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Reinsurance
 9 Months Ended
Sep. 30, 2024
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract]  
Reinsurance
12 — Reinsurance

The following table presents Hagerty Re's total premiums assumed and ceded on a written and earned basis for the three and nine months ended September 30, 2024 and 2023:

Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
in thousands
Premiums:
Assumed$199,721 $178,319 $574,742 $498,962 
Ceded(9,906)(5,838)(42,875)(28,107)
Net$189,815 $172,481 $531,867 $470,855 
Premiums earned:
Assumed$176,611 $146,004 $506,398 $398,524 
Ceded(10,925)(6,219)(31,481)(14,026)
Net$165,686 $139,785 $474,917 $384,498 
The following table presents gross, ceded, and net losses and loss adjustment expenses incurred for the three and nine months ended September 30, 2024 and 2023:

Three months ended
September 30,		Nine months ended
September 30,
2024202320242023
in thousands
Gross losses and loss adjustment expenses$101,254 $58,014 $235,390 $159,791 
Ceded losses and loss adjustment expenses(1,824)(529)(8,875)(330)
Net losses and loss adjustment expenses$99,430 $57,485 $226,515 $159,461 
Ceded Reinsurance

Hagerty Re purchases catastrophe reinsurance to protect its capital from large catastrophic events and to provide earnings protection and stability. Hagerty Re renegotiated its catastrophe reinsurance coverage effective January 1, 2024, with terms and limits similar to 2023. The 2024 catastrophe reinsurance program for accounts with total insured values ("TIV") of up to $5.0 million affords coverage in excess of a per event retention of $28.0 million in two layers; $22.0 million excess of $28.0 million, and $55.0 million excess of $50.0 million for a total of $105.0 million.

In 2023, Hagerty Re had quota share agreements with various reinsurers to cede 70% of its physical damage exposure on U.S. accounts written or renewed with TIV equal to or greater than $5.0 million ("High-Net-Worth Accounts"). These High-Net-Worth Accounts are assumed 100% from a wholly owned subsidiary of Markel. Effective January 1, 2024, Hagerty Re is ceding 100% of its High-Net-Worth Accounts physical damage exposure via quota share agreements with various reinsurers. Some of the reinsurers involved in these quota share agreements are related parties. Refer to Note 21 — Related-Party Transactions for additional information.

Hagerty Re receives ceding commissions related to premiums ceded under reinsurance contracts related to High-Net-Worth Accounts. Ceding commissions are recognized ratably over the terms of the related policies, which are generally 12 months, and are recorded within "Ceding commissions, net" in the Company's Condensed Consolidated Statements of Operations. Deferred portions of ceding commissions received are included in "Deferred acquisition costs, net" on the Company's Condensed Consolidated Balance Sheets.

Reinsurance contracts do not relieve Hagerty Re from its primary liability to the ceding carriers according to the terms of its reinsurance treaties. Failure of reinsurers to honor their obligations could result in additional losses to Hagerty Re. Hagerty Re evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from its exposure to individual reinsurers. All of Hagerty Re's reinsurers have an A.M. Best rating of A- (Excellent) or better, or fully collateralize their maximum obligation under the treaty.