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Reinsurance Ceded (Tables)

12 Months Ended

Dec. 31, 2018

Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. Such balances as of December 31, 2018 and 2017 are presented in the table below:


	As of December 31,
	2018		2017
	($ in millions)
Reinsurance recoverables on paid losses	$	63.9	$	96.4
Ceded outstanding loss and LAE		1,857.4		1,650.1

Total	$	1,921.3	$	1,746.5

Information Regarding Concentration of Reinsurance Recoverables and Ratings Profile of its Reinsurers

The following table presents information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of December 31, 2018:


Reinsurer (1)	Rating (2)	Amount		Percentage
		($ in millions)

Syndicates at Lloyd’s of London	A (Excellent)	$	134.5		7.0%

PartnerRe Ltd	A (Excellent)		114.2		5.9%

Swiss Reinsurance Company	A+ (Superior)		112.9		5.9%

RenaissanceRe Holdings Ltd	A+ (Superior)		103.9		5.4%

Kane SAC Ltd, Rondout Segregated Account (3)	not rated		99.8		5.2%

Fairfax Financial Holdings Ltd	A (Excellent)		97.3		5.1%

W.R. Berkley Corporation	A+ (Superior)		89.6		4.7%

Kane SAC Ltd, Bowery Segregated Account (3)	not rated		88.9		4.6%

Liberty Mutual	A (Excellent)		85.0		4.4%

Chubb Corporation	A++ (Superior)		81.2		4.2%

All other reinsurers			914.0		47.6%

Total reinsurance recoverables (4)		$	1,921.3		100.0%


Secured reinsurance recoverables (3)		$	711.1		37.0%

(1)	Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company.

(2)	Represents the A.M. Best Company, Inc. financial strength rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due.

(3)	Represents reinsurance recoverables secured by funds held, trust agreements or letters of credit.

(4)

Approximately 70 percent of Alleghany’s reinsurance recoverables balance as of December 31, 2018 was due from reinsurers having an A.M. Best Company, Inc. financial strength rating of A (Excellent) or higher, with a majority of the other reinsurance recoverables being secured by funds held, trust agreements or letters of credit.

Property and Casualty Premiums Written and Earned

The following table presents property and casualty premiums written and earned for 2018, 2017 and 2016:


	Year Ended December 31,
	2018			2017			2016
	($ in millions)
Gross premiums written – direct	$	1,537.8		$	1,528.7		$	1,490.3
Gross premiums written – assumed		4,357.8			4,168.2			4,276.8
Ceded premiums written		(847.2	)		(731.0	)		(675.3	)

Net premiums written	$	5,048.4		$	4,965.9		$	5,091.8


Gross premiums earned – direct	$	1,935.3		$	1,932.0		$	1,871.1
Gross premiums earned – assumed		3,881.4			3,790.3			3,833.9
Ceded premiums earned		(840.5	)		(767.3	)		(729.2	)

Net premiums earned	$	4,976.2		$	4,955.0		$	4,975.8