v3.25.2
REINSURANCE
 6 Months Ended
Jun. 30, 2025
Insurance [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 or otherwise are not within the scope of 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 June 30, 2025Due from as of
ReinsurerAM Best
Company		Standard
and Poor’s
Rating
Services, Inc.		Moody’s
Investors Service, Inc.		June 30, 2025December 31, 2024
Various Lloyd’s of London Syndicates (1)
A+
AA-
n/a
$103,236 $282,826 
Markel Bermuda Ltd.
A
A
A
75,796 94,173 
Renaissance Reinsurance Ltd.
A+
A+
A
33,790 35,808 
Florida Hurricane Catastrophe Fund “FHCF” (2)
n/an/an/a29,013 81,375 
Everest Reinsurance Co
A+
A+
A
26,128 47,807 
DaVinci Reinsurance Ltd.
A
A+
A
25,729 73,645 
Total (3)
$293,692 $615,634 
(1)Moody’s does not provide a rating for Lloyd’s; the reinsurer is fully collateralized with a trust agreement.
(2)No rating is available, because the fund is not rated.
(3)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 June 30,
20252024
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$596,720 $523,425 $260,953 $578,267 $490,649 $253,613 
Ceded(696,774)(163,232)(648)(632,813)(145,691)(10,041)
Net$(100,054)$360,193 $260,305 $(54,546)$344,958 $243,572 
Six Months Ended June 30,
20252024
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$1,063,798 $1,036,682 $510,660 $1,024,446 $972,721 $493,932 
Ceded(697,075)(320,768)200 (633,104)(293,738)(10,173)
Net$366,723 $715,914 $510,860 $391,342 $678,983 $483,759 
The following prepaid reinsurance premiums and reinsurance recoverables are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):
June 30,December 31,
20252024
Prepaid reinsurance premiums$639,022 $262,716 
Reinsurance recoverables on paid losses and LAE$45,362 $65,681 
Reinsurance recoverables on unpaid losses and LAE336,627 561,936 
Reinsurance recoverables$381,989 $627,617