Reinsurance

12 Months Ended

Dec. 31, 2020

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, 2020, 2019 and 2018 is as follows:


	2020						2019						2018
	Written			Earned			Written			Earned			Written			Earned
Direct	$	102,479		$	100,832		$	91,579		$	91,131		$	83,652		$	84,030
Assumed	3,326			3,356			3,196			3,087			1,447			1,442
Ceded	(79)			(79)			(45)			(45)			(51)			(51)
Net premiums	$	105,726		$	104,109		$	94,730		$	94,173		$	85,048		$	85,421
Percentage—assumed to net premiums	3.1		%	3.2		%	3.4		%	3.3		%	1.7		%	1.7		%

The table above includes certain reclassifications between direct and assumed premiums for 2019 and 2018. These reclassifications did not impact any amounts presented in the consolidated financial statements.

A summary of net premiums written and earned by segment (see Note 20, “Segment Information”) for the years ended December 31, 2020, 2019 and 2018 is as follows:


	2020				2019				2018
	Written		Earned		Written		Earned		Written		Earned
Reportable segments:
Commercial & Specialty Business	$	31,745	$	31,471	$	32,113	$	31,944	$	30,661	$	30,532
Government Business	72,308		71,188		62,617		62,229		54,387		54,889
Other	1,673		1,450		—		—		—		—
Net premiums	$	105,726	$	104,109	$	94,730	$	94,173	$	85,048	$	85,421

The effect of reinsurance on benefit expense for the years ended December 31, 2020, 2019 and 2018 is as follows:


	2020		2019		2018
Direct	$	85,168	$	79,110	$	70,789
Assumed	2,967		2,733		1,179
Ceded	(90)		(57)		(73)
Net benefit expense	$	88,045	$	81,786	$	71,895

The effect of reinsurance on certain assets and liabilities at December 31, 2020 and 2019 is as follows:


	2020		2019
Policy liabilities, assumed	$	490	$	471
Unearned income, assumed	85		114
Premiums payable, ceded	12		11
Premiums receivable, assumed	347		324