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).

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Liability for unpaid losses and LAE at beginning of period, gross	$	156,410		$	132,650		$	161,079		$	122,071
Reinsurance balances receivable		(763	)		(491	)		(769	)		(464	)
Liability for unpaid losses and LAE at beginning of period, net		155,647			132,159			160,310			121,607
Add: Provision for losses and LAE:
Current period		62,599			74,974			119,665			143,173
Prior periods		207			25,791			(579	)		31,011
Net losses and LAE incurred		62,806			100,765			119,086			174,184
Less: Losses and LAE paid:
Current period		30,182			40,345			46,319			58,750
Prior periods		26,833			27,241			71,639			71,703
Net losses and LAE paid		57,015			67,586			117,958			130,453
Liability for unpaid losses and LAE at end of period, net		161,438			165,338			161,438			165,338
Reinsurance balances receivable		794			674			794			674
Liability for unpaid losses and LAE at end of period, gross	$	162,232		$	166,012		$	162,232		$	166,012

The development for the three and six months ended June 30, 2017 was the net result of favorable LAE development related to bodily injury claims over multiple prior accident periods, offset by unfavorable development on losses related to bodily injury severity related to the 2016 and 2017 accident years.

The unfavorable development for the three and 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.