Reserves for Losses and Loss Adjustment Expenses

The following table represents a reconciliation of beginning and ending consolidated loss and loss adjustment expenses (“LAE”) reserves for the three months ended March 31, 2019 and 2018 and the twelve months ended December 31, 2018:



	Three Months Ended March 31, 2019			Three Months Ended March 31, 2018			Twelve Months Ended December 31, 2018
	($ in millions)
Provision for losses and LAE at the start of the year	$	7,074.2		$	6,749.5		$	6,749.5
Less reinsurance recoverable	(2,077.6		)	(1,515.2		)	(1,515.2		)
Net loss and LAE at the start of the year	4,996.6			5,234.3			5,234.3

Provision for losses and LAE for claims incurred:
Current year	304.2			347.9			1,684.1
Prior years	7.6			(37.7		)	(111.1		)
Total incurred	311.8			310.2			1,573.0
Losses and LAE payments for claims incurred:
Current year	(7.1		)	(7.4		)	(285.7		)
Prior years	(474.8		)	(483.7		)	(1,441.0		)
Total paid	(481.9		)	(491.1		)	(1,726.7		)

Foreign exchange losses/(gains)	50.9			14.7			(84.0		)

Net losses and LAE reserves at period end	4,877.4			5,068.1			4,996.6
Plus reinsurance recoverable on unpaid losses at period end	2,122.9			1,611.3			2,077.6
Provision for losses and LAE at the end of the relevant period	$	7,000.3		$	6,679.4		$	7,074.2

For the three months ended March 31, 2019, there was an increase of $7.6 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to a reduction of $37.7 million for the three months ended March 31, 2018. For additional information on the reserve releases, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Reserves for Losses and Loss Adjustment Expenses”.