The effect of reinsurance on premiums written and earned, and losses and settlement expenses incurred, for the three and six months ended June 30, 2019 and 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.



	Three months ended June 30, 2019
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	106,704		$	—		$	106,704
Assumed from nonaffiliates	1,070			45,823			46,893
Assumed from affiliates	136,725			—			136,725
Ceded to nonaffiliates	(6,662		)	(6,303		)	(12,965		)
Ceded to affiliates	(109,684		)	(1,312		)	(110,996		)
Net premiums written	$	128,153		$	38,208		$	166,361

Premiums earned
Direct	$	104,781		$	—		$	104,781
Assumed from nonaffiliates	1,053			45,929			46,982
Assumed from affiliates	135,219			—			135,219
Ceded to nonaffiliates	(6,995		)	(2,781		)	(9,776		)
Ceded to affiliates	(107,761		)	(1,312		)	(109,073		)
Net premiums earned	$	126,297		$	41,836		$	168,133

Losses and settlement expenses incurred
Direct	$	62,495		$	—		$	62,495
Assumed from nonaffiliates	426			31,299			31,725
Assumed from affiliates	97,860			265			98,125
Ceded to nonaffiliates	(3,690		)	(3,429		)	(7,119		)
Ceded to affiliates	(63,497		)	788			(62,709		)
Net losses and settlement expenses incurred	$	93,594		$	28,923		$	122,517



	Three months ended June 30, 2018
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	98,579		$	—		$	98,579
Assumed from nonaffiliates	1,284			39,232			40,516
Assumed from affiliates	140,850			—			140,850
Ceded to nonaffiliates	(7,953		)	(6,009		)	(13,962		)
Ceded to affiliates	(101,559		)	(1,312		)	(102,871		)
Net premiums written	$	131,201		$	31,911		$	163,112

Premiums earned
Direct	$	99,011		$	—		$	99,011
Assumed from nonaffiliates	1,300			40,357			41,657
Assumed from affiliates	131,768			—			131,768
Ceded to nonaffiliates	(8,593		)	(2,594		)	(11,187		)
Ceded to affiliates	(101,991		)	(1,312		)	(103,303		)
Net premiums earned	$	121,495		$	36,451		$	157,946

Losses and settlement expenses incurred
Direct	$	62,069		$	—		$	62,069
Assumed from nonaffiliates	770			27,053			27,823
Assumed from affiliates	95,713			239			95,952
Ceded to nonaffiliates	(1,911		)	(2,165		)	(4,076		)
Ceded to affiliates	(62,386		)	(291		)	(62,677		)
Net losses and settlement expenses incurred	$	94,255		$	24,836		$	119,091



	Six months ended June 30, 2019
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	211,937		$	—		$	211,937
Assumed from nonaffiliates	2,035			94,558			96,593
Assumed from affiliates	271,068			—			271,068
Ceded to nonaffiliates	(13,474		)	(8,276		)	(21,750		)
Ceded to affiliates	(217,897		)	(2,625		)	(220,522		)
Net premiums written	$	253,669		$	83,657		$	337,326

Premiums earned
Direct	$	206,048		$	—		$	206,048
Assumed from nonaffiliates	2,091			92,177			94,268
Assumed from affiliates	269,573			—			269,573
Ceded to nonaffiliates	(14,635		)	(5,186		)	(19,821		)
Ceded to affiliates	(212,008		)	(2,625		)	(214,633		)
Net premiums earned	$	251,069		$	84,366		$	335,435

Losses and settlement expenses incurred
Direct	$	123,430		$	—		$	123,430
Assumed from nonaffiliates	1,413			62,348			63,761
Assumed from affiliates	175,638			520			176,158
Ceded to nonaffiliates	(4,948		)	(5,011		)	(9,959		)
Ceded to affiliates	(124,959		)	(945		)	(125,904		)
Net losses and settlement expenses incurred	$	170,574		$	56,912		$	227,486



	Six months ended June 30, 2018
($ in thousands)	Property and casualty insurance			Reinsurance			Total
Premiums written
Direct	$	198,623		$	—		$	198,623
Assumed from nonaffiliates	2,302			80,353			82,655
Assumed from affiliates	271,051			—			271,051
Ceded to nonaffiliates	(15,923		)	(8,014		)	(23,937		)
Ceded to affiliates	(204,583		)	(2,625		)	(207,208		)
Net premiums written	$	251,470		$	69,714		$	321,184

Premiums earned
Direct	$	194,756		$	—		$	194,756
Assumed from nonaffiliates	2,302			81,449			83,751
Assumed from affiliates	260,916			—			260,916
Ceded to nonaffiliates	(17,131		)	(5,219		)	(22,350		)
Ceded to affiliates	(200,716		)	(2,625		)	(203,341		)
Net premiums earned	$	240,127		$	73,605		$	313,732

Losses and settlement expenses incurred
Direct	$	114,356		$	—		$	114,356
Assumed from nonaffiliates	1,762			53,468			55,230
Assumed from affiliates	181,680			597			182,277
Ceded to nonaffiliates	(4,902		)	(2,564		)	(7,466		)
Ceded to affiliates	(115,140		)	462			(114,678		)
Net losses and settlement expenses incurred	$	177,756		$	51,963		$	229,719