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RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES
 12 Months Ended
Dec. 31, 2025
Insurance Loss Reserves [Abstract]  
RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES RESERVES FOR LOSSES AND LOSS SETTLEMENT EXPENSES
Property insurance indemnifies an insured with an interest in physical property for loss of, or damage to, such property or the loss of its income-producing abilities. Casualty insurance is primarily concerned with losses caused by injuries to persons and legal liability imposed on the insured for such injury or for damage to property of others. In most cases, casualty insurance also obligates the insurance company to provide a defense for the insured in litigation, arising out of events covered by the policy.
Liabilities for losses and loss settlement expenses reflect management's best estimates at a given point in time of what we expect to pay for claims that have been reported and those that have been incurred but not reported ("IBNR"), based on known facts, circumstances, and historical trends. Because property and casualty insurance reserves are estimates of the unpaid portions of incurred losses that have been reported to us, as well as losses that have been IBNR, the establishment of appropriate reserves, including reserves for catastrophes, is an inherently uncertain and complex process. The ultimate cost of losses and related loss settlement expenses may vary materially from recorded amounts. We regularly update our reserve estimates as new information becomes available and as events unfold that may affect the resolution of unsettled claims. Changes in prior year reserve estimates, which may be material, are reported as a component of losses and loss settlement expenses incurred in the period such changes are determined.
The determination of reserves (particularly those relating to liability lines of insurance that have relatively longer lag in claim reporting) requires significant estimates to reasonably project expected future claim reporting and payment patterns. If, during the course of our regular monitoring of reserves, we determine that coverages previously written are incurring higher than expected losses, we will evaluate an appropriate response that may include, among other things, increasing the related reserves. Any adjustments we make to reserves are reflected in operating results in the year in which we make those adjustments. In addition to our internal process, we engage a third-party firm to provide an independent and unbiased assessment of our reserves to assist in establishing appropriate reserves.
On a quarterly basis, we perform a detailed review of IBNR reserves. There are two fundamental types or sources of IBNR reserves. We record IBNR reserves for "normal" types of claims and also specific IBNR reserves related to unique circumstances or events. A major hurricane is an example of an event that might necessitate establishing specific IBNR reserves because an analysis of existing historical data would not provide an appropriate estimate.
We do not discount loss reserves based on the time value of money. 

The following table provides an analysis of changes in our property and casualty losses and loss settlement expense reserves (net of reinsurance) for the years ended December 31, 2025, 2024 and 2023:

   
Years Ended December 31,202520242023
Gross liability for losses and loss settlement expenses
at beginning of year		$1,796,782 $1,638,755 $1,497,274 
Ceded losses and loss settlement expenses(198,083)(191,640)(146,875)
Net liability for losses and loss settlement expenses
at beginning of year		$1,598,699 $1,447,115 $1,350,399 
Losses and loss settlement expenses incurred
for claims occurring during
   Current year$778,480 $745,813 $701,664 
   Prior years(14,078)(1,208)67,750 
Total incurred$764,402 $744,605 $769,414 
Losses and loss settlement expense payments
for claims occurring during
   Current year$194,149 $186,322 $191,899 
   Prior years457,759 406,699 480,800 
Total paid$651,908 $593,021 $672,699 
Net liability for losses and loss settlement expenses
at end of year		$1,711,193 $1,598,699 $1,447,115 
Ceded losses and loss settlement expenses213,633 198,083 191,640 
Gross liability for losses and loss settlement expenses
at end of year		$1,924,826 $1,796,782 $1,638,755 

Generally, we base case reserves for each claim on the estimated ultimate exposure for that claim. However, due to the uncertainty associated with the ultimate claim settlement values and additional claims not yet reported, we believe that it is appropriate and reasonable to establish a best estimate for reserves within a range of reasonable estimates, especially when we are reserving for claims for bodily injury, disabilities and similar claims, for which settlements and verdicts can vary widely. We believe our approach produces recorded reserves that are consistent as to their relative position within a range of reasonable reserves from year-to-year. However, conditions and trends that have affected the reserve development for a given year do change. Therefore, such development cannot be used to project future reserve redundancies or deficiencies.

Our IBNR methodologies and assumptions are reviewed periodically for appropriateness and reasonability. Items reviewed and revised include development factors for paid and reported loss, paid development factors for allocated LAE, expected loss and LAE ratios, as well as selected frequency and severity trend factors.

