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Subsequent Event
9 Months Ended
Sep. 30, 2017
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Event

In October 2017, a series of destructive wildfires burned across several counties in Northern California. Recent estimates put the total number of structures destroyed at over 8,000. Based on claims reported to date and expected to be reported, the Company estimates that its share of the total structures destroyed will be fewer than 100. The Company estimates a total gross loss in the range of $60 million to $100 million and a net loss, after the benefit of reinsurance, of $10 million, plus any reinstatement premiums required under the terms of the Company's catastrophe reinsurance treaty. Due to the recent occurrence and magnitude of this event, the total losses from these wildfires are difficult to estimate, and these figures may change in the future.
The Company benefited significantly from its newly expanded catastrophe reinsurance treaty that became effective July 1, 2017. Under the reinsurance treaty, covered catastrophe losses are reinsured 100% up to $190 million above the Company's $10 million retention. Losses above $200 million are shared pro-rata with 5% coverage by the reinsurers and 95% retention by the Company, up to a total of $15 million in coverage provided by the reinsurers. The reinsurance treaty is subject to reinstatement premiums based on the amount of reinsurance benefits paid to the Company, up to the maximum reinstatement premium of $19 million if the full amount of benefit is used.