Reserve for Loss and Loss Expense

3 Months Ended

Mar. 31, 2021

The table below provides a roll forward of reserve for loss and loss expense balances:


	Quarter ended March 31,
($ in thousands)	2021		2020
Gross reserve for loss and loss expense, at beginning of year	$	4,260,355	4,067,163
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of year1	554,269		547,066
Net reserve for loss and loss expense, at beginning of year	3,706,086		3,520,097
Incurred loss and loss expense for claims occurring in the:
Current year	447,170		407,276
Prior years	(33,769)		(6,952)
Total incurred loss and loss expense	413,401		400,324
Paid loss and loss expense for claims occurring in the:
Current year	80,158		70,610
Prior years	243,687		281,736
Total paid loss and loss expense	323,845		352,346
Net reserve for loss and loss expense, at end of period	3,795,642		3,568,075
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	564,546		535,560
Gross reserve for loss and loss expense at end of period	$	4,360,188	4,103,635

1First Quarter 2020 includes an adjustment of $2.9 million related to our adoption of ASU 2016-13, Financial Instruments - Credit Losses.

Prior year reserve development in First Quarter 2021 was favorable by $33.8 million, which included $35.0 million of casualty reserve development that was partially offset by $1.2 million of unfavorable property reserve development. The favorable casualty reserve development included $15.0 million of development in our workers compensation lines of business, $15.0 million in our general liability line of business, and $5.0 million in our Excess and Surplus ("E&S") casualty lines of business.

Prior year reserve development in First Quarter 2020 was favorable by $7.0 million and included $10.0 million of favorable casualty reserve development in our workers compensation line of business that was partially offset by $3.0 million of unfavorable property reserve development.