LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

6 Months Ended

Jun. 30, 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:


	Six Months Ended June 30,
	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	178.7		213.7
Prior years	(8.6)		13.0
Total incurred	170.1		226.7
Net paid loss and LAE related to:
Current year	81.3		105.9
Prior years	55.7		83.5
Total paid	137.0		189.4
Net loss and LAE reserves, June 30	190.7		159.1
Plus reinsurance recoverable on unpaid losses	81.8		31.2
Gross loss and LAE reserves, June 30	$	272.5	$	190.3

Incurred losses and LAE attributable to prior accident years was a decrease of $8.6 million and an increase of $13.0 million for the six months ended June 30, 2021 and 2020, respectively. For the six months ended June 30, 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 six months ended June 30, 2020, the development of incurred losses related to prior periods was primarily related to higher-than-expected reported losses on bodily injury, uninsured and under-insured bodily injury, property damage and collision coverages.