Note 8 - Reinsurance

9 Months Ended

Sep. 30, 2014

Reinsurance Disclosures [Abstract]

Reinsurance

Reinsurance

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

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2014			2013			2014			2013
Net premiums written-insurance:
Direct	$	261,301		$	268,886		$	729,261		$	784,180
Assumed	(217		)	(126		)	406			(10,729		)
Ceded	(16,832		)	(17,918		)	(49,342		)	(64,195		)
Net premiums written-insurance	$	244,252		$	250,842		$	680,325		$	709,256
Net premiums earned-insurance:
Direct	$	244,160		$	228,162		$	696,323		$	660,687
Assumed	2,062			1,943			6,141			10,573
Ceded	(19,066		)	(18,121		)	(55,529		)	(53,564		)
Net premiums earned-insurance	$	227,156		$	211,984		$	646,935		$	617,696

Mortgage Insurance

We have entered into two separate QSR agreements with a third-party reinsurance provider. As of September 30, 2014, RIF ceded under the Initial QSR Transaction and the Second QSR Transaction was $1.2 billion and $1.5 billion, respectively.

The following tables show the amounts related to the QSR Reinsurance Transactions for the periods indicated:

	Initial QSR Transaction
	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2014		2013		2014		2013
Ceded premiums written	$	4,668	$	5,551	$	15,018	$	17,573
Ceded premiums earned	6,578		7,216		20,188		22,711
Ceding commissions written	1,166		1,388		3,754		4,393

	Second QSR Transaction
	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2014		2013		2014		2013
Ceded premiums written	$	9,082	$	8,233	$	24,447	$	32,253
Ceded premiums earned	7,699		5,099		21,481		12,220
Ceding commissions written	3,179		2,882		8,557		11,289

We ceded the maximum amount permitted under the Initial QSR Transaction (up to $1.6 billion of ceded RIF), and therefore, are no longer ceding NIW under this transaction. We are currently ceding additional NIW under the Second QSR Transaction, and we expect to continue ceding RIF under this transaction until the end of 2014. We have the option to recapture approximately $750 million of the ceded risk outstanding on December 31, 2014, and an additional portion of the remaining ceded risk outstanding on December 31, 2015. Ceded losses to date under the QSR Reinsurance Transactions have been immaterial.