Reinsurance

3 Months Ended

Mar. 31, 2022

We evaluate and monitor the financial condition of our reinsurers under voluntary reinsurance arrangements to minimize our exposure to significant losses from reinsurer insolvencies. The following tables provide (i) a disaggregation of our reinsurance recoverable balance by financial strength rating and (ii) an aging analysis of our past due reinsurance recoverable balances as of March 31, 2022, and December 31, 2021:


	March 31, 2022
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	42,025	$	(3)	$	42,022
A+	349,963		735		350,698
A	97,115		926		98,041
A-	3,230		79		3,309
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	492,333	$	1,737	$	494,070

Non-rated reinsurers
Federal and state pools	$	79,980	$	—	$	79,980
Other than federal and state pools	4,744		165		4,909
Total non-rated reinsurers	$	84,724	$	165	$	84,889

Total reinsurance recoverable, gross	$	577,057	$	1,902	$	578,959
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	577,359


	December 31, 2021
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	38,601	$	9	$	38,610
A+	339,857		1,520		341,377
A	95,675		1,227		96,902
A-	3,209		145		3,354
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	477,342	$	2,901	$	480,243

Non-rated reinsurers
Federal and state pools	$	116,378	$	—	$	116,378
Other than federal and state pools	4,597		450		5,047
Total non-rated reinsurers	$	120,975	$	450	$	121,425

Total reinsurance recoverable, gross	$	598,317	$	3,351	$	601,668
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	600,068

The following table provides a rollforward of the allowance for credit losses on our reinsurance recoverable balance for the periods indicated:


($ in thousands)	Quarter ended March 31,
	2022		2021
Balance at beginning of period	$	1,600	1,777


Current period change for expected credit losses	—		63

Write-offs charged against the allowance for credit losses	—		—
Recoveries	—		—
Allowance for credit losses, end of period	$	1,600	1,840

For a discussion of the methodology used to evaluate our estimate of expected credit losses, refer to Note 2. "Summary of Significant Accounting Policies" in Item 8. "Financial Statements and Supplementary Data." of our 2021 Annual Report.

The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information about reinsurance, refer to Note 9. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2021 Annual Report.


	Quarter ended March 31,
($ in thousands)	2022		2021
Premiums written:
Direct	$	1,001,049	908,774
Assumed	5,314		5,533
Ceded	(116,565)		(116,129)
Net	$	889,798	798,178
Premiums earned:
Direct	$	931,376	837,369
Assumed	5,528		5,676
Ceded	(124,621)		(118,085)
Net	$	812,283	724,960
Loss and loss expenses incurred:
Direct	$	528,588	441,507
Assumed	4,278		3,447
Ceded	(38,630)		(31,553)
Net	$	494,236	413,401

Ceded premiums written, ceded premiums earned, and ceded loss and loss expenses incurred related to our participation in the NFIP, to which we cede 100% of our NFIP flood premiums, losses, and loss expenses, were as follows:


Ceded to NFIP	Quarter ended March 31,
($ in thousands)	2022		2021
Ceded premiums written	$	(60,889)	(65,742)
Ceded premiums earned	(69,268)		(67,519)
Ceded loss and loss expenses incurred	(2,417)		(2,207)