
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
	(in millions)
Unpaid losses and LAE at beginning of period	$	1,802.5	$	1,792.6	$	1,805.8	$	1,808.2
Less reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE	383.1		407.1		386.5		412.4
Net unpaid losses and LAE at beginning of period	1,419.4		1,385.5		1,419.3		1,395.8
Losses and LAE, net of reinsurance, incurred during the period related to:
Current year	124.1		141.5		254.6		262.5
Prior years	(0.3)		0.3		(0.4)		1.6
Total net losses and LAE incurred during the period	123.8		141.8		254.2		264.1
Paid losses and LAE, net of reinsurance, related to:
Current year	24.2		26.0		30.6		34.0
Prior years	123.9		115.5		247.8		240.1
Total net paid losses and LAE during the period	148.1		141.5		278.4		274.1
Ending unpaid losses and LAE, net of reinsurance	1,395.1		1,385.8		1,395.1		1,385.8
Reinsurance recoverable, excluding CECL allowance, on unpaid losses and LAE	380.1		401.0		380.1		401.0
Unpaid losses and LAE at end of period	$	1,775.2	$	1,786.8	$	1,775.2	$	1,786.8

Total net losses and LAE included in the above table exclude amortization of the Deferred Gain and LPT Reserve adjustments, when applicable, which totaled $1.5 million and $2.7 million for the three and six months ended June 30, 2026, respectively, and $1.7 million and $3.3 million for the three and six months ended June 30, 2025, respectively (see Note 9).

The change in incurred losses and LAE attributable to the current period for the three and six months ended June 30, 2026, was primarily due to lower earned premiums, partially offset by a higher current accident year loss and LAE estimate.

The change in incurred losses and LAE attributable to prior years for the three months ended June 30, 2026 included $0.3 million of net favorable loss reserve development on the Company's assigned risk business. The change in incurred losses and

The change in incurred losses and LAE attributable to the current period for the three and six months ended June 30, 2025, was due to a higher current accident loss and LAE estimate as unfavorable loss trends have been observed, predominantly in California due to the rapid increase in cumulative trauma (CT) claims. As a result of this increased loss activity, the Company reallocated observed favorable loss reserve development from accident years 2020 and prior to more recent accident years 2022 through 2024.