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Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2016
Reinsurance Disclosures [Abstract]  
Effect of all reinsurance agreements on premiums earned and losses incurred
The reinsurance agreements we have entered into are discussed below. The effect of all of our reinsurance agreements on premiums earned and losses incurred is as follows:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
 
2016
 
2015
 
2016
 
2015
Premiums earned:
 
 
 
 
 
 
 
 
Direct
 
$
270,718

 
$
252,951

 
$
789,671

 
$
738,870

Assumed
 
152

 
285

 
542

 
931

Ceded
 
(33,494
)
 
(14,002
)
 
(100,040
)
 
(69,771
)
Net premiums earned
 
$
237,376

 
$
239,234

 
$
690,173

 
$
670,030

 
 
 
 
 
 
 
 
 
Losses incurred:
 
 
 
 
 
 
 
 
Direct
 
$
69,579

 
$
81,699

 
$
216,874

 
$
265,445

Assumed
 
241

 
425

 
681

 
1,191

Ceded
 
(8,923
)
 
(5,666
)
 
(25,056
)
 
(18,155
)
Net losses incurred
 
$
60,897

 
$
76,458

 
$
192,499

 
$
248,481
Effect of reinsurance agreement
Following is a summary of our quota share reinsurance agreements, excluding captive agreements, for the three and nine months ended September 30, 2016 and 2015.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
 
2016
 
2015
 
2016
 
2015
2013 QSR Transaction
 
 
 
 
 
 
 
 
Ceded premiums written, net of profit commission
 
n/a

 
$
(69,410
)
 
n/a

 
$
(11,355
)
Ceded premiums earned, net of profit commission
 
n/a

 
(11,568
)
 
n/a

 
35,999

Ceded losses incurred
 
n/a

 
—

 
n/a

 
6,060

Ceding commissions (1)
 
n/a

 
(11,568
)
 
n/a

 
10,235

Profit commission
 
n/a

 
11,568

 
n/a

 
62,525

 
 
 
 
 
 
 
 
 
2015 QSR Transaction (Effective July 1, 2015)
Ceded premiums written, net of profit commission (2)
 
31,707

 
22,626

 
93,334

 
22,626

Ceded premiums earned, net of profit commission (2)
 
31,707

 
22,626

 
93,334

 
22,626

Ceded losses incurred
 
7,432

 
4,236

 
22,015

 
4,236

Ceding commissions (1)
 
12,137

 
9,195

 
35,659

 
9,195

Profit commission
 
28,981

 
23,347

 
84,963

 
23,347


(1) 
Ceding commissions are reported within Other underwriting and operating expenses, net on the consolidated statements of operations.
(2) 
Effective July 1, 2015 premiums are ceded on an earned and received basis as defined in our 2015 QSR Transaction.