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: | | | | | | | | | | | | | Three Months Ended
March 31, | | 2026 | | 2025 | | (Dollars in millions) | | | | | Gross reserves beginning of period | $ | 34,312 | | | $ | 29,889 | | | Less reinsurance recoverables on unpaid losses | (3,715) | | | (2,915) | | | Net reserves beginning of period | 30,597 | | | 26,975 | | | | | | | Incurred related to: | | | | | Current year | 2,250 | | | 2,893 | | | Prior years | (33) | | | — | | | Prior years, impact from retroactive reinsurance | — | | | — | | | Total incurred losses and LAE | 2,217 | | | 2,893 | | | | | | | | | | | | | | | Paid related to: | | | | | Current year | 297 | | | 410 | | | Prior years | 1,268 | | | 1,346 | | | Total paid losses and LAE | 1,565 | | | 1,755 | | | | | | | Foreign exchange/translation adjustment | (145) | | | 224 | | | Retroactive reinsurance adjustment | — | | | — | | | | | | | Net reserves end of period | 31,104 | | | 28,337 | | Plus reinsurance recoverables on unpaid losses (1) | 3,545 | | | 3,175 | | | Gross reserves end of period | $ | 34,649 | | | $ | 31,512 | |
(1) This amount excludes the unpaid recoverable of the adverse development reinsurance agreements of $1.25 billion as of March 31, 2026.
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