Reserve for Loss and Loss Expense

9 Months Ended

Sep. 30, 2025

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


	Nine Months ended September 30,
($ in thousands)	2025		2024
Gross reserve for loss and loss expense, at beginning of period	$	6,589,801	5,336,911
Less: reinsurance recoverable on unpaid loss and loss expense, at beginning of period	1,022,245		618,601
Net reserve for loss and loss expense, at beginning of period	5,567,556		4,718,310
Incurred loss and loss expense for claims occurring in the:
Current year	2,319,158		2,212,750
Prior years	70,096		182,748
Total incurred loss and loss expense	2,389,254		2,395,498
Paid loss and loss expense for claims occurring in the:
Current year	594,811		638,494
Prior years	1,199,822		1,053,299
Total paid loss and loss expense	1,794,633		1,691,793
Net reserve for loss and loss expense, at end of period	6,162,177		5,422,015
Add: Reinsurance recoverable on unpaid loss and loss expense, at end of period	914,245		1,029,981
Gross reserve for loss and loss expense, at end of period	$	7,076,422	6,451,996

Prior year reserve development in Nine Months 2025 was unfavorable by $70.1 million, consisting of $90.0 million of unfavorable casualty reserve development, partially offset by $19.9 million of favorable property reserve development. Our Standard Commercial Lines segment drove the unfavorable casualty reserve development consisting of (i) $60.0 million in our commercial automobile line of business, related to increased severities primarily in accident years 2022 through 2024 and (ii) $20.0 million in our general liability line of business, driven by higher severities primarily in accident years 2022 through 2024. We also had unfavorable development of $10.0 million in our personal automobile line of business, primarily related to increased severities in accident year 2024.

Prior year reserve development in Nine Months 2024 was unfavorable by $182.7 million, consisting of $211.0 million of unfavorable casualty reserve development, partially offset by $28.3 million of favorable property reserve development. Our Standard Commercial Lines segment drove the unfavorable casualty reserve development consisting of (i) $216.0 million in our general liability line of business, primarily driven by increased severities in accident years 2020 through 2023, (ii) $20.0 million in our commercial automobile line of business, partially offset by (iii) $20.0 million of favorable casualty reserve development in our workers compensation line of business and (iv) $5.0 million in our bonds line of business.

Additionally in Nine Months 2024, in our Standard Personal Lines segment, we had unfavorable casualty reserve development of $5.0 million in our personal automobile line of business, offset by favorable development of $5.0 million in our homeowners line of business.