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Reserve For Losses, LAE And Future Policy Benefit Reserve

3 Months Ended

Mar. 31, 2020

Reserve For Losses, LAE And Future Policy Benefit Reserve [Abstract]

Reserve For Losses, LAE And Future Policy Benefit Reserve

5. RESERVE FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE

Activity in the reserve for losses and LAE is summarized for the periods indicated:

	Three Months Ended
	March 31,
(Dollars in thousands)	2020		2019
Gross reserves beginning of period	$	13,611,313	$	13,119,090
Less reinsurance recoverables		(1,640,712)		(1,619,641)
Net reserves beginning of period		11,970,601		11,499,449

Incurred related to:
Current year		1,433,440		1,050,116
Prior years		(2,600)		(1,566)
Total incurred losses and LAE		1,430,840		1,048,550

Paid related to:
Current year		168,528		103,688
Prior years		907,790		817,006
Total paid losses and LAE		1,076,318		920,694

Foreign exchange/translation adjustment and cumulative adjustment due to adoption of ASU 2016-13		(156,565)		(1,496)

Net reserves end of period		12,168,558		11,625,810
Plus reinsurance recoverables		1,651,946		1,621,292
Gross reserves end of period	$	13,820,504	$	13,247,102

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $1,433,440 thousand and $1,050,116 thousand for the three months ended March 31, 2020 and 2019, respectively. The increase in current year incurred losses in 2020 compared to 2019 was primarily due to $150,000 thousand of incurred losses due to COVID-19 as well as the impact of the increase in premiums earned.