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Loss and Loss Adjustment Expense Reserves
 6 Months Ended
Jun. 30, 2024
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 six months ended June 30, (in millions):
20242023
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period$322.5 $293.8 
Less: Reinsurance recoverables on unpaid losses and LAE(221.4)(228.8)
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period101.1 65.0 
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year114.9 116.6 
Prior years(1.9)(2.2)
Total incurred113.0 114.4 
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year61.4 45.4 
Prior years33.9 14.7 
Total paid95.3 60.1 
Reserve for losses and LAE, net of reinsurance recoverables at end of period118.8 119.3 
Add: Reinsurance recoverables on unpaid losses and LAE at end of period228.1 248.3 
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period$346.9 $367.6 
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 $1.9 million and $2.2 million for six months ended June 30, 2024 and 2023, respectively. The prior period development in 2024 of $1.9 million was driven primarily by favorable net loss development relating to the 2023 accident year, resulting in a net release of $1.9 million from catastrophe reserves. These changes are primarily a result of ongoing analysis of claims emergence patterns and loss trends. The prior period development in 2023 of $2.2 million was driven primarily by favorable net loss development relating primarily to the 2022 accident year, resulting in a net release of $1.0 million from catastrophe reserves and $1.2 million from attritional reserves. These changes are primarily a result of ongoing analysis of claims emergence patterns and loss trends.