The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three and nine months ended September 30, 2013 and 2012 is presented below. The classification of the assumed and ceded reinsurance amounts between affiliates and nonaffiliates is based on the participants in the underlying reinsurance agreements, and is intended to provide an understanding of the actual source of the reinsurance activities. This presentation differs from the classifications used in the consolidated financial statements, where all amounts resulting from transactions associated with the pooling, quota share and excess of loss reinsurance agreements with Employers Mutual are reported as “affiliated” balances.



	Three months ended September 30, 2013
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	117,720,152		$	—		$	117,720,152
Assumed from nonaffiliates	944,875			43,471,524			44,416,399
Assumed from affiliates	128,563,830			—			128,563,830
Ceded to nonaffiliates	(7,324,038		)	(5,163,102		)	(12,487,140		)
Ceded to affiliates	(117,720,152		)	(3,447,758		)	(121,167,910		)
Net premiums written	$	122,184,667		$	34,860,664		$	157,045,331

Premiums earned
Direct	$	91,944,592		$	—		$	91,944,592
Assumed from nonaffiliates	814,371			40,219,145			41,033,516
Assumed from affiliates	105,134,223			—			105,134,223
Ceded to nonaffiliates	(5,863,560		)	(4,493,660		)	(10,357,220		)
Ceded to affiliates	(91,944,592		)	(3,447,758		)	(95,392,350		)
Net premiums earned	$	100,085,034		$	32,277,727		$	132,362,761

Losses and settlement expenses incurred
Direct	$	50,704,138		$	—		$	50,704,138
Assumed from nonaffiliates	1,034,219			24,363,653			25,397,872
Assumed from affiliates	64,167,971			295,530			64,463,501
Ceded to nonaffiliates	435,980			(2,030,749		)	(1,594,769		)
Ceded to affiliates	(50,704,138		)	(31,916		)	(50,736,054		)
Net losses and settlement expenses incurred	$	65,638,170		$	22,596,518		$	88,234,688



	Three months ended September 30, 2012
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	107,128,385		$	—		$	107,128,385
Assumed from nonaffiliates	667,712			42,867,793			43,535,505
Assumed from affiliates	118,248,220			—			118,248,220
Ceded to nonaffiliates	(7,055,681		)	(508,871		)	(7,564,552		)
Ceded to affiliates	(107,128,385		)	(4,235,892		)	(111,364,277		)
Net premiums written	$	111,860,251		$	38,123,030		$	149,983,281

Premiums earned
Direct	$	84,547,817		$	—		$	84,547,817
Assumed from nonaffiliates	578,239			36,033,984			36,612,223
Assumed from affiliates	96,432,201			—			96,432,201
Ceded to nonaffiliates	(5,950,717		)	(1,313,028		)	(7,263,745		)
Ceded to affiliates	(84,547,817		)	(4,235,892		)	(88,783,709		)
Net premiums earned	$	91,059,723		$	30,485,064		$	121,544,787

Losses and settlement expenses incurred
Direct	$	43,128,073		$	—		$	43,128,073
Assumed from nonaffiliates	518,821			24,086,891			24,605,712
Assumed from affiliates	56,806,810			231,755			57,038,565
Ceded to nonaffiliates	(1,165,115		)	(1,338,008		)	(2,503,123		)
Ceded to affiliates	(43,128,073		)	183,487			(42,944,586		)
Net losses and settlement expenses incurred	$	56,160,516		$	23,164,125		$	79,324,641



	Nine months ended September 30, 2013
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	296,466,548		$	—		$	296,466,548
Assumed from nonaffiliates	2,439,690			117,181,042			119,620,732
Assumed from affiliates	338,105,330			—			338,105,330
Ceded to nonaffiliates	(18,320,191		)	(14,911,978		)	(33,232,169		)
Ceded to affiliates	(296,466,548		)	(9,204,216		)	(305,670,764		)
Net premiums written	$	322,224,829		$	93,064,848		$	415,289,677

Premiums earned
Direct	$	267,579,105		$	—		$	267,579,105
Assumed from nonaffiliates	2,238,510			110,406,285			112,644,795
Assumed from affiliates	305,499,927			—			305,499,927
Ceded to nonaffiliates	(17,131,498		)	(11,760,715		)	(28,892,213		)
Ceded to affiliates	(267,579,105		)	(9,204,216		)	(276,783,321		)
Net premiums earned	$	290,606,939		$	89,441,354		$	380,048,293

Losses and settlement expenses incurred
Direct	$	171,774,612		$	—		$	171,774,612
Assumed from nonaffiliates	1,461,512			60,062,425			61,523,937
Assumed from affiliates	197,525,409			730,641			198,256,050
Ceded to nonaffiliates	(3,300,434		)	(5,657,776		)	(8,958,210		)
Ceded to affiliates	(171,774,612		)	(1,044,751		)	(172,819,363		)
Net losses and settlement expenses incurred	$	195,686,487		$	54,090,539		$	249,777,026



	Nine months ended September 30, 2012
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	272,372,079		$	—		$	272,372,079
Assumed from nonaffiliates	1,655,504			92,513,300			94,168,804
Assumed from affiliates	309,781,430			—			309,781,430
Ceded to nonaffiliates	(17,170,688		)	(1,394,989		)	(18,565,677		)
Ceded to affiliates	(272,372,079		)	(9,111,831		)	(281,483,910		)
Net premiums written	$	294,266,246		$	82,006,480		$	376,272,726

Premiums earned
Direct	$	242,803,733		$	—		$	242,803,733
Assumed from nonaffiliates	1,537,248			91,395,310			92,932,558
Assumed from affiliates	279,542,128			—			279,542,128
Ceded to nonaffiliates	(17,162,978		)	(4,624,874		)	(21,787,852		)
Ceded to affiliates	(242,803,733		)	(9,111,831		)	(251,915,564		)
Net premiums earned	$	263,916,398		$	77,658,605		$	341,575,003

Losses and settlement expenses incurred
Direct	$	144,326,923		$	—		$	144,326,923
Assumed from nonaffiliates	1,225,178			57,923,059			59,148,237
Assumed from affiliates	182,457,292			651,939			183,109,231
Ceded to nonaffiliates	(4,883,317		)	(4,943,552		)	(9,826,869		)
Ceded to affiliates	(144,326,923		)	534,282			(143,792,641		)
Net losses and settlement expenses incurred	$	178,799,153		$	54,165,728		$	232,964,881