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Reinsurance
 12 Months Ended
Dec. 31, 2016
Reinsurance Disclosures [Abstract]  
Reinsurance
Reinsurance

We use retrocessional agreements ("ceded reinsurance") to mitigate volatility, to reduce our exposure on certain specialty reinsurance risks and to provide capital support. These agreements provide for recovery from reinsurers of a portion of loss and LAE under certain circumstances without relieving the Company of its obligations to the policyholders. The Company remains liable to the extent that any of our reinsurers fails to meet their obligations. Loss and LAE incurred and premiums earned are reported after deduction for reinsurance. In the event that one or more of our reinsurers are unable to meet their obligations under these reinsurance agreements, the Company would not realize the full value of the reinsurance recoverable balances.

Effective January 1, 2015, Maiden Bermuda entered into a retrocessional quota share agreement with a highly rated global insurer to cede certain lines of business from both of our reportable segments.

The effect of ceded reinsurance on net premiums written and earned and on net loss and LAE for the years ended December 31, 2016, 2015 and 2014 was as follows:
For the Year Ended December 31,
 
2016
 
2015
 
2014
Premiums written
 
 
 
 
 
 
Direct
 
$
8,045

 
$
9,160

 
$
48,565

Assumed
 
2,823,303

 
2,653,666

 
2,458,787

Ceded
 
(176,396
)
 
(148,710
)
 
(49,216
)
Net
 
$
2,654,952

 
$
2,514,116

 
$
2,458,136

Premiums earned
 
 
 
 
 
 
Direct
 
$
9,766

 
$
26,358

 
$
70,807

Assumed
 
2,698,879

 
2,481,515

 
2,253,750

Ceded
 
(140,495
)
 
(78,804
)
 
(72,814
)
Net
 
$
2,568,150

 
$
2,429,069

 
$
2,251,743

Loss and LAE
 
 
 
 
 
 
Gross loss and LAE
 
$
1,918,797

 
$
1,687,564

 
$
1,592,795

Loss and LAE ceded
 
(98,891
)
 
(53,994
)
 
(94,524
)
Net
 
$
1,819,906

 
$
1,633,570

 
$
1,498,271



The reinsurers with the three largest balances accounted for 54.8%, 31.6% and 2.9%, respectively, of the Company's reinsurance recoverable on unpaid losses balance at December 31, 2016 (2015 – 40.9%, 35.5% and 4.8%, respectively). At December 31, 2016, 97.2% (2015 - 99.1%) of the reinsurance recoverable on unpaid losses was due from reinsurers with credit ratings from A.M Best of A or better, and 2.8% (2015 - 0.9%) of the reinsurance recoverable on unpaid losses was due from reinsurers with ratings of B++ or lower. At December 31, 2016 and 2015, the Company had no valuation allowance against reinsurance recoverable on unpaid losses.

At December 31, 2016, 98.6% (December 31, 2015 - 69.4%) of reinsurance recoverable on unpaid losses, due from reinsurers with ratings of B++ or lower, were collateralized.