Losses and Loss Adjustment Expenses Incurred and Paid

6 Months Ended

Jun. 30, 2016

Losses and Loss Adjustment Expenses Incurred and Paid

5. Losses and Loss Adjustment Expenses Incurred and Paid

Information regarding the reserve for unpaid losses and loss adjustment expenses (“LAE”) is as follows (in thousands).

	Six Months Ended
	June 30,
	2016			2015
Liability for unpaid losses and LAE at beginning of period, gross	$	122,071		$	96,613
Reinsurance balances receivable		(464	)		(362	)
Liability for unpaid losses and LAE at beginning of period, net		121,607			96,251
Add: Provision for losses and LAE:
Current period		143,173			104,624
Prior periods		31,011			(1,687	)
Net losses and LAE incurred		174,184			102,937
Less: Losses and LAE paid:
Current period		58,750			46,872
Prior periods		71,703			42,293
Net losses and LAE paid		130,453			89,165
Liability for unpaid losses and LAE at end of period, net		165,338			110,023
Reinsurance balances receivable		674			453
Liability for unpaid losses and LAE at end of period, gross	$	166,012		$	110,476

The unfavorable development for the six months ended June 30, 2016 was the result of increased losses primarily from the 2015 accident year across all major coverages. The most significant causes of the development were a greater than usual emergence of reported claims and higher bodily injury severity.