The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three and six months ended June 30, 2014 and 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.



	Three months ended June 30, 2014
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	90,851		$	—		$	90,851
Assumed from nonaffiliates	993			32,506			33,499
Assumed from affiliates	118,286			—			118,286
Ceded to nonaffiliates	(6,815		)	(3,636		)	(10,451		)
Ceded to affiliates	(90,851		)	(2,310		)	(93,161		)
Net premiums written	$	112,464		$	26,560		$	139,024

Premiums earned
Direct	$	93,286		$	—		$	93,286
Assumed from nonaffiliates	891			36,695			37,586
Assumed from affiliates	109,397			—			109,397
Ceded to nonaffiliates	(6,771		)	(3,950		)	(10,721		)
Ceded to affiliates	(93,286		)	(2,310		)	(95,596		)
Net premiums earned	$	103,517		$	30,435		$	133,952

Losses and settlement expenses incurred
Direct	$	75,417		$	—		$	75,417
Assumed from nonaffiliates	484			27,583			28,067
Assumed from affiliates	87,330			246			87,576
Ceded to nonaffiliates	(7,027		)	(2,792		)	(9,819		)
Ceded to affiliates	(75,417		)	22			(75,395		)
Net losses and settlement expenses incurred	$	80,787		$	25,059		$	105,846



	Three months ended June 30, 2013
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	89,858		$	—		$	89,858
Assumed from nonaffiliates	882			38,996			39,878
Assumed from affiliates	110,140			—			110,140
Ceded to nonaffiliates	(5,763		)	(5,090		)	(10,853		)
Ceded to affiliates	(89,858		)	(3,051		)	(92,909		)
Net premiums written	$	105,259		$	30,855		$	136,114

Premiums earned
Direct	$	90,493		$	—		$	90,493
Assumed from nonaffiliates	763			36,951			37,714
Assumed from affiliates	102,770			—			102,770
Ceded to nonaffiliates	(5,716		)	(4,528		)	(10,244		)
Ceded to affiliates	(90,493		)	(3,051		)	(93,544		)
Net premiums earned	$	97,817		$	29,372		$	127,189

Losses and settlement expenses incurred
Direct	$	71,466		$	—		$	71,466
Assumed from nonaffiliates	34			16,692			16,726
Assumed from affiliates	76,771			211			76,982
Ceded to nonaffiliates	(2,725		)	(2,179		)	(4,904		)
Ceded to affiliates	(71,466		)	164			(71,302		)
Net losses and settlement expenses incurred	$	74,080		$	14,888		$	88,968



	Six months ended June 30, 2014
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	180,892		$	—		$	180,892
Assumed from nonaffiliates	1,780			72,020			73,800
Assumed from affiliates	225,334			—			225,334
Ceded to nonaffiliates	(12,137		)	(7,398		)	(19,535		)
Ceded to affiliates	(180,892		)	(5,170		)	(186,062		)
Net premiums written	$	214,977		$	59,452		$	274,429

Premiums earned
Direct	$	184,361		$	—		$	184,361
Assumed from nonaffiliates	1,735			75,645			77,380
Assumed from affiliates	215,278			—			215,278
Ceded to nonaffiliates	(12,249		)	(8,207		)	(20,456		)
Ceded to affiliates	(184,361		)	(5,170		)	(189,531		)
Net premiums earned	$	204,764		$	62,268		$	267,032

Losses and settlement expenses incurred
Direct	$	123,427		$	—		$	123,427
Assumed from nonaffiliates	1,086			51,983			53,069
Assumed from affiliates	155,502			537			156,039
Ceded to nonaffiliates	(8,075		)	(6,259		)	(14,334		)
Ceded to affiliates	(123,427		)	41			(123,386		)
Net losses and settlement expenses incurred	$	148,513		$	46,302		$	194,815



	Six months ended June 30, 2013
	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	178,746		$	—		$	178,746
Assumed from nonaffiliates	1,495			73,709			75,204
Assumed from affiliates	209,541			—			209,541
Ceded to nonaffiliates	(10,996		)	(9,749		)	(20,745		)
Ceded to affiliates	(178,746		)	(5,756		)	(184,502		)
Net premiums written	$	200,040		$	58,204		$	258,244

Premiums earned
Direct	$	175,635		$	—		$	175,635
Assumed from nonaffiliates	1,424			70,187			71,611
Assumed from affiliates	200,366			—			200,366
Ceded to nonaffiliates	(11,268		)	(7,267		)	(18,535		)
Ceded to affiliates	(175,635		)	(5,756		)	(181,391		)
Net premiums earned	$	190,522		$	57,164		$	247,686

Losses and settlement expenses incurred
Direct	$	121,070		$	—		$	121,070
Assumed from nonaffiliates	427			35,699			36,126
Assumed from affiliates	133,357			435			133,792
Ceded to nonaffiliates	(3,736		)	(3,627		)	(7,363		)
Ceded to affiliates	(121,070		)	(1,013		)	(122,083		)
Net losses and settlement expenses incurred	$	130,048		$	31,494		$	161,542