Reinsurance

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



	Three Months Ended June 30,						Six Months Ended June 30,
(In thousands)	2018			2017			2018			2017
Net premiums written—insurance:
Direct	$	283,783		$	260,647		$	541,694		$	500,292
Ceded (1)	(31,825		)	(19,340		)	(51,756		)	(34,320		)
Net premiums written—insurance	$	251,958		$	241,307		$	489,938		$	465,972
Net premiums earned—insurance:
Direct	$	265,581		$	243,229		$	524,324		$	479,291
Assumed	7			7			13			14
Ceded (1)	(16,620		)	(14,140		)	(32,819		)	(28,409		)
Net premiums earned—insurance	$	248,968		$	229,096		$	491,518		$	450,896

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(1)	Net of profit commission.

Single Premium QSR Program

In the first quarter of 2016, Radian Guaranty entered into the 2016 Single Premium QSR Agreement with a panel of third-party reinsurers. Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement 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 increased 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 arrangement. RIF ceded under the 2016 Single Premium QSR Agreement was $6.6 billion and $4.1 billion as of June 30, 2018 and 2017, respectively.

In October 2017, we entered into the 2018 Single Premium QSR Agreement with a panel of third-party reinsurers. Under the 2018 Single Premium QSR Agreement, 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, including a limitation on ceded premium written equal to $335 million for policies issued between January 1, 2018 and December 31, 2019. Notwithstanding this limitation, the parties may mutually agree to amend the agreement, including with respect to any limitations on the amounts of insurance that may be ceded. RIF ceded under the 2018 Single Premium QSR Agreement was $1.0 billion as of June 30, 2018.

QSR Program

In 2012, Radian Guaranty entered into the QSR Program with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the QSR Program and is no longer ceding NIW under these transactions. RIF ceded under the QSR Program was $1.0 billion and $1.4 billion as of June 30, 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 Program and the QSR Program for the periods indicated:



	Single Premium QSR Program
	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2018		2017		2018		2017
Ceded premiums written (1)	$	28,107	$	13,856	$	43,898	$	22,816
Ceded premiums earned (1)	11,160		6,311		21,537		12,170
Ceding commissions written	9,880		5,134		16,501		8,846
Ceding commissions earned (2)	5,643		3,248		10,911		6,185
Ceded losses	1,013		464		1,913		1,037



	QSR Program
	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands)	2018		2017			2018		2017
Ceded premiums written (1)	$	3,516	$	5,059		$	7,447	$	10,516
Ceded premiums earned (1)	5,258		7,404			10,870		15,238
Ceding commissions written	1,012		1,446			2,140		3,005
Ceding commissions earned (2)	2,896		3,379			6,444		7,273
Ceded losses	6		(310		)	252		260

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(1)	Net of profit commission.


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