The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three and nine months ended September 30, 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 September 30, 2016
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	119,849		$	—		$	119,849
Assumed from nonaffiliates	1,221			39,592			40,813
Assumed from affiliates	146,289			—			146,289
Ceded to nonaffiliates	(7,841		)	(983		)	(8,824		)
Ceded to affiliates	(120,614		)	(1,270		)	(121,884		)
Net premiums written	$	138,904		$	37,339		$	176,243

Premiums earned
Direct	$	96,730		$	—		$	96,730
Assumed from nonaffiliates	1,170			39,394			40,564
Assumed from affiliates	122,058			—			122,058
Ceded to nonaffiliates	(6,091		)	(2,315		)	(8,406		)
Ceded to affiliates	(97,495		)	(1,270		)	(98,765		)
Net premiums earned	$	116,372		$	35,809		$	152,181

Losses and settlement expenses incurred
Direct	$	59,831		$	—		$	59,831
Assumed from nonaffiliates	793			27,206			27,999
Assumed from affiliates	85,196			280			85,476
Ceded to nonaffiliates	(895		)	(944		)	(1,839		)
Ceded to affiliates	(63,282		)	(12		)	(63,294		)
Net losses and settlement expenses incurred	$	81,643		$	26,530		$	108,173



	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	$	53,717		$	—		$	53,717
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	(53,717		)	(343		)	(54,060		)
Net losses and settlement expenses incurred	$	75,976		$	26,709		$	102,685



	Nine months ended September 30, 2016
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	311,542		$	—		$	311,542
Assumed from nonaffiliates	3,430			111,378			114,808
Assumed from affiliates	393,418			—			393,418
Ceded to nonaffiliates	(19,069		)	(8,814		)	(27,883		)
Ceded to affiliates	(318,617		)	(3,810		)	(322,427		)
Net premiums written	$	370,704		$	98,754		$	469,458

Premiums earned
Direct	$	284,281		$	—		$	284,281
Assumed from nonaffiliates	3,332			111,790			115,122
Assumed from affiliates	359,985			—			359,985
Ceded to nonaffiliates	(17,653		)	(5,205		)	(22,858		)
Ceded to affiliates	(291,356		)	(3,810		)	(295,166		)
Net premiums earned	$	338,589		$	102,775		$	441,364

Losses and settlement expenses incurred
Direct	$	167,827		$	—		$	167,827
Assumed from nonaffiliates	2,298			71,787			74,085
Assumed from affiliates	232,472			1,033			233,505
Ceded to nonaffiliates	(4,498		)	(2,336		)	(6,834		)
Ceded to affiliates	(172,892		)	411			(172,481		)
Net losses and settlement expenses incurred	$	225,207		$	70,895		$	296,102



	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	$	151,565		$	—		$	151,565
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	(151,565		)	(562		)	(152,127		)
Net losses and settlement expenses incurred	$	215,468		$	65,135		$	280,603