Note 7 - Reinsurance

3 Months Ended

Mar. 31, 2017

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)	2017			2016
Net premiums written—insurance:
Direct	$	239,645		$	233,926
Ceded (1)	(14,980		)	(207,616		)
Net premiums written—insurance	$	224,665		$	26,310
Net premiums earned—insurance:
Direct	$	236,062		$	240,330
Assumed	7			9
Ceded (1)	(14,269		)	(19,389		)
Net premiums earned—insurance	$	221,800		$	220,950

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(1) Net of profit commission.

In 2012, Radian Guaranty entered into the QSR Transactions with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the QSR Transactions; therefore, Radian Guaranty is no longer ceding NIW under these transactions. RIF ceded under the QSR Transactions was $1.5 billion and $2.0 billion as of March 31, 2017 and 2016, respectively.

In the first quarter of 2016, in order to proactively manage the risk and return profile of Radian Guaranty’s insured portfolio and manage its position under the PMIERs financial requirements in a cost-effective manner, Radian Guaranty entered into the Single Premium QSR Transaction with a panel of third-party reinsurers. RIF ceded under the Single Premium QSR Transaction was $3.9 billion and $3.3 billion as of March 31, 2017 and 2016, respectively. See Note 8 of Notes to Consolidated Financial Statements in our 2016 Form 10-K for more information about our reinsurance transactions.

The following tables show the amounts related to the QSR Transactions and the Single Premium QSR Transaction for the periods indicated:

	QSR Transactions
	Three Months Ended March 31,
(In thousands)	2017		2016
Ceded premiums written (1)	$	5,457	$	7,962
Ceded premiums earned (1)	7,834		11,325
Ceding commissions written	1,559		2,270
Ceding commissions earned (3)	3,894		4,446
Ceded losses	570		541

Single Premium QSR Transaction
Three Months Ended March 31,
2017		2016
$	8,960	$	197,593	(2)
5,859		5,994
3,712		50,932
2,937		3,032
573		536

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(1) Net of profit commission.

(2) Includes ceded premiums for policies written in prior periods. See Note 8 of Notes to Consolidated Financial Statements in our 2016 Form 10-K.

(3) Includes amounts reported in policy acquisition costs and other operating expenses.