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Loss and Loss Adjustment Expense Reserves | 9 Months Ended
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Sep. 30, 2023
Insurance [Abstract] |
Loss and Loss Adjustment Expense Reserves | 9. Loss and Loss Adjustment Expense Reserves The reconciliation of the beginning and ending reserve balances for losses and loss adjustment expenses (“LAE”), net of reinsurance is summarized as follows for the nine months ended September 30, (in millions):
| 2023 |  | 2022
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period | $ | 293.8 |  |  | $ | 260.8 |
Less: Reinsurance recoverables on unpaid losses and LAE | (228.8) |  |  | (217.0) |
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period | 65.0 |  |  | 43.8 |
Add: Incurred losses and LAE, net of reinsurance, related to: |  |  |
Current year | 153.0 |  |  | 84.9 |
Prior years | (2.1) |  |  | (9.3) |
Total incurred | 150.9 |  |  | 75.6 |
Deduct: Loss and LAE payments, net of reinsurance, related to: |  |  |
Current year | 89.8 |  |  | 45.9 |
Prior years | 15.7 |  |  | 15.7 |
Total paid | 105.5 |  |  | 61.6 |
Reserve for losses and LAE, net of reinsurance recoverables at end of period | 110.4 |  |  | 57.8 |
Add: Reinsurance recoverables on unpaid losses and LAE at end of period | 249.5 |  |  | 263.7 |
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period | $ | 359.9 |  |  | $ | 321.5 |
Loss development occurs when actual losses incurred vary from the Company’s previously developed estimates, which are established through the Company’s loss and LAE reserve estimate processes. Net incurred losses and LAE experienced favorable development of $2.1 million and $9.3 million for the nine months ended September 30, 2023 and 2022, respectively. The favorable development of $2.1 million was driven primarily by the 2022 accident year, resulting in a net release of $1.0 million from catastrophe reserves, and $1.1 million from attritional reserves, which were recorded in the first six months of 2023. These changes are a result of ongoing analysis of claims emergence patterns and loss trends. The prior period’s favorable development of $9.3 million was driven primarily by the 2021 accident year, resulting in a net release of $5.0 million from attritional reserves and $4.3 million from catastrophe reserves. These changes are a result of ongoing analysis of claims emergence patterns and loss trends.

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- Definition The entire disclosure for the types of coverages and products sold, and the assets, obligations, recorded liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 7 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479838/944-20-50-7 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//944/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 310 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c)(4)(ii) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479584/944-310-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 310 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (c)(4)(iv) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479584/944-310-50-3 + Details
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