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REINSURANCE
 12 Months Ended
Dec. 31, 2014
REINSURANCE [Abstract]  
REINSURANCE
(5)  REINSURANCE

We reinsure (cede) a portion of written premiums on an excess of loss or a quota-share basis to nonaffiliated insurance companies in order to limit our loss exposure. To the extent that reinsuring companies are unable to meet their obligations assumed under these reinsurance agreements, we remain primarily liable to our policyholders.

The impact of the reinsurance treaties on the financial statements is as follows.

  
Years Ended December 31,
 
  
2014
  
2013
  
2012
 
  
(Dollars in Thousands)
 
Premium written
      
Direct and Assumed
 
$
377,156
  
$
243,374
  
$
119,459
 
Ceded
  
(201,998
)
  
(82,709
)
  
(51,085
)
  
$
175,158
  
$
160,665
  
$
68,374
 
Premiums earned
            
Direct and Assumed
 
$
313,075
  
$
174,037
  
$
109,312
 
Ceded
  
(142,170
)
  
(69,656
)
  
(49,953
)
  
$
170,905
  
$
104,381
  
$
59,359
 
Losses and LAE incurred
            
Direct and Assumed
 
$
103,710
  
$
59,820
  
$
33,329
 
Ceded
  
(22,674
)
  
(3,410
)
  
(3,120
)
  
$
81,036
  
$
56,410
  
$
30,209
 

  
As of December 31,
 
  
2014
  
2013
 
  
(Dollars in Thousands)
 
Unpaid losses and LAE, net
    
Direct and Assumed
 
$
78,330
  
$
61,015
 
Ceded
  
(12,534
)
  
(2,742
)
         
  
$
65,796
  
$
58,273
 
         
Unearned premiums
        
Direct and Assumed
 
$
192,424
  
$
128,343
 
Ceded
  
(96,963
)
  
(37,135
)
         
  
$
95,461
  
$
91,208
 

The Company holds collateral under related reinsurance agreements in the form of fully funded trust agreements totaling $4.9 million that can be drawn on for amounts that remain unpaid for more than 120 days.