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RESERVE FOR LOSSES AND LAE
 6 Months Ended
Jun. 30, 2025
Insurance [Abstract]  
RESERVE FOR LOSSES AND LAE RESERVE FOR LOSSES AND LAE
The following table provides a roll forward of the Company’s beginning and ending reserve for losses and LAE and is summarized for the periods indicated:
Six Months Ended
June 30,
(Dollars in millions)20252024
Gross reserves beginning of period$19,271 $15,796 
Less reinsurance recoverables on unpaid losses(3,391)(3,182)
Net reserves beginning of period15,880 12,614 
Incurred related to:
Current year3,375 2,801 
Prior years25 (20)
Total incurred losses and LAE3,400 2,781 
Paid related to:
Current year640 492 
Prior years1,769 1,665 
Total paid losses and LAE2,409 2,157 
Foreign exchange/translation adjustment134 (49)
Net reserves end of period17,005 13,189 
Plus reinsurance recoverables on unpaid losses3,327 2,990 
Gross reserves end of period$20,333 $16,178 
(Some amounts may not reconcile due to rounding.)
Current year incurred losses were $3.4 billion and $2.8 billion for the six months ended June 30, 2025 and 2024, respectively. Gross and net reserves increased for the six months ended June 30, 2025, reflecting an increase in underlying exposure due to earned premium growth, year over year, amounting to approximately $189 million current year attritional losses in 2025 compared to 2024, as well as an increase of $385 million in current year catastrophe losses in 2025.
Prior year incurred net unfavorable development of $25 million was primarily related to aviation losses associated with the Russia/Ukraine war of $57 million, partially offset by net favorable prior year development of $33 million, driven by the release of reserves from prior underwriting years for the property lines. The net unfavorable prior year loss development was recorded in the Reinsurance segment.
In the second quarter of 2025, the United Kingdom’s High Court concluded that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $57 million ($44 million net of reinstatement premiums).