Reinsurance (Tables)

12 Months Ended

Dec. 31, 2016

Effect of reinsurance agreements on premiums earned and losses incurred

The effect of all reinsurance agreements on premiums earned and losses incurred, which is reflected in the consolidated statements of operations, is as follows:



	Years ended December 31,
(In thousands)	2016			2015			2014
Premiums earned:
Direct	$	1,058,545		$	997,892		$	950,973
Assumed	662			1,178			1,653
Ceded	(133,981		)	(102,848		)	(108,255		)
Net premiums earned	$	925,226		$	896,222		$	844,371

Losses incurred:
Direct	$	273,207		$	369,680		$	524,051
Assumed	1,138			1,552			2,012
Ceded	(34,188		)	(27,685		)	(29,986		)
Net losses incurred	$	240,157		$	343,547		$	496,077

Quota share reinsurance, excluding captive agreements

Following is a summary of our quota share reinsurance agreements, excluding captive agreements, for 2016, 2015 and 2014.



	Years ended December 31,
(In thousands)	2016		2015				2014

2015 QSR Transaction (Effective July 1, 2015)
Ceded premiums written, net of profit commission ⁽¹⁾	$	125,460	$	52,588			n/a
Ceded premiums earned, net of profit commission ⁽¹⁾	125,460		52,588				n/a
Ceded losses incurred	30,201		11,424				n/a
Ceding commissions ⁽²⁾	47,629		20,582				n/a
Profit commission	112,685		50,322				n/a

2013 QSR Transaction
Ceded premiums written, net of profit commission	n/a		$	(11,355	)	⁽³⁾	$	100,031
Ceded premiums earned, net of profit commission	n/a		35,999			⁽³⁾	88,528
Ceded losses incurred	n/a		6,060				15,163
Ceding commissions ⁽²⁾	n/a		10,235			⁽³⁾	37,833
Profit commission	n/a		62,525			⁽³⁾	89,133


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


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


⁽³⁾	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.