Reinsurance

6 Months Ended

Jun. 30, 2022

Reinsurance [Abstract]

Reinsurance

5.     REINSURANCE

In the ordinary course of business, the Company assumes and cedes premiums and selected insured risks with other insurance companies, known as reinsurance. A large portion of the reinsurance is put into effect under contracts known as treaties and, in some instances, by negotiation on each individual risk (known as facultative reinsurance). In addition, there are several types of treaties including quota share, excess of loss and catastrophe reinsurance contracts that protect against losses over stipulated amounts arising from any one occurrence or event. The arrangements allow the Company to pursue greater diversification of business and serve to limit the maximum net loss to a single event, such as a catastrophe. Through the quantification of exposed policy limits in each region and the extensive use of computer-assisted modeling techniques, management monitors the concentration of risks exposed to catastrophic events.

Through the purchase of reinsurance, the Company also generally limits its net loss on any individual risk to a maximum of $1,000,000 for casualty and workers’ compensation business and $750,000 for property, although certain treaties contain an annual aggregate deductible before reinsurance applies.

‎

Premiums, written and earned, along with losses and settlement expenses incurred for the periods presented is summarized as follows:

	Three-Month Periods Ended June 30,
	2022		2021
WRITTEN
Direct	$	21,228,432	$	18,516,434
Reinsurance assumed		32,410		(34,245)
Reinsurance ceded		(2,266,365)		(2,898,257)
Net	$	18,994,477	$	15,583,932
EARNED
Direct	$	19,231,944	$	15,576,595
Reinsurance assumed		25,851		(26,862)
Reinsurance ceded		(2,233,153)		(2,816,926)
Net	$	17,024,642	$	12,732,807
LOSS AND SETTLEMENT EXPENSES INCURRED
Direct	$	15,524,735	$	12,038,753
Reinsurance assumed		2,284		(15,194)
Reinsurance ceded		(1,718,414)		(3,359,279)
Net	$	13,808,605	$	8,664,280

	Six-Month Periods Ended June 30,
	2022		2021
WRITTEN
Direct	$	40,794,615	$	33,688,469
Reinsurance assumed		69,358		(6,347)
Reinsurance ceded		(4,536,993)		(5,371,425)
Net	$	36,326,980	$	28,310,697
EARNED
Direct	$	37,496,644	$	30,058,645
Reinsurance assumed		67,479		11,960
Reinsurance ceded		(4,522,804)		(5,289,085)
Net	$	33,041,319	$	24,781,520
LOSS AND SETTLEMENT EXPENSES INCURRED
Direct	$	28,137,877	$	22,806,187
Reinsurance assumed		47,693		10,251
Reinsurance ceded		(4,181,764)		(6,349,452)
Net	$	24,003,806	$	16,466,986