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RESERVE FOR LOSSES AND LOSS EXPENSES
 3 Months Ended
Mar. 31, 2024
Insurance [Abstract]  
RESERVE FOR LOSSES AND LOSS EXPENSES RESERVE FOR LOSSES AND LOSS EXPENSES
Reserve Roll-Forward

The following table presents a reconciliation of the Company's beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses:
Three months ended March 31,
20242023
Gross reserve for losses and loss expenses, beginning of period$16,434,018 $15,168,863 
Less reinsurance recoverable on unpaid losses and loss expenses, beginning of period(6,323,083)(5,831,172)
Net reserve for unpaid losses and loss expenses, beginning of period10,110,935 9,337,691 
Net incurred losses and loss expenses related to:
Current year728,671 724,680 
Prior years— (4,038)
 728,671 720,642 
Net paid losses and loss expenses related to:
Current year(50,724)(38,662)
Prior years(612,571)(574,538)
 (663,295)(613,200)
Foreign exchange and other(48,602)46,094 
Net reserve for unpaid losses and loss expenses, end of period10,127,709 9,491,227 
Reinsurance recoverable on unpaid losses and loss expenses, end of period6,503,188 5,823,417 
Gross reserve for losses and loss expenses, end of period$16,630,897 $15,314,644 

Estimates for Significant Catastrophe Events

At March 31, 2024, net reserves for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and complexity of losses arising from certain of these events inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. These events include Hurricane Ian, Winter Storm Elliot, June European Convective Storms, the Russia-Ukraine war and COVID-19 which occurred in 2022. As a result, actual losses for these events may ultimately differ materially from current estimates. During the three months ended March 31, 2024, the Company recognized catastrophe and weather-related losses, net of reinsurance, of $20 million (2023: $38 million).
Prior Year Reserve Development

The Company's net prior year reserve development arises from changes to estimates of losses and loss expenses related to loss events that occurred in previous calendar years. The following table presents net prior year reserve development by segment:
  Three months ended March 31,
20242023
Favorable (Adverse)Favorable (Adverse)
Insurance$— $1,041 
Reinsurance— 2,997 
Total$— $4,038 

The following sections provide further details on net prior year reserve development by segment, line of business and accident year:

Insurance Segment:

Prior year reserve development by line of business was as follows:
Three months ended March 31,
20242023
Favorable (Adverse)Favorable (Adverse)
Property$8,011 $5,900 
Accident and health— (304)
Marine and aviation(8,011)13,221 
Cyber— 8,452 
Professional lines— (12,594)
Credit and political risk— 4,519 
Liability— (18,153)
Total$— $1,041 
2024
For the three months ended March 31, 2024, net prior year reserve development of $nil was recognized, the principal components of which were: 
•$8 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence mainly related to the 2021 and 2022 accident years.
•$8 million of net adverse prior year reserve development on marine and aviation business primarily due to an increase in the loss estimate attributable to a specific large claim related to the 2019 accident year.
2023
For the three months ended March 31, 2023, the Company recognized $1 million of net favorable prior year reserve development, the principal components of which were: 
•$13 million of net favorable prior year reserve development on marine and aviation business primarily due to better than expected loss emergence mainly related to the 2021 and 2022 accident years.
•$8 million of net favorable prior year reserve development on cyber business primarily due to better than expected loss emergence mainly related to 2019 and older accident years.
•$6 million of net favorable prior year reserve development on property business primarily due to better than expected loss emergence attributable to 2018 and older accident years, partially offset by reserve strengthening related to the 2021 accident year.
•$5 million of net favorable prior year reserve development on credit and political risk business primarily due to a decrease in the loss estimate attributable to a specific large claim related to the 2020 accident year and better than expected loss emergence attributable to the Lloyds book of business related to several accident years.
•$18 million of net adverse prior year reserve development on liability business primarily due to reserve strengthening within the U.S. primary casualty book of business mainly related to the 2015, 2018 and 2021 accident years.
•$13 million of net adverse prior year reserve development on professional lines business primarily due to reserve strengthening within the U.S. commercial management solutions book of business related to several accident years and U.S. financial institutions book of business mainly related to the 2018 accident year.
Reinsurance Segment:
Prior year reserve development by line of business was as follows:
  Three months ended March 31,
  20242023
Favorable
(Adverse)		Favorable
(Adverse)
Accident and health$— $6,988 
Agriculture— 11,891 
Marine and aviation— (250)
Professional lines— (3,225)
Credit and surety— (546)
Motor— (17,122)
Liability— (32,853)
Run-off lines
Catastrophe— 31,058 
Property— 6,883 
Engineering— 173 
Total run-off lines— 38,114 
Total$— $2,997 
2024
For the three months ended March 31, 2024, net prior year reserve development of $nil was recognized.
2023
For the three months ended March 31, 2023, the Company recognized $3 million of net favorable prior year reserve development, the principal components of which were:
•$12 million of net favorable development on agriculture business primarily due to better than expected loss emergence mainly related to the 2022 accident year.
•$7 million of net favorable development on accident and health business primarily due to better than expected loss emergence mainly related to the 2022 accident year.
•$33 million of net adverse development on liability business primarily due to reserve strengthening to reflect increased estimates of future loss trend due to inflation, increases in loss estimates attributable to one large claim within the European book of business related to the 2021 accident year and reserve strengthening within the U.S. proportional book of business related to 2019 and older accident years.
•$17 million of net adverse development on motor business primarily due to reserve strengthening to reflect increased estimates of future loss trend due to inflation.
Run-off lines
•$31 million of net favorable development on catastrophe business primarily due to better than expected loss emergence mainly related to the 2022 accident year.
•$7 million of net favorable development on property business primarily due to better than expected loss emergence attributable to 2022 catastrophe events.