Liability for Unpaid Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2025

Liability for Unpaid Losses and Loss Adjustment Expenses

7. Liability for Unpaid Losses and Loss Adjustment Expenses

Activity in the liability for unpaid losses and loss adjustment expenses is summarized as follows:


	Quarters Ended September 30,						Nine Months Ended September 30,
(Dollars in thousands)	2025			2024			2025			2024
Balance at beginning of period	$	776,127		$	844,206		$	800,391		$	850,599
Less: ceded reinsurance receivables		59,478			70,392			60,754			72,829
Net balance at beginning of period		716,649			773,814			739,637			777,770
Net losses and loss adjustment expenses related to:
Current year		49,919			52,434			169,600			159,561
Prior years		(44	)		(34	)		(39	)		(115	)
Total net losses and loss adjustment expenses		49,875			52,400			169,561			159,446
Paid net losses and loss adjustment expenses related to:
Current year		13,208			8,415			46,984			32,501
Prior years		50,425			48,520			159,323			135,436
Total paid net losses and loss adjustment expenses		63,633			56,935			206,307			167,937
Net balance at end of period		702,891			769,279			702,891			769,279
Plus: ceded reinsurance receivables		58,790			70,897			58,790			70,897
Balance at end of period	$	761,681		$	840,176		$	761,681		$	840,176

When analyzing unpaid losses and loss adjustment expenses ("loss reserves") and prior year development, the Company considers many factors, including the frequency and severity of claims, loss trends, case reserve settlements that may have resulted in significant development, and any other additional or pertinent factors that may impact reserve estimates.

During the third quarter of 2025, the Company's adjustments to prior accident year loss reserves netted to a decrease of less than $0.1 million.

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Belmont Insurance Companies - Core (“Belmont Core”) had an increase of $2.6 million consisting of (i) $1.6 million decrease for property lines primarily related to the 2023 and 2024 accident years and (ii) $4.2 million increase for casualty lines primarily related to the 2019 through 2022 accident years mainly due to increased severity on claims.

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Belmont Insurance Companies - Non-Core ("Belmont Non-Core") had a decrease of $2.7 million consisting of: (i) $1.2 million decrease for property lines primarily related to the 2019 through 2022 accident years and (ii) $1.5 million decrease for casualty lines across various accident years prior to 2012.

During the third quarter of 2024, the Company's adjustments to prior accident year loss reserves netted to a decrease of less than $0.1 million.

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Belmont Core had an increase of less than $0.1 million consisting of a $3.7 million decrease for property lines offset by a $3.7 million increase for casualty lines across various accident years.

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Belmont Non-Core had a decrease of less than $0.1 million across various accident years.

During the first nine months of 2025, the Company's adjustments to prior accident year loss reserves netted to a decrease of less than $0.1 million.

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Belmont Core had an increase of $4.0 million consisting of (i) $6.1 million decrease for property lines primarily related to the 2019 through 2024 accident years and (ii) $10.1 million increase for casualty lines primarily related to the 2017 through 2022 accident years mainly due to increased severity on claims.

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Belmont Non-Core had a decrease of $4.0 million consisting of: (i) $3.4 million decrease for property lines primarily related to the 2019 through 2022 accident years and (ii) $0.6 million decrease for casualty lines across various accident years for 2022 and prior.

During the first nine months of 2024, the Company's adjustments to prior accident year loss reserves netted to a decrease of $0.1 million.

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Belmont Core had a decrease of $0.4 million consisting of $4.0 million decrease for property lines offset by a $3.6 million increase for casualty lines across various accident years.

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Belmont Non-Core had an increase of $0.3 million across various accident years.