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

	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.