Although the reinsurers are liable to the Company for amounts reinsured, our subsidiary, Wright National Flood Insurance Company (“WNFIC”) remains primarily liable to its policyholders for the full amount of the policies written whether or not the reinsurers meet their obligations to the Company when they become due. In addition, we operate the Captive, in which we participate in a quota sharing of premiums for the purpose of adding capacity to certain property insurance programs managed in our National Programs segment. The Captive cedes premiums to reinsurers for substantially all, but not the entirety, of its quota share. The effects of reinsurance on premiums written and earned are as follows:


	Six months ended June 30, 2022
(in millions)	Written			Earned
Direct premiums - WNFIC	$	356.1		$	377.8
Ceded premiums - WNFIC		(356.1	)		(377.8	)
Net premiums - WNFIC		—			—
Assumed premiums - Captive		46.5			10.7
Ceded premiums - Captive		(19.2	)		(4.3	)
Net premiums - Captive		27.3			6.4
Net premiums - Total	$	27.3		$	6.4

All premiums written by WNFIC under the National Flood Insurance Program (“NFIP”) are 100% ceded to the Federal Emergency Management Agency, or FEMA, for which WNFIC received a 29.9% expense allowance from January 1, 2022 through June 30, 2022. For the period from January 1, 2022 through June 30, 2022, the Company ceded $354.8 million of written premiums to FEMA, with $1.3 million ceded to highly rated carriers for excess flood policies which are not within the NFIP.

As of June 30, 2022 the Condensed Consolidated Balance Sheet contained reinsurance recoverable of $34.7 million and prepaid reinsurance premiums of $385.4 million. There was no change in the net balance in the reserve for losses and loss adjustment expense during the period January 1, 2022 through June 30, 2022, as WNFIC’s direct premiums written were 100% to two reinsurers. The balance of the reserve for losses and loss adjustment expense, excluding related reinsurance recoverable, as of June 30, 2022 was $34.7 million.

WNFIC maintains capital in excess of the minimum statutory amount of $7.5 million as required by regulatory authorities. The unaudited statutory capital and surplus of WNFIC was $32.5 million at June 30, 2022 and $33.1 million as of December 31, 2021. For the period from January 1, 2022 through June 30, 2022, WNFIC generated statutory net income of $0.4 million. For the period from January 1, 2021 through December 31, 2021, WNFIC generated statutory net income of $1.6 million. The maximum amount of ordinary dividends that WNFIC can pay to shareholders in a rolling 12-month period is limited to the greater of 10% of statutory adjusted capital and surplus or 100% of adjusted net income. There was no dividend payout in 2021 and the maximum dividend payout that may be made in 2022 without prior approval is $3.3 million.

Assumed net written and net earned premiums for the Captive for the six months ended June 30, 2022 were $27.3 million and $6.4 million, respectively. As of June 30, 2022, the loss reserve inclusive of incurred but not reported ("IBNR") claims was not significant. In December of 2021, the initial funding to capitalize the Captive was $5.9 million. This capital in addition to current earnings of $3.8 million is considered at risk for loss. The first collateral release will be in 2023 and is based on an IBNR factor times earned premium compared to current collateral balance.