Certain premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The reinsurance agreements provide the Company with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. The Company remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations.

The following tables set forth the effects of reinsurance on written and earned premiums and losses and loss adjustment expenses for the three months ended March 31, 2026 and 2025:


	Three months ended March 31,
	2026				2025
($ in thousands)	Written		Earned		Written		Earned
Direct premiums	$	507,134	$	515,489	$	408,310	$	385,438
Assumed premiums	160,570		149,556		127,016		78,727
Ceded premiums	(234,821)		(231,038)		(192,055)		(163,799)
Net premiums	$	432,883	$	434,007	$	343,271	$	300,366
Ceded losses and LAE incurred			$	152,573			$	135,467

The following table sets forth the components of reinsurance recoverables and ceded unearned premium as of March 31, 2026 and December 31, 2025:



($ in thousands)	March 31, 2026		December 31, 2025
Ceded unpaid losses and LAE	$	1,109,909	$	921,165
Ceded paid losses and LAE	229,323		201,010

Allowance for credit losses	(2,295)		(2,295)
Reinsurance recoverables	$	1,336,937	$	1,119,880
Ceded unearned premium	$	314,850	$	238,948

The Company entered into agreements with several of its reinsurers, whereby the reinsurer established funded trust accounts with the Company as the sole beneficiary. These trust accounts provide the Company additional security to collect claim recoverables under reinsurance contracts and the Company does not carry these on the balance sheet because the Company will only have custody over these accounts upon the failure of the reinsurer to pay amounts due. At March 31, 2026, the market value of these accounts was approximately $250.7 million. The trust amount will be adjusted periodically, by mutual agreement, based on claim payments and loss reserve recoverables.

Certain ceded reinsurance contracts that transfer only significant timing risk and do not transfer sufficient underwriting risk are accounted for using the deposit method of accounting. The Company’s deposit asset at March 31, 2026 and December 31, 2025 was $18.2 million and $22.7 million, respectively, and was included in other assets on the condensed consolidated balance sheets.