Reinsurance

12 Months Ended

Dec. 31, 2019

We reinsure certain risks with other companies and assume risk from other companies. We remain primarily liable to policyholders under ceded insurance contracts and are contingently liable for amounts recoverable from reinsurers in the event that such reinsurers do not meet their contractual obligations.

A summary of direct, assumed and ceded premiums written and earned for the years ended December 31, 2019, 2018 and 2017 is as follows:



	2019						2018						2017
	Written			Earned			Written			Earned			Written			Earned
Direct	$	93,953		$	93,505		$	84,835		$	85,213		$	83,974		$	83,418
Assumed	822			713			264			259			275			275
Ceded	(45		)	(45		)	(51		)	(51		)	(44		)	(45		)
Net premiums	$	94,730		$	94,173		$	85,048		$	85,421		$	84,205		$	83,648
Percentage—assumed to net premiums	0.9		%	0.8		%	0.3		%	0.3		%	0.3		%	0.3		%

A summary of net premiums written and earned by segment (see Note 19, “Segment Information”) for the years ended December 31, 2019, 2018 and 2017 is as follows:



	2019				2018				2017
	Written		Earned		Written		Earned		Written		Earned
Reportable segments:
Commercial & Specialty Business	$	32,113	$	31,944	$	30,661	$	30,532	$	35,382	$	35,503
Government Business	62,617		62,229		54,387		54,889		48,823		48,145
Net premiums	$	94,730	$	94,173	$	85,048	$	85,421	$	84,205	$	83,648

The effect of reinsurance on benefit expense for the years ended December 31, 2019, 2018 and 2017 is as follows:



	2019			2018			2017
Direct	$	81,254		$	71,749		$	72,135
Assumed	589			219			217
Ceded	(57		)	(73		)	(116		)
Net benefit expense	$	81,786		$	71,895		$	72,236

The effect of reinsurance on certain assets and liabilities at December 31, 2019 and 2018 is as follows:



	2019		2018
Policy liabilities, assumed	$	213	$	50
Unearned income, assumed	114		6
Premiums payable, ceded	11		17
Premiums receivable, assumed	35		37