Because of the type of property coverage we write, we have potential exposure to environmental pollution, mold and asbestos claims. Our underwriters are aware of these exposures and use riders or endorsements to limit exposure. We are not aware of any significant contingent liabilities related to environmental issues.
Reserve Development

Prior year development for non-catastrophe was favorable $5.2 million for the year ended December 31, 2025. This compares to neutral development recorded in 2024. Favorable results in several lines were largely offset by increases in other liability reserves exposed to potential future uncertainty associated with social inflation influences prevalent across the industry.

Prior year development for the year ended December 31, 2024 improved over 2023 with neutral development recorded in 2024 as favorable results in several lines were offset by increases in other liability reserves exposed to potential future uncertainty associated with social inflation influences prevalent across the industry.

The significant drivers of the adverse reserve development for the year ended December 31, 2023 were the commercial other liability and commercial automobile lines of business. The adverse development in commercial other liability was primarily in our excess and surplus lines excess casualty book along with some adverse development in standard umbrella and construction defect due to increasing severity pressures. The increases on these longer tailed lines, especially in accident years 2016-2019, related to social and economic inflation. The commercial automobile line of business also experienced adverse development related to increasing severity largely in post-COVID-19 accident years. The remaining lines experienced small amounts of reserve development.
The following tables provide information about incurred and paid losses and loss settlement expense development as of December 31, 2025, net of reinsurance, as well as cumulative development, cumulative claim frequency and IBNR liabilities.
The cumulative number of reported claims, for calendar years 2025, 2024 and 2023, are counted for all lines of business on a per claimant per coverage basis and a single event may result in multiple claims due to the involvement of multiple individual claimants and/or multiple independent coverages. Claim counts for calendar years 2016 and prior are counted on a per claim and per coverage basis. Claim counts include open claims, claims that have been paid and closed, and reported claims that have been closed without the need for any payment.

