Ceded Reinsurance (Tables)

12 Months Ended

Dec. 31, 2014

Credit Quality Distribution of Reinsurance Recoverables for Ceded Paid and Unpaid Losses and Loss Adjustment Expenses and Ceded Unearned Premiums Based On Insurer Financial Strength Ratings from A. M. Best or S&P

The credit quality distribution of our Company’s reinsurance recoverables of $1.1 billion as of December 31, 2014 for ceded paid and unpaid losses and LAE and ceded unearned premiums based on insurer financial strength ratings from A.M. Best or S&P were as follows:


In thousands	Rating	Carrying Value ⁽²⁾		Percent of Total
A.M. Best Rating description ⁽¹⁾:
Superior	A++, A+	$	575,205		50	%
Excellent	A, A-		547,314		48	%
Very good	B++, B+		8,483		1	%
Fair	B, B-		—		0	%
Not rated	NR		9,694		1	%

Total		$	1,140,696		100	%


(1)	-	When an A.M. Best rating is unavailable, the equivalent S&P rating is used.
(2)	-	The carrying value is comprised of prepaid reinsurance premium as well as reinsurance recoverables on paid and unpaid losses which are net of the reserve for uncollectible reinsurance.

Lists of 20 Largest Reinsurers Measured by Reinsurance Recoverable

The following table lists our Company’s 20 largest reinsurers measured by the amount of reinsurance recoverable for ceded losses and LAE and ceded unearned premium (constituting 75.7% of the total recoverable), together with the reinsurance recoverable and collateral as of December 31, 2014, and the reinsurers’ ratings from A.M. Best or S&P:


In thousands	Unearned Premium		Paid/Unpaid Losses		Total ⁽¹⁾		Collateral Held		A.M. Best	S&P
National Indemnity Company	$	25,202	$	117,562	$	142,764	$	22,069	A++	AA+
Everest Reinsurance Company		21,573		75,063		96,636		7,326	A+	A+
Swiss Reinsurance America Corporation		22,815		73,305		96,120		14,587	A+	AA-
Transatlantic Reinsurance Company		11,916		74,072		85,988		4,038	A	A+
Munich Reinsurance America Inc.		11,366		58,768		70,134		5,539	A+	AA-
Allied World Reinsurance		9,048		37,088		46,136		1,666	A	A
Lloyd’s Syndicate #2003		4,399		35,123		39,522		5,191	A	A+
Partner Reinsurance Europe		10,986		25,409		36,395		16,052	A+	A+
Employers Mutual Casualty Company		11,928		21,851		33,779		10,935	A	NR
Scor Global P&C SE		10,190		17,572		27,762		5,558	A	A+
Ace Property and Casualty Insurance Company		11,165		12,741		23,906		2,907	A++	AA
Tower Insurance Company		—		21,509		21,509		2,455	A-	NR
Aspen Insurance UK Ltd.		8,928		11,227		20,155		4,869	A	A
Ironshore Indemnity Inc.		6,234		13,395		19,629		8,645	A	NR
Validus Reinsurance Ltd.		2,020		16,873		18,893		10,975	A	A
Atlantic Specialty Insurance		2,542		15,812		18,354		—	A	A-
QBE Reinsurance Corp		2,636		15,539		18,175		—	A	A+
National Union Fire Ins.		8,067		8,459		16,526		6,158	A	A+
Endurance Reinsurance Corporation		5,695		9,936		15,631		1,337	A	A
Odyssey American Reinsurance Corporation		3,506		11,650		15,156		1,604	A	A-

Top 20	$	190,216	$	672,954	$	863,170	$	131,911
Others		47,635		229,891		277,526		70,065

Total	$	237,851	$	902,845	$	1,140,696	$	201,976

(1) - Net of reserve for uncollectible reinsurance of approximately $11.3 million.

Summary of Written Premium

The following table summarizes the components of Net Written Premium:


	Year Ended December 31,
In thousands	2014			2013			2012
Direct	$	1,184,538		$	1,127,331		$	1,034,658
Assumed		247,815			243,187			251,807
Ceded		(432,215	)		(482,596	)		(452,810	)

Net Written Premiums	$	1,000,138		$	887,922		$	833,655

Summary of Earned Premium

The following table summarizes the components of Net Earned Premium:


	Year Ended December 31,
In thousands	2014			2013			2012
Direct	$	1,133,336		$	1,069,677		$	972,844
Assumed		243,215			228,247			205,759
Ceded		(440,656	)		(455,985	)		(396,639	)

Net Earned Premiums	$	935,895		$	841,939		$	781,964

Summary of Losses and Loss Adjustment Expenses Incurred

The following table summarizes the components of Net Losses and LAE incurred:


	Year Ended December 31,
In thousands	2014			2013			2012
Direct	$	631,730		$	552,381		$	608,945
Assumed		143,681			155,313			151,137
Ceded		(230,182	)		(188,733	)		(262,649	)

Net Losses and LAE	$	545,229		$	518,961		$	497,433