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Liability for Unpaid Losses and Loss Adjustment Expenses
 9 Months Ended
Sep. 30, 2019
Insurance [Abstract]  
Liability for Unpaid Losses and Loss Adjustment Expenses 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
September 30,
 
Nine Months Ended
September 30,
 
2019
 
2018
 
2019
 
2018
Balance at beginning of period
$
288,296

 
$
151,916

 
$
472,829

 
$
248,425

Less: Reinsurance recoverable
(197,117
)
 
(96,733
)
 
(393,365
)
 
(182,405
)
Net balance at beginning of period
91,179

 
55,183

 
79,464

 
66,020

Incurred (recovered) related to:
 

 
 

 
 
 
 
Current year
129,353

 
85,986

 
355,258

 
249,488

Prior years
3,218

 
(39
)
 
3,703

 
2,227

Total incurred
132,571

 
85,947

 
358,961

 
251,715

Paid related to:
 

 
 

 
 
 
 
Current year
137,313

 
72,034

 
260,955

 
140,013

Prior years
30,408

 
38,372

 
121,441

 
146,998

Total paid
167,721

 
110,406

 
382,396

 
287,011

Net balance at end of period
56,029

 
30,724

 
56,029

 
30,724

Plus: Reinsurance recoverable
110,313

 
127,943

 
110,313

 
127,943

Balance at end of period
$
166,342

 
$
158,667

 
$
166,342

 
$
158,667



During the nine months ended September 30, 2019, there was adverse prior year reserve development of $305.3 million gross, less $301.6 million ceded, resulting in $3.7 million net. Gross prior year reserve development was principally the result of an increase in estimated losses and LAE for Hurricane Irma claims, which were fully ceded. Net prior year adverse reserve development of $3.7 million principally resulted from a change in the allocation of estimated Hurricane Michael losses and LAE recoveries from the Non-Florida reinsurance coverage to the All States reinsurance coverage. The Non-Florida reinsurance coverage has a lower retention and the change in the allocation of reinsurance recoveries to the All States reinsurance coverage resulted in higher retained losses. There was no change to gross Hurricane Michael losses. For the nine months ended September 30, 2018, there was $311.7 million gross, less $309.5 million ceded, resulting in $2.2 million net of prior year reserve development principally reflecting an increase in estimated Hurricane Irma claims.