Reserve for Losses and Loss Adjustment Expenses (Tables)

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $1.7 million at March 31, 2026, $1.6 million at December 31, 2025, $1.5 million at March 31, 2025 and $1.2 million at December 31, 2024.


	Three Months Ended March 31,
		2026		2025
		(in thousands)
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period		$	1,071,699	$	1,086,278
Add: Incurred losses and loss adjustment expenses net of reinsurance:
Current year		94,136		101,584
Prior years - retroactive reinsurance		14,189		(1,928)
Prior years - excluding retroactive reinsurance		(165)		(131)
Total incurred losses and loss and adjustment expenses		108,160		99,525
Deduct: Loss and loss adjustment expense payments net of reinsurance:
Current year		900		1,731
Prior years		93,151		90,239
Total loss and loss adjustment expense payments		94,051		91,970
Deduct: Change in deferred reinsurance gain - retroactive reinsurance		14,189		(1,928)


Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period		1,071,619		1,095,761
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period		2,016,229		1,985,779
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period		$	3,087,848	$	3,081,540

The following tables summarize the retroactive reinsurance accounting for the Commercial Auto LPT, the E&S ADC, and the E&S Top Up ADC for the three months ended March 31, 2026 and 2025, respectively.


	Three Months Ended March 31,
	2026		2025
	(in thousands)
Commercial Auto LPT
Deferred retroactive reinsurance gain at beginning of period	$	2,927	$	9,222
Adverse prior year development ceded on subject business	—		144
Retroactive reinsurance benefits under the recovery method	(591)		(2,072)
Deferred retroactive reinsurance gain at end of period	$	2,336	$	7,294

E&S ADC
Deferred retroactive reinsurance gain at beginning of period	$	83,793	$	48,748
Adverse prior year development ceded on subject business	—		—
Retroactive reinsurance benefits under the recovery method	—		—
Deferred retroactive reinsurance gain at end of period	$	83,793	$	48,748

E&S Top Up ADC
Deferred retroactive reinsurance gain at beginning of period	$	—	$	—
Adverse prior year development ceded on subject business	14,780		—
Retroactive reinsurance benefits under the recovery method	—		—
Deferred retroactive reinsurance gain at end of period	$	14,780	$	—

Total
Deferred retroactive reinsurance gain at beginning of period	$	86,720	$	57,970
Adverse prior year development ceded on subject business	14,780		144
Retroactive reinsurance benefits under the recovery method	(591)		(2,072)
Deferred retroactive reinsurance gain at end of period	$	100,909	$	56,042