6. Reserves for Unpaid Losses and Loss Adjustment Expenses

Activity in the consolidated reserves for unpaid losses and LAE is summarized as follows (in thousands):


		September 30,		September 30,
		2017		2016

Balance at January 1	$	481,567	$	450,878
Less reinsurance recoverable		123,237		102,791
Net balance at January 1		358,330		348,087

Incurred related to:
Current year		184,685		177,017
Prior years		20,240		(783)
Total incurred		204,925		176,234

Paid related to:
Current year		61,288		65,339
Prior years		128,329		116,488
Total paid		189,617		181,827

Net balance at September 30		373,638		342,494
Plus reinsurance recoverable		157,861		112,506
Balance at September 30	$	531,499	$	455,000

The impact from the unfavorable (favorable) net prior years’ loss development on each reporting segment is presented below:


		Nine Months Ended September 30,
		2017		2016

Specialty Commercial Segment	$	17,824	$	1,938
Standard Commercial Segment		1,594		(6,370)
Personal Segment		822		3,649
Corporate		-		-
Total unfavorable (favorable) net prior year development	$	20,240	$	(783)

The following describes the primary factors behind each segment’s prior accident year reserve development for the nine months ended September 30, 2017 and 2016:

Nine months ended September 30, 2017:

Specialty Commercial Segment. Our Contract Binding operating unit experienced net unfavorable development primarily in the commercial auto liability line of business in the 2015 and prior accident years, partially offset by favorable development in the 2016 accident year. Our Specialty Commercial operating unit experienced net unfavorable development in general aviation primarily in the 2010 accident year, commercial excess liability primarily in the 2013 accident year and specialty risk programs primarily in the 2015 and prior accident years, partially offset by net favorable development in the medical professional liability and primary/excess commercial property lines of business primarily in the 2016 accident years.

Standard Commercial Segment. Our Standard Commercial P&C operating unit experienced net unfavorable development in the 2016 and prior accident years in the occupational accident line of business, partially offset by net favorable development primarily in the general liability line of business in the 2016 and prior accident years.

Personal Segment. Net unfavorable development in our Specialty Personal Lines operating unit was mostly attributable to the 2016, 2014 and 2013 accident years, partially offset by favorable development in the 2015 accident year.

Nine months ended September 30, 2016:

Specialty Commercial Segment. Our Contract Binding operating unit experienced net favorable development primarily in the commercial auto liability line of business in the 2015 and 2010 accident years, partially offset by net unfavorable development in the 2014, 2013, 2012 and 2009 and prior accident years. Our Specialty Commercial operating unit experienced net favorable development primarily in the general aviation, commercial excess liability, specialty risks programs and medical professional liability lines of business.

Standard Commercial Segment. Our Standard Commercial P&C operating unit experienced net favorable development primarily in the general liability line of business in the 2015 and prior accident years, partially offset by net unfavorable development in the occupational accident line of business in the 2015 and prior accident years. Our Workers Compensation operating unit experienced net favorable development in the 2015 and prior accident years.

Personal Segment. Our Specialty Personal Lines operating unit experienced net unfavorable development attributable to the 2015 and prior accident years.