Line of business: Commercial other liability
Incurred losses and allocated loss settlement expenses, net of reinsuranceAs of December 31, 2025
For the years ended December 31,Total of incurred but not reported liabilities plus expected development on reported claimsCumulative developmentCumulative number of reported claims
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$139,144 $130,041 $136,275 $142,397 $140,784 $148,324 $153,490 $159,284 $164,989 $171,819 $9,488 32,675 8,613 
2017139,602 139,032 152,547 156,369 159,653 173,091 174,013 176,073 183,879 14,517 44,277 10,270 
2018163,059 172,894 176,496 187,841 197,696 207,501 213,536 221,615 18,694 58,556 9,588 
2019149,173 169,344 183,918 179,667 186,205 187,539 193,998 21,822 44,825 9,194 
2020171,013 158,022 162,471 179,080 181,687 183,575 32,978 12,562 8,608 
2021145,822 162,359 162,879 176,770 175,956 43,852 30,134 6,492 
2022161,826 175,579 181,924 189,588 42,104 27,762 3,590 
2023172,398 173,529 178,568 65,882 6,170 3,209 
2024215,235 202,111 126,954 (13,124)2,588 
2025228,026 186,005 1,451 
Total$1,929,135 
Line of business: Commercial other liability
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
For the years ended December 31,
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$13,782 $38,184 $63,526 $88,885 $102,757 $115,107 $126,561 $136,400 $141,445 $157,582 
201717,716 43,172 70,500 91,984 111,085 128,430 138,127 148,295 159,008 
201816,200 44,772 79,168 105,515 130,942 158,851 179,469 191,737 
201918,221 46,986 72,179 102,510 127,650 138,236 159,813 
202017,011 43,596 60,114 98,592 110,931 130,020 
202112,434 33,642 59,278 90,607 111,221 
202210,468 42,168 69,896 112,472 
20239,335 41,847 70,767 
202410,732 30,442 
202510,271 
Total$1,133,333 
All outstanding liabilities for unpaid losses and loss settlement expenses before 2016, net of reinsurance15,406 
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance$811,208 
Line of business: Commercial fire and allied
Incurred losses and allocated loss settlement expenses, net of reinsuranceAs of December 31, 2025
For the years ended December 31,Total of incurred but not reported liabilities plus expected development on reported claimsCumulative developmentCumulative number of reported claims
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$147,473 $144,208 $143,721 $143,724 $143,108 $144,109 $145,351 $142,644 $142,814 $142,574 $336 (4,899)7,604 
2017155,139 160,240 160,945 161,693 161,232 161,456 161,611 161,051 161,091 533 5,952 9,889 
2018143,280 146,950 146,378 146,010 147,356 147,058 147,085 146,947 679 3,667 13,548 
2019164,030 155,482 158,475 157,667 155,850 155,114 155,306 743 (8,724)10,821 
2020207,207 201,391 202,929 207,256 209,588 209,344 1,079 2,137 11,266 
2021156,794 169,669 157,905 157,534 158,798 (18,686)2,004 14,678 
2022161,776 170,594 171,958 173,023 8,832 11,247 5,397 
2023164,526 147,904 146,384 11,545 (18,142)4,457 
2024124,467 109,389 22,029 (15,078)4,115 
2025112,017 41,229 4,474 
Total$1,514,873 
Line of business: Commercial fire and allied
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
For the years ended December 31,
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$92,895 $125,962 $132,429 $137,907 $139,353 $141,104 $142,248 $141,008 $142,038 $142,044 
201799,484 137,058 145,900 152,219 157,512 159,286 159,456 160,487 160,543 
201892,770 123,559 133,703 137,794 141,841 145,021 145,954 146,015 
2019100,980 136,084 142,342 150,196 151,739 153,893 154,217 
2020128,704 173,055 192,902 197,602 205,357 207,336 
202197,451 140,406 154,242 161,705 169,172 
202296,160 138,479 150,710 158,616 
202375,304 106,083 119,537 
202458,228 74,052 
202553,340 
Total$1,384,872 
All outstanding liabilities for unpaid losses and loss settlement expenses before 2016, net of reinsurance890 
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance$130,890 
Line of business: Commercial automobile
Incurred losses and allocated loss settlement expenses, net of reinsuranceAs of December 31, 2025
For the years ended December 31,Total of incurred but not reported liabilities plus expected development on reported claimsCumulative developmentCumulative number of reported claims
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$174,018 $175,357 $174,337 $175,658 $173,823 $174,588 $175,016 $175,387 $173,858 $173,760 $72 (258)20,092 
2017227,919 224,553 235,110 233,159 233,007 233,535 234,229 231,093 230,174 245 2,255 27,325 
2018236,629 245,173 253,045 255,017 255,409 255,198 252,642 251,687 542 15,058 32,919 
2019279,229 291,139 289,929 282,155 282,680 276,095 273,186 427 (6,043)34,526 
2020243,360 216,951 196,412 194,162 188,556 187,245 702 (56,115)34,792 
2021179,880 172,599 173,708 169,172 165,608 512 (14,272)24,254 
2022157,165 161,672 160,303 155,585 5,790 (1,580)12,435 
2023153,502 146,433 145,295 9,688 (8,207)10,472 
2024156,028 147,877 22,743 (8,151)11,270 
2025172,715 67,055 14,725 
Total$1,903,132 
Line of business: Commercial automobile
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
For the years ended December 31,
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$66,013 $103,528 $128,156 $148,224 $164,341 $168,950 $171,380 $172,928 $173,661 $173,673 
201781,311 126,644 166,170 197,893 212,947 223,076 228,749 228,129 229,444 
201881,572 138,092 187,405 211,123 235,519 244,284 249,009 250,815 
201991,919 153,244 205,614 246,801 264,151 268,355 270,603 
202067,660 109,686 138,158 161,798 174,175 181,079 
202164,381 99,116 128,283 146,436 160,062 
202262,477 95,785 124,853 139,429 
202356,175 85,483 110,254 
202451,283 81,488 
202550,660 
Total$1,647,507 
All outstanding liabilities for unpaid losses and loss settlement expenses before 2016, net of reinsurance628 
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance$256,254 
Line of business: Workers' compensation
Incurred losses and allocated loss settlement expenses, net of reinsuranceAs of December 31, 2025
For the years ended December 31,Total of incurred but not reported liabilities plus expected development on reported claimsCumulative developmentCumulative number of reported claims
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$70,419 $66,575 $61,648 $55,168 $53,964 $52,870 $53,090 $53,617 $53,574 $53,430 $955 (16,989)5,696 
201776,184 69,528 55,982 51,874 49,362 47,801 48,074 47,943 47,709 1,164 (28,475)7,988 
201871,972 67,883 59,192 56,109 53,813 54,783 54,238 53,818 987 (18,154)8,250 
201952,136 49,189 49,336 48,945 49,084 49,807 50,749 127 (1,387)8,109 
202045,365 46,612 43,724 46,624 45,524 45,598 (506)233 7,453 
202145,177 42,283 39,649 40,287 40,390 132 (4,787)4,599 
202229,597 26,721 27,398 27,743 1,379 (1,854)1,916 
202329,262 28,742 26,389 1,588 (2,873)1,508 
202432,202 31,328 1,075 (874)1,764 
202540,944 6,816 2,431 
Total$418,098 
Line of business: Workers' compensation
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
For the years ended December 31,
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$14,413 $32,345 $40,680 $45,743 $47,082 $48,277 $50,127 $51,023 $51,126 $51,344 
201714,647 31,309 38,082 41,672 43,833 45,508 45,742 46,154 46,202 
201816,949 35,369 43,189 47,173 48,807 49,964 50,031 50,381 
201913,582 29,668 38,382 43,044 46,101 47,308 48,263 
202017,603 29,605 35,542 39,479 42,052 42,992 
202117,949 29,453 34,074 36,512 37,598 
20229,434 17,851 21,033 23,585 
202310,227 18,085 21,458 
202410,277 21,504 
202516,053 
Total$359,380 
All outstanding liabilities for unpaid losses and loss settlement expenses before 2016, net of reinsurance15,289 
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance$74,006 
Line of business: Personal
Incurred losses and allocated loss settlement expenses, net of reinsuranceAs of December 31, 2025
For the years ended December 31,Total of incurred but not reported liabilities plus expected development on reported claimsCumulative developmentCumulative number of reported claims
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$48,072 $45,840 $45,379 $45,961 $45,113 $45,297 $45,199 $45,179 $45,185 $45,180 $21 (2,892)9,553 
201760,330 59,342 58,695 58,544 59,023 58,790 58,863 58,788 58,626 29 (1,704)11,906 
201851,639 51,721 52,715 52,062 51,457 51,115 51,216 51,150 45 (489)14,721 
201959,548 58,378 58,745 57,929 57,630 57,559 57,628 (392)(1,920)13,706 
202081,206 73,761 73,204 72,531 72,174 71,770 326 (9,436)13,614 
202128,537 26,489 26,372 26,338 26,184 130 (2,353)17,128 
20221,493 2,287 3,127 3,056 125 1,563 2,588 
20232,391 2,374 2,367 (2,842)(24)63 
20248,648 5,423 1,282 (3,225)12 
202511,200 7,844 4 
Total$332,584 
Line of business: Personal
Cumulative paid losses and allocated loss settlement expenses, net of reinsurance
For the years ended December 31,
Accident Year2016201720182019202020212022202320242025
(Unaudited)
2016$32,999 $40,910 $42,660 $44,046 $44,618 $44,737 $44,828 $44,827 $45,159 $45,160 
201742,135 53,111 55,982 57,169 57,824 58,206 58,377 58,597 58,597 
201837,410 47,433 49,464 50,185 50,661 50,852 51,101 51,103 
201940,544 52,390 54,935 56,658 56,852 56,971 57,510 
202054,181 68,124 70,543 71,416 71,394 71,385 
202120,298 23,829 24,889 25,764 25,822 
2022551 2,128 2,792 2,828 
2023297 3,089 4,598 
2024617 2,672 
20253,276 
Total$322,951 
All outstanding liabilities for unpaid losses and loss settlement expenses before 2016, net of reinsurance234 
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance$9,866 
The reconciliation of the net incurred and loss development tables to the liability for unpaid losses and loss settlement expenses in the consolidated statement of financial position is as follows:

