Reinsurance (Tables)

9 Months Ended

Sep. 30, 2020

Reinsurance Disclosures [Abstract]

Current Ratings from Rating Agencies and Unsecured Net Amounts Due from Insurance Entities' Reinsurers Whose Aggregate Balance Exceeded 3% of Stockholders' Equity

The following table presents ratings from rating agencies and the unsecured amounts due from the reinsurers whose aggregate balance exceeded 3% of the Company’s stockholders’ equity as of the dates presented (in thousands):

	Ratings as of September 30, 2020			Due from as of
Reinsurer	AM Best Company	Standard and Poor’s Rating Services, Inc.	Moody’s Investors Service, Inc.	September 30, 2020		December 31, 2019
Florida Hurricane Catastrophe Fund (1)	n/a	n/a	n/a	$	65,883	$	199,647
Allianz Risk Transfer	—	—	—	—		19,269
Total (2)				$	65,883	$	218,916

(1)No rating is available, because the fund is not rated.

(2)Amounts represent prepaid reinsurance premiums and net recoverables for paid and unpaid losses, including incurred but not reported reserves, and loss adjustment expenses.

Summary of Effects of Insurance Entities' Reinsurance Arrangements

The Company’s reinsurance arrangements had the following effect on certain items in the Condensed Consolidated Statements of Income for the periods presented (in thousands):

	Three Months Ended September 30,
	2020						2019
	Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses		Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses
Direct	$	409,418	$	357,208	$	347,207	$	342,872	$	313,065	$	334,440
Ceded	(3,062)		(123,017)		(108,730)		(4,781)		(106,466)		(201,869)
Net	$	406,356	$	234,191	$	238,477	$	338,091	$	206,599	$	132,571

	Nine Months Ended September 30,
	2020						2019
	Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses		Premiums Written		Premiums Earned		Losses and Loss Adjustment Expenses
Direct	$	1,148,656	$	1,020,798	$	682,896	$	990,066	$	911,550	$	663,768
Ceded	(497,263)		(339,408)		(158,026)		(422,414)		(284,867)		(304,807)
Net	$	651,393	$	681,390	$	524,870	$	567,652	$	626,683	$	358,961

Prepaid Reinsurance Premiums and Reinsurance Recoverable and Receivable

The following prepaid reinsurance premiums and reinsurance recoverable are reflected in the Condensed Consolidated Balance Sheets as of the dates presented (in thousands):

	September 30,		December 31,
	2020		2019
Prepaid reinsurance premiums	$	333,062	$	175,208
Reinsurance recoverable on paid losses and LAE	$	35,749	$	70,015
Reinsurance recoverable on unpaid losses and LAE	59,329		123,221
Reinsurance recoverable	$	95,078	$	193,236