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LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | 3 Months Ended
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Mar. 31, 2025
Insurance Loss Reserves [Abstract] |
LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES The Company’s loss and loss adjustment expense (“LAE”) reserves were composed of the following:
|  | March 31, 2025 |  | December 31, 2024
Case reserves |  | $ | 230,182 |  |  | $ | 230,633 |
IBNR |  | 686,418 |  |  | 630,336 |
Total |  | $ | 916,600 |  |  | $ | 860,969 |
Reserve Roll-forward The following provides a summary of changes in outstanding loss and LAE reserves for all lines of business:
Consolidated |  | Three months ended March 31
|  | 2025 |  | 2024
Gross balance at January 1 |  | $ | 860,969 |  |  | $ | 661,554 |
Less: Losses recoverable |  | (85,790) |  |  | (25,687) |
Net balance at January 1 |  | 775,179 |  |  | 635,867 |
Incurred losses related to: |  |  |  |
Current year |  | 118,666 |  |  | 103,925 |
Prior years |  | 4,218 |  |  | 5,401 |
Total incurred |  | 122,884 |  |  | 109,326 |
Paid losses related to: |  |  |  |
Current year |  | (6,352) |  |  | (3,525) |
Prior years |  | (75,203) |  |  | (53,343) |
Total paid |  | (81,555) |  |  | (56,868) |
Foreign exchange and translation adjustment |  | 12,129 |  |  | (2,435) |
Net balance at March 31 |  | 828,637 |  |  | 685,890 |
Add: Losses recoverable (see Note 8) |  | 87,963 |  |  | 44,765 |
Gross balance at March 31 |  | $ | 916,600 |  |  | $ | 730,655 |
Estimates for Catastrophe Events At March 31, 2025, the Company’s net reserves for losses and LAE include estimated amounts for catastrophe and weather-related events (the “CAT losses”). The magnitude and volume of losses arising from these events is inherently uncertain, and, consequently, actual losses for these events may ultimately differ, potentially materially, from current estimates. CAT events in 2025 During the three months ended March 31, 2025, the Company incurred CAT losses of $27.0 million relating to the California wildfires. CAT events in 2024 During the three months ended March 31, 2024, the Company incurred CAT losses of $12.4 million driven mainly by the Baltimore Bridge collapse. Prior Year Reserve Development The Company’s net favorable (adverse) prior year development arises from changes to estimates for losses and LAE related to loss events that occurred in previous calendar years. The following table presents net prior year reserve development by segment and consolidated:
|  | Favorable (Adverse)
|  | Open Market |  | Innovations |  | Total Segments |  | Corporate |  | Total Consolidated
Three months ended March 31, 2025 |  | $ | (4,896) |  |  | $ | 567 |  |  | $ | (4,329) |  |  | $ | 111 |  |  | $ | (4,218) |
Three months ended March 31, 2024 |  | $ | (1,473) |  |  | $ | 1 |  |  | $ | (1,472) |  |  | $ | (3,929) |  |  | $ | (5,401) |
Open Market Segment: •The net adverse reserve development for the three months ended March 31, 2025 was composed of $23.2 million of reserve strengthening predominantly on the casualty line (various underwriting years) due to current economic and social inflation trends. This was partially offset by $18.3 million of favorable reserve development on property (mostly 2024 underwriting year) and specialty lines (mostly 2022-2024 underwriting years) due to better than expected loss emergence. •The net adverse reserve development for the three months ended March 31, 2024 was composed of $4.1 million of reserve strengthening predominantly on the casualty line (2015-2017 underwriting years) and specialty line (2022-2023 underwriting years) due to current economic and social inflation trends. This was partially offset by $2.7 million of favorable reserve development predominantly on multiline business (various underwriting years) due to better than expected loss emergence. Innovations Segment: •The net favorable reserve development for the three months ended March 31, 2025 was due to better than expected loss emergence on multiline and specialty lines (2022-2023 underwriting years). Corporate - Runoff Business: Corporate represents the Innovations related property runoff business. The favorable (adverse) prior year reserve development for the above periods relate to CAT losses driven by the U.S. tornados (2021-2023 underwriting years).

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