Losses And Loss Adjustment Expense Reserves

3 Months Ended

Mar. 31, 2018

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:



	Three Months Ended March 31,
	2018			2017

	(Amounts in thousands)
Gross reserves at January 1	$	1,510,613		$	1,290,248
Less reinsurance recoverables on unpaid losses	(64,001		)	(13,161		)
Net reserves at January 1	1,446,612			1,277,087
Incurred losses and loss adjustment expenses related to:
Current year	589,582			602,541
Prior years	42,652			4,124
Total incurred losses and loss adjustment expenses	632,234			606,665
Loss and loss adjustment expense payments related to:
Current year	254,841			275,890
Prior years	345,826			303,333
Total payments	600,667			579,223
Net reserves at March 31	1,478,179			1,304,529
Reinsurance recoverables on unpaid losses	52,794			12,404
Gross reserves at March 31	$	1,530,973		$	1,316,933

The increase in the provision for insured events of prior years in 2018 of approximately $42.7 million was primarily attributable to higher than estimated California automobile losses resulting from severity in excess of expectations for bodily injury claims.

The increase in the provision for insured events of prior years in 2017 of approximately $4.1 million was primarily attributable to higher than estimated California property losses.

For the three months ended March 31, 2018 and 2017, the Company recorded catastrophe losses of approximately $9 million and $30 million, respectively. The 2018 catastrophe losses were primarily due to winter storms and mudslides in California and winter storms in the states along the Atlantic Seaboard. The 2017 catastrophe losses were primarily due to severe rainstorms in California.