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Reinsurance (Tables)
 9 Months Ended
Sep. 30, 2018
Reinsurance Disclosures [Abstract]  
Effect of reinsurance agreement
The effect of all of our reinsurance agreements on premiums earned and losses incurred is shown in table 4.1 below.
 
Table
4.1
 
 
 
 
 
 
 
 
Effect of Reinsurance
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
(In thousands)
 
2018
 
2017
 
2018
 
2017
 
Premiums earned:
 
 
 
 
 
 
 
 
 
Direct
 
$
275,044

 
$
268,709

 
$
808,531

 
$
789,317

 
Assumed
 
709

 
312

 
936

 
472

 
Ceded
 
(25,327
)
 
(31,938
)
 
(79,970
)
 
(92,467
)
 
Net premiums earned
 
$
250,426

 
$
237,083

 
$
729,497

 
$
697,322

 
 
 
 
 
 
 
 
 
 
 
Losses incurred:
 
 
 
 
 
 
 
 
 
Direct
 
$
(2,081
)
 
$
35,313

 
$
12,642

 
$
99,122

 
Assumed
 
55

 
(97
)
 
45

 
69

 
Ceded
 
508

 
(5,469
)
 
(3,810
)
 
(14,486
)
 
Losses incurred, net
 
$
(1,518
)
 
$
29,747

 
$
8,877

 
$
84,705
Effect of quota share reinsurance agreements on premiums earned and losses incurred
Table 4.2 below presents a summary of our quota share reinsurance agreements, excluding captive agreements (which were immaterial), for the three and nine months ended September 30, 2018 and 2017.
 
Table
4.2
 
 
 
 
 
 
 
 
Quota share reinsurance
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
(In thousands)
 
2018
 
2017
 
2018
 
2017
 
Ceded premiums written and earned, net of profit commission (1)
 
$
25,248

 
$
30,880

 
$
79,716

 
$
88,692

 
Ceded losses incurred
 
(522
)
 
5,879

 
3,531

 
14,990

 
Ceding commissions (2)
 
12,983

 
12,500

 
38,268

 
36,751

 
Profit commission
 
39,664

 
31,621

 
111,622

 
95,063


(1) 
Under our QSR Transactions, premiums are ceded on an earned and received basis as defined in the agreements.
(2) 
Ceding commissions are reported within Other underwriting and operating expenses, net on the consolidated statements of operations.