Reinsurance and Insurance Loss Reserves

3 Months Ended

Jun. 29, 2024

Certain of Standard Casualty Company's ("Standard Casualty") premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. We remain obligated for amounts ceded in the event that the reinsurers do not meet their obligations.

The effects of reinsurance on premiums written and earned were as follows (in thousands):


	Three Months Ended
	June 29, 2024				July 1, 2023








	Written		Earned		Written		Earned
Direct premiums	$	13,503	$	12,302	$	10,379	$	8,676
Assumed premiums—nonaffiliated	11,735		9,504		9,800		8,570
Ceded premiums—nonaffiliated	(8,185)		(8,185)		(6,127)		(6,127)
	$	17,053	$	13,621	$	14,052	$	11,119

Typical insurance policies written or assumed have a maximum coverage of $0.4 million per claim, of which we cede $0.2 million of the risk of loss per reinsurance. Therefore, our risk of loss is limited to $0.2 million per claim on typical policies, subject to the reinsurers meeting their obligations. After this limit, amounts are recoverable through reinsurance for catastrophic losses in excess of $4.0 million per occurrence, up to a maximum of $110 million in the aggregate for that occurrence.

The following details the activity in the incurred but not reported ("IBNR") reserve for the three months ended June 29, 2024 and July 1, 2023 (in thousands):


	Three Months Ended
		June 29, 2024		July 1, 2023
Balance at beginning of period		$	10,540	$	10,939
Net incurred losses during the period		17,963		11,077
Net claim payments during the period		(9,576)		(9,015)
Balance at end of period		$	18,927	$	13,001