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Reserve for Loss and Loss Expense | 3 Months Ended
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Mar. 31, 2020
Insurance Loss Reserves [Abstract] |
Reserve for Loss and Loss Expense | Reserve for Loss and Loss Expense The table below provides a roll forward of reserve for loss and loss expense balances:
|  | Quarter Ended March 31,
($ in thousands) |  | 2020 |  | 2019
Gross reserve for loss and loss expense, at beginning of year |  | $ | 4,067,163 |  |  | 3,893,868 |
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year 1 |  | 547,066 |  |  | 537,388 |
Net reserve for loss and loss expense, at beginning of year |  | 3,520,097 |  |  | 3,356,480 |
Incurred loss and loss expense for claims occurring in the: |  |  |  |  |  |
Current year |  | 407,276 |  |  | 397,253 |
Prior years |  | (6,952 | ) |  | (10,674 | )
Total incurred loss and loss expense |  | 400,324 |  |  | 386,579 |
Paid loss and loss expense for claims occurring in the: |  |  |  |  |  |
Current year |  | 70,610 |  |  | 73,964 |
Prior years |  | 281,736 |  |  | 246,168 |
Total paid loss and loss expense |  | 352,346 |  |  | 320,132 |
Net reserve for loss and loss expense, at end of period |  | 3,568,075 |  |  | 3,422,927 |
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period |  | 535,560 |  |  | 543,582 |
Gross reserve for loss and loss expense at end of period |  | $ | 4,103,635 |  |  | 3,966,509 |
1 Includes an adjustment of $2.9 million related to our adoption of ASU 2016-13. Refer to Note 2. "Adoption of Accounting Pronouncements" for additional information. Our current year incurred losses of $407.3 million include an estimate of $10.0 million for COVID-19-related losses related to a small portion of our policies that include a $25,000 sub-limited coverage for specified extra expenses to clean or disinfect a property when ordered by a Board of Health. In most instances, COVID-19 does not cause a direct physical loss to property, and when combined with other policy wording requirements, we do not expect material business interruption losses from COVID-19. We also attach a regulatory approved virus exclusion to all standard commercial lines property and businessowners policies. Prior year reserve development in First Quarter 2020 was $7.0 million and included $10.0 million of favorable casualty reserve development in our workers compensation lines of business that was partially offset by $3.0 million of unfavorable property reserve development. Prior year reserve development in First Quarter 2019 was $10.7 million, driven by favorable casualty reserve development of $8.0 million in our workers compensation line of business and $2.0 million in our general liability line of business.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -URI http://asc.fasb.org/subtopic&trid=2560295 + Details
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