Reserves For Losses And LAE

9 Months Ended

Sep. 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:

	Nine Months Ended September 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		3,288,049		2,709,367
Prior years		(4,853)		28,044
Total incurred losses and LAE		3,283,196		2,737,411
Paid related to:
Current year		856,707		505,856
Prior years		1,275,408		1,600,956
Total paid losses and LAE		2,132,115		2,106,812
Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(5,954)		(2,720)
Net reserves end of period		7,139,298		6,097,354
Plus reinsurance recoverables		3,902,713		4,314,820
Gross reserves end of period	$	11,042,011	$	10,412,174
(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $3,288,049 thousand for the nine months ended September 30, 2020 and $2,709,367 thousand for the nine months ended September 30, 2019, respectively. The increase in current year incurred losses in 2020 compared to 2019 was primarily due to $104,831 thousand of incurred losses due to COVID-19 as well as the impact of the increase in premiums earned.