Reinsurance (Tables)

12 Months Ended

Dec. 31, 2015

Reinsurance Disclosures [Abstract]

Quota share reinsurance, excluding captive agreements

A summary of our quota share reinsurance agreements, excluding captive agreements, for 2015, 2014 and 2013 appears below.

	Years ended December 31,
(In thousands)	2015				2014		2013
2013 QSR Transaction
Ceded premiums written, net of profit commission	$	(11,355	)	(1)	$	100,031	$	49,672
Ceded premiums earned, net of profit commission	35,999			(1)	88,528		13,821
Ceded losses incurred	6,060				15,163		176
Ceding commissions (2)	10,235			(1)	37,833		10,408
Profit commission	62,525			(1)	89,133		2,368
2015 QSR Transaction (Effective July 1, 2015)
Ceded premiums written, net of profit commission (3)	$	52,588
Ceded premiums earned, net of profit commission (3)	52,588
Ceded losses incurred	11,424
Ceding commissions (2)	20,582
Profit commission	50,322

(1) The year ended December 31, 2015 includes the non-recurring impact of commuting our 2013 QSR Transaction. The commutation had no impact on ceded losses incurred.

(2) Ceding commissions are reported within Other underwriting and operating expenses, net on the consolidated statements of operations.

(3) As of July 1, 2015, premiums are ceded on an earned and received basis as defined in our 2015 QSR Transaction.

Effect of reinsurance agreements on premiums earned and losses incurred

The effect of all reinsurance agreements on premiums earned and losses incurred is as follows:

	Years ended December 31,
(In thousands)	2015			2014			2013
Premiums earned:
Direct	$	997,892		$	950,973		$	979,078
Assumed	1,178			1,653			2,074
Ceded	(102,848		)	(108,255		)	(38,101		)
Net premiums earned	$	896,222		$	844,371		$	943,051
Losses incurred:
Direct	$	369,680		$	524,051		$	863,871
Assumed	1,552			2,012			2,645
Ceded	(27,685		)	(29,986		)	(27,790		)
Net losses incurred	$	343,547		$	496,077		$	838,726