v3.22.2.2
Reinsurance
 9 Months Ended
Sep. 30, 2022
Reinsurance Disclosures [Abstract]  
Reinsurance Reinsurance
The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1st of each year. The Company’s current reinsurance programs consist principally of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. Notwithstanding the purchase of such reinsurance, the Company is responsible for certain retained loss amounts before reinsurance attaches and for insured losses related to catastrophes and other events that exceed coverage provided by the reinsurance programs. The Company remains responsible for the settlement of insured losses irrespective of whether any of the reinsurers fail to make payments otherwise due.
To reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used.
The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands):
 Ratings as of September 30, 2022Due from as of
ReinsurerAM Best
Company		Standard
and Poor’s
Rating
Services, Inc.		Moody’s
Investors Service, Inc.		September 30, 2022December 31, 2021
Allianz Risk TransferA+AA-Aa3$371,290 $— 
Various Lloyd’s of London Syndicates (1)AA+n/a132,967 — 
Chubb Tempest Reinsurance, Ltd.A++AAAa362,592 — 
Florida Hurricane Catastrophe Fund (2)n/an/an/a61,024 136,298 
DaVinci Reinsurance Ltd.AAA-A358,290 — 
Renaissance Reinsurance Ltd.A+A+A149,773 20,051 
Markel Bermuda Ltd.AAA246,770 — 
Munich Reinsurance America Inc.A+AA-Aa319,122 — 
Everest Reinsurance CoA+A+A111,994 — 
Lumen Re Ltd. (3)An/an/a9,283 — 
Allianz Risk Transfer (Bermuda) Ltd.———— 44,618 
Total (4)$823,105 $200,967 
(1)No rating available for Moody’s Investors Service, Inc.
(2)No rating is available because the fund is not rated.
(3)No rating available for Standard and Poor’s Rating Service, Inc. and Moody’s Investors Service, Inc.
(4)Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses.
The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands):
Three Months Ended September 30,
20222021
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$500,677 $452,450 $1,269,344 $432,984 $410,621 $264,068 
Ceded(23,956)(161,819)(938,900)(124)(145,967)(76,487)
$476,721 $290,631 $330,444 $432,860 $264,654 $187,581 
Nine Months Ended September 30,
20222021
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$1,429,685 $1,295,858 $1,724,729 $1,271,925 $1,178,801 $777,668 
Ceded(670,339)(459,102)(1,008,875)(585,413)(414,670)(278,903)
Net$759,346 $836,756 $715,854 $686,512 $764,131 $498,765 

The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):
September 30,December 31,
20222021
Prepaid reinsurance premiums$452,230 $240,993 
Reinsurance recoverable on paid losses and LAE$6,042 $69,729 
Reinsurance recoverable on unpaid losses and LAE929,768 115,860 
Reinsurance recoverable$935,810 $185,589