Loss And Loss Adjustment Expense Reserves

3 Months Ended

Mar. 31, 2024

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,
	2024		2023

	(Amounts in thousands)
Gross reserves, beginning of period	$	2,785,702	$	2,584,910
Reinsurance recoverables on unpaid losses, beginning of period	(32,148)		(25,322)
Net reserves, beginning of period	2,753,554		2,559,588
Incurred losses and loss adjustment expenses related to:
Current year	909,810		945,013
Prior years	(5,845)		(15,484)
Total incurred losses and loss adjustment expenses	903,965		929,529
Loss and loss adjustment expense payments related to:
Current year	301,198		310,102
Prior years	527,348		531,755
Total payments	828,546		841,857
Net reserves, end of period	2,828,973		2,647,260
Reinsurance recoverables on unpaid losses, end of period	30,247		30,301
Gross reserves, end of period	$	2,859,220	$	2,677,561

The decrease in the provision for insured events of prior years during the three months ended March 31, 2024 of $5.8 million was primarily attributable to lower than estimated loss adjustment expenses in the private passenger automobile line of insurance business, partially offset by unfavorable development on prior years' catastrophe losses. 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.

For the three months ended March 31, 2024 and 2023, the Company incurred catastrophe losses net of reinsurance of approximately $72 million and $98 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, 2024 resulted primarily from winter storms and rainstorms in California and convective storms in Texas and Oklahoma. Catastrophe losses during the three months ended March 31, 2023 resulted primarily from winter storms and rainstorms in California, Texas and Oklahoma. The Company experienced unfavorable development of approximately $4 million on prior years' catastrophe losses for the three months ended March 31, 2024. There was no material development on prior years' catastrophe losses for the three months ended March 31, 2023.