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REINSURANCE
 12 Months Ended
Dec. 31, 2019
Reinsurance Disclosures [Abstract]  
REINSURANCE
In the normal course of business, the Company purchases treaty and facultative reinsurance protection to limit ultimate losses from catastrophic events and reduce loss aggregation risk.

Facultative reinsurance provides cover for all or a portion of the losses incurred for a single policy and the Company separately negotiates each facultative contract.

Treaty reinsurance provides cover for a specified type or category of risks. The Company's treaty reinsurance agreements provide this cover on either an excess of loss or a proportional basis. Excess of loss covers provide a contractually set amount of coverage after a specified loss amount has been reached. These treaties can provide cover for a number of lines of business within one contract. Under proportional reinsurance, the Company cedes an agreed proportion of the premiums and the losses and loss expenses on the policies it underwrites. These treaties provide the Company with a specified percentage of coverage from the first dollar of loss.
All of these reinsurance contracts provide the Company with the right to recover a specified amount of losses and loss expenses from reinsurers. To the extent that reinsurers do not meet their obligations under these agreements due to solvency issues, contractual disputes over contract language or coverage and/or other reasons, the Company remains liable. The Company predominantly cedes its business to reinsurers rated A- or better by A.M. Best.

The following table presents gross and net premiums written and earned:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year ended December 31,
2019
 
2018
 
2017
 
 
  
Premiums
written
 
Premiums
earned
 
Premiums
written
 
Premiums
earned
 
Premiums
written
 
Premiums
earned
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross
$
6,898,858

 
$
6,910,677

 
$
6,910,065

 
$
6,882,217

 
$
5,556,273

 
$
5,616,234

 
 
Ceded
(2,409,243
)
 
(2,323,499
)
 
(2,251,103
)
 
(2,090,722
)
 
(1,529,130
)
 
(1,467,474
)
 
 
Net
$
4,489,615

 
$
4,587,178

 
$
4,658,962

 
$
4,791,495

 
$
4,027,143

 
$
4,148,760

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

For the year ended December 31, 2019, the Company recognized ceded losses and loss expenses of $1,602 million (2018: $1,565 million; 2017: $1,010 million).
At December 31, 2019, the Company's provision for uncollectible amounts was $18 million (2018: $21 million; 2017: $17 million.