Reserves for Loss and Loss Expenses (Tables)

9 Months Ended

Sep. 30, 2022

The table below provides a reconciliation of the beginning and ending reserve balances:


	September 30,
(In thousands)	2022		2021
Net reserves at beginning of period	$	12,848,362	$	11,620,393


Net provision for losses and loss expenses:
Claims occurring during the current year (1)	4,260,179		3,598,969
Increase in estimates for claims occurring in prior years (2) (3)	54,632		1,552
Loss reserve discount accretion	24,835		23,109
Total	4,339,646		3,623,630
Net payments for claims:
Current year	643,908		547,082
Prior years	2,499,319		2,161,877
Total	3,143,227		2,708,959
Foreign currency translation	(193,755)		(53,935)
Net reserves at end of period	13,851,026		12,481,129
Ceded reserves at end of period	2,689,097		2,438,447
Gross reserves at end of period	$	16,540,123	$	14,919,576

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(1) Claims occurring during the current year are net of loss reserve discounts of $26 million and $16 million for the nine months ended September 30, 2022 and 2021, respectively.

(2) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years increased by $20 million and decreased by $13 million for the nine months ended September 30, 2022 and 2021, respectively.

(3) For certain retrospectively rated insurance policies and reinsurance agreements, reserve development is offset by additional or return premiums. Adverse development, net of additional and return premiums, was $37 million for the nine months ended September 30, 2022, and favorable development was $5 million for the nine months ended September 30, 2021, respectively.