XML 28 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Deferred policy acquisition costs
 12 Months Ended
Dec. 31, 2018
Deferred Policy Acquisition Costs Disclosures [Abstract]  
Deferred policy acquisition costs
Deferred policy acquisition costs
The following table presents the amounts of policy acquisition costs deferred and amortized for the years ended:
 
 
Year Ended December 31,
 
 
2018
 
2017
 
2016
 
 
(in thousands)
Balance, beginning of year
 
$
11,775

 
$
10,150

 
$
(1,696
)
Policy acquisition costs deferred:
 
 
 
 
 
 
Direct commissions
 
40,546

 
32,927

 
28,027

Ceding commissions
 
(11,239
)
 
(9,984
)
 
(9,213
)
Other underwriting and policy acquisition costs
 
3,141

 
2,827

 
2,999

Policy acquisition costs deferred
 
32,448

 
25,770

 
21,813

Amortization of net policy acquisition costs
 
(29,422
)
 
(24,145
)
 
(9,967
)
Balance, end of year
 
$
14,801

 
$
11,775

 
$
10,150


The negative, or liability, balance at the beginning of the calendar year 2016 was due to the effect of deferred ceding commissions related to the MLQS. For the year ended December 31, 2016, the amortization of net policy acquisition costs included the impact of the commutation of the MLQS, which was effective October 1, 2016. The MLQS was not renewed for calendar year 2017 or 2018. See Note 8 for further details regarding the MLQS.