
	Nine Months Ended
	September 30,
($ in thousands)	2026		2025
Gross unpaid losses and loss adjustment expenses, beginning of period	$	4,415,176	$	3,532,491
Reinsurance recoverable on unpaid losses	1,375,857		1,171,040
Net unpaid losses and loss adjustment expenses, beginning of period	3,039,319		2,361,451

Net losses and loss adjustment expenses incurred in respect of losses occurring in:
Current year	1,015,881		989,729
Prior years	37,119		(45,854)
Total incurred	1,053,000		943,875

Net losses and loss adjustment expenses paid in respect of losses occurring in:
Current year	88,957		125,827
Prior years	475,205		321,706
Total paid	564,162		447,533





Foreign currency revaluation and other	(7,820)		44,451
Net unpaid losses and loss adjustment expenses, end of period	3,520,337		2,902,244
Reinsurance recoverable on unpaid losses	1,468,584		1,303,833
Gross unpaid losses and loss adjustment expenses, end of period	$	4,988,921	$	4,206,077

Net unfavorable prior year development of $37.1 million for the nine months ended September 30, 2026 was driven by unfavorable prior year development of $51.2 million on catastrophe losses, partially offset by favorable prior year development of $14.1 million on attritional losses. See below for further details:

•Net unfavorable development of $17.2 million on casualty contracts, primarily driven by unfavorable development in certain casualty classes and additional information on one large loss;

•In addition, casualty business protected by the LPT discussed in Note 6, Reinsurance, benefited from a change in the deferred gain of $3.4 million, partially offset by unfavorable development in the underlying reserves of $3.0 million, for a total net positive earnings impact of $0.4 million.

Net favorable prior year development of $45.9 million for the nine months ended September 30, 2025 was primarily driven by $28.3 million and $17.6 million of favorable prior year development on attritional and catastrophe losses, respectively. See below for further details:

•Net favorable development of $42.0 million on property contracts, primarily driven by favorable prior year development on Hurricane Ian, the June 2023 severe convective storms and Hurricane Idalia, in addition to favorable attritional loss development;

•Net unfavorable development of $19.9 million on casualty contracts, primarily driven by unfavorable prior year development on discontinued lines of business and additional information on certain large losses; and

•In addition, casualty business protected by the LPT discussed in Note 6, Reinsurance, benefited from favorable development in the underlying reserves of $4.2 million, which was partially offset by a change in the deferred gain of $2.5 million, for a total net positive earnings impact of $1.7 million.

Reinsurance recoverable on unpaid losses related to the LPT discussed in Note 6, Reinsurance was recognized for each of the nine months ended September 30, 2026 and 2025 in the reconciliation of beginning and ending gross and net loss and LAE reserves.

The Company amortized acquisition costs of $151.0 million and $125.4 million for the three months ended September 30, 2026 and 2025, respectively, and $440.9 million and $365.1 million for the nine months ended September 30, 2026 and 2025, respectively.

The net reserves for losses and loss adjustment expenses related to the Middle East conflict are subject to significant uncertainty. As at September 30, 2026 and December 31, 2025, net recorded reserves relating to the Middle East conflict totaled $41.7 million and $Nil, respectively.

The net reserves for losses and loss adjustment expenses related to the California wildfires are also subject to significant uncertainty. As at September 30, 2026 and December 31, 2025, net recorded reserves relating to the California wildfires totaled $43.1 million and $57.5 million, respectively.

The net reserves for losses and loss adjustment expenses related to the Francis Scott Key Baltimore Bridge collapse on March 26, 2024 are also subject to significant uncertainty. As at September 30, 2026 and December 31, 2025, net recorded reserves totaled $11.8 million and $20.5 million, respectively.

The net reserves for losses and loss adjustment expenses related to the ongoing Ukraine conflict are also subject to significant uncertainty. As at September 30, 2026 and December 31, 2025, net recorded reserves totaled $74.8 million and $59.5 million, respectively.

While the Company believes, based on current facts and circumstances, that its estimates of net reserves for losses and loss adjustment expenses are adequate for losses and loss adjustment expenses that have been incurred at September 30, 2026, the Company will continue to monitor its assumptions as new information becomes available and will adjust its estimate of net reserves for losses and loss adjustment expenses as appropriate. Actual ultimate losses for these events may differ materially from the Company’s current estimates.