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REINSURANCE | 12 Months Ended
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Dec. 31, 2025
Reinsurance Disclosures [Abstract] |
REINSURANCE | REINSURANCE We account for premium, written and earned, and losses and loss settlement expenses incurred net of reinsurance ceded. The ceding of insurance does not legally discharge us from the primary liability under our policies, and we must pay the loss if the reinsurer fails to meet its obligation. We also assume both property and casualty insurance from other insurance or reinsurance companies. We do not engage in any reinsurance transactions classified as finite risk reinsurance. The effects of reinsurance on net written premium, earned premium and loss and loss settlement expenses are presented in the following table:
Year ended December 31, | 2025 |  | 2024 |  | 2023
Written premium(1): |  |  |  |  |
Direct | 1,308,916 |  |  | 1,177,511 |  |  | 1,061,358 |
Assumed | 199,942 |  |  | 217,904 |  |  | 159,335 |
Ceded | (162,639) |  |  | (163,945) |  |  | (153,792) |
Net written premium | 1,346,219 |  |  | 1,231,470 |  |  | 1,066,901 |
Earned premium: |  |  |  |  |
Direct | 1,259,966 |  |  | 1,109,903 |  |  | 1,017,917 |
Assumed | 206,708 |  |  | 214,043 |  |  | 161,628 |
Ceded | (173,978) |  |  | (147,196) |  |  | (144,958) |
Net earned premium | 1,292,696 |  |  | 1,176,750 |  |  | 1,034,587 |
Loss and loss settlement expenses: |  |  |  |  |
Direct | 696,706 |  |  | 641,410 |  |  | 763,609 |
Assumed | 142,931 |  |  | 155,022 |  |  | 102,408 |
Ceded | (75,235) |  |  | (51,827) |  |  | (96,603) |
Net loss and loss settlement expense | 764,402 |  |  | 744,605 |  |  | 769,414 |
(1) See Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" for definition of Net written premium. We periodically monitor the financial condition of our reinsurers to confirm that they are financially stable. We believe all of our reinsurers are in an acceptable financial condition and there were no reinsurance balances at December 31, 2025 for which collection is at risk that would result in a material impact on our Consolidated Financial Statements. The amount of reinsurance recoverable on paid losses totaled $14,192 and $20,811 at December 31, 2025 and 2024, respectively. The following table provides a roll forward of the allowance for credit losses in our reinsurance recoverable balance at December 31, 2025:
Beginning balance, January 1, 2025 |  | $ | 103 |
Current-period provision for credit losses |  | 18
Ending balance, December 31, 2025 |  | $ | 121 |
Ceded Reinsurance Programs and Retentions We elect to cede parts of our business into various treaties, which allows us to increase our underwriting capacity, manage our risk profile, and protect us from a single large event, series of events, or a catastrophic event. The majority of our treaties are excess of loss, meaning we retain a portion of the loss prior to ceding to reinsurers. We place some treaties on a proportional basis, meaning we cede a portion of losses beginning with the first dollar of loss. Through each of our treaties, we cede a portion of each risk in exchange for a portion of the premium on those policies. Our treaties cover us from individual risk losses as well as a loss to more than one risk. We generally work with reinsurance brokers to facilitate our reinsurance treaty procurement. We have several programs that provide reinsurance coverage. The following tables provide a summary of our primary reinsurance programs. Retention amounts reflect the accumulated retentions and co-participation of all layers within a program. Reinsurance coverage limits the risk of loss that we retain by reinsuring direct risks in excess of our retention limits or proportionally from ground up. New reinsurance programs beginning in 2025 include the professional liability delegated underwriting authority ("DUA") excess of loss and specialty property quota share. We also discontinued our marine liability DUA quota share.
