Reinsurance

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



	Three Months Ended March 31,
(In thousands)	2018			2017
Net premiums written—insurance:
Direct	$	257,911		$	239,645
Ceded (1)	(19,931		)	(14,980		)
Net premiums written—insurance	$	237,980		$	224,665
Net premiums earned—insurance:
Direct	$	258,743		$	236,062
Assumed	6			7
Ceded (1)	(16,199		)	(14,269		)
Net premiums earned—insurance	$	242,550		$	221,800

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(1)	Net of profit commission.

Single Premium QSR Transactions

In the first quarter of 2016, Radian Guaranty entered into the 2016 Single Premium QSR Transaction with a panel of third-party reinsurers. Effective December 31, 2017, we amended the 2016 Single Premium QSR Transaction to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. As of the effective date, the result of this amendment increases the amount of risk ceded on Single Premium Policies, including for the purposes of calculating any future ceding commissions and profit commissions that Radian Guaranty will earn. It will also increase the future amounts of our ceded premiums and ceded losses. As of January 1, 2018, Radian Guaranty is no longer ceding NIW under this transaction. RIF ceded under the 2016 Single Premium QSR Transaction was $6.8 billion and $3.9 billion as of March 31, 2018 and 2017, respectively.

In October 2017, we entered into the 2018 Single Premium QSR Transaction with a panel of third-party reinsurers. Under the 2018 Single Premium QSR Transaction, we expect to cede 65% of our Single Premium NIW beginning with the business written in January 2018, subject to certain conditions that may affect the amount ceded. RIF ceded under the 2018 Single Premium QSR Transaction was $0.4 billion as of March 31, 2018.

QSR Transactions

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 and is no longer ceding NIW under these transactions. RIF ceded under the QSR Transactions was $1.1 billion and $1.5 billion as of March 31, 2018 and 2017, respectively.

See Note 8 of Notes to Consolidated Financial Statements in our 2017 Form 10-K for more information about our reinsurance transactions.

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



	Single Premium QSR Transactions
	Three Months Ended March 31,
(In thousands)	2018		2017
Ceded premiums written (1)	$	15,791	$	8,960
Ceded premiums earned (1)	10,377		5,859
Ceding commissions written	6,621		3,712
Ceding commissions earned (2)	5,268		2,937
Ceded losses	900		573



	QSR Transactions
	Three Months Ended March 31,
(In thousands)	2018		2017
Ceded premiums written (1)	$	3,931	$	5,457
Ceded premiums earned (1)	5,612		7,834
Ceding commissions written	1,128		1,559
Ceding commissions earned (2)	3,548		3,894
Ceded losses	246		570

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(1)	Net of profit commission.


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