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, | | (Dollars in millions) | 2026 | | 2025 | | Gross reserves beginning of period | $ | 21,336 | | | $ | 19,271 | | | Less reinsurance recoverables on unpaid losses | (3,369) | | | (3,391) | | | Net reserves beginning of period | 17,966 | | | 15,880 | | | | | | | Incurred related to: | | | | | Current year | 2,625 | | | 3,375 | | | Prior years | (104) | | | 25 | | | Prior years, impact from retroactive reinsurance | — | | | — | | | Total incurred losses and LAE | 2,520 | | | 3,400 | | | | | | | Paid related to: | | | | | Current year | 693 | | | 640 | | | Prior years | 1,814 | | | 1,769 | | | Total paid losses and LAE | 2,507 | | | 2,409 | | | | | | | Foreign exchange/translation adjustment | 1 | | | 134 | | | Retroactive reinsurance adjustment | — | | | — | | | | | | | Net reserves end of period | 17,981 | | | 17,005 | | Plus reinsurance recoverables on unpaid losses (1) | 3,205 | | | 3,327 | | | Gross reserves end of period | $ | 21,187 | | | $ | 20,333 | |
(Some amounts may not reconcile due to rounding.) (1) This excludes the unpaid recoverable of the adverse development cover of $1,006 million as of June 30, 2026.
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