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:


	Nine Months Ended September 30,
	2026		2025
(Dollars in millions)
Gross reserves beginning of period	$	34,312	$	29,889
Less reinsurance recoverables on unpaid losses	(3,715)		(2,915)
Net reserves beginning of period	30,597		26,975

Incurred related to:
Current year	6,585		7,665
Prior years	226		537
Prior years, reserves subject to the ADC	8		—

Total incurred losses and LAE	6,819		8,203



Paid related to:
Current year	770		885
Prior years	4,804		4,670
Total paid losses and LAE	5,574		5,554

Foreign exchange/translation adjustment	(170)		607


Net reserves end of period	31,672		30,231
Plus reinsurance recoverables on unpaid losses (1)	3,616		3,511
Gross reserves end of period	$	35,288	$	33,742

(1) This amount excludes the unpaid recoverable of the adverse development reinsurance agreements of $1.26 billion as of September 30, 2026.