Reinsurance (Tables)

3 Months Ended

Mar. 31, 2017

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 March 31,
(In thousands)	2017			2016
Premiums earned:
Direct	$	259,428		$	255,387
Assumed	98			208
Ceded	(30,423		)	(34,254		)
Net premiums earned	$	229,103		$	221,341

Losses incurred:
Direct	$	32,413		$	92,432
Assumed	105			101
Ceded	(4,899		)	(7,521		)
Net losses incurred	$	27,619		$	85,012

Effect of all reinsurance agreements on premiums earned and losses incurred

Following is a summary of our quota share reinsurance agreements, excluding captive agreements discussed below, for the three months ended March 31, 2017 and 2016.



	Three Months Ended March 31,
(In thousands)	2017	2016
Ceded premiums written and earned, net of profit commission ⁽¹⁾	28,895	31,666
Ceded losses incurred	4,687	8,513
Ceding commissions ⁽²⁾	12,003	11,576
Profit commission	31,117	26,215


⁽¹⁾	Under our QSR Transactions, premiums are ceded on an earned and received basis as defined in the agreements.


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