Reinsurance

6 Months Ended

Jun. 30, 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 June 30, 2022, and December 31, 2021:


	June 30, 2022
($ in thousands)	Current		Past Due		Total Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++	$	41,450	$	8	$	41,458
A+	352,302		891		353,193
A	96,898		897		97,795
A-	2,647		90		2,737
B++	—		—		—
B+	—		—		—
Total rated reinsurers	$	493,297	$	1,886	$	495,183

Non-rated reinsurers
Federal and state pools	$	74,380	$	—	$	74,380
Other than federal and state pools	4,181		86		4,267
Total non-rated reinsurers	$	78,561	$	86	$	78,647

Total reinsurance recoverable, gross	$	571,858	$	1,972	$	573,830
Less: allowance for credit losses					(1,600)
Total reinsurance recoverable, net					$	572,230


	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 roll forward of the allowance for credit losses on our reinsurance recoverable balance for the periods indicated:


($ in thousands)	Quarter ended June 30,			Six Months ended June 30,
	2022		2021	2022		2021
Balance at beginning of period	$	1,600	1,840	$	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	1,777	$	1,600	1,777

For a discussion of the methodology used to evaluate our estimate of expected credit losses on our reinsurance recoverable balance, 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 lists direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the indicated periods. 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 June 30,			Six Months ended June 30,
($ in thousands)	2022		2021	2022		2021
Premiums written:
Direct	$	1,050,506	954,770	$	2,051,555	1,863,544
Assumed	8,552		4,872	13,866		10,405
Ceded	(128,317)		(126,437)	(244,882)		(242,566)
Net	$	930,741	833,205	$	1,820,539	1,631,383
Premiums earned:
Direct	$	955,651	853,456	$	1,887,027	1,690,825
Assumed	7,481		4,411	13,009		10,087
Ceded	(128,693)		(117,349)	(253,314)		(235,434)
Net	$	834,439	740,518	$	1,646,722	1,465,478
Loss and loss expenses incurred:
Direct	$	559,913	460,073	$	1,088,501	901,580
Assumed	5,125		3,217	9,403		6,664
Ceded	(40,170)		(41,667)	(78,800)		(73,220)
Net	$	524,868	421,623	$	1,019,104	835,024