The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three months ended March 31, 2015 and 2014 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 March 31, 2015
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	88,760		$	—		$	88,760
Assumed from nonaffiliates	971			37,977			38,948
Assumed from affiliates	113,145			—			113,145
Ceded to nonaffiliates	(5,320		)	(881		)	(6,201		)
Ceded to affiliates	(88,760		)	(2,968		)	(91,728		)
Net premiums written	$	108,796		$	34,128		$	142,924

Premiums earned
Direct	$	89,852		$	—		$	89,852
Assumed from nonaffiliates	1,033			35,871			36,904
Assumed from affiliates	112,761			—			112,761
Ceded to nonaffiliates	(5,589		)	(2,377		)	(7,966		)
Ceded to affiliates	(89,852		)	(2,968		)	(92,820		)
Net premiums earned	$	108,205		$	30,526		$	138,731

Losses and settlement expenses incurred
Direct	$	35,437		$	—		$	35,437
Assumed from nonaffiliates	546			20,900			21,446
Assumed from affiliates	55,898			243			56,141
Ceded to nonaffiliates	231			(1,926		)	(1,695		)
Ceded to affiliates	(35,437		)	(107		)	(35,544		)
Net losses and settlement expenses incurred	$	56,675		$	19,110		$	75,785



	Three months ended March 31, 2014
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	90,040		$	—		$	90,040
Assumed from nonaffiliates	788			39,514			40,302
Assumed from affiliates	107,048			—			107,048
Ceded to nonaffiliates	(5,322		)	(3,762		)	(9,084		)
Ceded to affiliates	(90,041		)	(2,860		)	(92,901		)
Net premiums written	$	102,513		$	32,892		$	135,405

Premiums earned
Direct	$	91,075		$	—		$	91,075
Assumed from nonaffiliates	844			38,950			39,794
Assumed from affiliates	105,881			—			105,881
Ceded to nonaffiliates	(5,478		)	(4,257		)	(9,735		)
Ceded to affiliates	(91,075		)	(2,860		)	(93,935		)
Net premiums earned	$	101,247		$	31,833		$	133,080

Losses and settlement expenses incurred
Direct	$	48,010		$	—		$	48,010
Assumed from nonaffiliates	602			24,400			25,002
Assumed from affiliates	68,172			291			68,463
Ceded to nonaffiliates	(1,048		)	(3,467		)	(4,515		)
Ceded to affiliates	(48,010		)	19			(47,991		)
Net losses and settlement expenses incurred	$	67,726		$	21,243		$	88,969