Activity in the liability for unpaid claims and claim expenses is summarized as follows: Year ended December 31, 2021 2020 2019 (in thousands) Reserve for claims and claim expenses, net of reinsurance recoverable, as of beginning of period $ 7,455,128 $ 6,593,052 $ 3,704,050 Net incurred related to: Current year 4,125,557 3,108,421 2,123,876 Prior years (249,470) (183,812) (26,855) Total net incurred 3,876,087 2,924,609 2,097,021 Net paid related to: Current year 574,230 412,172 265,649 Prior years 1,649,872 1,592,456 832,405 Total net paid 2,224,102 2,004,628 1,098,054 Foreign exchange (1) (81,152) 97,273 31,260 Amounts disposed (2) — (155,178) — Amounts acquired (3) — — 1,858,775 Reserve for claims and claim expenses, net of reinsurance recoverable, as of end of period 9,025,961 7,455,128 6,593,052 Reinsurance recoverable as of end of period 4,268,669 2,926,010 2,791,297 Reserve for claims and claim expenses as of end of period $ 13,294,630 $ 10,381,138 $ 9,384,349 (1) Reflects the impact of the foreign exchange revaluation of the reserve for claims and claim expenses, net of reinsurance recoverable, denominated in non-U.S. dollars as at the balance sheet date. (2) Represents the fair value of RenaissanceRe UK’s reserve for claims and claim expenses, net of reinsurance recoverable, disposed of on August 18, 2020. (3) Represents the fair value of TMR’s reserve for claims and claim expenses, net of reinsurance recoverable, acquired at March 22, 2019. The following table details our prior year development by segment of its liability for unpaid claims and claim expenses: Year ended December 31, 2021 2020 2019 (in thousands) (Favorable) adverse development (Favorable) adverse development (Favorable) adverse development Property $ (233,373) $ (157,049) $ (2,973) Casualty and Specialty (16,097) (26,763) (23,882) Total favorable development of prior accident years net claims and claim expenses $ (249,470) $ (183,812) $ (26,855) Our reserving methodology for each line of business uses a loss reserving process that calculates a point estimate for our ultimate settlement and administration costs for claims and claim expenses. We do not calculate a range of estimates and do not discount any of our reserves for claims and claim expenses. We use this point estimate, along with paid claims and case reserves, to record our best estimate of additional case reserves and IBNR in our consolidated financial statements. Under GAAP, we are not permitted to establish estimates for catastrophe claims and claim expense reserves until an event occurs that gives rise to a loss. Reserving for our claims involves other uncertainties, such as the dependence on information from ceding companies, the time lag inherent in reporting information from the primary insurer to us or to our ceding companies, and different reserving practices among ceding companies. The information received from ceding companies is typically in the form of bordereaux, broker notifications of loss and/or discussions with ceding companies or their brokers. This information may be received on a monthly, quarterly or transactional basis and normally includes paid claims and estimates of case reserves. We may also receive an estimate or provision for IBNR from certain ceding companies. This information is often updated and 60