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Reinsurance
 12 Months Ended
Dec. 31, 2016
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]  
Reinsurance
REINSURANCE
The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain claims and claim expenses, generally in excess of various retentions or on a proportional basis. In addition to loss recoveries, certain of the Company’s ceded reinsurance contracts provide for payments of additional premiums, for reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to the respective reinsurance contracts. The Company remains liable to the extent that any reinsurance company fails to meet its obligations.
The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred:
 
 
 
 
 
 
 
 
 
Year ended December 31,
2016
 
2015
 
2014
 
 
Premiums written
 
 
 
 
 
 
 
Direct
$
208,282

 
$
130,681

 
$
76,511

 
 
Assumed
2,166,294

 
1,880,629

 
1,474,061

 
 
Ceded
(839,264
)
 
(595,127
)
 
(482,336
)
 
 
Net premiums written
$
1,535,312

 
$
1,416,183

 
$
1,068,236

 
 
Premiums earned
 
 
 
 
 
 
 
Direct
$
157,112

 
$
98,182

 
$
66,027

 
 
Assumed
1,874,993

 
1,769,088

 
1,450,047

 
 
Ceded
(628,675
)
 
(466,719
)
 
(453,658
)
 
 
Net premiums earned
$
1,403,430

 
$
1,400,551

 
$
1,062,416

 
 
Claims and claim expenses
 
 
 
 
 
 
 
Gross claims and claim expenses incurred
$
710,651

 
$
544,972

 
$
228,581

 
 
Claims and claim expenses recovered
(179,820
)
 
(96,734
)
 
(30,634
)
 
 
Net claims and claim expenses incurred
$
530,831

 
$
448,238

 
$
197,947

 
 
 
 
 
 
 
 
 

The reinsurers with the three largest balances accounted for 27.1%, 19.9% and 7.7%, respectively, of the Company’s reinsurance recoverable balance at December 31, 2016 (2015 - 21.5%, 13.8% and 13.1%, respectively). The valuation allowance recorded against reinsurance recoverable was $4.2 million at December 31, 2016 (2015 - $1.6 million). The three largest company-specific components of the valuation allowance represented 27.1%, 17.9% and 5.6%, respectively, of the Company’s total valuation allowance at December 31, 2016 (2015 - 22.7%, 8.3% and 3.2%, respectively).