Reinsurance (Tables)

12 Months Ended

Dec. 31, 2023

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 December 31, 2023

Standard

AM Best

and Poor’s
Rating

Moody’s
Investors

Due from as of
December 31,

Reinsurer

Company

Services, Inc.

Service, Inc.

2023

2022

Florida Hurricane Catastrophe Fund “FHCF” (1)

n/a

91,275

134,411

Various Lloyd’s of London Syndicates (2)

A+

n/a

22,832

101,482

Allianz Risk Transfer (Bermuda) Ltd.

n/a

—

285,323

Chubb Tempest Reinsurance Ltd.

n/a

—

51,319

Markel Bermuda Ltd.

n/a

—

50,981

DaVinci Reinsurance Ltd.

n/a

—

48,115

Renaissance Reinsurance Ltd.

n/a

—

38,768

D E Shaw Re (Bermuda) Ltd.

n/a

—

16,680

Munich Reinsurance America Inc.

n/a

—

14,616

Everest Reinsurance Co

n/a

—

11,536

Upsilon RFO Re Ltd.

n/a

—

11,201

Lumen Re Ltd.

n/a

—

8,913

Total (3)

114,107

773,345

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

(2)No rating available for Moody’s Investors Service, Inc.

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

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, 2023
	Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses
Direct	$	1,921,833	$	1,875,129	$	1,046,854
Ceded	(577,020)		(623,193)		(54,218)
Net	$	1,344,813	$	1,251,936	$	992,636


	For the Year Ended December 31, 2022
	Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses
Direct	$	1,845,786	$	1,759,701	$	1,972,541
Ceded	(672,508)		(631,075)		(1,034,142)
Net	$	1,173,278	$	1,128,626	$	938,399


	For the Year Ended December 31, 2021
	Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses
Direct	$	1,671,252	$	1,596,618	$	1,189,444
Ceded	(586,425)		(561,155)		(410,239)
Net	$	1,084,827	$	1,035,463	$	779,205

Schedule of Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable

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


	As of December 31,
	2023		2022
Prepaid reinsurance premiums	$	236,254	$	282,427
Reinsurance recoverable on paid losses and LAE	$	35,667	$	10,170
Reinsurance recoverable on unpaid losses and LAE	183,435		798,680
Reinsurance recoverable	$	219,102	$	808,850