The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three years ended December 31, 2018 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.



	Year ended December 31, 2018
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	408,821		$	—		$	408,821
Assumed from nonaffiliates	4,550			165,747			170,297
Assumed from affiliates	542,480			—			542,480
Ceded to nonaffiliates	(29,165		)	(9,979		)	(39,144		)
Ceded to affiliates	(416,161		)	(5,250		)	(421,411		)
Net premiums written	$	510,525		$	150,518		$	661,043

Premiums earned
Direct	$	399,660		$	—		$	399,660
Assumed from nonaffiliates	4,482			165,052			169,534
Assumed from affiliates	531,384			—			531,384
Ceded to nonaffiliates	(33,079		)	(10,066		)	(43,145		)
Ceded to affiliates	(407,000		)	(5,250		)	(412,250		)
Net premiums earned	$	495,447		$	149,736		$	645,183

Losses and settlement expenses incurred
Direct	$	225,676		$	—		$	225,676
Assumed from nonaffiliates	3,470			128,354			131,824
Assumed from affiliates	352,423			1,306			353,729
Ceded to nonaffiliates	(17,800		)	(10,049		)	(27,849		)
Ceded to affiliates	(230,848		)	4,627			(226,221		)
Net losses and settlement expenses incurred	$	332,921		$	124,238		$	457,159



	Year ended December 31, 2017
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	391,029		$	—		$	391,029
Assumed from nonaffiliates	4,454			147,284			151,738
Assumed from affiliates	520,932			—			520,932
Ceded to nonaffiliates	(34,019		)	(10,160		)	(44,179		)
Ceded to affiliates	(398,369		)	(4,850		)	(403,219		)
Net premiums written	$	484,027		$	132,274		$	616,301

Premiums earned
Direct	$	384,993		$	—		$	384,993
Assumed from nonaffiliates	4,299			149,952			154,251
Assumed from affiliates	505,795			—			505,795
Ceded to nonaffiliates	(30,385		)	(10,313		)	(40,698		)
Ceded to affiliates	(392,333		)	(4,850		)	(397,183		)
Net premiums earned	$	472,369		$	134,789		$	607,158

Losses and settlement expenses incurred
Direct	$	252,007		$	—		$	252,007
Assumed from nonaffiliates	2,879			142,687			145,566
Assumed from affiliates	334,240			1,330			335,570
Ceded to nonaffiliates	(14,968		)	(8,183		)	(23,151		)
Ceded to affiliates	(271,185		)	(16,838		)	(288,023		)
Net losses and settlement expenses incurred	$	302,973		$	118,996		$	421,969



	Year ended December 31, 2016
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	383,811		$	—		$	383,811
Assumed from nonaffiliates	4,544			146,236			150,780
Assumed from affiliates	491,315			—			491,315
Ceded to nonaffiliates	(24,346		)	(10,126		)	(34,472		)
Ceded to affiliates	(391,651		)	(5,080		)	(396,731		)
Net premiums written	$	463,673		$	131,030		$	594,703

Premiums earned
Direct	$	382,300		$	—		$	382,300
Assumed from nonaffiliates	4,444			148,851			153,295
Assumed from affiliates	483,759			—			483,759
Ceded to nonaffiliates	(23,896		)	(7,830		)	(31,726		)
Ceded to affiliates	(390,140		)	(5,080		)	(395,220		)
Net premiums earned	$	456,467		$	135,941		$	592,408

Losses and settlement expenses incurred
Direct	$	229,859		$	—		$	229,859
Assumed from nonaffiliates	2,712			93,306			96,018
Assumed from affiliates	304,007			1,811			305,818
Ceded to nonaffiliates	(4,891		)	(3,056		)	(7,947		)
Ceded to affiliates	(237,318		)	467			(236,851		)
Net losses and settlement expenses incurred	$	294,369		$	92,528		$	386,897