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Reinsurance (Tables)
 6 Months Ended
Jun. 30, 2017
Reinsurance Disclosures [Abstract]  
Effect of reinsurance agreement
The effect of all of our reinsurance agreements on premiums earned and losses incurred is as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
 
2017
 
2016
 
2017
 
2016
Premiums earned:
 
 
 
 
 
 
 
 
Direct
 
$
261,180

 
$
263,566

 
$
520,608

 
$
518,953

Assumed
 
62

 
182

 
160

 
390

Ceded
 
(30,106
)
 
(32,292
)
 
(60,529
)
 
(66,546
)
Net premiums earned
$
231,136

 
$
231,456

 
$
460,239

 
$
452,797

 
 
 
 
 
 
 
 
 
Losses incurred:
 
 
 
 
 
 
 
 
Direct
 
$
31,396

 
$
54,863

 
$
63,809

 
$
147,295

Assumed
 
61

 
339

 
166

 
440

Ceded
 
(4,118
)
 
(8,612
)
 
(9,017
)
 
(16,133
)
Losses incurred, net
 
$
27,339

 
$
46,590

 
$
54,958

 
$
131,602
Effect of quota share 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 and six months ended June 30, 2017 and 2016.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
 
2017
 
2016
 
2017
 
2016
Ceded premiums written and earned, net of profit commission (1)
 
$
28,917

 
$
29,961

 
$
57,812

 
$
61,627

Ceded losses incurred
 
4,424

 
6,070

 
9,111

 
14,583

Ceding commissions (2)
 
12,248

 
11,946

 
24,251

 
23,522

Profit commission
 
32,325

 
29,767

 
63,442

 
55,982


(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.