Reinsurance (Tables)

12 Months Ended

Dec. 31, 2017

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 2014 - May 2015		30%
June 2015 - May 2016		0%
June 2016 - May 2017		0%
June 2017 - May 2018		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, 2017

Standard

and Poor's

Moody's

Due from as of

AM Best

Rating

Investors

December 31,

Reinsurer

Company

Services

Service, Inc.

2017

2016

Allianz Risk Transfer

A+

AA-

n/a

105,573

—

Florida Hurricane Catastrophe Fund (1)

n/a

52,054

46,364

Renaissance Reinsurance Ltd

A+

AA-

22,545

—

Total (2)

180,172

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

	For the Year Ended December 31, 2017
							Losses and Loss
	Premiums			Premiums			Adjustment
	Written			Earned			Expenses
Direct	$	1,055,886		$	999,198		$	779,122
Ceded		(318,826	)		(310,405	)		(428,694	)
Net	$	737,060		$	688,793		$	350,428

	For the Year Ended December 31, 2016
							Losses and Loss
	Premiums			Premiums			Adjustment
	Written			Earned			Expenses
Direct	$	954,617		$	921,227		$	303,036
Ceded		(298,523	)		(288,811	)		(1,807	)
Net	$	656,094		$	632,416		$	301,229

	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

Prepaid Reinsurance Premiums (Payable) and Reinsurance Recoverable and Receivable

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

	As of December 31,
	2017		2016
Prepaid reinsurance premiums	$	132,806	$	124,385

Reinsurance recoverable on unpaid losses and LAE	$	182,405	$	106
Reinsurance recoverable (payable) on paid losses		—		(1,532	)
Reinsurance receivable, net		—		186
Reinsurance recoverable (payable) and receivable	$	182,405	$	(1,240	)