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Loss And Loss Adjustment Expense Reserves | 3 Months Ended
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Mar. 31, 2023
Insurance Loss Reserves [Abstract] |
Loss And Loss Adjustment Expense Reserves | Loss and Loss Adjustment Expense Reserves The following table presents the activity in loss and loss adjustment expense reserves:
| Three Months Ended March 31,
| 2023 |  | 2022
| (Amounts in thousands)
Gross reserves, beginning of period | $ | 2,584,910 |  |  | $ | 2,226,430 |
Reinsurance recoverables on unpaid losses, beginning of period | (25,322) |  |  | (41,377) |
Net reserves, beginning of period | 2,559,588 |  |  | 2,185,053 |
Incurred losses and loss adjustment expenses related to: |  |  |
Current year | 945,013 |  |  | 769,022 |
Prior years | (15,484) |  |  | 52,911 |
Total incurred losses and loss adjustment expenses | 929,529 |  |  | 821,933 |
Loss and loss adjustment expense payments related to: |  |  |
Current year | 310,102 |  |  | 261,115 |
Prior years | 531,755 |  |  | 471,258 |
Total payments | 841,857 |  |  | 732,373 |
Net reserves, end of period | 2,647,260 |  |  | 2,274,613 |
Reinsurance recoverables on unpaid losses, end of period | 30,301 |  |  | 33,213 |
Gross reserves, end of period | $ | 2,677,561 |  |  | $ | 2,307,826 |
The decrease in the provision for insured events of prior years during the three months ended March 31, 2023 of $15.5 million was primarily attributable to lower than estimated losses and loss adjustment expenses in the homeowners line of insurance business. The increase in the provision for insured events of prior years during the three months ended March 31, 2022 of $52.9 million was primarily attributable to higher than estimated losses and loss adjustment expenses in the automobile and commercial property lines of insurance business. The U.S. inflation rate accelerated to its highest level in decades in 2022, and had a significant impact on the cost of auto parts and labor as well as medical expenses for bodily injuries. Bodily injury costs were also under pressure from social inflation. The inflationary pressures continued to have a negative impact on loss severity in the automobile line of insurance business and increased losses and loss adjustment expenses for the insured events of the current accident year for the three months ended March 31, 2023 compared to the corresponding period in 2022. The Company has increased rates and filed for additional rate increases in many states and is taking various non-rate actions to improve profitability. For the three months ended March 31, 2023 and 2022, the Company incurred catastrophe losses of approximately $98 million and $22 million, respectively. No reinsurance benefits were available for these losses as none of the catastrophe events during these periods individually resulted in losses in excess of the Company's retention limit. Catastrophe losses during the three months ended March 31, 2023 resulted primarily from winter storms and rainstorms in California, Texas and Oklahoma. Catastrophe losses during the three months ended March 31, 2022 resulted primarily from winter storms in Texas and California.

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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 https://asc.fasb.org/subtopic&trid=2560295 + Details
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