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LIABILITY FOR UNPAID LOSSES AND LOSS ADJUSTMENT EXPENSES
 9 Months Ended
Sep. 30, 2025
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,
 2025202420252024
Balance at beginning of period$765,855 $344,648 $959,291 $510,117 
Less: Reinsurance recoverables(336,627)(33,121)(561,936)(183,435)
Net balance at beginning of period429,228 311,527 397,355 326,682 
Incurred related to:  
Current year248,367 319,152 759,156 802,911 
Prior years3,912 (2,197)3,983 (2,197)
Total incurred252,279 316,955 763,139 800,714 
Paid related to:  
Current year169,552 177,963 377,862 425,970 
Prior years87,721 81,321 358,398 332,228 
Total paid257,273 259,284 736,260 758,198 
Net balance at end of period424,234 369,198 424,234 369,198 
Plus: Reinsurance recoverables 258,355 91,239 258,355 91,239 
Balance at end of period$682,589 $460,437 $682,589 $460,437 
During the nine months ended September 30, 2025, the liability for unpaid losses and loss adjustment expenses, prior to reinsurance, decreased by $276.7 million from $959.3 million as of December 31, 2024 to $682.6 million as of September 30, 2025. The decrease was principally the result of the settlement of Hurricane Debby claims, Hurricane Helene claims, claims from other prior hurricanes, and claims from prior accident years.
During the three and nine months ended September 30, 2025, there was $3.9 million and $4.0 million of unfavorable prior years’ development, respectively, compared to $2.2 million favorable net prior year development during 2024. Unfavorable development indicates that actual losses were higher than previously estimated, impacting profitability, while favorable development suggests lower-than-expected losses. The unfavorable prior year development for 2025 was associated with increases in net losses and LAE for prior year catastrophe events. The favorable net prior years’ reserve development for the three and nine months ended September 30, 2024 was due to favorable resolution of hurricane claims compared to previous estimates.