Most or all of these factors are not directly or precisely quantifiable, particularly on a prospective basis, and are subject to a significant degree of variability over time. In addition, the establishment of loss and LAE reserves makes no provision for the broadening of coverage by legislative action or judicial interpretation or for the extraordinary future emergence of new types of losses not sufficiently represented in our historical experience or which cannot yet be quantified. As a result, an integral component of our loss and LAE reserving process is the use of informed subjective estimates and judgments about our ultimate exposure to losses and LAE. Accordingly, the ultimate liability may be more or less than the current estimate. The effects of change in the estimated loss and LAE reserves are included in the results of operations in the period in which the estimate is revised.
Our premiums are presented below for the years ended December 31, 2015 and 2014 (dollars in thousands):
Total reserve development on prior accident years for the year ended December 31, 2014 was favorable by $1.2 million, or 2.1 percentage points of the loss ratio. For the year ended December 31, 2014, there was $702,000 and $509,000 of favorable reserve development in the commercial multi-peril and other liability lines, respectively.
Gross written premiums increased $39.8 million, or 90.2%, to $83.8 million for the year ended December 31, 2014, as compared to $44.1 million for the year ended December 31, 2013. The increase was driven by expanding our existing commercial products, increasing our commercial geographical territory, the acquisition of ACIC in November 2013, and an assumption of premium from Citizens Property Insurance Corporation ("Citizens") a Florida state-sponsored insurer, through participation in a legislatively enacted "depopulation program" as further described below.
Partially offsetting those increases in our loss ratios was a reduction in the loss ratio in wind-exposed homeowners, which was 77.1% in 2013, and decreased to 34.2% in 2014. The decrease in the wind-exposed homeowners loss ratio was partially due to a decrease in our ceded reinsurance rate and partially due to a decrease in the reported severity of claims during 2014. Our ceded reinsurance rate decreased as a result of a softer reinsurance market and efficiencies in reinsurance purchasing generated from our growth. As our premium volume increased and we added another year of loss experience, reinsurers are able to better estimate their exposure and spread the risk over a larger premium volume. This allows the reinsurers to charge less per premium dollar, generating efficiencies for us. Also, as we grew, we retained more of the risk which reduces the overall cost of reinsurance.
The Credit Facility contains various restrictive covenants that relate to the Company’s shareholders’ equity, premiums-to-capital and surplus ratios, fixed-charge coverage ratio, risk-based capital ratios, and A.M. Best ratings of its Insurance Company Subsidiaries. At December 31, 2015, the Company was in compliance with all of its Credit Facility covenants except for the fixed-charge coverage ratio which fell below 1.20-to-1.0, to 0.9-to-1.0. The Company received a waiver for this covenant breach as of December 31, 2015. The Company is expected to meet this debt covenant requirement going forward based upon a combination of the January 26, 2016 amendment and improved cash flows from operations.