The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three years ended December 31, 2015 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, 2015
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	370,955		$	—		$	370,955
Assumed from nonaffiliates	4,392			138,700			143,092
Assumed from affiliates	474,323			—			474,323
Ceded to nonaffiliates	(24,281		)	(3,369		)	(27,650		)
Ceded to affiliates	(370,955		)	(10,827		)	(381,782		)
Net premiums written	$	454,434		$	124,504		$	578,938

Premiums earned
Direct	$	366,752		$	—		$	366,752
Assumed from nonaffiliates	4,240			139,839			144,079
Assumed from affiliates	466,966			—			466,966
Ceded to nonaffiliates	(24,009		)	(5,943		)	(29,952		)
Ceded to affiliates	(366,752		)	(10,827		)	(377,579		)
Net premiums earned	$	447,197		$	123,069		$	570,266

Losses and settlement expenses incurred
Direct	$	198,504		$	—		$	198,504
Assumed from nonaffiliates	2,407			83,515			85,922
Assumed from affiliates	294,324			857			295,181
Ceded to nonaffiliates	(4,848		)	(4,897		)	(9,745		)
Ceded to affiliates	(198,504		)	(622		)	(199,126		)
Net losses and settlement expenses incurred	$	291,883		$	78,853		$	370,736



	Year ended December 31, 2014
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	367,732		$	—		$	367,732
Assumed from nonaffiliates	3,955			143,564			147,519
Assumed from affiliates	455,183			—			455,183
Ceded to nonaffiliates	(25,431		)	(14,322		)	(39,753		)
Ceded to affiliates	(367,732		)	(10,339		)	(378,071		)
Net premiums written	$	433,707		$	118,903		$	552,610

Premiums earned
Direct	$	372,658		$	—		$	372,658
Assumed from nonaffiliates	3,787			144,439			148,226
Assumed from affiliates	443,440			—			443,440
Ceded to nonaffiliates	(24,846		)	(15,759		)	(40,605		)
Ceded to affiliates	(372,658		)	(10,339		)	(382,997		)
Net premiums earned	$	422,381		$	118,341		$	540,722

Losses and settlement expenses incurred
Direct	$	227,382		$	—		$	227,382
Assumed from nonaffiliates	2,201			96,281			98,482
Assumed from affiliates	304,579			1,278			305,857
Ceded to nonaffiliates	(8,747		)	(10,838		)	(19,585		)
Ceded to affiliates	(227,382		)	720			(226,662		)
Net losses and settlement expenses incurred	$	298,033		$	87,441		$	385,474



	Year ended December 31, 2013
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	368,532		$	—		$	368,532
Assumed from nonaffiliates	3,501			162,291			165,792
Assumed from affiliates	425,218			—			425,218
Ceded to nonaffiliates	(23,670		)	(20,502		)	(44,172		)
Ceded to affiliates	(368,532		)	(12,761		)	(381,293		)
Net premiums written	$	405,049		$	129,028		$	534,077

Premiums earned
Direct	$	361,010		$	—		$	361,010
Assumed from nonaffiliates	3,275			151,978			155,253
Assumed from affiliates	412,665			—			412,665
Ceded to nonaffiliates	(23,221		)	(16,430		)	(39,651		)
Ceded to affiliates	(361,010		)	(12,761		)	(373,771		)
Net premiums earned	$	392,719		$	122,787		$	515,506

Losses and settlement expenses incurred
Direct	$	237,109		$	—		$	237,109
Assumed from nonaffiliates	2,281			80,854			83,135
Assumed from affiliates	267,292			1,199			268,491
Ceded to nonaffiliates	(8,656		)	(8,860		)	(17,516		)
Ceded to affiliates	(237,109		)	(823		)	(237,932		)
Net losses and settlement expenses incurred	$	260,917		$	72,370		$	333,287