| 2025 Reinsurance Programs
Type of Reinsurance | Stated Retention |  | Exhaustion Point |  | Placement and Limit
Casualty Excess of Loss | $ | 3,000 |  |  | $ | 60,000 |  |  | 100 | % | of | $ | 57,000 |
Property Excess of Loss | 3,000 |  |  | 50,000 |  |  | 100 | % | of | $ | 47,000 |
Property Semi-automatic Quota Share | 50,000 |  |  | 75,000 |  |  | 100 | % | of | $ | 25,000 |
Surety Excess of Loss | 5,000 |  |  | 50,000 |  |  | 100 | % | of | $ | 45,000 |
Professional Liability DUA Excess of Loss | 500 |  |  | 3,000 |  |  | 32 | % | of | $ | 2,500 |
Professional Liability DUA Quota Share | N/A |  | 5,000 |  |  | 24 | % | of | $ | 5,000 |
Specialty Casualty Quota Share | N/A |  | 5,000 |  |  | 75 | % | of | $ | 5,000 |
Specialty Property Quota Share | N/A |  | 5,000 |  |  | 100 | % | of | $ | 5,000 |
Property Catastrophe Excess of Loss | 20,000 |  |  | 130,000 |  |  | 100 | % | of | $ | 110,000 |
Earthquake DUA Catastrophe Excess of Loss | 10,000 |  |  | 140,000 |  |  | 100 | % | of | $ | 130,000 |
Cyber Quota Share | N/A |  | 1,000 |  |  | 100 | % | of | $ | 1,000 |
Boiler and Machinery Quota Share | N/A |  | 100,000 |  |  | 100 | % | of | $ | 100,000 |
Pillar Occurrence Excess of Loss | 5,000 |  |  | 15,000 |  |  | 50 | % |  | $ | 10,000 |
New reinsurance programs that began in 2024 included the property semi-automatic quota share. In 2024, we also transitioned our earthquake DUA quota share into an excess of loss treaty.
| 2024 Reinsurance Programs
Type of Reinsurance | Stated Retention |  | Ground Up Limits |  | Coverage
Casualty Excess of Loss | $ | 3,000 |  |  | $ | 60,000 |  |  | 100 | % | of | $ | 57,000 |
Property Excess of Loss | 3,000 |  |  | 25,000 |  |  | 100 | % | of | $ | 22,000 |
Property Semi-automatic Quota Share | 25,000 |  |  | 50,000 |  |  | 100 | % | of | $ | 25,000 |
Surety Excess of Loss | 5,000 |  |  | 50,000 |  |  | 100 | % | of | $ | 45,000 |
Marine Liability DUA Quota Share | N/A |  | 10,000 |  |  | 70 | % | of | $ | 10,000 |
Professional Liability DUA Quota Share | N/A |  | 5,000 |  |  | 55 | % | of | $ | 5,000 |
Specialty Casualty Variable Quota Share | N/A |  | 10,000 |  |  | 50 | % | of | $ | 10,000 |
Property Catastrophe Excess of Loss | 20,000 |  |  | 130,000 |  |  | 100 | % | of | $ | 110,000 |
Earthquake DUA Catastrophe Excess of Loss | 10,000 |  |  | 170,000 |  |  | 100 | % | of | $ | 160,000 |
Cyber Quota Share | N/A |  | 1,000 |  |  | 100 | % | of | $ | 1,000 |
Boiler and Machinery Quota Share | N/A |  | 100,000 |  |  | 100 | % | of | $ | 100,000 |
Pillar Occurrence Excess of Loss | 5,000 |  |  | 15,000 |  |  | 42 | % | of | $ | 10,000 |
New reinsurance programs that began in 2023 included our marine liability DUA quota share and our specialty variable quota share.
| 2023 Reinsurance Programs
Type of Reinsurance | Stated Retention |  | Ground Up Limits |  | Coverage
Casualty Excess of Loss | $ | 3,000 |  |  | $ | 60,000 |  |  | 100 | % | of | $ | 57,000 |
Property Excess of Loss | 3,000 |  |  | 25,000 |  |  | 100 | % | of | $ | 22,000 |
Surety Excess of Loss | 2,000 |  |  | 50,000 |  |  | 100 | % | of | $ | 48,000 |
Marine Liability DUA Quota Share | N/A |  | 5,000 |  |  | 70 | % | of | $ | 5,000 |
Professional Liability DUA Quota Share | N/A |  | 5,000 |  |  | 70 | % | of | $ | 5,000 |
Specialty Casualty Variable Quota Share | N/A |  | 5,000 |  |  | 70 | % | of | $ | 5,000 |
Property Catastrophe Excess of Loss | 20,000 |  |  | 200,000 |  |  | 100 | % | of | $ | 163,150 |
Cyber Quota Share | N/A |  | 1,000 |  |  | 100 | % | of | $ | 1,000 |
Boiler and Machinery Quota Share | N/A |  | 100,000 |  |  | 100 | % | of | $ | 100,000 |
Pillar Occurrence Excess of Loss | 6,000 |  |  | 16,000 |  |  | 90 | % | of | $ | 10,000 |
Earthquake DUA Quota Share | N/A |  | 170,000 |  |  | 100 | % | of | $ | 56,525 |
If we incur property catastrophe losses and loss settlement expenses that exceed the stated retention amounts, our property catastrophe program provides one guaranteed reinstatement. In such an instance, we are required to pay the reinsurers a reinstatement premium equal to the full amount of the original premium, which will reinstate the full amount of reinsurance available under the property catastrophe program.

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