We record reserves for estimated losses under insurance policies that we write and for loss adjustment expenses related to the investigation and settlement of policy claims. Our reserves for loss and loss adjustment expenses represent the estimated cost of all reported and unreported loss and loss adjustment expenses incurred and unpaid as of a given point in time. The reserves for loss and loss adjustment expenses are estimated using individual case-basis valuations, statistical analyses and estimates based upon experience for unreported claims and their associated loss and loss adjustment expenses. Such estimates may be more or less than the amounts ultimately paid when the claims are settled. The estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in these estimates, management believes that the reserves for loss and loss adjustment expenses are adequate. The estimates are continually reviewed internally and periodically evaluated with our independent actuary. Adjustments are made as experience develops and new information becomes known. Any such adjustments are included in income from current operations. See Note 9 to our consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information regarding the Company’s loss and loss adjustment expense development.

The following table provides the Company’s liability for unpaid loss and loss adjustment expenses, net of related amounts recoverable from reinsurers, for the nine months ended September 30, 2022 and 2021:


	Nine Months Ended September 30,
	2022			2021
	(in thousands)
Balance, beginning of period	$	745,278		$	760,561
Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses		119,266			105,707
Net balance, beginning of period		626,012			654,854
Add incurred related to:
Current accident year		145,993			149,947
Prior accident years		(30,201	)		(48,346	)
Total incurred		115,792			101,601
Less paid related to:
Current accident year		30,566			30,023
Prior accident years		111,968			112,535
Total paid		142,534			142,558
Net balance, end of period		599,270			613,897
Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses		116,926			106,892
Balance, end of period	$	716,196		$	720,789

The foregoing reconciliation reflects favorable development of the net reserves at September 30, 2022 and September 30, 2021. The favorable development reduced loss and loss adjustment expenses incurred by $30.2 million and $48.3 million in 2022 and 2021, respectively. The revisions to the Company’s reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the financial statements when the information becomes available. It is typical for more serious claims to take several years or longer to settle and the Company continually revises estimates as more information about claimants’ medical conditions and potential disability becomes known and the claims get closer to being settled. Multiple factors can cause loss development both unfavorable and favorable. The favorable loss development we experienced across accident years was largely due to favorable case reserve development from closed claims and claims where the worker had reached maximum medical improvement.

The table below presents the change in the allowance for credit losses on amounts recoverable from reinsurers for the three and nine months ended September 30, 2022 and 2021.


	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2022		2021			2022			2021
	(in thousands)
Balance, beginning of period	$	369	$	449		$	440		$	452
Provision for credit loss expense (benefit)		35		(60	)		(36	)		(63	)
Balance, end of period	$	404	$	389		$	404		$	389