NOTE 6. CEDED REINSURANCE

The following table lists our Company’s 10 largest reinsurers measured by the amount of total reinsurance recoverables as of September 30, 2017, and the reinsurers’ ratings from A.M. Best and S&P:

	Reinsurance Recoverables
	Unearned		Paid/Unpaid				Collateral
amounts in thousands	Premium		Losses ⁽¹⁾		Total		Held		A.M. Best	S&P
Everest Reinsurance Company	$	28,539		87,285		115,824		11,731	A+	A+
Swiss Reinsurance America Corporation		23,116		73,548		96,664		7,088	A+	AA-
National Indemnity Company		6,363		68,539		74,902		6,482	A++	AA+
Transatlantic Reinsurance Company		8,522		52,237		60,759		2,543	A+	A+
Munich Reinsurance America Inc.		11,094		46,158		57,252		4,898	A+	AA-
Aspen Insurance UK Ltd.		10,050		29,700		39,750		8,057	A	A
Employers Mutual Casualty Company		10,623		27,670		38,293		11,100	A	NR
Allied World Reinsurance		6,531		31,684		38,215		1,937	A	A-
Partner Reinsurance Europe		5,699		28,532		34,231		11,095	A	A+
Ace Property and Casualty Insurance Company		6,720		23,288		30,008		1,556	A++	AA
Top 10 Reinsurers	$	117,257		468,641		585,898		66,487
Others		113,917		439,918		553,835		105,129
Total	$	231,174		908,559		1,139,733		171,616

(1) - Net of reserve for uncollectable reinsurance of approximately $12.4 million.

We have established reserves for uncollectible reinsurance in the amounts of $12.4 million and $12.1 million as of September 30, 2017 and December 31, 2016, respectively.

Our Company holds collateral of $171.6 million, which consists of $129.3 million in ceded balances payable, $39.7 million in letters of credit and $2.6 million of funds held as trust account balances. NIC and NSIC are required to collateralize reinsurance obligations due to us from reinsurers not authorized by their respective states of domicile.

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

	Nine Months Ended September 30,
amounts in thousands	2017			2016
Direct	$	747,759		$	586,100
Assumed		124,730			69,657
Ceded		(249,608	)		(162,802	)
Net losses and LAE	$	622,881		$	492,955