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Losses And Loss Adjustment Expenses
 12 Months Ended
Dec. 31, 2014
Insurance Loss Reserves [Abstract]  
Losses and Loss Adjustment Expenses
Losses and Loss Adjustment Expenses
Activity in the reserves for losses and loss adjustment expenses is summarized as follows:
 
Year Ended December 31,
 
2014
 
2013
 
2012
 
(Amounts in thousands)
Gross reserves at January 1
$
1,038,984

 
$
1,036,123

 
$
985,279

Less reinsurance recoverable
(13,927
)
 
(12,155
)
 
(7,921
)
Net reserves at January 1
1,025,057

 
1,023,968

 
977,358

Incurred losses and loss adjustment expenses related to:
 
 
 
 
 
Current year
1,989,315

 
1,959,730

 
1,919,116

Prior years
(3,193
)
 
2,960

 
42,332

Total incurred losses and loss adjustment expenses
1,986,122

 
1,962,690

 
1,961,448

Loss and loss adjustment expense payments related to:
 
 
 
 
 
Current year
1,347,967

 
1,354,074

 
1,314,748

Prior years
585,899

 
607,527

 
600,090

Total payments
1,933,866

 
1,961,601

 
1,914,838

Net reserves at year-end
1,077,313

 
1,025,057

 
1,023,968

Reinsurance recoverable
14,484

 
13,927

 
12,155

Gross reserves at year-end
$
1,091,797

 
$
1,038,984

 
$
1,036,123



The decrease in the provision for insured events of prior years in 2014 of approximately $3 million primarily resulted from lower than expected loss severity on California personal auto lines of business partially offset by adverse development in other states.

The increase in the provision for insured events of prior years in 2013 of approximately $3 million primarily resulted from Florida claims that were re-opened from prior years due to a state supreme court ruling that was adverse to the insurance industry.

The increase in the provision for insured events of prior years in 2012 of approximately $42 million primarily resulted from the re-estimate of accident years 2010 and 2011 California BI losses which have experienced higher average severities and more late reported claims than were originally estimated at December 31, 2011. Additionally, the Company experienced unfavorable development on the run-off of California commercial taxi business and Florida homeowners business. 2012 accident year losses were also impacted by higher loss severity and frequency on the California private passenger automobile line of business.

The Company experienced estimated pre-tax losses and loss adjustment expenses from severe weather events of $11 million, $17 million, and $39 million in 2014, 2013, and 2012, respectively. The losses in 2014 were primarily related to winter freeze events on the East Coast and the severe rainstorms in California. The losses in 2013 were primarily due to tornadoes in Oklahoma and severe storms in the Midwest and the Southeast regions during the second quarter. The losses in 2012 were primarily due to Hurricane Sandy and wind and hail storms in the Midwest region.