December 31, 2025
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses:
Commercial other liability$811,208 
Commercial fire and allied130,890 
Commercial automobile256,254 
Commercial workers' compensation74,006 
Personal9,866 
All other lines330,342 
Net outstanding liabilities for unpaid losses and allocated loss settlement expenses1,612,566 
Net outstanding liabilities for unpaid unallocated loss settlement expenses98,627 
Liabilities for unpaid losses and loss settlement expenses, net of reinsurance1,711,193 
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses:
Commercial other liability109,118 
Commercial fire and allied9,043 
Commercial automobile(816)
Commercial workers' compensation26,624 
All other lines69,664 
Reinsurance recoverable on unpaid losses and allocated loss settlement expenses213,633 
Total gross liability for unpaid losses and loss settlement expenses$1,924,826 
The following is supplementary information about average historical claims duration as of December 31, 2025.

Average annual percentage payout of incurred claims by age, net of reinsurance
Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10
(Unaudited)
Commercial other liability7.1 %14.1 %14.1 %16.5 %10.2 %9.0 %8.1 %5.6 %4.4 %9.4 %
Commercial fire and allied58.6 %22.0 %6.9 %3.9 %2.7 %1.4 %0.4 %— %0.4 %— %
Commercial automobile35.7 %21.3 %17.3 %11.8 %7.8 %3.2 %1.6 %0.4 %0.5 %— %
Commercial workers' compensation34.4 %31.7 %13.8 %8.2 %4.1 %2.5 %1.5 %1.1 %0.1 %0.4 %
Personal51.3 %35.2 %13.8 %2.2 %0.6 %0.3 %0.5 %0.1 %0.4 %— %