Loss and Loss Adjustment Expense Reserves (Tables)

6 Months Ended

Jun. 30, 2024

Schedule of liability for unpaid claims and claims adjustment expense

The following table summarizes the loss and loss adjustment expense (“LAE”) reserve activity of the Ark/WM Outrigger segment for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,				Six Months Ended June 30,
Millions	2024		2023		2024		2023
Gross beginning balance	$	1,744.5	$	1,345.6	$	1,605.1	$	1,296.5
Less: beginning reinsurance recoverable on unpaid losses (1)	(404.5)		(348.9)		(340.8)		(505.0)
Net loss and loss adjustment expense reserves	1,340.0		996.7		1,264.3		791.5

Loss and loss adjustment expenses incurred relating to:
Current year losses	182.6		156.5		362.9		295.7
Prior year losses	(6.9)		11.0		(7.2)		19.6
Net incurred loss and loss adjustment expenses	175.7		167.5		355.7		315.3



Loss and loss adjustment expenses paid relating to:
Current year losses	(4.3)		(5.6)		(8.3)		(9.6)
Prior year losses	(78.8)		(103.0)		(175.5)		(190.7)
Net paid loss and loss adjustment expenses	(83.1)		(108.6)		(183.8)		(200.3)

Change in TPC Providers’ participation (2)	—		—		—		145.4
Foreign currency translation and other adjustments to loss and loss adjustment expense reserves	(1.0)		2.7		(4.6)		6.4
Net ending balance	1,431.6		1,058.3		1,431.6		1,058.3
Plus: ending reinsurance recoverable on unpaid losses	458.5		362.7		458.5		362.7
Gross ending balance	$	1,890.1	$	1,421.0	$	1,890.1	$	1,421.0

(1) The beginning reinsurance recoverable on unpaid losses includes amounts attributable to TPC Providers of $145.4 as of December 31, 2022.

(2) Amount represents the impact to net loss and loss adjustment expense reserves due to a change in the TPC Providers’ participation related to the annual RITC process.