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REINSURANCE | 9 Months Ended
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Sep. 30, 2025
Insurance [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 1 st 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 September 30, 2025 |  | Due from as of |  |
Reinsurer |  | AM Best Company |  | Standard and Poor’s Rating Services, Inc. |  | Moody’s Investors Service, Inc. |  | September 30, 2025 |  | December 31, 2024 |  |
Various Lloyd’s of London Syndicates (1) |  | A+ |  | AA- |  | n/a |  | $ | 81,469 |  |  | $ | 282,826 |  |  |
Markel Bermuda Ltd. |  | A |  | A |  | A |  | 60,919 |  |  | 94,173 |  |  |
Florida Hurricane Catastrophe Fund “FHCF” (2) |  | n/a |  | n/a |  | n/a |  | 36,953 |  |  | 81,375 |  |  |
Renaissance Reinsurance Ltd. |  | A+ |  | A+ |  | A |  | 29,474 |  |  | 35,808 |  |  |
Everest Reinsurance Co |  | A+ |  | A+ |  | A |  | 24,837 |  |  | 47,807 |  |  |
DaVinci Reinsurance Ltd. |  | A |  | A+ |  | A |  | 23,418 |  |  | 73,645 |  |  |
Total (3) |  |  |  |  |  |  |  | $ | 257,070 |  |  | $ | 615,634 |  |  |
(1)Moody’s does not provide a rating for Lloyd’s; the reinsurer is fully collateralized with a trust agreement. (2)No rating is available, because the fund is not rated. (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 September 30,
| 2025 |  | 2024
| Premiums Written |  | Premiums Earned |  | Losses and Loss Adjustment Expenses |  | Premiums Written |  | Premiums Earned |  | Losses and Loss Adjustment Expenses
Direct | $ | 592,774 |  |  | $ | 534,106 |  |  | $ | 256,165 |  |  | $ | 574,351 |  |  | $ | 507,745 |  |  | $ | 342,218 |
Ceded | (424) |  |  | (174,430) |  |  | (3,886) |  |  | (5,223) |  |  | (162,009) |  |  | (25,263) |
Net | $ | 592,350 |  |  | $ | 359,676 |  |  | $ | 252,279 |  |  | $ | 569,128 |  |  | $ | 345,736 |  |  | $ | 316,955 |
| Nine Months Ended September 30,
| 2025 |  | 2024
| Premiums Written |  | Premiums Earned |  | Losses and Loss Adjustment Expenses |  | Premiums Written |  | Premiums Earned |  | Losses and Loss Adjustment Expenses
Direct | $ | 1,656,572 |  |  | $ | 1,570,788 |  |  | $ | 766,825 |  |  | $ | 1,598,797 |  |  | $ | 1,480,466 |  |  | $ | 836,149 |
Ceded | (697,499) |  |  | (495,198) |  |  | (3,686) |  |  | (638,326) |  |  | (455,747) |  |  | (35,435) |
Net | $ | 959,073 |  |  | $ | 1,075,590 |  |  | $ | 763,139 |  |  | $ | 960,471 |  |  | $ | 1,024,719 |  |  | $ | 800,714 |
The following prepaid reinsurance premiums and reinsurance recoverables are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):
| September 30, |  | December 31,
| 2025 |  | 2024
Prepaid reinsurance premiums | $ | 465,016 |  |  | $ | 262,716 |
Reinsurance recoverables on paid losses and LAE | $ | 57,609 |  |  | $ | 65,681 |
Reinsurance recoverables on unpaid losses and LAE | 258,355 |  |  | 561,936 |
Reinsurance recoverables | $ | 315,964 |  |  | $ | 627,617 |

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- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477548/944-605-55-15 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 55 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477548/944-605-55-12 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-4 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 605 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479032/944-605-50-3 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479838/944-20-50-3 + Details
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