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Reinsurance
 9 Months Ended
Sep. 30, 2022
Reinsurance Disclosures [Abstract]  
Reinsurance Reinsurance
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 September 30, 2022, and December 31, 2021:

September 30, 2022
($ in thousands)CurrentPast DueTotal Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++$45,356 $— $45,356 
A+360,085 920 361,005 
A98,860 176 99,036 
A-2,301 90 2,391 
B++— — — 
B+— — — 
Total rated reinsurers$506,602 $1,186 $507,788 
Non-rated reinsurers
Federal and state pools$202,989 $— $202,989 
Other than federal and state pools3,676 278 3,954 
Total non-rated reinsurers$206,665 $278 $206,943 
Total reinsurance recoverable, gross$713,267 $1,464 $714,731 
Less: allowance for credit losses(1,600)
Total reinsurance recoverable, net$713,131 
December 31, 2021
($ in thousands)CurrentPast DueTotal Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++$38,601 $9 $38,610 
A+339,857 1,520 341,377 
A95,675 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 pools4,597 450 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 $86.6 million increase in "Federal and state pools" as of September 30, 2022, compared to December 31, 2021, was primarily due to NFIP reserves recorded in Third Quarter 2022 for flood losses in Florida and surrounding states as a result of Hurricane Ian, which are 100% ceded to the NFIP.

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 September 30,Nine Months ended September 30,
20222021 2022  2021
Balance at beginning of period$1,600 1,777 $1,600 1,777 
Current period change for expected credit losses— (182)— (182)
Write-offs charged against the allowance for credit losses— — — — 
Recoveries— — — — 
Allowance for credit losses, end of period$1,600 1,595 $1,600 1,595 

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 September 30,Nine Months ended September 30,
($ in thousands)2022202120222021
Premiums written:    
Direct$1,037,612 932,752 $3,089,166 2,796,296 
Assumed9,531 7,136 23,398 17,541 
Ceded(143,749)(126,982)(388,631)(369,548)
Net$903,394 812,906 $2,723,933 2,444,289 
Premiums earned:    
Direct$984,981 877,620 $2,872,008 2,568,445 
Assumed8,514 6,304 21,523 16,391 
Ceded(139,616)(116,677)(392,930)(352,111)
Net$853,879 767,247 $2,500,601 2,232,725 
Loss and loss expenses incurred:    
Direct$732,568 655,483 $1,821,069 1,557,063 
Assumed6,443 4,143 15,846 10,807 
Ceded(191,185)(154,357)(269,985)(227,577)
Net$547,826 505,269 $1,566,930 1,340,293