LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

3 Months Ended

Mar. 31, 2021

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

The following provides a reconciliation of the beginning and ending reserve balances for loss and LAE, net of reinsurance:


	Three Months Ended March 31,
	2021		2020
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	237.2	$	140.7
Reinsurance recoverable on unpaid losses	(79.6)		(18.9)
Net loss and LAE reserves, January 1	157.6		121.8
Net incurred loss and LAE related to:
Current year	69.8		122.0
Prior years	(9.9)		7.9
Total incurred	59.9		129.9
Net paid loss and LAE related to:
Current year	25.3		44.1
Prior years	35.3		54.2
Total paid	60.6		98.3
Net loss and LAE reserves, March 31	156.9		153.4
Plus reinsurance recoverable on unpaid losses	83.8		22.2
Gross loss and LAE reserves, March 31	$	240.7	$	175.6

Incurred losses and LAE attributable to prior accident years was a decrease of $9.9 million and an increase of $7.9 million for the three months ended March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021, the development of incurred losses related to prior periods was primarily related to lower-than-expected reported losses on bodily injury and uninsured motorist bodily injury claims and greater than expected recoveries from subrogation and salvage from 2020. For the three months ended March 31, 2020, the development of incurred losses and related to prior periods was primarily related to higher-than-expected reported losses on bodily injury and collision coverages from 2019.