The Company cedes certain premiums and losses to various reinsurers under excess-of-loss treaties. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers on a continual basis. The effect of reinsurance on premiums written and earned in 2021, 2020 and 2019 was as follows:

	2021 Premiums						2020 Premiums						2019 Premiums
	Written			Earned			Written			Earned			Written			Earned
	(in thousands)
Gross	$	278,294		$	286,462		$	303,090		$	314,703		$	333,460		$	341,883
Ceded		(10,469	)		(10,469	)		(10,276	)		(10,276	)		(8,995	)		(8,995	)
Net premiums	$	267,825		$	275,993		$	292,814		$	304,427		$	324,465		$	332,888

	December 31,
	2021			2020
	(in thousands)
Unpaid losses recoverable:
Case basis	$	101,249		$	88,622
Incurred but not reported		18,017			17,085
Paid losses recoverable		778			548
Experience-rated commissions recoverable		957			—
Allowance for credit losses		(440	)		(452	)
Total	$	120,561		$	105,803

Amounts recoverable from reinsurers consists of ceded case reserves, ceded incurred but not reported (IBNR) reserves, and paid losses recoverable. Ceded case and ceded IBNR reserves represent the portion of gross loss and loss adjustment expense liabilities that are recoverable under reinsurance agreements, but are not yet due from reinsurers. Paid losses recoverable are receivables currently due from reinsurers for ceded paid losses. The Company considers paid losses recoverable outstanding for more than 90 days to be past due. At December 31, 2021, there were no paid losses recoverable past due.

The Company received reinsurance recoveries of $5.8 million in 2021, $4.4 million in 2020 and $2.0 million in 2019.

The Company generally secures large reinsurance recoverable balances with various forms of collateral, including funds withheld accounts, irrevocable letters of credit and secured trusts. At December 31, 2021, reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiaries are shown below.

Reinsurer	A.M. Best Rating	Amounts Recoverable as of December 31, 2021
		(in thousands)
Hannover Reinsurance Ireland Limited (1)	A+	$	58,128
Allianz Risk Transfer AG (Bermuda)	A+		10,654
Minnesota Workers' Compensation Reinsurance Association (1)	NR		8,663
Arch Reinsurance Company (1)	A+		8,147
Odyssey America Reinsurance Corporation	A		7,665
Other reinsurers			27,744
Total amounts recoverable from reinsurers			121,001
Allowance for credit losses			(440	)
Total amounts recoverable from reinsurers net of allowance for credit losses			120,561
Funds withheld and letters of credit related to the above recoverables			(74,489	)
Total unsecured amounts recoverable from reinsurers		$	46,072

The table below presents the change in the allowance for credit losses on amounts recoverable from reinsurers for the year ended December 31, 2021.

	Year Ended December 31,
	2021			2020
	(in thousands)
Balance, beginning of period	$	452		$	444
Provision for credit loss expense (benefit)		(12	)		8
Balance, end of period	$	440		$	452