Insurance Operations (Tables)

9 Months Ended

Sep. 30, 2019

Insurance Operations

Summary of reinsurance ceded and assumed relating to premiums written, earned premiums and net losses and loss adjustment expenses

	Three Months Ended September 30				Nine Months Ended September 30
($ in thousands)	2019		2018		2019		2018
Written premiums
Direct written premiums	$	226,209	$	200,316	$	715,500	$	668,521
Assumed from other companies		987		980		2,566		4,750
Ceded to other companies		17,722		21,780		88,122		19,368
Net written premiums	$	209,474	$	179,516	$	629,944	$	653,903
Earned premiums
Direct earned premiums	$	229,816	$	212,084	$	683,906	$	623,820
Assumed from other companies		920		1,603		2,794		8,767
Ceded to other companies		28,281		26,579		86,157		94,900
Net earned premiums	$	202,455	$	187,108	$	600,543	$	537,687
Percent of amount assumed to net		0.5%		0.9%		0.5%		1.6%
Losses and loss adjustment expenses incurred
Direct net losses and loss adjustment expenses incurred	$	101,855	$	109,524	$	403,899	$	364,977
Assumed from other companies		29,366		4,440		6,162		(2,238)
Ceded to other companies		4,025		3,988		37,417		40,976
Net losses and loss adjustment expenses incurred	$	127,196	$	109,976	$	372,644	$	321,763

Summary of effects of the termination of Quota Share Arrangements on pre-tax income

	Three Months Ended September 30
($ in thousands)	2019		2018
Ceded written premium	$	6	$	55
Ceded earned premium		—		56
(Increase) reduction to net loss and loss adjustment expenses incurred		(1,632)		874
Reduction (increase) to policy acquisition expenses		1,632		(823)
Reduction to pre-tax income	$	-	$	5

	Nine Months Ended September 30
($ in thousands)	2019		2018
Ceded written premium (return of ceded prepaid)	$	3	$	(68,745)
Ceded earned premium		(3)		14,600
(Increase) reduction to net loss and loss adjustment expenses incurred		(3,839)		9,422
Reduction to policy acquisition expenses		3,837		4,083
(Increase) reduction to pre-tax income	$	(1)	$	1,095

Summary of unpaid losses

	September 30
($ in thousands)	2019		2018
Gross unpaid losses and loss expenses, at beginning of year	$	1,396,812	$	1,258,237
Ceded unpaid losses and loss expenses, at beginning of year		185,295		201,156
Net reserves for losses and loss expenses, at beginning of year		1,211,517		1,057,081
Add:
Incurred losses and loss expenses occurring in the:
Current year		356,926		325,810
Prior years		2,367		(4,047)
Prior years attributable to adjusted premium		13,351		—
Total incurred losses and loss expenses		372,644		321,763
Less:
Paid losses and loss expenses for claims occurring in the:
Current year		39,742		34,359
Prior years		243,172		178,268
Total paid losses and loss expenses for claims		282,914		212,627
Net reserves for losses and loss expenses, at end of period		1,301,247		1,166,217
Ceded unpaid losses and loss expenses, at end of period		213,977		202,891
Gross unpaid losses and loss expenses, at end of period	$	1,515,224	$	1,369,108