Reinsurance

12 Months Ended

Dec. 31, 2025

The Company remains liable to policyholders if its reinsurers are unable to meet their contractual obligations under applicable reinsurance agreements. To minimize exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. The Company’s reinsurance contracts generally require reinsurers that are not authorized as reinsurers under U.S. state insurance regulations or that experience rating downgrades from rating agencies below specified levels to fund their share of the Company’s ceded outstanding losses and loss adjustment expense reserves, typically through the use of irrevocable and unconditional letters of credit. In fronting arrangements, which the Company conducts through its Specialty Admitted Insurance segment, the Company is subject to credit risk with regard to insurance companies who act as reinsurers for the Company in such arrangements. The Company customarily requires a collateral trust arrangement to secure the obligations of the insurance entity for whom it is fronting.

At December 31, 2025, the Company had reinsurance recoverables on unpaid losses of $2,026.1 million and reinsurance recoverables on paid losses of $118.2 million. All material reinsurance recoverables are from companies with A.M. Best Company ratings of “A-” (Excellent) or better, or are collateralized by the reinsurer for our benefit through letters of credit or trust agreements, or represent recoverables from a state residual market for automobile insurance.

At December 31, 2025, reinsurance recoverables on unpaid losses from the Company’s three largest reinsurers were $401.1 million, $341.5 million, and $194.2 million, representing 46.2% of the total balance.

At December 31, 2025, prepaid reinsurance premiums ceded to the three reinsurers with the largest amount of prepaid reinsurance premiums totaled $24.0 million, $20.2 million, and $15.7 million, representing 29.4% of the total balance.

Premiums written, premiums earned, and losses and loss adjustment expenses incurred are summarized as follows:


	Year Ended December 31,
	2025		2024		2023
	(in thousands)
Written premiums:
Direct	$	1,172,265	$	1,429,791	$	1,506,668
Assumed	54		1,981		1,992
Ceded	(603,504)		(850,918)		(814,759)
Net	$	568,815	$	580,854	$	693,901
Earned premiums:
Direct	$	1,296,243	$	1,445,652	$	1,496,708
Assumed	466		1,984		2,250
Ceded	(696,421)		(847,440)		(790,953)
Net	$	600,288	$	600,196	$	708,005
Losses and loss adjustment expenses:
Direct	$	945,685	$	1,343,698	$	1,204,532
Assumed	1,049		730		2,032
Ceded	(519,530)		(790,054)		(706,407)
Net	$	427,204	$	554,374	$	500,157