Reinsurance (Tables)

12 Months Ended

Dec. 31, 2018

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.



Reinsurance
Table	9.1
		Years ended December 31,
(In thousands)		2018			2017			2016
Premiums earned:
Direct		$	1,084,748		$	1,059,973		$	1,058,545
Assumed		1,805			509			662
Ceded		(111,391		)	(125,735		)	(133,981		)
Net premiums earned		$	975,162		$	934,747		$	925,226

Losses incurred:
Direct		$	43,060		$	74,727		$	273,207
Assumed		331			183			1,138
Ceded		(6,829		)	(21,201		)	(34,188		)
Net losses incurred		$	36,562		$	53,709		$	240,157

Quota share reinsurance, excluding captive agreements

Table 9.2 provides a summary of our quota share reinsurance agreements, excluding captive agreements, for 2018, 2017 and 2016.



Quota share reinsurance
Table	9.2
		Years ended December 31,
(In thousands)		2018		2017		2016
Ceded premiums written and earned, net of profit commission ⁽¹⁾		$	108,337	$	120,974	$	125,460
Ceded losses incurred		6,543		22,336		30,201
Ceding commissions ⁽²⁾		51,201		49,321		47,629
Profit commission		147,667		125,629		112,685


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


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

Schedule of Total Assets of Home Re

The following presents the total assets of Home Re as of December 31, 2018.



Home Re total assets
Table	9.3

(In thousands)		Total VIE Assets
Home Re 2018-1 Ltd.		$	318,636

The following presents the total assets of Home Re as of December 31, 2018.



Home Re total assets
Table	9.3

(In thousands)		Total VIE Assets
Home Re 2018-1 Ltd.		$	318,636

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

+ References + Details