Reinsurance

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



	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2017			2016			2017			2016
Net premiums written—insurance:
Direct	$	265,927		$	261,456		$	766,219		$	748,110
Ceded (1)	(18,117		)	(20,457		)	(52,437		)	(248,448		)
Net premiums written—insurance	$	247,810		$	240,999		$	713,782		$	499,662
Net premiums earned—insurance:
Direct	$	250,541		$	258,074		$	729,832		$	747,342
Assumed	7			9			21			27
Ceded (1)	(13,846		)	(19,934		)	(42,255		)	(59,185		)
Net premiums earned—insurance	$	236,702		$	238,149		$	687,598		$	688,184

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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 $1.3 billion and $1.7 billion as of September 30, 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 $4.3 billion and $3.6 billion as of September 30, 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.

As of December 31, 2017, our ability to cede Single Premium NIW under the Single Premium QSR Transaction expires. In anticipation of this expiration, we entered into the 2018 Single Premium QSR Transaction in October 2017. See Note 16 for additional information.

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 September 30,				Nine Months Ended September 30,
(In thousands)	2017		2016		2017		2016
Ceded premiums written (1)	$	4,621	$	6,730	$	15,137	$	22,048
Ceded premiums earned (1)	6,826		10,597		22,064		33,094
Ceding commissions written	1,323		1,922		4,328		6,291
Ceding commissions earned (2)	2,925		3,974		10,198		12,199
Ceded losses, net	257		495		517		1,259



	Single Premium QSR Transaction
	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2017		2016		2017		2016
Ceded premiums written (1)	$	13,248	$	13,004	$	36,064	$	222,085	(3)
Ceded premiums earned (1)	6,771		8,608		18,941		21,748
Ceding commissions written	5,156		5,482		14,002		61,258
Ceding commissions earned (2)	3,536		4,382		9,721		11,173
Ceded losses	406		719		1,443		1,635

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(1)	Net of profit commission.


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


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