Note 6.

Reinsurance

In accordance with general practice in the insurance industry, portions of the life, property and casualty insurance written by the Company are reinsured; however, the Company remains liable with respect to reinsurance ceded should any reinsurer be unable or unwilling to meet its obligations. Approximately 99.6% of the Company’s reinsurance recoverables were due from a single reinsurer as of December 31, 2020. Reinsurance recoverables of $28,980 were due from General Re Corporation, rated “AA+” by Standard & Poor’s and “A++” (Superior) by A.M. Best. Allowances for uncollectible amounts are established against reinsurance recoverables, if appropriate.

The effects of reinsurance on premiums written, premiums earned and insurance benefits and losses incurred were as follows:

	2020			2019
Direct premiums written	$	239,687		$	237,973
Assumed premiums written		23,253			23,275
Ceded premiums written		(77,622	)		(77,750	)
Net premiums written	$	185,318		$	183,498

Direct premiums earned	$	238,209		$	237,361
Assumed premiums earned		23,144			22,345
Ceded premiums earned		(77,814	)		(77,781	)
Net premiums earned	$	183,539		$	181,925

Provision for benefits and losses incurred	$	175,825		$	206,390
Reinsurance loss recoveries		(55,949	)		(67,165	)
Insurance benefits and losses incurred	$	119,876		$	139,225

Components of reinsurance receivables at December 31, 2020 and 2019 were as follows:

	2020		2019
Recoverable on unpaid losses	$	17,600	$	18,339
Recoverable on unpaid benefits		9,832		10,772
Recoverable on paid losses		447		1,538
Ceded unearned premiums		963		1,155
Ceded advanced premiums		244		331
Total reinsurance receivables	$	29,086	$	32,135