v3.26.1
REINSURANCE
 6 Months Ended
Jun. 30, 2026
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, 2026Due from as of
ReinsurerAM Best
Company		Standard
and Poor’s
Rating
Services, Inc.		Moody’s
Investors Service, Inc.		June 30, 2026December 31, 2025
Various Lloyd’s of London Syndicates (1)
A+AA-N/A$49,004 $75,742 
Florida Hurricane Catastrophe Fund “FHCF” (2)
N/A
N/A
N/A
— 69,734 
Markel Bermuda Ltd.
A
A
A
— 38,569 
Everest Reinsurance Co
A+
A+
A
— 22,041 
Renaissance Reinsurance Ltd.
A+
A+
A
— 20,875 
DaVinci Reinsurance Ltd.
A
A+
A
— 18,799 
Total (3)
$49,004 $245,760 
(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 LAE.
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,
20262025
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$621,314 $544,806 $245,769 $596,720 $523,425 $260,953 
Ceded(612,642)(167,533)(1,207)(696,774)(163,232)(648)
Net$8,672 $377,273 $244,562 $(100,054)$360,193 $260,305 
Six Months Ended June 30,
20262025
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$1,127,861 $1,076,227 $473,968 $1,063,798 $1,036,682 $510,660 
Ceded(613,125)(342,052)(1,310)(697,075)(320,768)200 
Net$514,736 $734,175 $472,658 $366,723 $715,914 $510,860 
The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):
June 30,December 31,
20262025
Prepaid reinsurance premiums$562,104 $291,031 
Reinsurance recoverable on paid losses and LAE
$22,427 $18,574 
Reinsurance recoverable on unpaid losses and LAE
154,462 214,344 
Reinsurance recoverable
$176,889 $232,918