The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three and nine months ended September 30, 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 September 30, 2015
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	117,187		$	—		$	117,187
Assumed from nonaffiliates	1,178			34,954			36,132
Assumed from affiliates	141,200			—			141,200
Ceded to nonaffiliates	(7,656		)	(774		)	(8,430		)
Ceded to affiliates	(117,187		)	(2,734		)	(119,921		)
Net premiums written	$	134,722		$	31,446		$	166,168

Premiums earned
Direct	$	92,083		$	—		$	92,083
Assumed from nonaffiliates	1,073			35,939			37,012
Assumed from affiliates	118,784			—			118,784
Ceded to nonaffiliates	(6,104		)	(1,170		)	(7,274		)
Ceded to affiliates	(92,083		)	(2,734		)	(94,817		)
Net premiums earned	$	113,753		$	32,035		$	145,788

Losses and settlement expenses incurred
Direct	$	52,220		$	—		$	52,220
Assumed from nonaffiliates	655			27,677			28,332
Assumed from affiliates	76,697			252			76,949
Ceded to nonaffiliates	(1,376		)	(877		)	(2,253		)
Ceded to affiliates	(52,220		)	(343		)	(52,563		)
Net losses and settlement expenses incurred	$	75,976		$	26,709		$	102,685



	Three months ended September 30, 2014
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	117,508		$	—		$	117,508
Assumed from nonaffiliates	1,038			38,326			39,364
Assumed from affiliates	137,591			—			137,591
Ceded to nonaffiliates	(7,624		)	(3,735		)	(11,359		)
Ceded to affiliates	(117,508		)	(2,767		)	(120,275		)
Net premiums written	$	131,005		$	31,824		$	162,829

Premiums earned
Direct	$	93,571		$	—		$	93,571
Assumed from nonaffiliates	963			37,369			38,332
Assumed from affiliates	113,039			—			113,039
Ceded to nonaffiliates	(6,050		)	(4,238		)	(10,288		)
Ceded to affiliates	(93,571		)	(2,767		)	(96,338		)
Net premiums earned	$	107,952		$	30,364		$	138,316

Losses and settlement expenses incurred
Direct	$	55,850		$	—		$	55,850
Assumed from nonaffiliates	540			29,938			30,478
Assumed from affiliates	78,147			291			78,438
Ceded to nonaffiliates	(131		)	(2,621		)	(2,752		)
Ceded to affiliates	(55,850		)	488			(55,362		)
Net losses and settlement expenses incurred	$	78,556		$	28,096		$	106,652



	Nine months ended September 30, 2015
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	297,974		$	—		$	297,974
Assumed from nonaffiliates	3,296			107,821			111,117
Assumed from affiliates	379,761			—			379,761
Ceded to nonaffiliates	(18,728		)	(2,480		)	(21,208		)
Ceded to affiliates	(297,974		)	(8,427		)	(306,401		)
Net premiums written	$	364,329		$	96,914		$	461,243

Premiums earned
Direct	$	273,441		$	—		$	273,441
Assumed from nonaffiliates	3,165			109,134			112,299
Assumed from affiliates	347,686			—			347,686
Ceded to nonaffiliates	(17,639		)	(4,795		)	(22,434		)
Ceded to affiliates	(273,441		)	(8,427		)	(281,868		)
Net premiums earned	$	333,212		$	95,912		$	429,124

Losses and settlement expenses incurred
Direct	$	147,843		$	—		$	147,843
Assumed from nonaffiliates	1,878			69,041			70,919
Assumed from affiliates	216,197			721			216,918
Ceded to nonaffiliates	(2,607		)	(4,065		)	(6,672		)
Ceded to affiliates	(147,843		)	(562		)	(148,405		)
Net losses and settlement expenses incurred	$	215,468		$	65,135		$	280,603



	Nine months ended September 30, 2014
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	298,400		$	—		$	298,400
Assumed from nonaffiliates	2,818			110,346			113,164
Assumed from affiliates	362,925			—			362,925
Ceded to nonaffiliates	(19,761		)	(11,133		)	(30,894		)
Ceded to affiliates	(298,400		)	(7,937		)	(306,337		)
Net premiums written	$	345,982		$	91,276		$	437,258

Premiums earned
Direct	$	277,932		$	—		$	277,932
Assumed from nonaffiliates	2,698			113,014			115,712
Assumed from affiliates	328,317			—			328,317
Ceded to nonaffiliates	(18,299		)	(12,445		)	(30,744		)
Ceded to affiliates	(277,932		)	(7,937		)	(285,869		)
Net premiums earned	$	312,716		$	92,632		$	405,348

Losses and settlement expenses incurred
Direct	$	179,277		$	—		$	179,277
Assumed from nonaffiliates	1,626			81,921			83,547
Assumed from affiliates	233,649			828			234,477
Ceded to nonaffiliates	(8,206		)	(8,880		)	(17,086		)
Ceded to affiliates	(179,277		)	529			(178,748		)
Net losses and settlement expenses incurred	$	227,069		$	74,398		$	301,467