POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2017

POLICY ACQUISITION COSTS

Schedule of policy acquisition costs deferred and amortized to income

Policy acquisition costs deferred and amortized to income for the years ended December 31 are summarized as follows:

(in thousands)	2017		2016		2015
Deferred policy acquisition costs (DAC), beginning of year	$	73,147	$	69,829	$	65,123
Deferred:
Direct commissions	$	157,723	$	150,390	$	146,507
Premium taxes		11,651		11,759		11,087
Ceding commissions		(18,096)		(17,488)		(17,403)
Net deferred	$	151,278	$	144,661	$	140,191
Amortized		146,709		141,343		135,485
DAC, end of year	$	77,716	$	73,147	$	69,829
Policy acquisition costs:
Amortized to expense - DAC	$	146,709	$	141,343	$	135,485
Period costs:
Ceding commission - contingent		(3,575)		(1,524)		(1,834)
Other underwriting expenses		109,381		109,793		107,427
Total policy acquisition costs	$	252,515	$	249,612	$	241,078