Reinsurance (Tables)

12 Months Ended

Dec. 31, 2016

Components of Reinsurance Balances

The Company had the following reinsurance balances as of December 31, 2016 and 2015:

(Dollars in thousands)	December 31, 2016			December 31, 2015
Reinsurance receivables, net	$	143,774		$	115,594
Collateral securing reinsurance receivables		(13,865	)		(6,445	)
Reinsurance receivables, net of collateral	$	129,909		$	109,149
Allowance for uncollectible reinsurance receivables	$	8,040		$	9,675
Prepaid reinsurance premiums		42,583			44,363

Unsecured Reinsurance Receivable that Exceeded Three Percent of Shareholders' Equity

Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral.

(Dollars in thousands)	Reinsurance Receivables		A.M. Best Ratings (As of December 31, 2016)
Munich Re America Corporation	$	51,178		A+

Effect of Reinsurance on Premiums Written and Earned

The effect of reinsurance on premiums written and earned is as follows:

(Dollars in thousands)	Written			Earned
For the year ended December 31, 2016:
Direct business	$	468,046		$	466,750
Reinsurance assumed		97,799			98,267
Reinsurance ceded (1)		(94,905	)		(96,552	)
Net premiums	$	470,940		$	468,465
For the year ended December 31, 2015:
Direct business	$	458,185		$	452,441
Reinsurance assumed		132,048			144,554
Reinsurance ceded (2)		(88,989	)		(92,852	)
Net premiums	$	501,244		$	504,143
For the year ended December 31, 2014:
Direct business	$	229,978		$	228,652
Reinsurance assumed		61,275			58,414
Reinsurance ceded		(18,072	)		(18,547	)
Net premiums	$	273,181		$	268,519

(1) Includes ceded written premiums and ceded earned premiums of $35.3 million and $43.2 million, respectively, to American Bankers Insurance Company.

(2) Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company.