POLICY ACQUISITION COSTS

12 Months Ended

Dec. 31, 2019

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)	2019		2018		2017
Deferred policy acquisition costs (DAC), beginning of year	$	84,934	$	77,716	$	73,147
Deferred:
Direct commissions	$	185,164	$	175,697	$	157,723
Premium taxes		14,395		12,654		11,651
Ceding commissions		(31,140)		(22,190)		(18,096)
Net deferred	$	168,419	$	166,161	$	151,278
Amortized		168,309		158,943		146,709
DAC, end of year	$	85,044	$	84,934	$	77,716
Policy acquisition costs:
Amortized to expense - DAC	$	168,309	$	158,943	$	146,709
Period costs:
Ceding commission - contingent		(3,034)		(2,241)		(3,575)
Other underwriting expenses		123,422		111,036		109,381
Total policy acquisition costs	$	288,697	$	267,738	$	252,515