Loss and Loss Adjustment Expense Reserves

6 Months Ended

Jun. 30, 2026

Loss and Loss Adjustment Expense Reserves

Loss and Loss Adjustment Expense Reserves

7. Loss and Loss Adjustment Expense Reserves

The following table sets forth a reconciliation of beginning and ending reserves for losses and LAE, as shown in the Company’s consolidated financial statements for the periods indicated.


		Six Months Ended June 30,
		2026			2025
Reserves for losses and LAE at beginning of year		$	761,739		$	671,669
Less receivable from reinsurers related to unpaid losses and LAE			(149,441)			(130,792)
Net reserves for losses and LAE at beginning of year			612,298			540,877
Incurred losses and LAE, related to:
Current year			463,727			407,995
Prior years			(21,118)			(23,473)
Total incurred losses and LAE			442,609			384,522
Paid losses and LAE related to:
Current year			224,091			198,298
Prior years			173,212			176,786
Total paid losses and LAE			397,303			375,084
Net reserves for losses and LAE at end of period			657,605			550,315
Plus receivable from reinsurers related to unpaid losses and LAE			150,659			135,626
Reserves for losses and LAE at end of period		$	808,264		$	685,941

At the end of each period, the reserves were re-estimated for all prior accident years. The Company’s prior year reserves decreased by $21,118 and $23,473 for the six months ended June 30, 2026 and 2025, respectively, and resulted from re-estimations of prior year’s ultimate loss and LAE liabilities. The decreases in prior years reserves during the six months ended June 30, 2026 and 2025 are primarily composed of reductions in our retained automobile and retained homeowners lines reserves.

The Company’s automobile lines of business reserves decreased for the six months ended June 30, 2026 and 2025, primarily due to fewer incurred but not yet reported claims than previously estimated and better than previously estimated severity on the Company’s established bodily injury and property damage case reserves. Due to the nature of the risks that the Company underwrites and has historically underwritten, management does not believe that it has an exposure to asbestos or environmental pollution liabilities.