XML 272 R13.htm IDEA: XBRL DOCUMENT v3.24.2
Reinsurance
 6 Months Ended
Jun. 30, 2024
Reinsurance Disclosures [Abstract]  
Reinsurance Reinsurance
The Company seeks to reduce its risk of loss by reinsuring certain levels of risk in various areas of exposure with other insurance enterprises or reinsurers, generally as of the beginning of the hurricane season on June 1st of each year. The Company’s current reinsurance programs consist principally of catastrophe excess of loss reinsurance, subject to the terms and conditions of the applicable agreements. Notwithstanding the purchase of such reinsurance, the Company is responsible for certain retained loss amounts before reinsurance attaches and for insured losses related to catastrophes and other events that exceed coverage provided by or otherwise are not within the scope of the reinsurance programs. The Company remains responsible for the settlement of insured losses irrespective of whether any of the reinsurers fail to make payments otherwise due.
To reduce credit risk for amounts due from reinsurers, the Insurance Entities seek to do business with financially sound reinsurance companies and regularly evaluate the financial strength of all reinsurers used.
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 June 30, 2024Due from as of
ReinsurerAM Best
Company		Standard
and Poor’s
Rating
Services, Inc.		Moody’s
Investors Service, Inc.		June 30, 2024December 31, 2023
Florida Hurricane Catastrophe Fund “FHCF” (1)n/an/an/a$15,660 91,275 
Various Lloyd’s of London Syndicates (2)AAA-n/a— 22,832 
Total (3)
$15,660 $114,107 
(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.
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 June 30,
20242023
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$578,267 $490,649 $253,613 $547,126 $463,324 $253,079 
Ceded(632,813)(145,691)(10,041)(561,480)(160,050)(29,352)
Net$(54,546)$344,958 $243,572 $(14,354)$303,274 $— $223,727 
Six Months Ended June 30,
20242023
Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses		Premiums
Written		Premiums
Earned		Losses and Loss
Adjustment
Expenses
Direct$1,024,446 $972,721 $493,932 $957,228 $918,692 $461,301 
Ceded(633,104)(293,738)(10,173)(576,256)(333,194)(31,420)
Net$391,342 $678,983 $483,759 $380,972 $585,498 $429,881 
The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):
June 30,December 31,
20242023
Prepaid reinsurance premiums$575,620 $236,254 
Reinsurance recoverable on paid losses and LAE$97,779 $35,667 
Reinsurance recoverable on unpaid losses and LAE33,121 183,435 
Reinsurance recoverable$130,900 $219,102