POLICY ACQUISITION COSTS

12 Months Ended

Dec. 31, 2018

POLICY ACQUISITION COSTS

POLICY ACQUISITION COSTS

3. POLICY ACQUISITION COSTS

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

(in thousands)	2018		2017		2016
Deferred policy acquisition costs (DAC), beginning of year	$	77,716	$	73,147	$	69,829
Deferred:
Direct commissions	$	175,697	$	157,723	$	150,390
Premium taxes		12,654		11,651		11,759
Ceding commissions		(22,190)		(18,096)		(17,488)
Net deferred	$	166,161	$	151,278	$	144,661
Amortized		158,943		146,709		141,343
DAC, end of year	$	84,934	$	77,716	$	73,147
Policy acquisition costs:
Amortized to expense - DAC	$	158,943	$	146,709	$	141,343
Period costs:
Ceding commission - contingent		(2,241)		(3,575)		(1,524)
Other underwriting expenses		111,036		109,381		109,793
Total policy acquisition costs	$	267,738	$	252,515	$	249,612