Liability for Unpaid Losses and Loss Adjustment Expenses

6 Months Ended

Jun. 30, 2020

Liability for Unpaid Losses and Loss Adjustment Expenses

Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Balance at beginning of period	$	195,978	$	366,356	$	267,760	$	472,829
Less: Reinsurance recoverable	(66,158)		(269,071)		(123,221)		(393,365)
Net balance at beginning of period	129,820		97,285		144,539		79,464
Incurred related to:
Current year	150,867		112,626		281,574		225,905
Prior years	478		670		4,819		485
Total incurred	151,345		113,296		286,393		226,390
Paid related to:
Current year	120,724		89,093		182,502		123,642
Prior years	38,889		30,309		126,878		91,033
Total paid	159,613		119,402		309,380		214,675
Net balance at end of period	121,552		91,179		121,552		91,179
Plus: Reinsurance recoverable	26,107		197,117		26,107		197,117
Balance at end of period	$	147,659	$	288,296	$	147,659	$	288,296

For the three months ended June 30, 2020, there was adverse prior year reserve development of $11.6 million gross, less $11.1 million ceded, resulting in $0.5 million net. The net prior year reserve development for the quarter ended June 30, 2020 was principally due to increased ultimate losses and LAE for Hurricane Matthew.

For the six months ended June 30, 2020, there was adverse prior year reserve development of $54.1 million gross, less $49.3 million ceded, resulting in $4.8 million net. The direct and net prior year reserve development for the six months ended June 30, 2020 was principally due to increased ultimate losses and LAE for Hurricane Irma.