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LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES
 3 Months Ended
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, 2025December 31, 2024
Case reserves$230,182 $230,633 
IBNR686,418 630,336 
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:
ConsolidatedThree months ended March 31
20252024
Gross balance at January 1$860,969 $661,554 
Less: Losses recoverable(85,790)(25,687)
Net balance at January 1775,179 635,867 
Incurred losses related to:  
Current year118,666 103,925 
Prior years4,218 5,401 
Total incurred122,884 109,326 
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 31828,637 685,890 
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 MarketInnovationsTotal SegmentsCorporateTotal 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).