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Reinsurance (Tables)

3 Months Ended

Mar. 31, 2019

The effect of all of our reinsurance agreements on premiums earned and losses incurred is shown in table 4.1 below.



Reinsurance
Table	4.1
		Three Months Ended March 31,
(In thousands)		2019			2018
Premiums earned:
Direct		$	279,613		$	265,251
Assumed		872			121
Ceded		(30,724		)	(33,265		)
Net premiums earned		$	249,761		$	232,107

Losses incurred:
Direct		$	40,804		$	31,501
Assumed		(67		)	90
Ceded		(1,674		)	(7,741		)
Losses incurred, net		$	39,063		$	23,850

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 for the three months ended March 31, 2019 and 2018.



Quota Share Reinsurance
Table	4.2
		Three Months Ended March 31,
(In thousands)		2019		2018
Ceded premiums written and earned, net of profit commission ⁽¹⁾		$	28,164	$	33,036
Ceded losses incurred		1,676		7,788
Ceding commissions ⁽²⁾		13,409		12,645
Profit commission		38,881		30,189


⁽¹⁾	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.

Schedule of total assets of Home Re

The following presents the total assets of Home Re as of March 31, 2019 and December 31, 2018.



Home Re total assets
Table	4.3

(In thousands)
Home Re entity (Issue date)		Total VIE Assets
March 31, 2019
Home Re 2018-01 Ltd. (Oct - 2018)		$	318,636

December 31, 2018
Home Re 2018-01 Ltd. (Oct - 2018)		$	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.

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