RESERVE FOR LOSSES, LAE AND FUTURE POLICY BENEFIT RESERVE

9 Months Ended

Sep. 30, 2023

RESERVE 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:


	Nine Months Ended September 30,
	2023		2022
(Dollars in millions)
Gross reserves beginning of period	$	22,065	$	19,009
Less reinsurance recoverables on unpaid losses	(2,105)		(1,946)
Net reserves beginning of period	19,960		17,063

Incurred related to:
Current year	6,175		6,291
Prior years	(2)		(2)
Total incurred losses and LAE	6,173		6,289

Paid related to:
Current year	2,071		1,794
Prior years	2,381		1,841
Total paid losses and LAE	4,452		3,635

Foreign exchange/translation adjustment	(43)		(605)

Net reserves end of period	21,637		19,112
Plus reinsurance recoverables on unpaid losses	2,196		2,110
Gross reserves end of period	$	23,833	$	21,222

(Some amounts may not reconcile due to rounding.)

Current year incurred losses were $6.2 billion and $6.3 billion for the nine months ended September 30, 2023 and 2022, respectively. Gross and net reserves increased for the nine months ended September 30, 2023, reflecting an increase in underlying exposure due to earned premium growth, year over year, amounting to approximately $604 million in 2023 current year attritional losses compared to 2022, offset by a decrease of $723 million in 2023 current year catastrophe losses.