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Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block] Related Party Transactions
The Company engages in certain related party transactions in the normal course of business at arm's length.

Insurance-Linked Securities

Within the Company's insurance-linked securities operations, the Company provides investment and insurance management services through Nephila Holdings Ltd. (together with its subsidiaries, Nephila). Nephila serves as the investment manager to several Bermuda based private funds (the Nephila Funds). To provide access for the Nephila Funds to a variety of insurance-linked securities in the property catastrophe, climate and specialty markets, Nephila also acts as an insurance manager to certain Bermuda Class 3 and 3A reinsurance companies, Lloyd's Syndicate 2357 and Lloyd's Syndicate 2358 (collectively, the Nephila Reinsurers). The Nephila Funds and Nephila Reinsurers are not included in the Company's consolidated financial statements. Nephila receives management fees for investment and insurance management services provided to the Nephila Funds and the Nephila Reinsurers through its insurance-linked securities operations, and, for certain funds, incentive fees based on their annual performance. For the quarter and nine months ended September 30, 2024, total revenues attributed to unconsolidated entities managed by Nephila were $25.1 million and $66.2 million, respectively. For the quarter and nine months ended September 30, 2023, total revenues attributed to unconsolidated entities managed by Nephila were $43.6 million and $74.1 million, respectively.

Program Services and Other Fronting

Through the Company's program services and other fronting operations, the Company has programs with Nephila through which the Company writes insurance policies that are fully ceded to the Nephila Reinsurers. Through these programs, Nephila utilizes certain of the Company's licensed insurance companies to write a portion of its portfolio of U.S. catastrophe-exposed property and specialty risks that is then ceded to the Nephila Reinsurers. Gross premiums written through the Company's program services and other fronting platforms that were ceded to the Nephila Reinsurers were $94.3 million and $1.2 billion for the quarter and nine months ended September 30, 2024, respectively, and $501.8 million and $1.0 billion for the quarter and nine months ended September 30, 2023, respectively.
As of September 30, 2024 and December 31, 2023, reinsurance recoverables on the consolidated balance sheets included $711.5 million and $794.3 million, respectively, due from the Nephila Reinsurers. Under its programs with the Nephila Reinsurers, the Company bears underwriting risk for annual aggregate agreement year losses in excess of a limit the Company believes is unlikely to be exceeded. To the extent losses under these programs exceed the prescribed limits, the Company is obligated to pay such losses to the cedents without recourse to the Nephila Reinsurers. While the Company believes losses under these programs are unlikely, those losses, if incurred, could be material to the Company's consolidated results of operations and financial condition.

Beginning in 2024, in order for the Nephila Reinsurers to obtain reinsurance protection for a portion of their exposures, the Company also fronted ceded reinsurance contracts, primarily in the form of industry loss warranties, for the Nephila Reinsurers. Through this arrangement, the underlying risk of the Nephila Reinsurers was retroceded back to the Company and then fully ceded to third-party reinsurers. For the nine months ended September 30, 2024, the Company's gross written premiums from the Nephila Reinsurers under this program were $168.0 million, all of which were ceded to third parties.

The Company has also entered into other assumed and ceded reinsurance transactions with the Nephila Reinsurers in the normal course of business, which are not material to the Company's consolidated financial statements.

Hagerty

The Company holds a minority ownership interest in Hagerty, which operates primarily as a managing general agent and also includes Hagerty Reinsurance Limited (Hagerty Re), a Bermuda Class 3 reinsurance company. Through the Company's underwriting operations, the Company underwrites insurance for Hagerty, a portion of which is ceded to Hagerty Re. The amounts attributed to these arrangements are summarized in the following table.

Quarter Ended September 30, Nine Months Ended September 30,
(dollars in thousands)2024202320242023
Gross written premiums attributable to Hagerty
$253,071 $227,693 $726,995 $628,889 
Premiums ceded to Hagerty Re
$193,844 $174,455 $557,581 $480,924 

As of September 30, 2024 and December 31, 2023, reinsurance recoverables on the consolidated balance sheets included $264.2 million and $214.8 million, respectively, due from Hagerty Re.