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RESERVE FOR LOSSES AND LAE | 9 Months Ended
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Sep. 30, 2025
Insurance [Abstract] |
RESERVE FOR LOSSES AND LAE | RESERVE FOR LOSSES AND LAE The following table provides a roll forward of the Company’s beginning and ending reserve for losses and LAE and is summarized for the periods indicated:
| Nine Months Ended September 30,
| 2025 |  | 2024
(Dollars in millions) |  |  |
Gross reserves beginning of period | $ | 29,889 |  |  | $ | 24,604 |
Less reinsurance recoverables on unpaid losses | (2,915) |  |  | (2,098) |
Net reserves beginning of period | 26,975 |  |  | 22,506 |
Incurred related to: |  |  |
Current year | 7,665 |  |  | 7,132 |
Prior years | 537 |  |  | — |
Total incurred losses and LAE | 8,203 |  |  | 7,132 |
Paid related to: |  |  |
Current year | 885 |  |  | 1,711 |
Prior years | 4,670 |  |  | 2,932 |
Total paid losses and LAE | 5,554 |  |  | 4,643 |
Foreign exchange/translation adjustment | 607 |  |  | 209 |
Net reserves end of period | 30,231 |  |  | 25,204 |
Plus reinsurance recoverables on unpaid losses | 3,511 |  |  | 2,276 |
Gross reserves end of period | $ | 33,742 |  |  | $ | 27,480 |
(Some amounts may not reconcile due to rounding.) Current year incurred losses were $7.7 billion and $7.1 billion for the nine months ended September 30, 2025 and 2024, respectively. Gross and net reserves increased for the nine months ended September 30, 2025, reflecting an increase in underlying exposure due to strengthening of U.S. casualty reserves, year over year, amounting to approximately $476 million of current year attritional losses in 2025 compared to 2024, which includes $83 million of losses from the Washington D.C. aviation accident, as well as an increase of $58 million in 2025 current year catastrophe losses. The net unfavorable development on prior year reserves of $537 million was primarily due to strengthening of U.S. casualty reserves and aviation losses associated with the Russia/Ukraine war of $98 million, partially offset by net favorable prior year development of $59 million, driven by the release of reserves from prior underwriting years for the property line of business. The reserve strengthening for prior year loss development was driven by elevated loss experience in excess casualty and U.S. liability lines primarily on accident years 2022-2024. In the second quarter of 2025, the United Kingdom’s High Court concluded that the confiscation of certain aircraft was covered under the war provision within certain reinsurance contracts. As a result of the court’s decision, the Company increased its net ultimate loss reserve for contracts that were exposed to the war in the Ukraine by $98 million ($84 million net of reinstatement premiums).

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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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