Reinsurance (Tables)

3 Months Ended

Mar. 31, 2015

Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity

The following table presents ratings from rating agencies and the unsecured amounts due from the Company’s reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands):

Ratings as of March 31, 2015

Due from as of

Standard

and Poor's

Moody's

AM Best

Rating

Investors

March 31,

December 31,

Reinsurer

Company

Services

Service, Inc.

2015

2014

Everest Reinsurance Company

A+

12,029

16,780

Florida Hurricane Catastrophe Fund

n/a

12,748

31,870

Odyssey Reinsurance Company

A-

139,044

136,339

Total (1)

163,821

184,989

(1)	Amounts represent prepaid reinsurance premiums, reinsurance receivables, and net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables.

n/a	No rating available, because entity is not rated.

Summary of Effects of Reinsurance Arrangements

The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands):

	Three Months Ended March 31,
	2015									2014
							Loss and Loss									Loss and Loss
	Premiums			Premiums			Adjustment			Premiums			Premiums			Adjustment
	Written			Earned			Expenses			Written			Earned			Expenses
Direct	$	211,605		$	196,671		$	49,290		$	191,917		$	190,644		$	50,722
Ceded		(106,497	)		(102,311	)		(15,700	)		(121,649	)		(126,837	)		(23,897	)
Net	$	105,108		$	94,360		$	33,590		$	70,268		$	63,807		$	26,825

Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable

The following prepaid reinsurance premiums and reinsurance recoverable and receivable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):

	March 31,		December 31,
	2015		2014
Prepaid reinsurance premiums	$	194,691	$	190,505
Reinsurance recoverable on unpaid losses and LAE	$	42,713	$	47,350
Reinsurance recoverable on paid losses		8,653		7,837
Reinsurance receivable, net		4,297		7,468
Reinsurance recoverable and receivable	$	55,663	$	62,655