The Company determines the reserve for unpaid losses on an individual-case basis for all incidents reported. The liability also includes amounts which are commonly referred to as incurred but not reported, or “IBNR”, claims as of the balance sheet date. The Company estimates its IBNR reserves by projecting its ultimate losses using industry accepted actuarial methods and then deducting actual loss payments and case reserves from the projected ultimate losses.


	Three Months Ended June 30,						Six Months Ended June 30,
	2026			2025			2026			2025
	(In thousands)
Balance, beginning of period	$	544,043		$	848,928		$	579,477		$	1,042,687
Less: reinsurance recoverable on unpaid losses		226,485			509,391			269,367			675,652
Net balance, beginning of period		317,558			339,537			310,110			367,035
Incurred related to:
Current year		84,437			77,872			184,215			185,077
Prior years		(23,380	)		(2,252	)		(31,561	)		(10,050	)
Total incurred		61,057			75,620			152,654			175,027
Paid related to:
Current year		59,845			47,488			91,971			103,015
Prior years		23,406			39,386			75,428			110,764
Total paid		83,251			86,874			167,399			213,779
Net balance, end of period		295,364			328,283			295,364			328,283
Plus: reinsurance recoverable on unpaid losses		186,633			384,900			186,633			384,900
Balance, end of period	$	481,997		$	713,183		$	481,997		$	713,183

The Company believes that the reserve for unpaid losses reasonably represents the amount necessary to pay all claims and related expenses which may arise from incidents that have occurred as of the balance sheet date.

As of June 30, 2026, the Company reported $295.4 million in unpaid losses and loss adjustment expenses, net of reinsurance which included $225.9 million attributable to IBNR net of reinsurance recoverable, or 76.5% of net reserves for unpaid losses and loss adjustment expenses.

Reinsurance recoverable on unpaid losses includes expected reinsurance recoveries associated with reinsurance contracts the Company has in place. The amount may include recoveries from catastrophe excess of loss reinsurance, net quota share reinsurance, per risk reinsurance, and facultative reinsurance contracts.