Reserves For Losses And LAE

3 Months Ended

Mar. 31, 2020

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:

	Three Months Ended		Three Months Ended
	March 31,		March 31,
(Dollars in thousands)	2020		2019
Gross reserves beginning of period	$	10,209,519	$	10,167,018
Less reinsurance recoverables		(4,215,348)		(4,697,543)
Net reserves beginning of period		5,994,171		5,469,475
Incurred related to:
Current year		1,026,442		788,837
Prior years		3,071		7,259
Total incurred losses and LAE		1,029,513		796,096
Paid related to:
Current year		138,778		100,676
Prior years		593,482		607,365
Total paid losses and LAE		732,260		708,041
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(36,673)		7,368
Net reserves end of period		6,254,751		5,564,898
Plus reinsurance recoverables		4,016,471		4,608,571
Gross reserves end of period	$	10,271,222	$	10,173,469
(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $1,026,442 thousand for the three months ended March 31, 2020 and $788,837 thousand for the three months ended March 31, 2019, respectively. The increase in current year incurred losses in 2020 compared to 2019 was primarily due to $35,700 thousand of incurred losses due to COVID-19 as well as the impact of the increase in premiums earned.