Liability for Unpaid Losses and Loss Adjustment Expenses

3 Months Ended

Mar. 31, 2023

Liability for Unpaid Losses and Loss Adjustment Expenses

Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):


	Three Months Ended March 31,
	2023		2022
Balance at beginning of period	$	1,038,790	$	346,216
Less: Reinsurance recoverable	(798,680)		(115,860)
Net balance at beginning of period	240,110		230,356
Incurred related to:
Current year	202,836		184,451
Prior years	3,318		655
Total incurred	206,154		185,106
Paid related to:
Current year	67,783		71,727
Prior years	178,020		164,656
Total paid	245,803		236,383
Net balance at end of period	200,461		179,079
Plus: Reinsurance recoverable	669,946		65,403
Balance at end of period	$	870,407	$	244,482

During the three months ended March 31, 2023, there was adverse prior years’ reserve development of $5.4 million gross less $2.1 million ceded resulting in $3.3 million net unfavorable development. The direct and net prior years’ reserve development for the quarter ended March 31, 2023 was principally due to gross reserve development for Hurricane Sally.

During the three months ended March 31, 2022, there was adverse prior years’ reserve development of $10.7 million gross less $10.0 million ceded resulting in $0.7 million net unfavorable development. The direct and net prior years’ reserve development for the quarter ended March 31, 2022 was principally due to a direct increase in the ultimate losses for Hurricanes Irma and Matthew.