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Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2019
Reinsurance Disclosures [Abstract]  
Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Insurance Entities' Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity
The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balances exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands):
 
 
Ratings as of September 30, 2019
 
Due from as of
Reinsurer
 
AM Best
Company
 
Standard
and Poor’s
Rating
Services, Inc.
 
Moody’s
Investors Service, Inc.
 
September 30, 2019
 
December 31, 2018
Florida Hurricane Catastrophe Fund (1)
 
n/a
 
n/a
 
n/a
 
$
123,037

 
$
165,022

Allianz Risk Transfer
 
A+
 
AA
 
Aa3
 
28,088

 
139,565

Renaissance Reinsurance Ltd
 
n/a
 
n/a
 
n/a
 
—

 
39,459

Chubb Tempest Reinsurance Ltd
 
n/a
 
n/a
 
n/a
 
—

 
16,208

Total (2)
 
 
 
 
 
 
 
$
151,125

 
$
360,254

(1)
No rating is available, because the fund is not rated.
(2)
Amounts represent prepaid reinsurance premiums, reinsurance receivables and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses.
Summary of Effects of Insurance Entities' 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,
 
2019
 
2018
 
Premiums
Written
 
Premiums
Earned
 
Losses and Loss
Adjustment
Expenses
 
Premiums
Written
 
Premiums
Earned
 
Losses and Loss
Adjustment
Expenses
Direct
$
342,872

 
$
313,065

 
$
334,440

 
$
309,176

 
$
288,404

 
$
270,158

Ceded
(4,781
)
 
(106,466
)
 
(201,869
)
 
(17,256
)
 
(99,466
)
 
(184,211
)
Net
$
338,091

 
$
206,599

 
$
132,571

 
$
291,920

 
$
188,938

 
$
85,947


 
Nine Months Ended September 30,
 
2019
 
2018
 
Premiums
Written
 
Premiums
Earned
 
Losses and Loss
Adjustment
Expenses
 
Premiums
Written
 
Premiums
Earned
 
Losses and Loss
Adjustment
Expenses
Direct
$
990,066

 
$
911,550

 
$
663,768

 
$
921,941

 
$
824,692

 
$
593,419

Ceded
(422,414
)
 
(284,867
)
 
(304,807
)
 
(356,507
)
 
(260,905
)
 
(341,704
)
Net
$
567,652

 
$
626,683

 
$
358,961

 
$
565,434

 
$
563,787

 
$
251,715
Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable
The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):
 
September 30,
 
December 31,
 
2019
 
2018
Prepaid reinsurance premiums
$
280,297

 
$
142,750

Reinsurance recoverable on paid losses and LAE
$
106,988

 
$
25,238

Reinsurance recoverable on unpaid losses and LAE
110,313

 
393,365

Reinsurance recoverable
$
217,301

 
$
418,603