Losses And Loss Adjustment Expense Reserves

6 Months Ended

Jun. 30, 2017

Losses And Loss Adjustment Expense Reserves

Loss and Loss Adjustment Expense Reserves

The following table presents the activity in loss and loss adjustment expense reserves:



	Six Months Ended June 30,
	2017			2016

	(Amounts in thousands)
Gross reserves at January 1	$	1,290,248		$	1,146,688
Less reinsurance recoverable	(13,161		)	(14,253		)
Net reserves at January 1	1,277,087			1,132,435
Incurred losses and loss adjustment expenses related to:
Current year	1,181,108			1,127,203
Prior years	14,152			61,965
Total incurred losses and loss adjustment expenses	1,195,260			1,189,168
Loss and loss adjustment expense payments related to:
Current year	685,137			650,741
Prior years	471,973			474,124
Total payments	1,157,110			1,124,865
Net reserves at June 30	1,315,237			1,196,738
Reinsurance recoverable	11,726			14,055
Gross reserves at June 30	$	1,326,963		$	1,210,793

The increase in the provision for insured events of prior years in 2017 of approximately $14.2 million was primarily attributable to higher than estimated California property losses.

The increase in the provision for insured events of prior years in 2016 of approximately $62.0 million primarily resulted from the re-estimation of losses for California and Florida automobile liability coverages.

For the six months ended June 30, 2017 and 2016, the Company recorded catastrophe losses of approximately $40 million and $19 million, respectively. The 2017 catastrophe losses were primarily due to severe rainstorms in California, as well as storms and tornadoes in Oklahoma and Texas. The Winter of 2017 was extremely wet in California, setting new precipitation records in parts of the state. The 2016 catastrophe losses were mainly attributable to severe storms in Texas and northern California.