Reinsurance (Tables)

6 Months Ended

Jun. 30, 2017

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 June 30, 2017

Due from as of

Standard

and Poor's

Moody's

AM Best

Rating

Investors

June 30,

December 31,

Reinsurer

Company

Services

Service, Inc.

2017

2016

Florida Hurricane Catastrophe Fund (1)

n/a

—

46,364

Total (2)

—

46,364

(1)	No rating is available, because the fund is not rated.

(2)	Amounts represent prepaid reinsurance premiums.

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 June 30,
	2017									2016
							Losses and Loss									Losses and Loss
	Premiums			Premiums			Adjustment			Premiums			Premiums			Adjustment
	Written			Earned			Expenses			Written			Earned			Expenses
Direct	$	296,191		$	244,623		$	85,656		$	271,921		$	226,819		$	58,434
Ceded		(311,338	)		(75,614	)		(5,472	)		(72,874	)		(70,358	)		1,649
Net	$	(15,147	)	$	169,009		$	80,184		$	199,047		$	156,461		$	60,083

	Six Months Ended June 30,
	2017									2016
							Losses and Loss									Losses and Loss
	Premiums			Premiums			Adjustment			Premiums			Premiums			Adjustment
	Written			Earned			Expenses			Written			Earned			Expenses
Direct	$	541,606		$	480,998		$	156,439		$	499,894		$	448,071		$	124,581
Ceded		(311,524	)		(150,430	)		(5,685	)		(146,933	)		(139,162	)		1,619
Net	$	230,082		$	330,568		$	150,754		$	352,961		$	308,909		$	126,200

Prepaid Reinsurance Premiums and Reinsurance Recoverable (Payable) and Receivable

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

	June 30,		December 31,
	2017		2016
Prepaid reinsurance premiums	$	285,480	$	124,385
Reinsurance recoverable on unpaid losses and LAE	$	1,393	$	106
Reinsurance recoverable (payable) on paid losses		1,318		(1,532	)
Reinsurance receivable, net		—		186
Reinsurance recoverable (payable) and receivable	$	2,711	$	(1,240	)