Through reinsurance agreements with Arch Reinsurance Ltd. (“ARL”) and Arch Reinsurance Company (“ARC”), which are subsidiaries of ACGL, as well as through other third-party reinsurance agreements, the Company cedes a portion of its premiums. The effects of reinsurance on the Company’s written and earned premiums, losses and loss adjustment expenses were as follows:



	Three Months Ended March 31,
	2020			2019
	($ in thousands)
Premiums written
Direct	$	104,372		$	80,798
Assumed	130,530			105,891
Ceded	(48,202		)	(41,302		)
Net	$	186,700		$	145,387
Premiums earned
Direct	$	88,536		$	63,517
Assumed	99,529			113,481
Ceded	(48,026		)	(30,904		)
Net	$	140,039		$	146,094
Losses and loss adjustment expenses
Direct	$	88,694		$	48,404
Assumed	74,720			84,524
Ceded	(52,738		)	(22,078		)
Net	$	110,676		$	110,850

The Company monitors the financial condition of its reinsurers and attempts to place coverages only with financially sound carriers. At March 31, 2020 and December 31, 2019, approximately 95% and 95%, respectively, were due from carriers which had an A.M. Best rating of “A-” or better, while 5% and 5%, respectively, were due from companies not rated.

At March 31, 2020 and December 31, 2019, approximately 45% and 47%, respectively, of the Company’s reinsurance recoverables on paid and unpaid losses (not including prepaid reinsurance premiums) were due from ARL and ARC, each of which have ratings of “A+” from A.M. Best. Although the Company has not experienced any material credit losses to date, an inability of its reinsurers to meet their obligations to it over the relevant exposure periods for any reason could have a material adverse effect on its financial condition and results of operations.