Reinsurance

The following table summarizes the effect of reinsurance on premiums written and earned for the three months ended March 31, 2018 and 2017:



	Three Months Ended March 31,
	2018			2017
	(in thousands)
Written:
Direct	$	63,847		$	52,862
Assumed	—			—
Ceded	(8,756		)	(8,700		)
Net written	$	55,091		$	44,162

Earned:
Direct	$	56,593		$	48,462
Assumed	—			—
Ceded	(8,532		)	(8,029		)
Net earned	$	48,061		$	40,433

Incurred losses and loss adjustment expenses were net of reinsurance (ceded incurred losses and loss adjustment expenses) of $2.9 million and $2.4 million for the three months ended March 31, 2018 and 2017, respectively. At March 31, 2018, reinsurance recoverables on paid and unpaid losses were $1.0 million and $49.7 million, respectively. At December 31, 2017, reinsurance recoverables on paid and unpaid losses were $1.4 million and $48.2 million, respectively.