The Company cedes a portion of its homeowners’ insurance exposure to other entities under catastrophe excess of loss reinsurance contracts and a portion of its flood insurance exposure under one quota share reinsurance agreement. Ceded premiums under most catastrophe excess of loss reinsurance contracts are subject to revision resulting from subsequent adjustments in total insured value. Under the terms of the quota share reinsurance agreement, the Company is entitled to a 30% ceding commission on ceded premiums written and a profit commission equal to 10% of net profit.

The Company remains liable for claims payments in the event that any reinsurer is unable to meet its obligations under the reinsurance agreements. Failure of reinsurers to honor their obligations could result in losses to the Company. 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 to minimize its exposure to significant losses from reinsurer insolvencies. The Company contracts with a number of reinsurers to secure its annual reinsurance coverage, which generally becomes effective June 1st of each year. The Company purchases reinsurance each year taking into consideration probable maximum losses and reinsurance market conditions.

The impact of the reinsurance contracts on premiums written and earned is as follows:


	Years Ended December 31,
	2022			2021			2020
Premiums Written:
Direct	$	713,103		$	545,441		$	459,615
Assumed		12,916			128,948			44,539
Gross written		726,019			674,389			504,154
Ceded		(261,144	)		(199,741	)		(153,458	)
Net premiums written	$	464,875		$	474,648		$	350,696
Premiums Earned:
Direct	$	651,455		$	478,546		$	412,999
Assumed		73,261			98,498			2,919
Gross earned		724,716			577,044			415,918
Ceded		(261,144	)		(199,741	)		(153,458	)
Net premiums earned	$	463,572		$	377,303		$	262,460

During the years ended December 31, 2022, 2021, and 2020, ceded losses of $812,623, $40,432, and $9,413, respectively, were recognized as reductions in losses and loss adjustment expenses. Ceded losses related to Hurricane Ian, Hurricane Irma, Tropical Storm Eta, and other catastrophe and non-catastrophe claims were $782,071, $20,000, $10,483, and $69, respectively, for 2022. For 2021, ceded losses related to Hurricane Irma, Hurricane Sally, and other non-catastrophe claims were $32,144, $4,434, and $3,854,

respectively. Ceded losses related to Hurricane Irma, Hurricane Michael, Hurricane Sally, and other non-catastrophe claims were $362, $4,000, $88, and $4,963, respectively, for 2020. At December 31, 2022 and 2021, there were 45 and 55 reinsurers, respectively, participating in the Company’s reinsurance program. Total net amounts recoverable and receivable from reinsurers at December 31, 2022 and 2021 were $688,359 and $76,650, respectively. Approximately 65.6% of the reinsurance recoverable balance at December 31, 2022 was receivable from three reinsurers, one of which was the Florida Hurricane Catastrophe Fund, a tax-exempt state trust fund. Based on all available information considered in the rating-based method described in Note 2 -- “Summary of Significant Accounting Policies,” the Company recognized an increase in credit loss expense of $364 for the year ended December 31, 2022. Allowances for credit losses related to the reinsurance recoverable balance were $454 and $90 at December 31, 2022 and 2021, respectively.

Due to Hurricane Ian, the Company’s first event reinsurance coverage for flood losses was exhausted, and accordingly, the Company can no longer cede additional flood losses from Hurricane Ian to reinsurers. As a result, the Company elected to pay reinstatement premiums of $6,684 to the reinsurers to restore the full amount of coverage. The unamortized first event reinsurance premiums of $3,306 were written off and charged to premiums ceded during the fourth quarter of 2022. See Note 14 -- “Losses and Loss Adjustment Expenses” for more information about the flood losses attributable to Hurricane Ian.

One of the existing reinsurance contracts includes retrospective provisions that adjust premiums in the event losses are minimal or zero. Prior to June 1, 2022, there were two reinsurance contracts with retrospective provisions. As a result of Hurricane Ian, the balance of previously accrued benefits under the multi-year reinsurance contract with retrospective provisions was decreased by $12,600 in September 2022. For the years ended December 31, 2022, 2021 and 2020, the Company recognized reductions in premiums ceded of $18,710, $10,864 and $15,120, respectively. See Note 23 -- “Commitments and Contingencies” for additional information.

Amounts receivable pursuant to retrospective provisions are reflected in other assets. At December 31, 2022 and 2021, other assets included $16,317 and $3,064, respectively. In October 2022, the Company received $5,457 of premium refund under the Company’s previous two multi-year reinsurance contracts which were commuted effective May 31, 2022. Management believes the credit risk associated with the collectability of these accrued benefits is minimal as the amount receivable is concentrated with one reinsurer with a good credit rating and the Company monitors the creditworthiness of this reinsurer based on available information about the reinsurer’s financial condition.

For the year ended December 31, 2022, $27,488 of assumed premiums written related to the Northeast Region’s insurance policies were derecognized, which primarily resulted from the return of the unearned portion of assumed written premiums subsequent to the Company’s renewal and/or replacement of insurance policies in Massachusetts and New Jersey, whereas for the year ended December 31, 2021, assumed premiums written related to the Northeast Region’s insurance policies were $93,607. At December 31, 2022, the Company had a net balance of $1,581 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $1,000 and ceding commission payable of $581. At December 31, 2021, the Company had a net balance of $4,486 due to United related to the Northeast Region, consisting of payable on paid losses and loss adjustment expenses of $4,017 and ceding commission payable of $535, offset by premiums receivable of $66. Effective December 30, 2022, the Company’s quota share reinsurance agreement to provide 100% reinsurance on United’s policies in the Northeast Region was commuted.

Effective December 31, 2021, the Company entered into a separate agreement to provide 85% quota share reinsurance on United’s personal lines insurance policies in the states of Georgia, South Carolina and North Carolina through May 31, 2022. Effective June 1, 2022, the Company entered into a new agreement to provide 100% quota share reinsurance on United’s personal lines insurance policies in the Southeast Region. For the years ended December 31, 2022 and 2021, assumed premiums written related to the Southeast Region’s insurance policies were $40,404 and $35,341, respectively. At December 31, 2022, the Company had a net balance of $7,521 due to United related to the Southeast Region, consisting of payable on paid losses and loss adjustment expenses of $7,606 and ceding commission payable of $16, offset by premiums receivable of $101. At December 31, 2021, there was an amount receivable from United of $23,325 related to the Southeast Region, net of a ceding commission of $8,835 and a catastrophe cost allowance of $3,181.

At December 31, 2022 and 2021, the balance of funds withheld for assumed business related to the Company’s quota share reinsurance agreements with United was $48,772 and $73,716, respectively.

The ratio of assumed premiums earned to net premiums earned for the years ended December 31, 2022, 2021 and 2020 was 15.80%, 26.11%, and 1.11%, respectively.