Reinsurance (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Premiums Written and Earned Along with Losses and Settlement Expenses Incurred

Premiums written and earned along with losses and settlement expenses incurred for the years ended December 31 are summarized as follows:

(in thousands)	2021			2020			2019
WRITTEN
Direct	$	1,313,093		$	1,107,303		$	1,039,955
Reinsurance assumed		34,261			29,129			25,047
Reinsurance ceded		(289,821	)		(244,344	)		(204,665	)
Net	$	1,057,533		$	892,088		$	860,337

EARNED
Direct	$	1,222,346		$	1,062,608		$	981,121
Reinsurance assumed		30,950			27,651			40,173
Reinsurance ceded		(272,393	)		(224,512	)		(182,183	)
Net	$	980,903		$	865,747		$	839,111

LOSSES AND SETTLEMENT EXPENSES INCURRED
Direct	$	703,903		$	608,638		$	521,055
Reinsurance assumed		18,087			18,783			21,951
Reinsurance ceded		(265,388	)		(184,537	)		(129,590	)
Net	$	456,602		$	442,884		$	413,416

Schedule of Net Reinsurance Balances Recoverable, After Consideration of Collateral, from Top Reinsurers

The following table displays net reinsurance balances recoverable, after consideration of collateral, from our top reinsurers as of December 31, 2021. These reinsurers all have financial strength ratings of A or better by AM Best and S&P’s ratings services. Also shown are the amounts of written premium ceded to these reinsurers during the calendar year 2021.

			Net Reinsurer					Ceded
	AM Best	S&P	Exposure as of		Percent of			Premiums		Percent of
(dollars in thousands)	Rating	Rating	12/31/2021		Total			Written		Total
Munich Re / HSB	A+, Superior	AA-, Very Strong	$	102,632		14.5	%	$	34,462		11.9	%
Renaissance Re	A+, Superior	A+, Strong		58,417		8.3	%		25,001		8.6	%
Endurance Re	A+, Superior	A+, Strong		47,136		6.7	%		9,865		3.4	%
Scor Re	A+, Superior	AA-, Very Strong		37,160		5.3	%		13,398		4.6	%
Aspen UK Ltd.	A, Excellent	A-, Strong		36,164		5.1	%		9,402		3.2	%
Berkley Insurance Co.	A+, Superior	A+, Strong		36,033		5.1	%		12,950		4.5	%
Hannover Ruckversicherung	A+, Superior	AA-, Very Strong		33,125		4.7	%		12,942		4.5	%
Safety National	A++, Superior	A+, Strong		32,196		4.6	%		15,544		5.4	%
Nationwide Mutual	A+, Superior	A+, Strong		29,818		4.2	%		17,738		6.1	%
Liberty Mutual	A, Excellent	A, Strong		23,236		3.3	%		7,240		2.5	%
All other reinsurers*				270,331		38.2	%		131,279		45.3	%
Total ceded exposure			$	706,248		100.0	%	$	289,821		100.0	%

*	All other reinsurance balances recoverable, when considered by individual reinsurer, are less than 2 percent of shareholders’ equity.