6. Reserves for Unpaid Losses and Loss Adjustment Expenses

Activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands):


	March 31,		March 31,
	2019		2018
Balance at January 1	$	527,247	$	527,100
Less reinsurance recoverable		221,716		154,612
Net balance at January 1		305,531		372,488

Incurred related to:
Current year		70,153		64,205
Prior years		(66)		(530)
Total incurred		70,087		63,675

Paid related to:
Current year		12,633		13,829
Prior years		60,581		72,432
Total paid		73,214		86,261

Net balance at March 31		302,404		349,902
Plus reinsurance recoverable		227,822		179,782
Balance at March 31	$	530,226	$	529,684

The impact from the unfavorable (favorable) net prior years’ loss development on each reporting segment is presented below:


	March 31,
	2019		2018
Specialty Commercial Segment	$	1,926	$	1,012
Standard Commercial Segment		(1,805)		(1,053)
Personal Segment		(187)		(489)
Corporate		—		—
Total (favorable) net prior year development	$	(66)	$	(530)

The following describes the primary factors behind each segment’s prior accident year reserve development for the three months ended March 31, 2019 and 2018:

Three months ended March 31, 2019:

Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development in the 2017 and prior accident years primarily in the primary commercial auto liability line of business, partially offset by favorable development in the primary commercial auto line of business in the 2018 accident year. Our E&S Casualty business unit experienced net unfavorable development primarily in our E&S package insurance products in the 2017 and prior accident years, partially offset by favorable development in the 2018 accident year. We experienced net unfavorable development in our E&S Property and Aerospace & Programs business units, partially offset by favorable development in our Professional liability business unit.

Standard Commercial Segment. Our Commercial Accounts business unit experienced net favorable development in the 2018, 2017, 2015, 2014 and 2013 accident years primarily in the general liability line of business, partially offset by net unfavorable development primarily in the commercial property line of business in the 2016 accident year and commercial auto liability in the 2012 and prior accident years. Our Commercial Accounts business unit experienced net favorable development in the 2017 and 2015 accident years in the occupational accident line of business, partially offset by unfavorable development in the 2016 accident year. The run-off from our former Workers Compensation operating unit experienced net favorable development in the 2015 and prior accident years.

Personal Segment. Net favorable development in our Specialty Personal Lines business unit was mostly attributable to the 2018, 2017, 2015 and 2013 accident years, partially offset by unfavorable development in the 2016, 2014 and 2012 and prior accident years.

Three months ended March 31, 2018:

Specialty Commercial Segment. Our Commercial Auto business unit experienced net unfavorable development primarily in the 2015 and prior accident years. Our E&S Casualty business unit experienced net favorable development in our E&S package insurance products in the 2017 and 2016 accident years We experienced net unfavorable development in our E&S Property and Aerospace & Programs business units.

Standard Commercial Segment. Our Commercial Accounts business unit experienced net favorable development in the 2016 and prior accident years primarily in the general liability line of business, partially offset by net unfavorable development primarily in the commercial property line of business in the 2017 accident year.

Personal Segment. Net favorable development in our Specialty Personal Lines operating unit was mostly attributable to the 2017, 2016, 2014 and 2013 accident years, partially offset by unfavorable development in the 2015 accident year and 2012 and prior accident years.