Reinsurance (Tables)

12 Months Ended

Dec. 31, 2017

Reinsurance Disclosures [Abstract]

Effect of reinsurance agreements on premiums earned and losses incurred

Table 9.1 below shows the effect of all reinsurance agreements on premiums earned and losses incurred as reflected in the consolidated statements of operations.

	Table	9.1
Reinsurance			Years ended December 31,
	(In thousands)		2017			2016			2015
	Premiums earned:
	Direct		$	1,059,973		$	1,058,545		$	997,892
	Assumed		509			662			1,178
	Ceded		(125,735		)	(133,981		)	(102,848		)
	Net premiums earned		$	934,747		$	925,226		$	896,222
	Losses incurred:
	Direct		$	74,727		$	273,207		$	369,680
	Assumed		183			1,138			1,552
	Ceded		(21,201		)	(34,188		)	(27,685		)
	Net losses incurred		$	53,709		$	240,157		$	343,547

Quota share reinsurance, excluding captive agreements

Table 9.2 provides a summary of our quota share reinsurance agreements, excluding captive agreements, for 2017, 2016 and 2015.

	Table	9.2
Quota share reinsurance			Years ended December 31,
	(In thousands)		2017		2016		2015 (3)
	Ceded premiums written, net of profit commission (1)		$	120,974	$	125,460	$	41,233
	Ceded premiums earned, net of profit commission (1)		120,974		125,460		88,587
	Ceded losses incurred		22,336		30,201		17,484
	Ceding commissions (2)		49,321		47,629		30,816
	Profit commission		125,629		112,685		112,847

⁽¹⁾  Since July 1, 2015, premiums are ceded on an earned and received basis as defined in our QSR Transactions currently in effect.

⁽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 (see "2013 QSR Transaction" above for additional information). The commutation had no impact on ceded losses incurred.