In the normal course of business, Ark may seek to limit losses that arise from catastrophes or other events by reinsuring certain risks with third-party reinsurers. Ark remains liable for risks reinsured in the event that the reinsurer does not honor its obligations under reinsurance contracts. The following table summarizes the effects of reinsurance on written and earned premiums and on losses and LAE for the Ark/WM Outrigger segment for the years ended December 31, 2023, 2022 and 2021.


	Year Ended December 31,
Millions	2023			2022		2021
Written premiums:
Direct	$	931.9		$	760.4	$	619.5
Assumed	966.5			691.6		439.2
Gross written premiums	1,898.4			1,452.0		1,058.7
Ceded	(377.5)		(1)	(256.8)		(199.6)
Net written premiums	$	1,520.9		$	1,195.2	$	859.1
Earned premiums:
Direct	$	848.1		$	655.5	$	556.0
Assumed	925.6			668.7		330.4
Gross earned premiums	1,773.7			1,324.2		886.4
Ceded	(364.0)		(2)	(280.8)		(249.1)
Net earned premiums	$	1,409.7		$	1,043.4	$	637.3
Losses and LAE:
Gross	$	782.5		$	814.9	$	442.9
Ceded	(55.7)		(3)	(278.5)		(128.1)
Net losses and LAE	$	726.8		$	536.4	$	314.8

(1) The ceded written premiums exclude $110.0 ceded by Ark to WM Outrigger Re for the year ended December 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded earned premiums exclude $104.3 ceded by Ark to WM Outrigger Re for the year ended December 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(3) The ceded loss and LAE exclude $15.6 ceded by Ark to WM Outrigger Re for the year ended December 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

The following table presents the Ark/WM Outrigger segment’s reinsurance recoverables as of December 31, 2023 and December 31, 2022:


Millions	December 31, 2023			December 31, 2022
Reinsurance recoverables on unpaid losses	$	340.8	(1)	$	505.0	(3)
Reinsurance recoverables on paid losses	27.4			31.1
Ceded unearned premiums	73.8		(2)	59.2
Reinsurance recoverables	$	442.0		$	595.3

(1) The reinsurance recoverables on unpaid losses exclude $15.6 ceded by Ark to WM Outrigger Re as of December 31, 2023, which eliminate in White Mountains’s consolidated financial statements.

(2) The ceded unearned premiums exclude $5.7 ceded by Ark to WM Outrigger Re as of December 31, 2023, which eliminate in White

(3) The reinsurance recoverables on unpaid losses include $145.4 attributable to TPC Providers as of December 31, 2022, which are collateralized.

As reinsurance contracts do not relieve Ark of its obligation to its policyholders, Ark seeks to reduce the credit risk associated with reinsurance balances by avoiding over-reliance on specific reinsurers through the application of concentration limits and thresholds. Ark is selective with its reinsurers, placing reinsurance with only those reinsurers having a strong financial condition. Ark monitors the financial strength of its reinsurers on an ongoing basis.

The following table presents the Ark/WM Outrigger segment’s gross and net reinsurance recoverables by each reinsurer’s A.M. Best Company, Inc (“A.M. Best”) rating as of December 31, 2023:


$ in Millions	As of December 31, 2023
A.M. Best Rating (1)	Gross			Collateral			Net		% of Total
A+ or better	$	204.0		$	—		$	204.0	71.0	%
A- to A	76.2			—			76.2		26.5
B++ or lower and not rated	88.0		(2)	80.7		(2)	7.3		2.5
Total	$	368.2		$	80.7		$	287.5	100.0	%

(1) A.M. Best ratings as detailed above are: “A+ or better” (Superior) “A- to A” (Excellent), “B++” (Good).

(2) Excludes $15.6 ceded by Ark to WM Outrigger Re as of December 31, 2023, which eliminates in White Mountains’s consolidated financial statements.

See Note 10 — “Municipal Bond Guarantee Insurance” for third-party reinsurance balances related to White Mountains’s financial guarantee business.

Ark has an aggregate excess of loss contract with SiriusPoint, which is accounted for using the deposit method and recorded within other assets. Ark earns an annual crediting rate of 3.0%, which is recorded within other revenue. During 2021, Ark negotiated a reduction of $31.7 million, including accrued interest, to the aggregate excess of loss contract with SiriusPoint. As of December 31, 2023 and December 31, 2022, the carrying value of Ark’s deposit in SiriusPoint, including accrued interest, was $20.4 million.

See Note 10 — “Municipal Bond Guarantee Insurance” for reinsurance contracts accounted for as deposits related to White Mountains’s financial guarantee business.