Reserves For Losses And LAE

6 Months Ended

Jun. 30, 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:

	Six Months Ended June 30,
(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		2,006,988		1,615,277
Prior years		(1,643)		24,041
Total incurred losses and LAE		2,005,345		1,639,318
Paid related to:
Current year		474,372		391,381
Prior years		1,025,866		1,144,204
Total paid losses and LAE		1,500,238		1,535,585
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(26,906)		228
Net reserves end of period		6,472,371		5,573,437
Plus reinsurance recoverables		3,910,952		4,574,975
Gross reserves end of period	$	10,383,323	$	10,148,412
(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $2,006,988 thousand for the six months ended June 30, 2020 and $1,615,277 thousand for the six months ended June 30, 2019, respectively. The increase in current year incurred losses in 2020 compared to 2019 was primarily due to $73,691 thousand of incurred losses due to COVID-19 as well as the impact of the increase in premiums earned.