Reinsurance (Tables)

12 Months Ended

Dec. 31, 2015

Summary of Quota-Share Cession Rates by Reinsurance Program

The following table presents quota-share cession rates by reinsurance program and the years they were in effect:

Reinsurance Program	Cession Rate
June 2011 - May 2012		50%
June 2012 - May 2013		45%
June 2013 - May 2014		45%
June 2014 - May 2015		30%
June 2015 - May 2016		0%

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 December 31, 2015

Standard

and Poor's

Moody's

Due from as of

AM Best

Rating

Investors

December 31,

Reinsurer

Company

Services

Service, Inc.

2015

2014

Everest Reinsurance Company

A+

—

16,780

Florida Hurricane Catastrophe Fund

n/a

42,086

31,870

Odyssey Reinsurance Company

A-

18,742

136,339

Total (1)

60,828

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 Consolidated Statements of Income for the periods presented (in thousands):

	For the year ended December 31, 2015
							Losses and Loss
	Premiums			Premiums			Adjustment
	Written			Earned			Expenses
Direct	$	883,409		$	836,792		$	214,491
Ceded		(256,961	)		(332,793	)		(26,752	)
Net	$	626,448		$	503,999		$	187,739

	For the year ended December 31, 2014
							Losses and Loss
	Premiums			Premiums			Adjustment
	Written			Earned			Expenses
Direct	$	789,577		$	777,317		$	199,181
Ceded		(399,730	)		(450,440	)		(75,906	)
Net	$	389,847		$	326,877		$	123,275

	For the year ended December 31, 2013
							Losses and Loss
	Premiums			Premiums			Adjustment
	Written			Earned			Expenses
Direct	$	783,894		$	788,477		$	216,852
Ceded		(522,116	)		(520,822	)		(108,237	)
Net	$	261,778		$	267,655		$	108,615

Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable

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

	As of December 31,
	2015		2014
Prepaid reinsurance premiums	$	114,673	$	190,505
Reinsurance recoverable on unpaid losses and LAE	$	13,540	$	47,350
Reinsurance recoverable on paid losses		9,313		7,837
Reinsurance receivable, net		353		7,468
Reinsurance recoverable and receivable	$	23,206	$	62,655