XML 37 R23.htm IDEA: XBRL DOCUMENT v3.8.0.1
Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2017
Insurance [Abstract]  
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 September 30, 2017

 

Due from as of

 

 

 

 

 

Standard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and Poor's

 

Moody's

 

 

 

 

 

 

 

 

 

 

AM Best

 

Rating

 

Investors

 

September 30,

 

 

December 31,

 

Reinsurer

 

Company

 

Services

 

Service, Inc.

 

2017

 

 

2016

 

Allianz Risk Transfer

 

A+

 

AA-

 

n/a

 

$

186,479

 

 

$

—

 

AXIS Specialty Limited

 

A+

 

A+

 

A2

 

 

16,929

 

 

 

—

 

Everest Reinsurance Company

 

A+

 

A+

 

A1

 

 

63,104

 

 

 

—

 

Florida Hurricane Catastrophe Fund (1)

 

n/a

 

n/a

 

n/a

 

 

—

 

 

 

46,364

 

Renaissance Reinsurance Ltd

 

A+

 

AA-

 

A1

 

 

30,604

 

 

 

—

 

Total (2)

 

 

 

 

 

 

 

$

297,116

 

 

$

46,364

 

 

(1)

No rating is available, because the fund is not rated.

(2)

Amounts represent prepaid reinsurance premiums, reinsurance receivables, net recoverables for paid and unpaid losses, including incurred but not reported reserves, loss adjustment expenses, and offsetting reinsurance payables.
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 September 30,

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

Losses and Loss

 

 

 

 

 

 

 

 

 

 

Losses and Loss

 

 

Premiums

 

 

Premiums

 

 

Adjustment

 

 

Premiums

 

 

Premiums

 

 

Adjustment

 

 

Written

 

 

Earned

 

 

Expenses

 

 

Written

 

 

Earned

 

 

Expenses

 

Direct

$

274,744

 

 

$

254,809

 

 

$

531,268

 

 

$

241,888

 

 

$

234,500

 

 

$

73,487

 

Ceded

 

(7,303

)

 

 

(80,292

)

 

 

(414,893

)

 

 

(151,432

)

 

 

(74,966

)

 

 

61

 

Net

$

267,441

 

 

$

174,517

 

 

$

116,375

 

 

$

90,456

 

 

$

159,534

 

 

$

73,548

 

 

 

Nine Months Ended September 30,

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

 

 

Losses and Loss

 

 

 

 

 

 

 

 

 

 

Losses and Loss

 

 

Premiums

 

 

Premiums

 

 

Adjustment

 

 

Premiums

 

 

Premiums

 

 

Adjustment

 

 

Written

 

 

Earned

 

 

Expenses

 

 

Written

 

 

Earned

 

 

Expenses

 

Direct

$

816,350

 

 

$

735,807

 

 

$

687,707

 

 

$

741,782

 

 

$

682,571

 

 

$

198,069

 

Ceded

 

(318,827

)

 

 

(230,722

)

 

 

(420,578

)

 

 

(298,365

)

 

 

(214,128

)

 

 

1,680

 

Net

$

497,523

 

 

$

505,085

 

 

$

267,129

 

 

$

443,417

 

 

$

468,443

 

 

$

199,749

 

 
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):

 

 

September 30,

 

 

December 31,

 

 

2017

 

 

2016

 

Prepaid reinsurance premiums

$

212,489

 

 

$

124,385

 

Reinsurance recoverable on unpaid losses and LAE

$

412,697

 

 

$

106

 

Reinsurance recoverable (payable) on paid losses

 

—

 

 

 

(1,532

)

Reinsurance receivable, net

 

—

 

 

 

186

 

Reinsurance recoverable (payable) and receivable

$

412,697

 

 

$

(1,240

)