The Company cedes certain premiums and losses to various reinsurers under 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 2020, 2019 and 2018 was as follows:

	2020 Premiums						2019 Premiums						2018 Premiums
	Written			Earned			Written			Earned			Written			Earned
	(in thousands)
Gross	$	303,090		$	314,703		$	333,460		$	341,883		$	351,696		$	359,670
Ceded		(10,276	)		(10,276	)		(8,995	)		(8,995	)		(9,344	)		(9,344	)
Net premiums	$	292,814		$	304,427		$	324,465		$	332,888		$	342,352		$	350,326

	December 31,
	2020			2019
	(in thousands)
Unpaid losses recoverable:
Case basis	$	88,622		$	82,252
Incurred but not reported		17,085			13,090
Paid losses recoverable		548			571
Allowance for credit losses		(452	)		—
Total	$	105,803		$	95,913

Amounts recoverable from reinsurers consists of ceded case reserves, ceded incurred but not reported (“IBNR”) reserves, and paid losses 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, 2020, paid losses recoverable past due were immaterial.

The Company received reinsurance recoveries of $4.4 million in 2020, $2.0 million in 2019 and $1.3 million in 2018.

The Company generally secures large reinsurance recoverable balances with various forms of collateral, including funds withheld accounts, irrevocable letters of credit and secured trusts. At December 31, 2020, reinsurance recoverables from reinsurers that exceeded 1.5% of statutory surplus of the Company’s insurance subsidiaries are shown below.

Reinsurer	A.M. Best Rating	Amounts Recoverable as of December 31, 2020
		(in thousands)
Hannover Reinsurance (Ireland) Limited (1)	A+	$	56,753
Allianz Risk Transfer AG (Bermuda)	A+		12,050
Odyssey America Reinsurance Corporation	A		8,688
Minnesota Workers' Compensation Reinsurance Association (1)	NR		6,367
Other reinsurers			22,397
Total amounts recoverable from reinsurers			106,255
Allowance for credit losses			(452	)
Total amounts recoverable from reinsurers net of allowance for credit losses			105,803
Funds withheld and letters of credit related to the above recoverables			(71,986	)
Total unsecured amounts recoverable from reinsurers		$	33,817

The table below presents the change in the allowance for credit losses on amounts recoverable from reinsurers for the year ended December 31, 2020.

	Year Ended December 31,
	2020
	(in thousands)
Balance, beginning of period	$	444
Provision for credit loss benefit		8
Balance, end of period	$	452