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Reinsurance (Tables)
 6 Months Ended
Jun. 30, 2018
Reinsurance Disclosures [Abstract]  
Effect of reinsurance agreement
The effect of all of our reinsurance agreements on premiums earned and losses incurred is shown in table 4.1 below.
 
Table
4.1
 
 
 
 
 
 
 
 
Effect of Reinsurance
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
(In thousands)
 
2018
 
2017
 
2018
 
2017
 
Premiums earned:
 
 
 
 
 
 
 
 
 
Direct
 
$
268,236

 
$
261,180

 
$
533,487

 
$
520,608

 
Assumed
 
106

 
62

 
227

 
160

 
Ceded
 
(21,378
)
 
(30,106
)
 
(54,643
)
 
(60,529
)
 
Net premiums earned
 
$
246,964

 
$
231,136

 
$
479,071

 
$
460,239

 
 
 
 
 
 
 
 
 
 
 
Losses incurred:
 
 
 
 
 
 
 
 
 
Direct
 
$
(16,778
)
 
$
31,396

 
$
14,723

 
$
63,809

 
Assumed
 
(100
)
 
61

 
(10
)
 
166

 
Ceded
 
3,423

 
(4,118
)
 
(4,318
)
 
(9,017
)
 
Losses incurred, net
 
$
(13,455
)
 
$
27,339

 
$
10,395

 
$
54,958
Effect of quota share reinsurance agreements on premiums earned and losses incurred
Table 4.2 below presents a summary of our quota share reinsurance agreements, excluding captive agreements (which were immaterial), for the three and six months ended June 30, 2018 and 2017.
 
Table
4.2
 
 
 
 
 
 
 
 
Quota share reinsurance
 
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
 
2018
 
2017
 
2018
 
2017
 
Ceded premiums written and earned, net of profit commission (1)
 
$
21,432

 
$
28,917

 
$
54,468

 
$
57,812

 
Ceded losses incurred
 
(3,735
)
 
4,424

 
4,053

 
9,111

 
Ceding commissions (2)
 
12,640

 
12,248

 
25,285

 
24,251

 
Profit commission
 
41,769

 
32,325

 
71,958

 
63,442


(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.