XML 26 R13.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Reinsurance | 12 Months Ended
--- | ---
Dec. 31, 2018
Insurance [Abstract] |
Reinsurance |
6. | Reinsurance
The Company cedes certain premiums and losses to various reinsurers under excess-of-loss treaties. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers on a continual basis. The effect of reinsurance on premiums written and earned in 2018, 2017 and 2016 was as follows:
|  | 2018 Premiums |  |  | 2017 Premiums |  |  | 2016 Premiums |
|  | Written |  |  | Earned |  |  | Written |  |  | Earned |  |  | Written |  |  | Earned |
|  | (in thousands) |
Gross |  | $ | 351,696 |  |  | $ | 359,670 |  |  | $ | 350,267 |  |  | $ | 355,025 |  |  | $ | 373,055 |  |  | $ | 379,011 |
Ceded |  |  | (9,344 | ) |  |  | (9,344 | ) |  |  | (8,869 | ) |  |  | (8,869 | ) |  |  | (10,307 | ) |  |  | (10,307 | )
Net premiums |  | $ | 342,352 |  |  | $ | 350,326 |  |  | $ | 341,398 |  |  | $ | 346,156 |  |  | $ | 362,748 |  |  | $ | 368,704 |
The amounts recoverable from reinsurers consist of the following:
|  | December 31, |
|  | 2018 |  |  | 2017 |
|  | (in thousands) |
Unpaid losses recoverable: |  |  |  |  |  |  |  |
Case basis |  | $ | 76,525 |  |  | $ | 66,061 |
Incurred but not reported |  |  | 30,691 |  |  |  | 18,828 |
Paid losses recoverable |  |  | 325 |  |  |  | 554 |
Experience-rated commissions recoverable |  |  | 4,465 |  |  |  | 4,690 |
Total |  | $ | 112,006 |  |  | $ | 90,133 |
Amounts recoverable from reinsurers consists of ceded case reserves, ceded incurred but not reported (“IBNR”) reserves, paid losses recoverable and experience-rated commissions recoverable. Ceded case and ceded IBNR reserves represent the portion of gross loss and loss adjustment expense liabilities that are recoverable under reinsurance agreements, but are not yet due from reinsurers. Paid losses recoverable are receivables currently due from reinsurers for ceded paid losses. The Company considers paid losses recoverable outstanding for more than 90 days to be past due. At December 31, 2018, there were no paid losses recoverable past due. The Company received reinsurance recoveries of $1.3 million in 2018, $1.6 million in 2017 and $0.5 million in 2016. The Company generally secures large reinsurance recoverable balances with various forms of collateral, including funds withheld accounts, irrevocable letters of credit and secured trusts. At December 31, 2018, reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiaries are shown below (in thousands).
Reinsurer |  | A.M. Best Rating |  | Amounts Recoverable as of December 31, 2018 |
|  |  |  | (in thousands) |
Hannover Reinsurance (Ireland) Limited (1) |  | A+ |  | $ | 53,609 |
Allianz Risk Transfer AG (Bermuda) (1) |  | A+ |  |  | 13,084 |
Odyssey America Reinsurance Corporation |  | A |  |  | 11,754 |
Minnesota Workers’ Compensation Reinsurance Association (1) |  | NR |  |  | 8,823 |
Other reinsurers |  |  |  |  | 24,736 |
Total amounts recoverable from reinsurers |  |  |  |  | 112,006 |
Funds withheld and letters of credit related to the above recoverables |  |  |  |  | (69,932 | )
Total unsecured amounts recoverable from reinsurers |  |  |  | $ | 42,074 |
(1) | Current participant in our 2019 reinsurance program.

X
- References No definition available. + Details
Name: | us-gaap_InsuranceAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -URI http://asc.fasb.org/topic&trid=2303980 + Details
Name: | us-gaap_ReinsuranceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration