The Company defers ceding commission earned in connection with its quota share reinsurance contracts, which is earned subject to the terms of the reinsurance agreements. Ceding commission on quota share agreements generally includes a provisional ceding rate, subject to sliding scale adjustments based on the loss experience of the reinsurers. Adjustments to estimated ceding commission income are reflected in current operations. The Company allocates 75% of ceding commission income to policy acquisition costs and 25% of ceding commission income to general and administrative expenses. For the three months ended June 30, 2026 and 2025, the Company allocated ceding commission income of $11.4 million and $13.1 million to policy acquisition costs, respectively, and $3.7 million and $4.3 million to general and administrative expense, respectively. For the six months ended June 30, 2026 and 2025, the Company allocated ceding commission income of $22.3 million and $24.8 million to policy acquisition costs, respectively and $7.3 million and $8.2 million to general and administrative expense, respectively.

The table below depicts the activity regarding deferred reinsurance ceding commission during the three and six months ended June 30, 2026 and 2025:


	For The Three Months Ended June 30,						For The Six Months Ended June 30,
	2026			2025			2026			2025
	(In thousands)
Beginning balance of deferred ceding commission income	$	40,909		$	40,051		$	42,213		$	42,561
Ceding commission deferred		16,374			18,606			29,625			31,637
Less: ceding commission earned		(15,081	)		(17,401	)		(29,636	)		(32,942	)
Ending balance of deferred ceding commission income	$	42,202		$	41,256		$	42,202		$	41,256

Deferred ceding commission income is recorded as an offset to deferred policy acquisition costs in the Company's Consolidated Balance Sheet.