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Reinsurance
 12 Months Ended
Dec. 31, 2014
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]  
Reinsurance
REINSURANCE
The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain claims and claim expenses, generally in excess of various retentions or on a proportional basis. In addition to loss recoveries, certain of the Company’s ceded reinsurance contracts provide for recoveries of additional premiums, for reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to other reinsurance contracts. The Company remains liable to the extent that any reinsurance company fails to meet its obligations.
The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred:
 
 
 
 
 
 
 
 
 
Year ended December 31,
2014
 
2013
 
2012
 
 
Premiums written
 
 
 
 
 
 
 
Direct
$
76,511

 
$
54,334

 
$
36,367

 
 
Assumed
1,474,061

 
1,551,078

 
1,515,224

 
 
Ceded
(482,336
)
 
(401,465
)
 
(448,934
)
 
 
Net premiums written
$
1,068,236

 
$
1,203,947

 
$
1,102,657

 
 
Premiums earned
 
 
 
 
 
 
 
Direct
$
66,027

 
$
44,530

 
$
34,028

 
 
Assumed
1,450,047

 
1,482,511

 
1,465,701

 
 
Ceded
(453,658
)
 
(412,415
)
 
(430,374
)
 
 
Net premiums earned
$
1,062,416

 
$
1,114,626

 
$
1,069,355

 
 
Claims and claim expenses
 
 
 
 
 
 
 
Gross claims and claim expenses incurred
$
228,581

 
$
185,139

 
$
403,491

 
 
Claims and claim expenses recovered
(30,634
)
 
(13,852
)
 
(78,280
)
 
 
Net claims and claim expenses incurred
$
197,947

 
$
171,287

 
$
325,211

 
 
 
 
 
 
 
 
 

The reinsurers with the three largest balances accounted for 35.4%, 14.9% and 7.0%, respectively, of the Company’s reinsurance recoverable balance at December 31, 2014 (2013 - 28.2%, 19.9% and 11.0%, respectively). The valuation allowance recorded against reinsurance recoverable was $1.0 million at December 31, 2014 (2013 - $1.7 million). The three largest company-specific components of the valuation allowance represented 17.9%, 4.0% and 2.9%, respectively, of the Company’s total valuation allowance at December 31, 2014 (2013 - 14.2%, 12.5% and 3.1%, respectively).