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, 2022 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 three months ended March 31, 2023 and 2022:


	Three Months Ended March 31,
	2023			2022
	(in thousands)
Balance, beginning of period	$	696,037		$	745,278
Less amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses		112,555			119,266
Net balance, beginning of period		583,482			626,012
Add incurred related to:
Current accident year		49,119			47,965
Prior accident years		(10,110	)		(10,224	)
Total incurred		39,009			37,741
Less paid related to:
Current accident year		2,603			2,850
Prior accident years		44,249			47,063
Total paid		46,852			49,913
Net balance, end of period		575,639			613,840
Add amounts recoverable from reinsurers on unpaid loss and loss adjustment expenses		111,013			114,718
Balance, end of period	$	686,652		$	728,558

The foregoing reconciliation reflects favorable development of the net reserves at March 31, 2023 and March 31, 2022. The favorable development reduced loss and loss adjustment expenses incurred by $10.1 million and $10.2 million in 2023 and 2022, 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 months ended March 31, 2023 and 2022.


	Three Months Ended
	March 31,
	2023			2022
	(in thousands)
Balance, beginning of period	$	372		$	440
Provision for credit loss benefit		(44	)		(52	)
Balance, end of period	$	328		$	388