Historical Loss And LAE Development

9 Months Ended

Sep. 30, 2026

Historical Loss And L A E Development Disclosure [Abstract]

4. HISTORICAL LOSS AND LAE DEVELOPMENT

The following table reconciles our unpaid losses and settlement expenses (LAE):


	For the Nine Months
	Ended September 30,
(in thousands)	2026		2025
Unpaid losses and LAE at beginning of year
Gross	$	2,886,819	$	2,693,470
Ceded		(746,798)		(755,425)
Net	$	2,140,021	$	1,938,045

Increase (decrease) in incurred losses and LAE
Current accident year	$	682,665	$	623,926
Prior accident years		(98,185)		(74,112)
Total incurred	$	584,480	$	549,814

Loss and LAE payments for claims incurred
Current accident year	$	(72,996)	$	(74,868)
Prior accident years		(380,986)		(309,548)
Total paid	$	(453,982)	$	(384,416)

Net unpaid losses and LAE at September 30,	$	2,270,519	$	2,103,443

Unpaid losses and LAE at September 30,
Gross	$	2,997,555	$	2,873,054
Ceded		(727,036)		(769,611)
Net	$	2,270,519	$	2,103,443

For the first nine months of 2026, incurred losses and LAE included $98 million of favorable development on prior years’ loss reserves, primarily related to accident years 2018 through 2022, as well as 2024 and 2025. Favorable development was primarily driven by commercial property, marine, commercial transportation, commercial excess liability, surety, professional services and general liability. Although personal umbrella experienced adverse development, no product experienced significant adverse development.

For the first nine months of 2025, incurred losses and LAE included $74 million of favorable development on prior years’ loss reserves, primarily related to accident years 2019 through 2022 and 2024. Favorable development was primarily driven by commercial excess liability, marine, surety, commercial property, general liability and our mortgage reinsurance program. Commercial transportation experienced adverse development related to auto exposures, but no products experienced significant adverse development.