The table below provides a reconciliation of the beginning and ending reserve balances: 91 Most of the COVID-19-related claims reported to the Company to date involve certain short-tailed lines of business, including contingency and event cancellation, business interruption, and film production delay. The Company expects additional claims to be reported for these lines of business. The Company has also received COVID-19-related claims for longer-tailed casualty lines of business such as workers’ compensation and other liability; however, the estimated incurred loss impact for these reported claims appears to be modest at this time. Given the continuing uncertainty regarding the pandemic's pervasiveness, the future impact that the pandemic may have on claim frequency and severity remains uncertain at this time. In workers’ compensation, for example, nearly two-thirds of the states have enacted rules, legislation or administrative orders creating a presumption that certain “essential” The ongoing COVID-19 global pandemic has impacted, and will likely continue to impact, the Company’s results through its effect on claim frequency and severity. Loss cost trends have been impacted and will likely be further impacted by COVID-19-related claims in certain lines of business, as well as by other effects of COVID-19 associated with economic conditions, inflation, and social distancing and work from home rules, for example. Although it is still too early to determine the net impact, it appears that the losses incurred due to COVID-19-related claims are being offset, to a certain extent, by lower claim frequency in certain lines of our businesses, including commercial auto, workers’ compensation, and other liability. However, given the continuing nature of the pandemic, the impact of COVID-19 could ultimately increase or decrease overall loss cost trends and is likely to have differing impacts on the Company's different lines of business. (1) The cumulative effect adjustment resulting from changes in accounting principals relates to the allowance for expected credit losses on reinsurance recoverables that commenced on January 1, 2020 due to the adoption of ASU 2016-13. See Note 1 for more details. (2) Claims occurring during the current year are net of loss reserve discounts of $10 million, $20 million and $24 million in 2020, 2019, and 2018, respectively. (3) The change in estimates for claims occurring in prior years is net of loss reserve discount. On an undiscounted basis, the estimates for claims occurring in prior years decreased by $21 million in 2020, increased by $19 million in 2019, and decreased by $4 million in 2018, respectively. (4) For certain retrospectively rated insurance polices and reinsurance agreements, changes in loss and loss expenses for prior years are offset by additional or return premiums. (In thousands) 2020 2019 2018 Net reserves at beginning of year $ 10,697,998  $ 10,248,883  $ 10,056,914  Cumulative effect adjustment resulting from changes in accounting principles (1) 5,927  —  —  Restated net reserves at beginning of period 10,703,925  10,248,883  10,056,914  Net provision for losses and loss expenses: Claims occurring during the current year (2) 4,432,937  4,057,989  3,926,489  Increase in estimates for claims occurring in prior years (3) 627  34,079  6,831  Loss reserve discount accretion 35,142  39,048  41,382  Total 4,468,706  4,131,116  3,974,702  Net payments for claims: Current year 921,054  985,599  964,808  Prior year 2,677,595  2,673,803  2,700,077  Total 3,598,649  3,659,402  3,664,885  Foreign currency translation 46,411  (22,599) (117,848) Net reserves at end of year 11,620,393  10,697,998  10,248,883  Ceded reserve at end of year 2,164,037  1,885,251  1,717,565  Gross reserves at end of year $ 13,784,430  $ 12,583,249  $ 11,966,448  Net change in premiums and losses occurring in prior years: Increase in estimates for claims occurring in prior years (3) $ (627) $ (34,079) $ (6,831) Retrospective premium adjustments for claims occurring in prior years (4) 16,807  53,511  45,638  Net favorable premium and reserve development on prior years $ 16,180  $ 19,432  $ 38,807 