(4) Loss and Loss Expense Reserves:

Activity in the reserves for losses and loss expenses for the three months ended March 31, 2018 and 2017 is summarized as follows. All amounts are shown net of reinsurance, unless otherwise indicated.

	2018			2017
Reserves, gross of reinsurance
recoverable, at the beginning of the year	$	680,274		$	576,330
Reinsurance recoverable on unpaid losses at the beginning of the year		308,143			251,563
Reserves at the beginning of the year		372,131			324,767

Provision for losses and loss expenses:
Claims occurring during the current period		73,899			48,487
Claims occurring during prior periods		(1,601	)		112
Total incurred		72,298			48,599

Loss and loss expense payments:
Claims occurring during the current period		10,683			9,508
Claims occurring during prior periods		48,655			41,814
Total paid		59,338			51,322
Reserves at the end of the period		385,091			322,044

Reinsurance recoverable on unpaid losses at the end of the period		309,359			256,797
Reserves, gross of reinsurance
recoverable, at the end of the period	$	694,450		$	578,841

The table above shows a roll-forward of loss and loss expense reserves from the prior year end to the current balance sheet date with comparable prior year information. Losses incurred from claims occurring during prior years reflect the development from prior accident years, composed of individual claim savings and deficiencies which, in the aggregate, have resulted from the settlement of claims at amounts higher or lower than previously reserved and from changes in estimates of losses incurred but not reported.

The $1,601 prior accident year savings that developed during the first three months of 2018 was largely due to favorable loss development in workers' compensation and independent contractor coverages. This 2018 savings compares to a deficiency of $112 for the first three months of 2017.