What Are Alae Reserves

ALAE Reserves means reserves (including IBNR) for Allocated Loss Adjustment Expenses of the Company and the Subsidiaries, net of collectible Ceded Reinsurance, calculated and presented on a basis consistent with SAP and generally accepted actuarial principles.

Does ALAE include defense costs?

If you’re new in the industry, let me explain: ALAE is allocated loss adjustment expense – all the costs attributable to defending a particular claim. They include legal expenses such as attorney fees, depositions, transcripts, exhibits, printing, shipping and mailing.

What does ALAE paid mean?

Allocated Loss Adjustment Expense (ALAE) — loss adjustment expenses that are assignable or allocable to specific claims. Fees paid to outside attorneys, experts, and investigators used to defend claims are examples of ALAE.