LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES

3 Months Ended

Mar. 31, 2022

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,
	2022		2021
	(dollars in millions)
Gross loss and LAE reserves, January 1	$	320.2	$	237.2
Reinsurance recoverable on unpaid losses	(79.5)		(79.6)
Net loss and LAE reserves, January 1	240.7		157.6
Net incurred loss and LAE related to:
Current year	96.8		69.8
Prior years	(0.1)		(9.9)
Total incurred	96.7		59.9
Net paid loss and LAE related to:
Current year	36.4		25.3
Prior years	57.7		35.3
Total paid	94.1		60.6
Net loss and LAE reserves, March 31	243.3		156.9
Plus reinsurance recoverable on unpaid losses	65.1		83.8
Gross loss and LAE reserves, March 31	$	308.4	$	240.7

Incurred losses and LAE attributable to prior accident years was a decrease of $0.1 million and $9.9 million for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, the development of incurred losses related to prior periods was primarily related to lower-than-expected loss adjustment expenses on prior accident period claims, offset by higher-than-expected reported losses on material damage claims from inflationary impacts. 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.