Reinsurance (Tables)

9 Months Ended

Sep. 30, 2022

Schedule of Ratings from Rating Agencies and Unsecured Amounts Due from Reinsurers Exceeded 3% of Stockholders' Equity

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, 2022

Due from as of

Reinsurer

AM Best
Company

Standard
and Poor’s
Rating
Services, Inc.

Moody’s
Investors Service, Inc.

September 30, 2022

December 31, 2021

Allianz Risk Transfer

A+

AA-

Aa3

371,290

—

Various Lloyd’s of London Syndicates (1)

A+

n/a

132,967

—

Chubb Tempest Reinsurance, Ltd.

A++

Aa3

62,592

—

Florida Hurricane Catastrophe Fund (2)

n/a

61,024

136,298

DaVinci Reinsurance Ltd.

AA-

58,290

—

Renaissance Reinsurance Ltd.

A+

49,773

20,051

Markel Bermuda Ltd.

46,770

—

Munich Reinsurance America Inc.

A+

AA-

Aa3

19,122

—

Everest Reinsurance Co

A+

11,994

—

Lumen Re Ltd. (3)

n/a

9,283

—

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.

Schedule of Effects of Reinsurance Arrangements

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,
	2022						2021
	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,
	2022						2021
	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

Schedule of Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable

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,
	2022		2021
Prepaid reinsurance premiums	$	452,230	$	240,993
Reinsurance recoverable on paid losses and LAE	$	6,042	$	69,729
Reinsurance recoverable on unpaid losses and LAE	929,768		115,860

Reinsurance recoverable	$	935,810	$	185,589