Historical Loss And LAE Development

9 Months Ended

Sep. 30, 2023

Historical Loss And L A E Development Disclosure [Abstract]

Historical Loss And LAE Development

4. HISTORICAL LOSS AND LAE DEVELOPMENT

The following table is a reconciliation of our unpaid losses and settlement expenses (LAE) for the first nine months of 2023 and 2022:

	For the Nine Months
	Ended September 30,
(in thousands)	2023		2022
Unpaid losses and LAE at beginning of year
Gross	$	2,315,637	$	2,043,555
Ceded		(740,089)		(608,086)
Net	$	1,575,548	$	1,435,469
Increase (decrease) in incurred losses and LAE
Current accident year	$	551,975	$	491,559
Prior accident years		(93,986)		(103,032)
Total incurred	$	457,989	$	388,527
Loss and LAE payments for claims incurred
Current accident year	$	(113,010)	$	(52,435)
Prior accident years		(252,786)		(219,682)
Total paid	$	(365,796)	$	(272,117)
Net unpaid losses and LAE at September 30,	$	1,667,741	$	1,551,879
Unpaid losses and LAE at September 30,
Gross	$	2,488,695	$	2,322,737
Ceded		(820,954)		(770,858)
Net	$	1,667,741	$	1,551,879

For the first nine months of 2023, incurred losses and LAE included $94 million of favorable development on prior years’ loss reserves, largely from accident years 2016 through 2018 and 2020 through 2022. Commercial excess, executive products, general liability, professional services, personal umbrella, surety and commercial property were drivers of the favorable development. No products experienced significant adverse development.

For the first nine months of 2022, incurred losses and LAE included $103 million of favorable development on prior years’ loss reserves, largely from accident years 2018 through 2021. General liability, professional services, transportation, executive products, commercial excess, marine and surety were drivers of the favorable development. No products experienced significant adverse development.