Reserves for unpaid losses and loss adjustment expenses

The following table presents a reconciliation of consolidated beginning and ending reserves for unpaid losses and loss adjustment expenses:



	March 31,
	2019			2018
	(in thousands)
Net reserves for unpaid losses and loss adjustment expenses, beginning of year	$	313,763		$	267,493
Incurred losses and loss adjustment expenses:
Current year	40,128			30,183
Prior years	(6,396		)	(1,284		)
Total net losses and loss adjustment expenses incurred	33,732			28,899

Payments:
Current year	2,042			340
Prior years	17,955			17,516
Total payments	19,997			17,856
Net reserves for unpaid losses and loss adjustment expenses, end of period	327,498			278,536
Reinsurance recoverable on unpaid losses	57,627			49,673
Gross reserves for unpaid losses and loss adjustment expenses, end of period	$	385,125		$	328,209

During the three months ended March 31, 2019, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2018 developed favorably by $6.4 million. The favorable development was primarily attributable to the 2015 through 2018 accident years by $6.3 million, which resulted from reported losses emerging at a lower level than expected across most statutory lines of business.

During the three months ended March 31, 2018, the reserves for unpaid losses and loss adjustment expenses held at December 31, 2017 developed favorably by $1.3 million. The favorable development was primarily attributable to the 2017 accident year of $2.5 million and the 2016 accident year of $1.2 million, which resulted from reported losses emerging at a lower level than expected. This favorable development was offset in part by adverse development from the 2011 through 2015 accident years of $2.4 million.