Liability for Unpaid Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2026

Liability for Unpaid Losses and Loss Adjustment Expenses

6. Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:


	Quarters Ended June 30,				Six Months Ended June 30,
(Dollars in thousands)	2026		2025		2026		2025
Balance at beginning of period	$	747,143	$	794,848	$	750,191	$	800,391
Less: ceded reinsurance receivables		62,789		62,731		60,898		60,754
Net balance at beginning of period		684,354		732,117		689,293		739,637
Net losses and loss adjustment expenses related to:
Current year		53,047		52,946		106,908		119,681
Prior years		—		2		—		5
Total net losses and loss adjustment expenses		53,047		52,948		106,908		119,686
Paid net losses and loss adjustment expenses related to:
Current year		8,971		15,785		19,462		33,776
Prior years		71,490		52,631		119,799		108,898
Total paid net losses and loss adjustment expenses		80,461		68,416		139,261		142,674
Net balance at end of period		656,940		716,649		656,940		716,649
Plus: ceded reinsurance receivables		61,575		59,478		61,575		59,478
Balance at end of period	$	718,515	$	776,127	$	718,515	$	776,127

When analyzing unpaid losses and loss adjustment expenses ("loss reserves") and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

During the second quarter of 2026, the Company's adjustments to prior accident year loss reserves netted to zero for both Belmont Insurance Companies - Core (“Belmont Core”) and Belmont Insurance Companies - Non-Core ("Belmont Non-Core").

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Belmont Core's adjustments to prior accident year loss reserves consist of (i) $21.5 million decrease for property lines primarily related to the 2023 through 2025 accident years and (ii) $21.5 million increase for casualty lines primarily related to the 2020 through 2022 COVID period accident years resulting from terminated products.

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Belmont Non-Core's adjustments to prior accident year loss reserves consist of (i) $3.1 million decrease for property lines primarily related to 2017 through 2023 accident years and (ii) $3.1 million increase for casualty lines primarily related to 2019 through 2023 accidents years.

During the second quarter of 2025, the Company's adjustments to prior accident year loss reserves netted to an increase of less than $0.1 million.

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Belmont Core had an increase of $1.4 million consisting of (i) $4.2 million decrease for property lines primarily related to the 2022 through 2024 accident years and (ii) $5.6 million increase for casualty lines primarily related to the 2020 through 2022 COVID period accident years resulting from terminated products.

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Belmont Non-Core had a decrease of $1.4 million mainly driven by its property lines for the 2020 through 2022 accident years.

During the first six months of 2026, the Company's adjustments to prior accident year loss reserves netted to zero for both Belmont Core and Belmont Non-Core.

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Belmont Non-Core's adjustments to prior accident year loss reserves consist of (i) $3.2 million decrease for property lines primarily related to 2017 through 2023 accident years and (ii) $3.2 million increase for casualty lines primarily related to 2019 through 2023 accidents years.

During the first six months of 2025, the Company's adjustments to prior accident year loss reserves netted to an increase of less than $0.1 million.

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Belmont Core had an increase of $1.4 million consisting of (i) $4.6 million decrease for property lines primarily related to the 2022 through 2024 accident years and (ii) $6.0 million increase for casualty lines primarily related to the 2020 through 2022 COVID period accident years resulting from terminated products.

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Belmont Non-Core had a decrease of $1.4 million mainly driven by its property lines for the 2020 through 2022 accident years.