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Provision for Unpaid Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2024
Insurance [Abstract]  
Provision for Unpaid Losses and Loss Adjustment Expenses
11 — Provision for Unpaid Losses and Loss Adjustment Expenses

The following table presents a reconciliation of the beginning and ending provision for unpaid losses and loss adjustment expenses related to Hagerty Re, net of amounts recoverable from various reinsurers:

Nine months ended September 30,
2024
2023
in thousands
Gross reserves for unpaid losses and loss adjustment expenses, beginning of year$136,507 $111,741 
Less: Reinsurance recoverable on unpaid losses and loss adjustment expenses2,235 843 
Net reserves for unpaid losses and loss adjustment expenses, beginning of year
134,272 110,898 
Incurred losses and loss adjustment expenses:
Current accident year226,515 159,461 
Prior accident year— — 
Total incurred losses and loss adjustment expenses226,515 159,461 
Payments:
Current accident year50,683 35,993 
Prior accident year59,090 44,499 
Total payments109,773 80,492 
Effect of foreign currency rate changes84 (42)
Net reserves for unpaid losses and loss adjustment expenses, end of period
251,098 189,825 
Reinsurance recoverable on unpaid losses and loss adjustment expenses7,738 959 
Gross reserves for unpaid losses and loss adjustment expenses, end of period
$258,836 $190,784 

Hagerty Re's loss reserve estimates are updated based on an evaluation of inputs from many sources, including actual claims data, the performance of prior reserve estimates, observed industry trends, and internal review processes, including the views of the Company's actuary. These inputs are used to improve evaluation techniques and to analyze and assess the change in estimated ultimate losses for each accident year by line of business. These analyses produce a range of indications from various methods, from which an actuarial point estimate is recorded.

Losses and loss adjustment expenses for the nine months ended September 30, 2024 includes $24.7 million of estimated pre-tax losses related to Hurricane Helene. Claims from Hurricane Helene, which made landfall on September 26, 2024, are still being processed. There is inherent variability in estimates of early loss projections and claims severity, particularly in high-damage regions, and therefore, the estimate may change as additional information emerges. Any losses above $28.0 million for this event will be recoverable under the Company's catastrophe reinsurance program. Refer to Note 12 — Reinsurance for additional information.