
	Three Months Ended June 30,
(in millions)	2026		2025
Balance as of April 1,	$	85.0	$	56.3
Direct commissions and other acquisition costs on retained business	55.5		12.8
Amortization of deferred acquisition costs	(34.8)		(18.2)
Foreign currency translation	(0.3)		0.3
Balance as of June 30,	$	105.4	$	51.2


	Six Months Ended June 30,
(in millions)	2026		2025
Balance as of January 1,	$	76.9	$	60.7
Direct commissions and other acquisition costs on retained business	97.6		25.5
Amortization of deferred acquisition costs	(68.4)		(35.3)
Foreign currency translation	(0.7)		0.3
Balance as of June 30,	$	105.4	$	51.2


	Three Months Ended June 30,
(in millions)	2026		2025
Balance as of April 1,	$	247.8	$	194.6
Deferral of excess ceding commission income over deferred acquisition costs	51.9		142.5
Amortization of deferred excess ceding commissions to income	(75.1)		(101.6)
Foreign currency translation	0.5		(0.5)
Balance as of June 30,	$	225.1	$	235.0


	Six Months Ended June 30,
(in millions)	2026		2025
Balance as of January 1,	$	232.5	$	193.0
Deferral of excess ceding commission income over deferred acquisition costs	145.1		215.7
Amortization of deferred excess ceding commission to income	(155.6)		(172.3)
Foreign currency translation	3.1		(1.4)
Balance as of June 30,	$	225.1	$	235.0

We cede a significant portion of our premiums written to reinsurance companies. The ceding commissions are offset against DAC related to the insurance contracts that are subject to such reinsurance. Any excess ceding commissions over the related DAC are subject to deferral over the insurance premiums earning period.

Our contractual acquisition costs are expressed as a percentage of the underlying premiums by type of insurance policy. Certain agreements with our Members include sliding scale adjustments to acquisition cost based on the actual loss experience of the insurance contracts they write, such that our ultimate acquisition cost inversely changes relative to the loss ratio (i.e., adverse experience in the loss ratio will result in a reduction in the related acquisition cost and, conversely, any favorable experience in the loss ratio will result in an increase in the acquisition cost).

Certain of our reinsurance arrangements are subject to sliding scale adjustments based on the actual loss experience of covered insurance contracts. The contractual ceding commission amounts are expressed as a percentage of the underlying premiums by type of insurance policy. Further, the amount of ceding commissions will vary based on the volume of ceded premium and may be adjusted for changes in the loss ratio. As that loss ratio changes from the original expected contractual amount, the amount of ceding commission inversely changes (such that adverse experience in the subject loss ratio will result in a reduction in ceding commissions and, conversely, any favorable experience in the subject loss ratio will result in an increase in ceding commissions). Such changes in ceding commission will result in a change to the deferred ceding commissions liability to the extent that the underlying premiums are unearned and, conversely, will result in a direct change to income to the extent that the underlying premium has been earned. As such, the sliding scale commissions act as our substantive participation in the underlying loss experience of the underlying insurance contracts.

Ceding commission income recognized for the three and six months ended June 30, 2026 included net reductions of $7.1 million due to sliding scale commission adjustments resulting from the loss experience of covered insurance contracts. For the three and six months ended June 30, 2025, ceding commission income recognized included increases of $12.5 million due to net sliding scale commission adjustments resulting from the favorable loss experience of covered insurance contracts.