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RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE
 6 Months Ended
Jun. 30, 2023
Insurance [Abstract]  
RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE RESERVES FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE
Activity in the reserve for losses and loss adjustment expenses (“LAE”) is summarized for the periods indicated:
Six Months Ended
June 30,
(Dollars in millions)20232022
Gross reserves beginning of period$14,977 $13,121 
Less reinsurance recoverables on unpaid losses(3,684)(3,651)
Net reserves beginning of period11,294 9,470 
Incurred related to:
Current year2,720 2,521 
Prior years(1)9 
Total incurred losses and LAE2,719 2,530 
Paid related to:
Current year937 775 
Prior years1,019 1,063 
Total paid losses and LAE1,956 1,838 
Foreign exchange/translation adjustment15 (17)
Net reserves end of period12,072 10,145 
Plus reinsurance recoverables on unpaid losses3,440 3,593 
Gross reserves end of period$15,512 $13,738 
(Some amounts may not reconcile due to rounding.)
Current year incurred losses were $2.7 billion and $2.5 billion for the six months ended June 30, 2023 and 2022, respectively. Gross and net reserves increased for the six months ended June 30, 2023, reflecting an increase in underlying exposure due to earned premium growth year over year and the impact of a decrease of $24 million in current year catastrophe losses in 2023 compared to 2022. The Company has estimated and recognized $25 million of reinsurance recoveries related to Hurricane Ian.