Losses and Loss Adjustment Expenses Incurred and Paid

3 Months Ended

Mar. 31, 2017

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).


	March 31,
	2017			2016
Liability for unpaid losses and LAE at beginning of period, gross	$	161,079		$	122,071
Reinsurance balances receivable		(769	)		(464	)
Liability for unpaid losses and LAE at beginning of period, net		160,310			121,607
Add: Provision for losses and LAE:
Current period		56,812			63,105
Prior periods		(532	)		10,314
Net losses and LAE incurred		56,280			73,419
Less: Losses and LAE paid:
Current period		16,137			18,404
Prior periods		44,806			44,463
Net losses and LAE paid		60,943			62,867
Liability for unpaid losses and LAE at end of period, net		155,647			132,159
Reinsurance balances receivable		763			491
Liability for unpaid losses and LAE at end of period, gross	$	156,410		$	132,650

The favorable development for the three months ended March 31, 2017 was primarily the result of favorable LAE development related to bodily injury claims over multiple prior accident periods, partially offset by some unfavorable development on losses related to bodily injury severity.

The unfavorable development for the three months ended March 31, 2016 was the result of an increase in losses across all major coverages and over multiple prior accident periods. The primary causes of the unfavorable development were a sharp increase in bodily injury severity and a greater than usual amount of subsequent payments on previously closed claims.