The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three months ended March 31, 2018 and 2017 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 and quota share agreements and inter-company reinsurance programs with Employers Mutual are reported as “affiliated” balances.



	Three months ended March 31, 2018
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	100,044		$	—		$	100,044
Assumed from nonaffiliates	1,018			41,121			42,139
Assumed from affiliates	130,201			—			130,201
Ceded to nonaffiliates	(7,970		)	(2,005		)	(9,975		)
Ceded to affiliates	(103,024		)	(1,313		)	(104,337		)
Net premiums written	$	120,269		$	37,803		$	158,072

Premiums earned
Direct	$	95,745		$	—		$	95,745
Assumed from nonaffiliates	1,002			41,092			42,094
Assumed from affiliates	129,148			—			129,148
Ceded to nonaffiliates	(8,538		)	(2,625		)	(11,163		)
Ceded to affiliates	(98,725		)	(1,313		)	(100,038		)
Net premiums earned	$	118,632		$	37,154		$	155,786

Losses and settlement expenses incurred
Direct	$	52,287		$	—		$	52,287
Assumed from nonaffiliates	992			26,415			27,407
Assumed from affiliates	85,967			358			86,325
Ceded to nonaffiliates	(2,991		)	(399		)	(3,390		)
Ceded to affiliates	(52,754		)	753			(52,001		)
Net losses and settlement expenses incurred	$	83,501		$	27,127		$	110,628



	Three months ended March 31, 2017
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	96,752		$	—		$	96,752
Assumed from nonaffiliates	919			33,505			34,424
Assumed from affiliates	124,800			—			124,800
Ceded to nonaffiliates	(8,133		)	(2,024		)	(10,157		)
Ceded to affiliates	(99,731		)	(1,213		)	(100,944		)
Net premiums written	$	114,607		$	30,268		$	144,875

Premiums earned
Direct	$	95,898		$	—		$	95,898
Assumed from nonaffiliates	1,015			34,689			35,704
Assumed from affiliates	122,097			—			122,097
Ceded to nonaffiliates	(6,484		)	(2,637		)	(9,121		)
Ceded to affiliates	(98,878		)	(1,213		)	(100,091		)
Net premiums earned	$	113,648		$	30,839		$	144,487

Losses and settlement expenses incurred
Direct	$	62,761		$	—		$	62,761
Assumed from nonaffiliates	752			21,240			21,992
Assumed from affiliates	76,742			364			77,106
Ceded to nonaffiliates	(1,401		)	(830		)	(2,231		)
Ceded to affiliates	(63,334		)	(9		)	(63,343		)
Net losses and settlement expenses incurred	$	75,520		$	20,765		$	96,285