark/WM Outrigger segment for the three and six months ended June 30, 2025 and 2024:

Three Months Ended June 30,Six Months Ended June 30,
Millions2025202420252024
Gross beginning balance$2,253.9 $1,744.5 $2,127.5 $1,605.1 
Less: beginning reinsurance recoverable on unpaid
   losses
(480.6)(404.5)(434.4)(340.8)
Net loss and LAE reserves1,773.3 1,340.0 1,693.1 1,264.3 
Loss and LAE incurred relating to:
Current year losses181.1 182.6 467.4 362.9 
Prior year losses(17.1)(6.9)(69.9)(7.2)
Net incurred loss and LAE164.0 175.7 397.5 355.7 
Loss and LAE paid relating to:
Current year losses(29.5)(4.3)(112.7)(8.3)
Prior year losses(104.0)(78.8)(179.8)(175.5)
Net paid loss and LAE(133.5)(83.1)(292.5)(183.8)
Foreign currency translation and other adjustments
   to loss and LAE reserves
16.2 (1.0)21.9 (4.6)
Net ending balance1,820.0 1,431.6 1,820.0 1,431.6 
Plus: ending reinsurance recoverable on unpaid
   losses
468.5 458.5 468.5 458.5 
Gross ending balance$2,288.5 $1,890.1 $2,288.5 $1,890.1 

For the three and six months ended June 30, 2025, the Ark/WM Outrigger segment recognized $17.1 million and $69.9 million of net favorable prior year loss reserve development, driven primarily by favorable development in the property, marine & energy and specialty lines of business, partially offset by unfavorable development related to aviation losses from the conflict in Ukraine. For the three and six months ended June 30, 2024, the Ark/WM Outrigger segment recognized $6.9 million and $7.2 million of net favorable prior year loss reserve development driven primarily by the property line of business.

Financial Guarantee

As of June 30, 2025 and December 31, 2024, HG Re did not have any outstanding loss and LAE reserves. For the three and six months ended June 30, 2025 and 2024, HG Re did not recognize any incurred loss and LAE.

P&C Insurance Distribution

As of June 30, 2025 and December 31, 2024, the Bamboo Captive recorded loss and LAE reserves of $28.8 million and $17.8 million. For the three and six months ended June 30, 2025, the Bamboo Captive recognized incurred loss and LAE of $1.7 million and $12.6 million. For the three and six months ended June 30, 2024, the Bamboo Captive recognized incurred loss and LAE of $4.3 million and $10.1 million.

Other Operations

As of June 30, 2025 and December 31, 2024, the Bamboo CRV recorded loss and LAE reserves of $14.2 million and $12.1 million. For the three and six months ended June 30, 2025, the Bamboo CRV recognized incurred loss and LAE of $0.8 million and $18.2 million. For both the three and six months ended June 30, 2024, the Bamboo CRV recognized incurred loss and LAE of $3.9 million.