Reinsurance (Tables)

6 Months Ended

Jun. 30, 2020

Effect Of Reinsurance And Retrocessional Reinsurance On Premiums Written And Earned

The following table summarizes the effect of reinsurance and retrocessional reinsurance on premiums written and earned.


	Quarter Ended June 30,
	2020														2019
(dollars in thousands)	Direct		Assumed		Ceded		Net Premiums		Direct		Assumed		Ceded		Net Premiums
Underwriting:
Written	$	1,460,090	$	316,905	$	(319,772)	$	1,457,223	$	1,323,128	$	268,837	$	(286,978)	$	1,304,987
Earned	1,287,268		346,262		(272,600)		1,360,930		1,159,544		331,842		(292,374)		1,199,012
Program services and other:
Written	567,864		28,333		(597,025)		(828)		652,716		2,466		(654,531)		651
Earned	498,381		26,588		(525,725)		(756)		538,131		12,878		(550,560)		449
Consolidated:
Written	2,027,954		345,238		(916,797)		1,456,395		1,975,844		271,303		(941,509)		1,305,638
Earned	$	1,785,649	$	372,850	$	(798,325)	$	1,360,174	$	1,697,675	$	344,720	$	(842,934)	$	1,199,461


	Six Months Ended June 30,
	2020														2019
(dollars in thousands)	Direct		Assumed		Ceded		Net Premiums		Direct		Assumed		Ceded		Net Premiums
Underwriting:
Written	$	2,809,331	$	895,561	$	(599,161)	$	3,105,731	$	2,450,516	$	846,934	$	(515,610)	$	2,781,840
Earned	2,562,939		672,962		(542,138)		2,693,763		2,291,100		619,217		(507,540)		2,402,777
Program services and other:
Written	956,788		34,336		(993,982)		(2,858)		1,170,417		34,322		(1,203,848)		891
Earned	1,043,724		40,311		(1,086,915)		(2,880)		1,053,083		29,273		(1,081,695)		661
Consolidated:
Written	3,766,119		929,897		(1,593,143)		3,102,873		3,620,933		881,256		(1,719,458)		2,782,731
Earned	$	3,606,663	$	713,273	$	(1,629,053)	$	2,690,883	$	3,344,183	$	648,490	$	(1,589,235)	$	2,403,438

Effect Of Reinsurance And Retrocessional Reinsurance On Losses

The following table summarizes the effect of reinsurance and retrocessional reinsurance on losses and loss adjustment expenses in the Company's underwriting operations.


	Quarter Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2020		2019		2020		2019
Gross	$	868,069	$	893,276	$	2,111,626	$	1,715,030
Ceded	(154,307)		(215,389)		(321,487)		(349,412)
Net losses and loss adjustment expenses	$	713,762	$	677,887	$	1,790,139	$	1,365,618

Reinsurance Recoverables

The following table presents the Company's reinsurance recoverables and the related allowance for credit losses.


(dollars in thousands)	June 30, 2020		December 31, 2019
Reinsurance recoverables, gross	$	5,505,162	$	5,459,561
Allowance for credit losses	(32,813)		(26,849)
Reinsurance recoverables	$	5,472,349	$	5,432,712

Following the adoption of ASC 326, as described in note 1, beginning January 1, 2020 the Company considers reasonable and supportable forecasts of future economic conditions in addition to information about past events and current conditions to determine the allowance for credit losses. The increase in the allowance for credit losses on reinsurance recoverables from December 31, 2019 to June 30, 2020 reflects the impact of adopting this standard effective January 1, 2020 as well as a decline in short-term economic conditions as forecasted during the first six months of 2020 as a result of expected impacts from the COVID-19 pandemic.