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Reserve for Losses and Loss Adjustment Expenses | 6 Months Ended
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Jun. 30, 2025
Liability for Future Policy Benefits and Unpaid Claims and Claims Adjustment Expense [Abstract] |
Reserve for losses and loss adjustment expenses | The following table represents an analysis of losses and loss adjustment expenses and a reconciliation of the beginning and ending reserve for losses and loss adjustment expenses:
| Three Months Ended |  | Six Months Ended
| June 30, |  | June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Reserve for losses and loss adjustment expenses at beginning of period | $ | 30,946 |  |  | $ | 23,705 |  |  | $ | 29,369 |  |  | $ | 22,752 |
Unpaid losses and loss adjustment expenses recoverable | 8,379 |  |  | 7,069 |  |  | 7,821 |  |  | 6,690 |
Net reserve for losses and loss adjustment expenses at beginning of period | 22,567 |  |  | 16,636 |  |  | 21,548 |  |  | 16,062 |
Net incurred losses and loss adjustment expenses relating to losses occurring in: |  |  |  |  |  |  |
Current year | 2,456 |  |  | 1,948 |  |  | 5,240 |  |  | 3,800 |
Prior years | (153) |  |  | (121) |  |  | (350) |  |  | (245) |
Total net incurred losses and loss adjustment expenses | 2,303 |  |  | 1,827 |  |  | 4,890 |  |  | 3,555 |
Net losses and loss adjustment expense reserves of acquired businesses (1) | 50 |  |  | 50 |  |  | 50 |  |  | 50 |
Net foreign exchange (gains) losses and other | 400 |  |  | (10) |  |  | 593 |  |  | (94) |
Net paid losses and loss adjustment expenses relating to losses occurring in: |  |  |  |  |  |  |
Current year | (424) |  |  | (193) |  |  | (865) |  |  | (285) |
Prior years | (1,320) |  |  | (927) |  |  | (2,640) |  |  | (1,905) |
Total net paid losses and loss adjustment expenses | (1,744) |  |  | (1,120) |  |  | (3,505) |  |  | (2,190) |
Net reserve for losses and loss adjustment expenses at end of period | 23,576 |  |  | 17,383 |  |  | 23,576 |  |  | 17,383 |
Unpaid losses and loss adjustment expenses recoverable | 8,513 |  |  | 7,083 |  |  | 8,513 |  |  | 7,083 |
Reserve for losses and loss adjustment expenses at end of period | $ | 32,089 |  |  | $ | 24,466 |  |  | $ | 32,089 |  |  | $ | 24,466 |
(1) Activity in the 2025 periods related to the MCE Acquisition (see note 2). Activity in the 2024 periods related to the acquisition of RMIC Companies, Inc. and its wholly-owned subsidiaries that, together, comprise the run-off mortgage insurance business of Old Republic International Corporation. Prior year development (“PYD”) arises from changes in loss estimates during the current period related to events occurring in prior calendar years. Long-tailed lines include lines of business that typically take many years for claims to settle such as third-party liability; short-tailed lines are those that settle more quickly such as property. The table below summarizes (favorable) and adverse net PYD by segment and tail length:
| Three Months Ended |  | Six Months Ended
(Favorable) Adverse | June 30, |  | June 30,
2025 | Short-tailed |  | Long-tailed |  | Total |  | Short-tailed |  | Long-tailed |  | Total
Insurance | $ | (13) |  |  | $ | 5 |  |  | $ | (8) |  |  | $ | (28) |  |  | $ | 3 |  |  | $ | (25) |
Reinsurance | (75) |  |  | (6) |  |  | (81) |  |  | (202) |  |  | 2 |  |  | (200) |
Mortgage | (64) |  |  | — |  |  | (64) |  |  | (125) |  |  | — |  |  | (125) |
Total | $ | (152) |  |  | $ | (1) |  |  | $ | (153) |  |  | $ | (355) |  |  | $ | 5 |  |  | $ | (350) |
2024 |  |  |  |  |  |  |  |  |  |  |
Insurance | $ | (13) |  |  | $ | 8 |  |  | $ | (5) |  |  | $ | (30) |  |  | $ | 15 |  |  | $ | (15) |
Reinsurance | (48) |  |  | 14 |  |  | (34) |  |  | (91) |  |  | 17 |  |  | (74) |
Mortgage | (82) |  |  | — |  |  | (82) |  |  | (156) |  |  | — |  |  | (156) |
Total | $ | (143) |  |  | $ | 22 |  |  | $ | (121) |  |  | $ | (277) |  |  | $ | 32 |  |  | $ | (245) |
2025 Second Quarter The insurance segment’s short-tailed lines included $7 million of favorable development in travel and accident, primarily from the 2024 accident year (i.e., the year in which a loss occurred). Long-tailed lines included $14 million of adverse development in programs business, primarily from the 2018 and 2023 accident years. The reinsurance segment’s short-tailed lines included $60 million of favorable development from property other than property catastrophe business, primarily from the 2023 and 2024 underwriting years (i.e., all premiums and losses attributable to contracts having an inception or renewal date within the given 12 month period). Long-tailed lines included $6 million of favorable development, primarily from the 2022 to 2023 underwriting years. The mortgage segment’s favorable development was driven by reductions on reserves for delinquent loans associated with the U.S. first lien portfolio from the 2024 accident year, with the credit risk transfer and international businesses also contributing. 2024 Second Quarter The insurance segment’s short-tailed lines included $20 million of favorable development in surety business, primarily from the 2007 accident year, partially offset by $15 million of adverse development in property, energy, marine and aviation business, primarily from the 2022 accident year. Long-tailed lines included $9 million of adverse development in programs business, primarily from the 2022 and 2023 accident years. The reinsurance segment’s short-tailed lines included $30 million of favorable development related to property other than property catastrophe business, primarily from the 2022 and 2023 underwriting years. Long-tailed lines included $14 million of adverse development in casualty, primarily from the 2020 and 2021 underwriting years. The mortgage segment’s favorable development was driven by reserve releases associated with the U.S. first lien portfolio from the 2023 accident year, with the credit risk transfer and international businesses also contributing to the favorable development. Six Months Ended June 30, 2025 The insurance segment’s short-tailed lines included $15 million of favorable development in travel and accident, primarily from the 2023 and 2024 accident years, and $11 million of favorable development in property, energy, marine and aviation, primarily from the 2024 accident year. The reinsurance segment’s short-tailed lines included $89 million of favorable development from property other than property catastrophe business and $86 million of favorable development from property catastrophe, primarily from the 2023 and 2024 underwriting years for both lines. The mortgage segment’s favorable development was driven by reserve releases associated with the U.S. first lien portfolio from the 2024 accident year, with the credit risk transfer and international businesses also contributed to the favorable development. Six Months Ended June 30, 2024 The insurance segment’s short-tailed lines included $25 million of favorable development surety business, primarily from the 2007 and 2022 accident years. Long-tailed lines included $17 million of adverse development in programs business, primarily from the 2020 to 2023 accident years. The reinsurance segment’s short-tailed lines included $51 million of favorable development from property other than property catastrophe business, primarily from the 2022 and 2023 underwriting years and $37 million of favorable development from other specialty business, primarily from the 2021 and 2022 underwriting years. Long-tailed lines included $17 million of adverse development in casualty, primarily from the 2017 underwriting year. The mortgage segment’s favorable development was driven by reserve releases associated with the U.S. first lien portfolio from the 2022 to 2023 accident years, with the credit risk transfer and international businesses also contributing to the favorable development.

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- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944-40/tableOfContent + Details
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