XML 21 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Reserves For Losses And LAE
 9 Months Ended
Sep. 30, 2018
Reserves For Losses And LAE [Abstract]  
Reserves For Losses And LAE
4.  RESERVES FOR LOSSES AND LAE

Activity in the reserve for losses and LAE is summarized for the periods indicated:


   
Nine Months Ended
    
Twelve Months Ended
  
   
September 30,
    
December 31,
  
(Dollars in thousands)
  
2018
    
2017
  
Gross reserves at January 1
  
$
9,343,028
    
$
8,331,288
  
Less reinsurance recoverables
    
(5,727,268
)
    
(4,199,791
)
Net reserves at January 1
    
3,615,760
      
4,131,497
  
                 
Incurred related to:
                
Current year
    
2,431,606
      
2,157,498
  
Prior years
    
480,706
      
(117,747
)
Total incurred losses and LAE
    
2,912,312
      
2,039,751
  
                 
Paid related to:
                
Current year
    
639,528
      
1,607,601
  
Prior years
    
1,129,263
      
957,933
  
Total paid losses and LAE
    
1,768,791
      
2,565,534
  
                 
Foreign exchange/translation adjustment
    
(23,093
)
    
10,046
  
                 
Net reserves at December 31
    
4,736,188
      
3,615,760
  
Plus reinsurance recoverables
    
4,783,290
      
5,727,268
  
Gross reserves at December 31
  
$
9,519,478
    
$
9,343,028
  


Incurred prior years' reserves increased by $480,706 thousand for the nine months ended September 30, 2018 and decreased by $117,747 thousand for the year ended December 31, 2017.  The increase for the nine months ended September 30, 2018, resulted from unfavorable development on prior years catastrophe losses related to Hurricanes Harvey, Irma and Maria, as well as the 2017 California wildfires.  The increase in loss estimates for Hurricanes Harvey, Irma and Maria was mostly driven by re-opened claims reported in the second quarter of 2018 and loss inflation from higher than expected loss adjustment expenses and in particular, their impact on aggregate covers.  The decrease for 2017 was attributable to favorable development in the reinsurance segments of $84,809 thousand related primarily to property and short-tail business in the U.S., as well as favorable development on prior year catastrophe losses, partially offset by $25,194 thousand of adverse development on A&E reserves. The insurance segment also experienced favorable development on prior year reserves of $32,938 thousand mainly on its workers compensation business, which is largely written in California.