XML 29 R16.htm IDEA: XBRL DOCUMENT v3.24.3
Loss And Loss Adjustment Expense Reserves
 9 Months Ended
Sep. 30, 2024
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:
 Nine Months Ended September 30,
 20242023
 (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 period2,753,554 2,559,588 
Incurred losses and loss adjustment expenses related to:
Current year2,742,654 2,683,219 
Prior years16,463 (32,138)
Total incurred losses and loss adjustment expenses2,759,117 2,651,081 
Loss and loss adjustment expense payments related to:
Current year1,342,081 1,461,077 
Prior years1,127,033 1,052,386 
Total payments2,469,114 2,513,463 
Net reserves, end of period3,043,557 2,697,206 
Reinsurance recoverables on unpaid losses, end of period30,133 26,570 
Gross reserves, end of period$3,073,690 $2,723,776 
The increase in the provision for insured events of prior years during the nine months ended September 30, 2024 of $16.5 million was primarily attributable to higher than estimated losses and loss adjustment expenses in the commercial automobile and commercial property lines of insurance business and catastrophe losses, partially offset by favorable development in the private passenger automobile and homeowners lines of insurance business. The decrease in the provision for insured events of prior years during the nine months ended September 30, 2023 of $32.1 million was primarily attributable to lower than estimated losses and loss adjustment expenses in the private passenger automobile and homeowners lines of insurance business, partially offset by unfavorable development in the commercial property line of insurance business.

For the nine months ended September 30, 2024 and 2023, the Company incurred catastrophe losses net of reinsurance of approximately $236 million and $223 million, respectively. The majority of 2024 catastrophe losses resulted from tornadoes, hailstorms and convective storms in Texas and Oklahoma, winter storms and rainstorms in California, and the impact of Hurricane Helene in Florida and Georgia. The majority of 2023 catastrophe losses resulted from winter storms and rainstorms in California, Texas and Oklahoma, and the impact of Hurricane Hilary in California. The Company experienced unfavorable development of approximately $7 million and favorable development of approximately $4 million on prior years' catastrophe losses for the nine months ended September 30, 2024 and 2023, respectively.