Deferred Reinsurance Ceding Commission

6 Months Ended

Jun. 30, 2022

NOTE 9. DEFERRED REINSURANCE CEDING COMMISSION

The Company defers reinsurance ceding commission income, which is amortized over the effective period of the related insurance policies. For the three months ended June 30, 2022 and 2021, the Company allocated ceding commission income of $11.5 million and $11.9 million to policy acquisition costs and $3.9 million and $3.9 million to general and administrative expense, respectively. For the six months ended June 30, 2022 and 2021, the Company allocated ceding commission income of $23.2 million and $23.2 million to policy acquisition costs and $7.7 million and $7.6 million to general and administrative expense, respectively.

The table below depicts the activity regarding deferred reinsurance ceding commission, included in accounts payable and other liabilities during the three and six months ended June 30, 2022 and 2021.


	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
	(In thousands)
Beginning balance of deferred reinsurance ceding commission income	$	37,245		$	37,991		$	40,405		$	39,995
Ceding commission deferred		16,610			17,759			29,064			30,788
Less: ceding commission earned		(15,326	)		(15,810	)		(30,940	)		(30,843	)
Ending balance of deferred reinsurance ceding commission income	$	38,529		$	39,940		$	38,529		$	39,940