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Reinsurance | 3 Months Ended
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Mar. 31, 2025
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 March 31, 2025, and December 31, 2024:
|  | March 31, 2025
($ in thousands) |  | Current |  | Past Due |  | Total Reinsurance Recoverables
Financial strength rating of rated reinsurers |  |  |  |  |  |
A++ |  | $ | 114,152 |  |  | 835 |  |  | 114,987 |
A+ |  | 475,469 |  |  | 3,881 |  |  | 479,350 |
A |  | 131,695 |  |  | 2,029 |  |  | 133,724 |
A- |  | 6,036 |  |  | 97 |  |  | 6,133 |
Total rated reinsurers |  | 727,352 |  |  | 6,842 |  |  | 734,194 |
Non-rated reinsurers |  |  |  |  |  |
Federal and state pools |  | 184,555 |  |  | — |  |  | 184,555 |
Other than federal and state pools |  | 8,192 |  |  | 3 |  |  | 8,195 |
Total non-rated reinsurers |  | 192,747 |  |  | 3 |  |  | 192,750 |
Total reinsurance recoverable, gross |  | $ | 920,099 |  |  | 6,845 |  |  | 926,944 |
Less: allowance for credit losses |  |  |  |  |  | (2,000) |
Total reinsurance recoverable, net |  |  |  |  |  | 924,944 |
|  | December 31, 2024
($ in thousands) |  | Current |  | Past Due |  | Total Reinsurance Recoverables
Financial strength rating of rated reinsurers |  |  |  |  |  |
A++ |  | $ | 111,481 |  |  | 225 |  |  | 111,706 |
A+ |  | 483,317 |  |  | 5,205 |  |  | 488,522 |
A |  | 131,087 |  |  | 819 |  |  | 131,906 |
A- |  | 5,421 |  |  | 149 |  |  | 5,570 |
Total rated reinsurers |  | 731,306 |  |  | 6,398 |  |  | 737,704 |
Non-rated reinsurers |  |  |  |  |  |
Federal and state pools |  | 318,785 |  |  | — |  |  | 318,785 |
Other than federal and state pools |  | 6,647 |  |  | 9 |  |  | 6,656 |
Total non-rated reinsurers |  | 325,432 |  |  | 9 |  |  | 325,441 |
Total reinsurance recoverable, gross |  | $ | 1,056,738 |  |  | 6,407 |  |  | 1,063,145 |
Less: allowance for credit losses |  |  |  |  |  | (2,000) |
Total reinsurance recoverable, net |  |  |  |  |  | 1,061,145 |
The $134.2 million decrease in "Federal and state pools" as of March 31, 2025, compared to December 31, 2024, primarily related to First Quarter 2025 claim payments on Hurricane Helene losses that were reserved for at December 31, 2024. These losses were related to our participation in the NFIP Write Your Own Program, and are 100% ceded to the NFIP. The following table provides a roll forward of the allowance for credit losses on our reinsurance recoverable balance for the periods indicated:
|  | Quarter ended March 31, |  |
($ in thousands) |  | 2025 |  | 2024 |  |  |  |
Balance at beginning of period |  | $ | 2,000 |  |  | 1,700 |  |  |  |  |
Current period change for expected credit losses |  | — |  |  | — |  |  |  |  |
Write-offs charged against the allowance for credit losses |  | — |  |  | — |  |  |  |  |
Recoveries |  | — |  |  | — |  |  |  |  |
Allowance for credit losses, end of period |  | $ | 2,000 |  |  | 1,700 |  |  |  |  |
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 2024 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 2024 Annual Report.
|  | Quarter ended March 31, |  |
($ in thousands) |  | 2025 |  | 2024 |  |  |  |
Premiums written: |  |  |  |  |  |  |  |
Direct |  | $ | 1,422,851 |  |  | 1,315,911 |  |  |  |  |
Assumed |  | 5,977 |  |  | 5,985 |  |  |  |  |
Ceded |  | (188,385) |  |  | (165,275) |  |  |  |  |
Net |  | 1,240,443 |  |  | 1,156,621 |  |  |  |  |
Premiums earned: |  |  |  |  |  |  |  |
Direct |  | 1,340,446 |  |  | 1,205,368 |  |  |  |  |
Assumed |  | 6,151 |  |  | 6,191 |  |  |  |  |
Ceded |  | (187,840) |  |  | (160,615) |  |  |  |  |
Net |  | 1,158,757 |  |  | 1,050,944 |  |  |  |  |
Loss and loss expense incurred: |  |  |  |  |  |  |  |
Direct |  | 830,672 |  |  | 753,567 |  |  |  |  |
Assumed |  | 5,498 |  |  | 5,981 |  |  |  |  |
Ceded |  | (89,845) |  |  | (55,256) |  |  |  |  |
Net |  | $ | 746,325 |  |  | 704,292 |  |  |  |  |

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