The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three years ended December 31, 2013 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 flowing through the pooling, quota share and excess of loss agreements with Employers Mutual are reported as “affiliated” balances.



	Year ended December 31, 2013
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	368,532,466		$	—		$	368,532,466
Assumed from nonaffiliates	3,501,067			162,291,009			165,792,076
Assumed from affiliates	425,218,093			—			425,218,093
Ceded to nonaffiliates	(23,670,306		)	(20,502,167		)	(44,172,473		)
Ceded to affiliates	(368,532,466		)	(12,760,996		)	(381,293,462		)
Net premiums written	$	405,048,854		$	129,027,846		$	534,076,700

Premiums earned
Direct	$	361,009,971		$	—		$	361,009,971
Assumed from nonaffiliates	3,275,147			151,978,261			155,253,408
Assumed from affiliates	412,664,850			—			412,664,850
Ceded to nonaffiliates	(23,221,149		)	(16,429,847		)	(39,650,996		)
Ceded to affiliates	(361,009,971		)	(12,760,996		)	(373,770,967		)
Net premiums earned	$	392,718,848		$	122,787,418		$	515,506,266

Losses and settlement expenses incurred
Direct	$	237,108,829		$	—		$	237,108,829
Assumed from nonaffiliates	2,280,529			80,854,436			83,134,965
Assumed from affiliates	267,292,454			1,199,022			268,491,476
Ceded to nonaffiliates	(8,655,974		)	(8,860,465		)	(17,516,439		)
Ceded to affiliates	(237,108,829		)	(822,553		)	(237,931,382		)
Net losses and settlement expenses incurred	$	260,917,009		$	72,370,440		$	333,287,449



	Year ended December 31, 2012
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	341,306,420		$	—		$	341,306,420
Assumed from nonaffiliates	2,459,427			121,500,482			123,959,909
Assumed from affiliates	390,982,516			—			390,982,516
Ceded to nonaffiliates	(22,206,486		)	(2,338,228		)	(24,544,714		)
Ceded to affiliates	(341,306,420		)	(11,916,226		)	(353,222,646		)
Net premiums written	$	371,235,457		$	107,246,028		$	478,481,485

Premiums earned
Direct	$	328,227,401		$	—		$	328,227,401
Assumed from nonaffiliates	2,296,360			119,502,706			121,799,066
Assumed from affiliates	377,690,009			—			377,690,009
Ceded to nonaffiliates	(22,847,683		)	(5,879,167		)	(28,726,850		)
Ceded to affiliates	(328,227,401		)	(11,916,226		)	(340,143,627		)
Net premiums earned	$	357,138,686		$	101,707,313		$	458,845,999

Losses and settlement expenses incurred
Direct	$	191,281,648		$	—		$	191,281,648
Assumed from nonaffiliates	1,718,484			83,987,064			85,705,548
Assumed from affiliates	237,723,061			962,408			238,685,469
Ceded to nonaffiliates	(5,549,265		)	(5,528,003		)	(11,077,268		)
Ceded to affiliates	(191,281,648		)	(9,926,034		)	(201,207,682		)
Net losses and settlement expenses incurred	$	233,892,280		$	69,495,435		$	303,387,715



	Year ended December 31, 2011
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	301,829,277		$	—		$	301,829,277
Assumed from nonaffiliates	1,610,872			123,274,743			124,885,615
Assumed from affiliates	356,622,503			—			356,622,503
Ceded to nonaffiliates	(24,939,233		)	(16,059,909		)	(40,999,142		)
Ceded to affiliates	(301,829,277		)	(10,721,484		)	(312,550,761		)
Net premiums written	$	333,294,142		$	96,493,350		$	429,787,492

Premiums earned
Direct	$	283,482,713		$	—		$	283,482,713
Assumed from nonaffiliates	1,541,807			122,064,711			123,606,518
Assumed from affiliates	344,668,820			—			344,668,820
Ceded to nonaffiliates	(24,561,412		)	(16,590,129		)	(41,151,541		)
Ceded to affiliates	(283,482,713		)	(10,721,484		)	(294,204,197		)
Net premiums earned	$	321,649,215		$	94,753,098		$	416,402,313

Losses and settlement expenses incurred
Direct	$	247,585,728		$	—		$	247,585,728
Assumed from nonaffiliates	1,619,025			122,680,597			124,299,622
Assumed from affiliates	264,217,463			732,478			264,949,941
Ceded to nonaffiliates	(14,387,241		)	(16,010,258		)	(30,397,499		)
Ceded to affiliates	(247,585,728		)	(15,877,627		)	(263,463,355		)
Net losses and settlement expenses incurred	$	251,449,247		$	91,525,190		$	342,974,437