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Loss and Loss Adjustment Expense Reserves
 9 Months Ended
Sep. 30, 2026
Insurance [Abstract]  
Loss and Loss Adjustment Expense Reserves
9. Losses and Loss Adjustment Expense Reserves
The reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses, net of reinsurance is summarized as follows:
For the nine months ended September 30,
20262025
(in millions)
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period$420.4 $350.0 
Less: Reinsurance recoverables on unpaid losses and LAE(289.0)(229.9)
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period131.4 120.1 
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year184.6 195.0 
Prior years(4.6)(10.6)
Total incurred180.0 184.4 
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year78.1 120.6 
Prior years49.5 57.2 
Total paid127.6 177.8 
Reserve for losses and LAE, net of reinsurance recoverables at end of period183.8 126.7 
Add: Reinsurance recoverables on unpaid losses and LAE at end of period458.9 257.7 
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period$642.7 $384.4 
The gross losses and LAE reserve is included in losses and loss adjustment expenses and the reinsurance recoverables are included in reinsurance recoverable on paid and unpaid losses and LAE on the unaudited interim condensed consolidated balance sheets.
Prior year loss development occurs when actual losses incurred vary from the Company’s previously estimated losses, which are established through the Company’s losses and LAE reserve estimate processes.
Net incurred losses and LAE experienced favorable prior years development of $4.6 million and $10.6 million for the nine months ended September 30, 2026 and 2025, respectively. The prior period development for the nine months ended September 30, 2026 of $4.6 million includes a $2.6 million gain from a reinsurance commutation, as well as $2.0 million of favorable net loss development from catastrophe reserves relating to the Company’s property lines, primarily from accident years 2023 and 2024. These changes are primarily a result of ongoing analysis of claims emergence patterns and loss trends.
The prior period development for the nine months ended September 30, 2025 of $10.6 million was driven primarily by favorable net loss development relating to the 2024 and prior accident years, resulting in a net release of $8.2 million from attritional reserves and $2.4 million from catastrophe reserves. These changes are primarily a result of ongoing analysis of claims emergence patterns and loss trends.