v3.26.1
Reserve for Losses and Loss Adjustment Expenses (Tables)
 3 Months Ended
Mar. 31, 2026
Insurance [Abstract]  
Schedule of Reserve for Losses and Loss Adjustment Expenses
Activity in the reserve for losses and loss adjustment expenses is summarized as follows:
(In thousands)Three Months Ended March 31, 2026Three Months Ended March 31, 2025Year Ended December 31, 2025
Balance, beginning of year$3,018,396 $3,257,696 $3,257,696 
Less reinsurance recoverables on unpaid losses and loss adjustment expenses334,612 409,069 409,069 
Net balance, beginning of year2,683,784 2,848,627 2,848,627 
Net losses:
Current year
179,100 190,852 755,732 
(Favorable) unfavorable development of reserves established in prior years, net(1)
(4,906)(892)(90,314)
Total174,194 189,960 665,418 
Paid related to:
Current year(9,601)(10,051)(102,589)
Prior years(200,500)(221,980)(743,592)
Total paid(210,101)(232,031)(846,181)
Foreign currency exchange rate (gains) losses(2)
(2,499)4,798 15,920 
Net balance, end of period2,645,378 2,811,354 2,683,784 
Plus reinsurance recoverables on unpaid losses and loss adjustment expenses334,900 369,413 334,612 
Balance, end of period$2,980,278 $3,180,767 $3,018,396 
(1) Net prior accident year reserve development recognized for the three months ended March 31, 2026 and 2025 as well as the year ended December 31, 2025 included $0.7 million, $1.0 million and $3.4 million, respectively, of
amortization of the purchase accounting fair value adjustment on NORCAL's assumed net reserve and amortization of the negative VOBA associated with NORCAL's DDR reserve which is recorded as a reduction to prior accident year net losses and loss adjustment expenses.
(2) Foreign currency exchange rate (gains) losses are related to foreign currency denominated loss reserves associated with international insurance exposures in the Specialty P&C segment, primarily related to a strategic partnership with an international medical professional liability insured. Foreign currency exchange rate (gains) losses on foreign currency denominated loss reserves are reflected through net income (loss) as a component of other income (expense) in the Condensed Consolidated Statements of Income and Comprehensive Income and reported in the Corporate segment.