Reinsurance (Tables)

9 Months Ended

Sep. 30, 2021

Schedule of Ratings from Rating Agencies and Unsecured Amounts Due from Reinsurers Exceeded 3% of Stockholders' Equity

The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands):


	Ratings as of September 30, 2021			Due from as of
Reinsurer	AM Best Company	Standard and Poor’s Rating Services, Inc.	Moody’s Investors Service, Inc.	September 30, 2021		December 31, 2020
Florida Hurricane Catastrophe Fund (1)	n/a	n/a	n/a	$	52,992	$	121,298
Allianz Risk Transfer (Bermuda) Ltd.	A+	AA	Aa3	41,553		96,652
Allianz Risk Transfer	—	—	—	—		21,087
Renaissance Reinsurance Ltd.	—	—	—	—		18,285
Total (2)				$	94,545	$	257,322

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

(2)Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses.

Schedule 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,
	2021						2020
	Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses		Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses
Direct	$	432,984	$	410,621	$	264,068	$	409,418	$	357,208	$	347,207
Ceded	(124)		(145,967)		(76,487)		(3,062)		(123,017)		(108,730)
Net	$	432,860	$	264,654	$	187,581	$	406,356	$	234,191	$	238,477



	Nine Months Ended September 30,
	2021						2020
	Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses		Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses
Direct	$	1,271,925	$	1,178,801	$	777,668	$	1,148,656	$	1,020,798	$	682,896
Ceded	(585,413)		(414,670)		(278,903)		(497,263)		(339,408)		(158,026)
Net	$	686,512	$	764,131	$	498,765	$	651,393	$	681,390	$	524,870

Schedule of 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,
	2021		2020
Prepaid reinsurance premiums	$	386,466	$	215,723
Reinsurance recoverable on paid losses and LAE	$	52,215	$	40,895
Reinsurance recoverable on unpaid losses and LAE	82,720		119,522

Reinsurance recoverable	$	134,935	$	160,417