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Reinsurance
 9 Months Ended
Sep. 30, 2023
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, 2023, and December 31, 2022:

September 30, 2023
($ in thousands)CurrentPast DueTotal Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++$87,295 $20 $87,315 
A+377,078 4,876 381,954 
A116,903 1,981 118,884 
A-3,669 89 3,758 
Total rated reinsurers$584,945 $6,966 $591,911 
Non-rated reinsurers
Federal and state pools$88,777 $16 $88,793 
Other than federal and state pools6,227 210 6,437 
Total non-rated reinsurers$95,004 $226 $95,230 
Total reinsurance recoverable, gross$679,949 $7,192 $687,141 
Less: allowance for credit losses(1,800)
Total reinsurance recoverable, net$685,341 

December 31, 2022
($ in thousands)CurrentPast DueTotal Reinsurance Recoverables
Financial strength rating of rated reinsurers
A++$46,282 $1 $46,283 
A+425,395 3,191 428,586 
A106,102 1,315 107,417 
A-7,148 89 7,237 
Total rated reinsurers$584,927 $4,596 $589,523 
Non-rated reinsurers
Federal and state pools$180,794 $— $180,794 
Other than federal and state pools13,678 415 14,093 
Total non-rated reinsurers$194,472 $415 $194,887 
Total reinsurance recoverable, gross$779,399 $5,011 $784,410 
Less: allowance for credit losses(1,600)
Total reinsurance recoverable, net$782,810 

The $92.0 million decrease in "Federal and state pools" as of September 30, 2023, compared to December 31, 2022, was
primarily due to a decrease in the NFIP reserves recorded as of December 31, 2022, for flood losses in Florida and surrounding states as a result of Hurricane Ian, which are 100% ceded to the NFIP and continue to be paid as the associated claims are settled.

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,
2023202220232022
Balance at beginning of period$1,800 1,600 $1,600 1,600 
Current period change for expected credit losses— — 200 — 
Write-offs charged against the allowance for credit losses— — — — 
Recoveries— — — — 
Allowance for credit losses, end of period$1,800 1,600 $1,800 1,600 

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 2022 Annual Report.

The following table lists direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expense 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 2022 Annual Report.

Quarter ended September 30,Nine Months ended September 30,
($ in thousands)2023202220232022
Premiums written:    
Direct$1,214,444 1,037,612 $3,579,700 3,089,166 
Assumed9,087 9,531 20,058 23,398 
Ceded(165,206)(143,749)(456,758)(388,631)
Net$1,058,325 903,394 $3,143,000 2,723,933 
Premiums earned:    
Direct$1,123,444 984,981 $3,229,170 2,872,008 
Assumed8,916 8,514 21,174 21,523 
Ceded(150,443)(139,616)(423,941)(392,930)
Net$981,917 853,879 $2,826,403 2,500,601 
Loss and loss expense incurred:
    
Direct$741,288 732,568 $2,053,511 1,821,069 
Assumed8,182 6,443 19,115 15,846 
Ceded(103,573)(191,185)(213,161)(269,985)
Net$645,897 547,826 $1,859,465 1,566,930