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Loss and Loss Adjustment Expense Reserves
 3 Months Ended
Mar. 31, 2025
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 three months ended March 31, (in millions):
20252024
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of beginning of the period$350.0 $322.5 
Less: Reinsurance recoverables on unpaid losses and LAE(229.9)(221.4)
Reserve for losses and LAE, net of reinsurance recoverables as of beginning of the period120.1 101.1 
Add: Incurred losses and LAE, net of reinsurance, related to:
Current year95.4 52.6 
Prior years(3.0)— 
Total incurred92.4 52.6 
Deduct: Loss and LAE payments, net of reinsurance, related to:
Current year50.3 20.3 
Prior years26.8 22.2 
Total paid77.1 42.5 
Reserve for losses and LAE, net of reinsurance recoverables at end of period135.4 111.2 
Add: Reinsurance recoverables on unpaid losses and LAE at end of period265.4 225.4 
Reserve for losses and LAE gross of reinsurance recoverables on unpaid losses and LAE as of end of the period$400.8 $336.6 
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 $3.0 million for the three months ended March 31, 2025. The prior period development for the three months ended March 31, 2025 of $3.0 million was driven primarily by favorable net loss development relating to the 2024 and prior accident years, resulting in a net release of $2.9 million from attritional reserves and $0.1 million from catastrophe reserves. These changes are primarily a result of ongoing analysis of claims emergence patterns and loss trends.
The prior period development for the three months ended March 31, 2024 experienced an insignificant amount of development for the three months ended March 31, 2024.