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, | | 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 | 4,421 | | | 5,307 | | | Prior years | (33) | | | 59 | | | Prior years, impact from retroactive reinsurance | — | | | — | | | Total incurred losses and LAE | 4,388 | | | 5,366 | | | | | | | | | | | | | | | Paid related to: | | | | | Current year | 479 | | | 621 | | | Prior years | 3,195 | | | 3,107 | | | Total paid losses and LAE | 3,674 | | | 3,728 | | | | | | | Foreign exchange/translation adjustment | (135) | | | 655 | | | Retroactive reinsurance adjustment | — | | | — | | | | | | | Net reserves end of period | 31,175 | | | 29,267 | | Plus reinsurance recoverables on unpaid losses (1) | 3,560 | | | 3,209 | | | Gross reserves end of period | $ | 34,735 | | | $ | 32,476 | |
(1) This amount excludes the unpaid recoverable of the adverse development reinsurance agreements of $1.26 billion as of June 30, 2026.
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