REINSURANCE

The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain claims and claim expenses, generally in excess of various retentions or on a proportional basis. In addition to loss recoveries, certain of the Company’s ceded reinsurance contracts provide for recoveries of additional premiums, for reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to other reinsurance contracts. The Company remains liable to the extent that any reinsurance company fails to meet its obligations.

The following table sets forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred:




	Three months ended						Nine months ended
	September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
Premiums written
Direct	$	53,488		$	31,781		$	154,205		$	96,934
Assumed	376,736			337,861			1,897,280			1,578,283
Ceded	(146,002		)	(102,822		)	(735,672		)	(495,685		)
Net premiums written	$	284,222		$	266,820		$	1,315,813		$	1,179,532
Premiums earned
Direct	$	43,097		$	26,040		$	114,173		$	70,547
Assumed	471,097			456,957			1,392,278			1,307,932
Ceded	(167,673		)	(120,609		)	(454,922		)	(339,503		)
Net premiums earned	$	346,521		$	362,388		$	1,051,529		$	1,038,976
Claims and claim expenses
Gross claims and claim expenses incurred	$	153,846		$	121,744		$	540,696		$	433,558
Claims and claim expenses recovered	(41,271		)	(21,716		)	(133,766		)	(87,333		)
Net claims and claim expenses incurred	$	112,575		$	100,028		$	406,930		$	346,225