Workers Compensation Assets and Liabilities

6 Months Ended

Jun. 30, 2017

Workers Compensation Assets and Liabilities

WORKERS' COMPENSATION LOSS RESERVES

The following table summarizes the workers’ compensation loss reserve activity for the three and six months ended June 30, 2017 and 2016:



	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2017			2016			2017			2016
Total loss reserves, beginning of period	$	260,308		$	200,152		$	254,614		$	190,102
Incurred
Current year	20,191			28,572			47,127			51,346
Prior years	896			2,741			1,497			8,004
Total incurred	21,087			31,313			48,624			59,350
Paid
Current year	(5,377		)	(1,567		)	(5,637		)	(2,278		)
Prior years	(21,334		)	(15,187		)	(42,917		)	(32,463		)
Total paid	(26,711		)	(16,754		)	(48,554		)	(34,741		)
Total loss reserves, end of period	$	254,684		$	214,711		$	254,684		$	214,711

The following summarizes workers' compensation liabilities on the condensed consolidated balance sheets:



(in thousands)	June 30, 2017			December 31, 2016
Total loss reserves, end of period	$	254,684		$	254,614
Collateral paid to carriers and offset against loss reserves	(32,035		)	(31,611		)
Total loss reserves, net of carrier collateral offset	$	222,649		$	223,003

Payable in less than 1 year ⁽¹⁾ (net of collateral paid to carriers of $9,124 and $9,234 at June 30, 2017 and December 31, 2016, respectively)	$	70,812		$	63,702
Payable in more than 1 year (net of collateral paid to carriers of $22,911 and $22,377 at June 30, 2017 and December 31, 2016, respectively)	151,837			159,301
Total loss reserves, net of carrier collateral offset	$	222,649		$	223,003

(1) Included in WSE related liabilities within Note 3 to these condensed consolidated financial statements.

Incurred claims related to prior years represent changes in estimates for ultimate losses on workers' compensation claims. For the three and the six months ended June 30, 2017, the favorable development was primarily due to lower than expected frequency of reported claims associated with our office WSEs, partially offset by increased severity of reported claims with our non-office WSEs in recent accident years.

As of June 30, 2017 and December 31, 2016, we had $59.3 million and $65.6 million, respectively, of collateral held by insurance carriers of which $32.0 million and $31.6 million, respectively, was offset against workers' compensation loss reserves as the agreements permit and are net settled of insurance obligations against collateral held. Collateral paid to each carrier for a policy year in excess of our loss reserves are recorded as workers' compensation collateral receivable.