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Liability for Unpaid Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2024
Insurance [Abstract]  
Liability for Unpaid Losses and Loss Adjustment Expenses 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
September 30,		Nine Months Ended
September 30,
 2024202320242023
Balance at beginning of period$344,648 $663,019 $510,117 $1,038,790 
Less: Reinsurance recoverable (33,121)(495,250)(183,435)(798,680)
Net balance at beginning of period311,527 167,769 326,682 240,110 
Incurred related to:  
Current year319,152 270,266 802,911 683,004 
Prior years(2,197)17,706 (2,197)34,849 
Total incurred316,955 287,972 800,714 717,853 
Paid related to:  
Current year177,963 178,384 425,970 369,425 
Prior years81,321 (16,963)332,228 294,218 
Total paid259,284 161,421 758,198 663,643 
Net balance at end of period369,198 294,320 369,198 294,320 
Plus: Reinsurance recoverable 91,239 256,687 91,239 256,687 
Balance at end of period$460,437 $551,007 $460,437 $551,007 
During the nine months ended September 30, 2024, the liability for unpaid losses and loss adjustment expenses, prior to reinsurance, decreased by $49.7 million from $510.1 million as of December 31, 2023 to $460.4 million as of September 30, 2024. The decrease was principally the result of the settlement of Hurricane Ian claims, claims from other prior hurricanes and claims arising in the current and prior accident years.
Prior year development includes changes in previous estimates for unpaid Losses and LAE for all events from prior years, including hurricanes and other claims influenced by pre-reform market conditions in Florida. In 2023, it also included adjustments related to Hurricane Irma losses with the FHCF.
During the three and nine months ended September 30, 2024, there was $2.2 million favorable development, net. During the three months ended September 30, 2023, there was adverse prior years’ reserve development of $17.7 million net and $34.8 million net for the nine months ended September 30, 2023. The favorable net prior years’ reserve development for the three and nine months ended September 30, 2024 was due to the resolution of recent hurricane claims compared to previous estimates. During the three and nine months ended September 30, 2023, prior year development was the result of increased costs to settle prior year claims compared to previous estimates particularly related to non-CAT events occurring in prior years. Prior years’ claims predate the most significant recent property insurance reform legislation enacted in late 2022 in Florida and therefore have not benefited significantly from the statutory changes.