Reserve for Losses and Loss Adjustment Expenses (Tables)

The following table provides a reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance, to the gross amounts reported in the condensed consolidated balance sheets. Reinsurance recoverables on unpaid losses and loss adjustment expenses are presented gross of an allowance for credit losses on reinsurance balances of $1.7 million at June 30, 2026 and March 31, 2026, $1.6 million at December 31, 2025, $1.5 million at June 30, 2025 and March 31, 2025, and $1.2 million at December 31, 2024.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Reserve for losses and loss adjustment expenses net of reinsurance recoverables at beginning of period	$	1,071,619	$	1,095,761	$	1,071,699	$	1,086,278
Add: Incurred losses and loss adjustment expenses net of reinsurance:
Current year	91,609		100,875		185,745		202,459
Prior years - retroactive reinsurance impact	6,927		9,239		21,116		7,311
Prior years - excluding retroactive reinsurance	569		3,027		404		2,896
Total incurred losses and loss adjustment expenses	99,105		113,141		207,265		212,666
Deduct: Loss and loss adjustment expense payments net of reinsurance:
Current year	2,438		4,005		3,338		5,736
Prior years	105,063		106,477		198,214		196,716
Total loss and loss adjustment expense payments	107,501		110,482		201,552		202,452
Deduct: Change in deferred reinsurance gain - retroactive reinsurance	6,927		9,239		21,116		7,311


Reserve for losses and loss adjustment expenses net of reinsurance recoverables at end of period	1,056,296		1,089,181		1,056,296		1,089,181
Add: Reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period	2,033,749		1,987,317		2,033,749		1,987,317
Reserve for losses and loss adjustment expenses gross of reinsurance recoverables on unpaid losses and loss adjustment expenses at end of period	$	3,090,045	$	3,076,498	$	3,090,045	$	3,076,498

The following tables summarize the retroactive reinsurance accounting for the Commercial Auto LPT, the E&S ADC, and the E&S Top Up ADC for the three and six months ended June 30, 2026 and 2025, respectively.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)
Commercial Auto LPT
Deferred retroactive reinsurance gain at beginning of period	$	2,336	$	7,294	$	2,927	$	9,222
Adverse prior year development ceded on subject business	(40)		(1,414)		(40)		(1,270)
Retroactive reinsurance benefits under the recovery method	(488)		71		(1,079)		(2,001)
Deferred retroactive reinsurance gain at end of period	$	1,808	$	5,951	$	1,808	$	5,951

E&S ADC
Deferred retroactive reinsurance gain at beginning of period	$	83,793	$	48,748	$	83,793	$	48,748
Adverse prior year development ceded on subject business	—		10,582		—		10,582
Retroactive reinsurance benefits under the recovery method	—		—		—		—
Deferred retroactive reinsurance gain at end of period	$	83,793	$	59,330	$	83,793	$	59,330

E&S Top Up ADC
Deferred retroactive reinsurance gain at beginning of period	$	14,780	$	—	$	—	$	—
Adverse prior year development ceded on subject business	7,455		—		22,235		—
Retroactive reinsurance benefits under the recovery method	—		—		—		—
Deferred retroactive reinsurance gain at end of period	$	22,235	$	—	$	22,235	$	—

Total
Deferred retroactive reinsurance gain at beginning of period	$	100,909	$	56,042	$	86,720	$	57,970
Adverse prior year development ceded on subject business	7,415		9,168		22,195		9,312
Retroactive reinsurance benefits under the recovery method	(488)		71		(1,079)		(2,001)
Deferred retroactive reinsurance gain at end of period	$	107,836	$	65,281	$	107,836	$	65,281