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 June 30,						Six Months Ended June 30,
	2020			2019			2020			2019
	($ in thousands)
Premiums written
Direct	$	100,469		$	85,656		$	204,841		$	166,454
Assumed	57,458			76,322			187,988			182,213
Ceded	(52,071		)	(42,608		)	(100,273		)	(83,910		)
Net	$	105,856		$	119,370		$	292,556		$	264,757
Premiums earned
Direct	$	89,553		$	70,445		$	178,089		$	133,962
Assumed	90,447			115,622			189,976			229,103
Ceded	(48,465		)	(34,749		)	(96,491		)	(65,653		)
Net	$	131,535		$	151,318		$	271,574		$	297,412
Losses and loss adjustment expenses
Direct	$	82,291		$	62,976		$	170,985		$	111,380
Assumed	70,337			88,651			145,057			173,175
Ceded	(47,842		)	(40,211		)	(100,580		)	(62,289		)
Net	$	104,786		$	111,416		$	215,462		$	222,266

The Company monitors the financial condition of its reinsurers and attempts to place coverages only with financially sound carriers. At June 30, 2020 and December 31, 2019, approximately 100% of ceded loss and loss adjustment reserves were due from carriers which had an A.M. Best or a Standard & Poor’s rating of “A-” or better.

At June 30, 2020 and December 31, 2019, approximately 44% 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.