Reinsurance

12 Months Ended

Dec. 31, 2014

Insurance [Abstract]

Reinsurance

4. Reinsurance

Total premiums written and earned are summarized as follows (in thousands).

	Year Ended December 31,
	2014						2013						2012
	Written			Earned			Written			Earned			Written			Earned
Direct	$	200,983		$	191,093		$	177,376		$	176,588		$	168,990		$	164,715
Assumed		29,311			27,487			23,768			23,313			21,517			21,121
Ceded		(265	)		(265	)		(201	)		(201	)		(192	)		(192	)
Total	$	230,029		$	218,315		$	200,943		$	199,700		$	190,315		$	185,644

Assumed business represents private-passenger non-standard automobile insurance premiums in Texas written through a program with a county mutual insurance company and assumed by the Company through 100% quota-share reinsurance. The percentages of premiums assumed to net premiums written for the years ended December 31, 2014, 2013 and 2012 were 13%, 12% and 11%, respectively.

In August 2010, the Insurance Companies began utilizing excess-of-loss reinsurance with an unaffiliated reinsurer to limit their exposure to losses under liability coverages for policies issued with limits greater than the minimum statutory requirements. In November 2013, this excess-of-loss reinsurance was expanded to include higher liability limits on tenant homeowner policies. Although the reinsurance agreements contractually obligate the reinsurer to reimburse the Company for their share of losses, they do not discharge the primary liability of the Company, which remains contingently liable in the event the reinsurer is unable to meet their contractual obligations.

At December 31, 2014, the Insurance Companies had unsecured aggregate reinsurance receivables of $0.4 million.

Ceded premiums earned and reinsurance recoveries on losses and loss adjustment expenses were as follows (in thousands):

	Years Ended December 31,
	2014		2013		2012
Ceded premiums earned	$	265	$	201	$	192
Reinsurance recoveries on losses and loss adjustment expenses	$	137	$	285	$	163