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Note 7 - Reinsurance
 9 Months Ended
Sep. 30, 2018
Reinsurance Disclosures [Abstract]  
Reinsurance Reinsurance
Radian’s reinsurance programs represent a component of our long-term risk distribution strategy. From time to time, we have entered into reinsurance transactions as part of our strategy to manage our capital position and risk profile, which includes managing Radian Guaranty’s position under the PMIERs financial requirements. The credit that we receive under the PMIERs financial requirements for these transactions is subject to periodic review by the GSEs.
The effect of reinsurance on our mortgage insurance net premiums written and earned is as follows:
 
Three Months Ended
September 30,

Nine Months Ended
September 30,
(In thousands)
2018

2017

2018

2017
Net premiums written—insurance:
 
 
 
 
 
 
 
Direct
$
278,118

 
$
265,927

 
$
819,812

 
$
766,219

Ceded (1) 
(24,291
)
 
(18,117
)
 
(76,047
)
 
(52,437
)
Net premiums written—insurance
$
253,827

 
$
247,810

 
$
743,765

 
$
713,782

Net premiums earned—insurance:
 
 
 
 
 
 
 
Direct
$
271,487

 
$
250,541

 
$
795,811

 
$
729,832

Assumed
6

 
7

 
19

 
21

Ceded (1) 
(16,011
)
 
(13,846
)
 
(48,830
)
 
(42,255
)
Net premiums earned—insurance
$
255,482

 
$
236,702

 
$
747,000

 
$
687,598


______________________
(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 $6.4 billion and $4.3 billion as of September 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 $1.6 billion as of September 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 $1.3 billion as of September 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
September 30,
 
Nine Months Ended
September 30,
(In thousands)
2018
 
2017
 
2018
 
2017
Ceded premiums written (1) 
$
20,920

 
$
13,248

 
$
64,818

 
$
36,064

Ceded premiums earned (1) 
11,181

 
6,771

 
32,718

 
18,941

Ceding commissions written
8,070

 
5,156

 
24,571

 
14,002

Ceding commissions earned (2) 
5,635

 
3,536

 
16,546

 
9,721

Ceded losses
1,060

 
406

 
2,973

 
1,443

 
QSR Program
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(In thousands)
2018
 
2017
 
2018
 
2017
Ceded premiums written (1) 
$
3,174

 
$
4,621

 
$
10,621

 
$
15,137

Ceded premiums earned (1) 
4,632

 
6,826

 
15,502

 
22,064

Ceding commissions written
918

 
1,323

 
3,058

 
4,328

Ceding commissions earned (2) 
2,738

 
2,925

 
9,182

 
10,198

Ceded losses
131

 
257

 
383

 
517

______________________
(1)
Net of profit commission.
(2)
Includes amounts reported in policy acquisition costs and other operating expenses.