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):


		March 31,		March 31,
		2018		2017

Balance at January 1	$	527,100	$	481,567
Less reinsurance recoverable		154,612		123,237
Net balance at January 1		372,488		358,330

Incurred related to:
Current year		64,205		62,331
Prior years		(530)		(489)
Total incurred		63,675		61,842

Paid related to:
Current year		13,829		12,583
Prior years		72,432		47,533
Total paid		86,261		60,116

Net balance at March 31		349,902		360,056
Plus reinsurance recoverable		179,782		126,915
Balance at March 31	$	529,684	$	486,971

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


		Three Months Ended March 31,
		2018		2017

Specialty Commercial Segment	$	1,012	$	300
Standard Commercial Segment		(1,053)		(1,458)
Personal Segment		(489)		669
Corporate		-		-
Total (favorable) unfavorable net prior year development	$	(530)	$	(489)

The following describes the primary factors behind each segment’s prior accident year reserve development for the three months ended March 31, 2018 and 2017:

Three months ended March 31, 2018:

Specialty Commercial Segment. Our Contract Binding operating unit experienced net favorable development primarily in the general liability line of business in the 2017 and 2016 accident years, partially offset by unfavorable development in the 2015 and 2014 accident years primarily in the commercial auto liability line of business. Our Specialty Commercial operating unit experienced net unfavorable development primarily in general aviation, commercial excess liability, satellite launch insurance products, primary/excess commercial property and specialty risk programs lines of business.

Standard Commercial Segment. Our Standard Commercial P&C operating unit experienced net favorable development in the 2016 and prior accident years primarily in the general liability line of business, partially offset by net unfavorable development primarily in the commercial property line of business in the 2017 accident year.

Personal Segment. Net favorable development in our Specialty Personal Lines operating unit was mostly attributable to the 2017, 2016, 2014 and 2013 accident years, partially offset by unfavorable development in the 2015 accident year and 2012 and prior accident years.

Three months ended March 31, 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 accident year and 2010 and prior accident years, partially offset by net favorable development in the 2016 and 2014 accident years. Our Specialty Commercial operating unit experienced net favorable development primarily in the general aviation, primary/excess commercial property, specialty risks programs and medical professional liability lines of business partially offset by net unfavorable development in the commercial excess 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 2016 and prior accident years, partially offset by net unfavorable development in the occupational accident line of business primarily in the 2015 and prior accident years.

Personal Segment. Our Specialty Personal Lines operating unit experienced net unfavorable development primarily attributable to the 2016, 2014, 2013, 2012 and 2010 and prior accident years, partially offset by net favorable development in the 2015 and 2011 accident years.