6.	Reinsurance

The Company cedes certain premiums and losses to various reinsurers under quota share and excess-of-loss treaties. These reinsurance arrangements provide for greater diversification of business, allow management to control exposure to potential losses arising from large risks, and provide additional capacity for growth. Ceded reinsurance contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet the obligations assumed under the reinsurance agreements. To minimize its exposure to significant losses from reinsurer insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers on a continual basis. The effect of reinsurance on premiums written and earned in 2015, 2014 and 2013 was as follows:


	2015 Premiums						2014 Premiums						2013 Premiums
	Written			Earned			Written			Earned			Written			Earned
	(in thousands)
Gross	$	386,529		$	387,122		$	393,819		$	389,540		$	372,177		$	348,408
Ceded		(11,228	)		(11,228	)		(13,793	)		(13,793	)		(18,425	)		(18,425	)

Net premiums	$	375,301		$	375,894		$	380,026		$	375,747		$	353,752		$	329,983

The amounts recoverable from reinsurers consist of the following:


	December 31,
	2015		2014
	(in thousands)
Unpaid losses recoverable:
Case basis	$	37,207	$	34,196
Incurred but not reported		27,651		25,138
Paid losses recoverable		414		424
Experience-rated commissions recoverable		25,805		26,130

Total	$	91,077	$	85,888

Amounts recoverable from reinsurers consists of ceded case reserves, ceded incurred but not reported (“IBNR”) reserves, paid losses recoverable and experience-rated commissions recoverable. Ceded case and ceded IBNR reserves represent the portion of gross loss and loss adjustment expense liabilities that are recoverable under reinsurance agreements, but are not yet due from reinsurers. Paid losses recoverable are receivables currently due from reinsurers for ceded paid losses. The Company considers paid losses recoverable outstanding for more than 90 days to be past due. At December 31, 2015, there were no paid losses recoverable past due. Experience-rated commissions recoverable represents earned commission from certain reinsurance companies based on the financial results of the applicable risks ceded to the reinsurers.

In 2013, the Company returned previous recoveries of $2.3 million due to a single closed claim. Excluding this impact, the Company received reinsurance recoveries of $1.0 million in 2015, $1.5 million in 2014 and $2.1 million in 2013.

At December 31, 2015, unsecured reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiary are shown below (in thousands). The A.M. Best Company rating for the reinsurer is shown parenthetically.


Hannover Reinsurance (Ireland) Limited (A+)	$	35,530
Odyssey America Reinsurance Corporation (A)		12,127
Minnesota Workers’ Compensation Reinsurance Association (NR)		9,034
Tokio Millenium Reinsurance Limited (A++)		7,294
Clearwater Insurance Company (bbb)		5,610
Other reinsurers		21,482

Total reinsurance recoverables		91,077
Letters of credit and funds held		(53,572	)

Total unsecured reinsurance recoverables	$	37,505