Note 7 - Reinsurance

3 Months Ended

Mar. 31, 2015

Reinsurance Disclosures [Abstract]

Reinsurance

Reinsurance

The effect of reinsurance on net premiums written and earned is as follows:

	Three Months Ended March 31,
(In thousands)	2015			2014
Net premiums written-insurance:
Direct	$	255,248		$	229,322
Assumed	47			473
Ceded	(13,387		)	(16,089		)
Net premiums written-insurance	$	241,908		$	213,706
Net premiums earned-insurance:
Direct	$	242,164		$	215,876
Assumed	13			12
Ceded	(17,582		)	(17,126		)
Net premiums earned-insurance	$	224,595		$	198,762

In 2012, Radian Guaranty entered into two separate QSR agreements with a third-party reinsurance provider. As of March 31, 2015, RIF ceded under the Initial QSR Transaction and the Second QSR Transaction was $1.1 billion and $1.5 billion, respectively.

The following tables show the amounts related to the QSR Reinsurance Transactions for the periods indicated:

	Initial QSR Transaction
	Three Months Ended March 31,
(In thousands)	2015		2014
Ceded premiums written	$	4,067	$	5,304
Ceded premiums earned	6,018		6,807
Ceding commissions written	880		1,326

	Second QSR Transaction
	Three Months Ended March 31,
(In thousands)	2015		2014
Ceded premiums written	$	6,529	$	7,293
Ceded premiums earned	8,768		6,585
Ceding commissions written	2,285		2,553

Radian Guaranty has ceded the maximum amount permitted under the QSR Reinsurance Transactions (up to $1.6 billion of ceded RIF for each); therefore, Radian Guaranty is no longer ceding NIW under these transactions. Effective January 1, 2015, the ceding commission was reduced from 25% to 20% for two-thirds of the reinsurance ceded under the Initial QSR Transaction. Ceded losses to date under the QSR Reinsurance Transactions have been immaterial.