The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three months ended March 31, 2016 and 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.



	Three months ended March 31, 2016
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	94,986		$	—		$	94,986
Assumed from nonaffiliates	957			34,259			35,216
Assumed from affiliates	118,846			—			118,846
Ceded to nonaffiliates	(5,381		)	(1,980		)	(7,361		)
Ceded to affiliates	(98,141		)	(1,270		)	(99,411		)
Net premiums written	$	111,267		$	31,009		$	142,276

Premiums earned
Direct	$	92,836		$	—		$	92,836
Assumed from nonaffiliates	1,027			34,716			35,743
Assumed from affiliates	118,262			—			118,262
Ceded to nonaffiliates	(5,688		)	(1,155		)	(6,843		)
Ceded to affiliates	(95,991		)	(1,270		)	(97,261		)
Net premiums earned	$	110,446		$	32,291		$	142,737

Losses and settlement expenses incurred
Direct	$	41,054		$	—		$	41,054
Assumed from nonaffiliates	721			23,202			23,923
Assumed from affiliates	61,454			388			61,842
Ceded to nonaffiliates	(77		)	(907		)	(984		)
Ceded to affiliates	(41,054		)	328			(40,726		)
Net losses and settlement expenses incurred	$	62,098		$	23,011		$	85,109



	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	$	36,427		$	—		$	36,427
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	(36,427		)	(107		)	(36,534		)
Net losses and settlement expenses incurred	$	56,675		$	19,110		$	75,785