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Reserves for Unpaid Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2026
Liability for Unpaid Claims and Claims Adjustment Expense, Activity in Liability [Abstract]  
Reserves for Unpaid Losses and Loss Adjustment Expenses Reserves For Unpaid Losses and Loss Adjustment Expenses
The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses:
September 30,
20262025
(in thousands)
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year
$2,890,870 $2,285,668 
Less: reinsurance recoverable on unpaid losses
381,356 323,060 
Net reserves for unpaid losses and loss adjustment expenses, beginning of year
2,509,514 1,962,608 
Incurred losses and loss adjustment expenses:
Current year755,883 723,350 
Prior years(57,763)(45,853)
Total net losses and loss adjustment expenses incurred698,120 677,497 
Payments:
Current year48,193 43,393 
Prior years248,989 211,855 
Total payments297,182 255,248 
Net reserves for unpaid losses and loss adjustment expenses, end of period
2,910,452 2,384,857 
Reinsurance recoverable on unpaid losses413,824 380,330 
Gross reserves for unpaid losses and loss adjustment expenses, end of period
$3,324,276 $2,765,187 
During the nine months ended September 30, 2026, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2025 developed favorably by $57.8 million, of which $66.3 million was attributable to the 2021 through 2025 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in the shorter-tail lines of business. This favorable development was offset in part by adverse development primarily in the construction liability business in the 2017 through 2019 accident years.
During the nine months ended September 30, 2025, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2024 developed favorably by $45.9 million, of which $53.8 million was attributable to the 2020 through 2024 accident years due to lower emergence of reported losses than expected across most lines of business, particularly in the property lines of business. This favorable development was offset in part by adverse development primarily in the construction liability business in the 2016 through 2019 accident years and adjustments to actuarial assumptions in the 2020 through 2024 accident years to reflect inflation uncertainty around construction defect exposures. Current accident year incurred losses and loss adjustment expenses for the nine months ended September 30, 2025 included $27.5 million of net catastrophe losses primarily related to the Palisades Fire.