Unpaid Losses And Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2023

Liability for Unpaid Claims and Claims Adjustment Expense, Incurred Claims [Abstract]

Unpaid Losses And Loss Adjustment Expenses

Unpaid Losses and Loss Adjustment Expenses

The following table presents a reconciliation of consolidated beginning and ending reserves for losses and loss adjustment expenses.


	Six Months Ended June 30,
(dollars in thousands)	2023		2022
Gross reserves for losses and loss adjustment expenses, beginning of year	$	20,947,898	$	18,178,894
Reinsurance recoverables on unpaid losses, beginning of year	7,994,884		6,876,317
Net reserves for losses and loss adjustment expenses, beginning of year	12,953,014		11,302,577
Effect of foreign currency rate changes on beginning of year balance	46,000		(149,383)
Adjusted net reserves for losses and loss adjustment expenses, beginning of year	12,999,014		11,153,194
Incurred losses and loss adjustment expenses:
Current accident year	2,500,098		2,153,910
Prior accident years	(139,208)		(122,728)
Total incurred losses and loss adjustment expenses	2,360,890		2,031,182
Payments:
Current accident year	164,713		167,262
Prior accident years	1,461,051		1,291,318
Total payments	1,625,764		1,458,580
Effect of foreign currency rate changes on current year activity	(2,949)		221
Change in net reserves for losses and loss adjustment expenses of Markel CATCo Re (see note 11)	(131,874)		465,196
Reinsurance recoverable for retroactive reinsurance transaction	(125,067)		—

Net reserves for losses and loss adjustment expenses, end of period	13,474,250		12,191,213
Reinsurance recoverables on unpaid losses	7,900,563		6,871,547
Gross reserves for losses and loss adjustment expenses, end of period	$	21,374,813	$	19,062,760

For the six months ended June 30, 2023, prior accident years losses and loss adjustment expenses included $139.2 million of favorable development on prior years loss reserves, which included $169.6 million of favorable development on the Company's professional liability, property, marine and energy and workers' compensation product lines within its Insurance segment and $20.9 million of favorable development on the Company's professional liability and property product lines within its Reinsurance segment. Favorable development on prior years loss reserves for the six months ended June 30, 2023 was partially offset by $53.0 million of adverse development on the Company's general liability product lines within its Insurance segment.

For the six months ended June 30, 2022, prior accident years losses and loss adjustment expenses included $122.7 million of favorable development on prior years loss reserves, which included $123.3 million of favorable development on the Company's property, marine and energy, workers' compensation and programs product lines within the Insurance segment.

In March 2023, the Company completed a retroactive reinsurance transaction to cede its portfolio of policies comprised of liabilities for its run-off book of United Kingdom motor casualty business in exchange for payments totaling $125.1 million, which approximated the carrying value of the Company's reserves for losses and loss adjustment expenses on the ceded policies.