XML 124 R13.htm IDEA: XBRL DOCUMENT
v3.25.3

LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | 9 Months Ended
--- | ---
Sep. 30, 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:
|  | September 30, 2025 |  | December 31, 2024
Case reserves |  | $ | 236,724 |  |  | $ | 230,633 |
IBNR |  | 701,584 |  |  | 630,336 |
Total |  | $ | 938,308 |  |  | $ | 860,969 |
Reserve Roll-forward The following provides a summary of changes in outstanding loss and LAE reserves for all lines of business:
Consolidated |  | Nine months ended September 30
|  | 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 |  | 303,474 |  |  | 305,467 |
Prior years |  | 8,082 |  |  | (943) |
Total incurred |  | 311,556 |  |  | 304,524 |
Paid losses related to: |  |  |  |
Current year |  | (35,136) |  |  | (27,382) |
Prior years |  | (229,908) |  |  | (176,210) |
Total paid |  | (265,043) |  |  | (203,592) |
Foreign exchange and translation adjustment |  | 33,833 |  |  | 8,405 |
Net balance at September 30 |  | 855,525 |  |  | 745,205 |
Add: Losses recoverable (see Note 8) |  | 82,783 |  |  | 65,947 |
Gross balance at September 30 |  | $ | 938,308 |  |  | $ | 811,152 |
Estimates for Catastrophe Events At September 30, 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 nine months ended September 30, 2025, the Company incurred CAT losses of $27.0 million relating to the California wildfires. CAT events in 2024 During the nine months ended September 30, 2024, the Company incurred CAT losses of $29.9 million driven mainly by the Baltimore Bridge collapse, Hurricane Helene, and the U.S. tornadoes (including severe convective storms). 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 for the respective periods.
|  | Favorable (Adverse)
|  | Open Market |  | Innovations |  | Total Segments |  | Corporate |  | Total Consolidated
Nine months ended September 30, 2025 |  | $ | (4,810) |  |  | $ | (1,316) |  |  | $ | (6,126) |  |  | $ | (1,956) |  |  | $ | (8,082) |
Nine months ended September 30, 2024 |  | $ | 3,782 |  |  | $ | 1,548 |  |  | $ | 5,330 |  |  | $ | (4,387) |  |  | $ | 943 |
Open Market Segment: The net adverse reserve development for the nine months ended September 30, 2025 was composed of $46.4 million of reserve strengthening predominantly on the following lines of business: •the casualty line (various underwriting years) due to current economic and social inflation trends; •the financial line (2021, 2023 and 2024 underwriting years) due to worse than expected loss emergence for transactional liability business; and •the multiline business (2023-2024 underwriting years) relating to commercial auto business. This was partially offset by $41.6 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 favorable reserve development for the nine months ended September 30, 2024 was composed of $8.3 million of favorable reserve development predominantly on financial line (various underwriting years), multiline business (mostly 2021-2022 underwriting years), and specialty line (mostly 2021-2022 underwriting years) due to better than expected loss emergence. This was partially offset by $4.5 million of reserve strengthening predominantly on the casualty line (various underwriting years) due to current economic and social inflation trends. Innovations Segment: The net adverse reserve development for the nine months ended September 30, 2025 was composed of $2.6 million of reserve strengthening predominantly on the financial line (2022-2023 underwriting years) due to a higher volume of claims than expected. This was partially offset by $1.3 million of favorable reserve development predominantly on the multiline business. The net favorable reserve development for the nine months ended September 30, 2024 was composed of $2.2 million due to better than expected loss emergence on the health line (various underwriting years) and multiline business (predominantly 2023 underwriting years). This was partially offset by $0.6 million of reserve strengthening on the specialty business. Corporate - Runoff Business: Corporate represents the Innovations related property runoff business. The prior year adverse reserve development for the above periods relate predominantly to CAT losses driven by the U.S. tornados (2021-2023 underwriting years).

X
- References No definition available. + Details
Name: | us-gaap_InsuranceLossReservesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480081/944-40-50-3 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/944-40/tableOfContent + Details
Name: | us-gaap_LiabilityForFuturePolicyBenefitsAndUnpaidClaimsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration