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Related Party Transactions and Major Customers
12 Months Ended
Dec. 31, 2018
Related Party Transactions [Abstract]  
Related Party Transactions and Major Customers
RELATED PARTY TRANSACTIONS AND MAJOR CUSTOMERS
The Company has equity interests in the Tower Hill Companies as described in “Note 4. Investments”. The Company has entered into reinsurance arrangements with certain subsidiaries and affiliates of Tower Hill and has also entered into reinsurance arrangements with respect to business produced by the Tower Hill Companies. For 2018, the Company recorded $45.5 million (2017 - $39.1 million, 2016 - $32.8 million) of gross premium written assumed from the Tower Hill Companies and its subsidiaries and affiliates. Gross premiums earned totaled $43.8 million (2017 - $35.7 million, 2016 - $32.3 million) and expenses incurred were $7.1 million (2017 - $5.1 million, 2016 - $3.8 million) for 2018. The Company had a net related outstanding receivable balance of $19.3 million as of December 31, 2018 (2017 - receivable of $14.1 million). During 2018, the Company assumed net claims and claim expenses of $111.2 million (2017 - assumed net claims and claim expenses of $94.4 million, 2016 - assumed net claims and claim expenses of $1.5 million) and, as of December 31, 2018, had a net reserve for claims and claim expenses of $98.8 million (2017 - $65.3 million). In addition, the Company received distributions of $12.1 million from the Tower Hill Companies during 2018 (2017 - $8.3 million, 2016 - $9.0 million).
During 2018, the Company received distributions from Top Layer Re of $4.0 million (2017 - $20.0 million, 2016 - $Nil), and recorded a management fee of $2.7 million (2017 - $2.7 million, 2016 - $2.6 million). The management fee reimburses the Company for services it provides to Top Layer Re.
During 2018, the Company received 75.2% of its gross premiums written (2017 - 76.4%, 2016 - 80.8%) from three brokers. Subsidiaries and affiliates of AON, Marsh, and Willis Towers Watson accounted for 40.7%, 24.6% and 9.9%, respectively, of gross premiums written in 2018 (2017 - 42.8%, 23.8% and 9.8%, respectively, 2016 - 46.4%, 23.6% and 10.8%, respectively).