Reinsurance (Tables)

12 Months Ended

Dec. 31, 2016

The following table sets forth the effect of the Company’s external reinsurance on its balance sheets at December 31, 2016 and 2015, prior to the reinsurance transaction with State Auto Mutual under the Pooling Arrangement, as discussed in Note 7a:



($ millions)	2016			2015
Losses and loss expenses payable:
Direct	$	545.7		$	515.6
Assumed	5.0			5.0
Ceded	(3.6		)	(5.9		)
Net losses and loss expenses payable	$	547.1		$	514.7
Unearned premiums:
Direct	$	395.6		$	400.9
Assumed	1.3			1.2
Ceded	(6.1		)	(6.8		)
Net unearned premiums	$	390.8		$	395.3

External Reinsurance on Income Statements

The following table sets forth the effect of the Company’s external reinsurance on its income statements for the years ended December 31, 2016, 2015 and 2014, prior to the reinsurance transaction with State Auto Mutual under the Pooling Arrangement, as discussed in Note 7a:



($ millions)	2016			2015			2014
Written premiums:
Direct	$	835.4		$	854.1		$	880.6
Assumed	5.0			4.7			4.4
Ceded	(24.9		)	(35.4		)	(26.8		)
Net written premiums	$	815.5		$	823.4		$	858.2
Earned premiums:
Direct	$	840.6		$	863.1		$	882.6
Assumed	4.9			4.5			4.4
Ceded	(25.6		)	(34.7		)	(25.3		)
Net earned premiums	$	819.9		$	832.9		$	861.7
Losses and loss expenses incurred:
Direct	$	559.1		$	569.0		$	525.6
Assumed	3.9			3.4			2.9
Ceded	(4.4		)	(2.9		)	(8.0		)
Net losses and loss expenses incurred	$	558.6		$	569.5		$	520.5