REINSURANCE

12 Months Ended

Dec. 31, 2025

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.