Reinsurance (Tables)

3 Months Ended

Mar. 31, 2016

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, 2016

Due from as of

Standard

and Poor's

Moody's

AM Best

Rating

Investors

March 31,

December 31,

Reinsurer

Company

Services

Service, Inc.

2016

2015

Florida Hurricane Catastrophe Fund

n/a

16,834

42,086

Odyssey Reinsurance Company

A-

13,393

18,742

Total (1)

30,227

60,828

(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 this state trust fund, which is under the direction of the Florida State Board of Administration, 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,
	2016									2015
							Losses and Loss									Losses and Loss
	Premiums			Premiums			Adjustment			Premiums			Premiums			Adjustment
	Written			Earned			Expenses			Written			Earned			Expenses
Direct	$	227,973		$	221,252		$	66,148		$	211,605		$	196,671		$	49,290
Ceded		(74,059	)		(68,804	)		(31	)		(106,497	)		(102,311	)		(15,700	)
Net	$	153,914		$	152,448		$	66,117		$	105,108		$	94,360		$	33,590

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,
	2016		2015
Prepaid reinsurance premiums	$	119,927	$	114,673
Reinsurance recoverable on unpaid losses and LAE	$	7,709	$	13,540
Reinsurance recoverable on paid losses		9,453		9,313
Reinsurance receivable, net		186		353
Reinsurance recoverable and receivable	$	17,348	$	23,206