Reinsurance (Tables)

12 Months Ended

Dec. 31, 2015

Components of Reinsurance Balances

The Company had the following reinsurance balances as of December 31, 2015 and 2014:

(Dollars in thousands)	December 31, 2015			December 31, 2014
Reinsurance receivables, net	$	115,594		$	125,718
Collateral securing reinsurance receivables		(6,445	)		(8,701	)
Reinsurance receivables, net of collateral	$	109,149		$	117,017
Allowance for uncollectible reinsurance receivables	$	9,675		$	9,350
Prepaid reinsurance premiums		44,363			4,725

Unsecured Reinsurance Receivable that Exceeded Three Percent of Shareholders' Equity

Unsecured reinsurance receivables include amounts receivable for paid and unpaid losses and loss adjustment expenses, less amounts secured by collateral.

(Dollars in thousands)	Reinsurance Receivables		A.M. Best Ratings (As of December 31, 2015)
Munich Re America Corporation	$	53,381		A+

Effect of Reinsurance on Premiums Written and Earned

The effect of reinsurance on premiums written and earned is as follows:

(Dollars in thousands)	Written			Earned
For the year ended December 31, 2015:
Direct business	$	458,185		$	452,441
Reinsurance assumed		132,048			144,554
Reinsurance ceded (1)		(88,989	)		(92,852	)
Net premiums	$	501,244		$	504,143
For the year ended December 31, 2014:
Direct business	$	229,978		$	228,652
Reinsurance assumed		61,275			58,414
Reinsurance ceded		(18,072	)		(18,547	)
Net premiums	$	273,181		$	268,519
For the year ended December 31, 2013:
Direct business	$	232,373		$	215,713
Reinsurance assumed		58,350			52,494
Reinsurance ceded		(18,739	)		(19,485	)
Net premiums	$	271,984		$	248,722

(1) Includes ceded written premiums and ceded earned premiums of $55.8 million and $59.5 million, respectively, to American Bankers Insurance Company.