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 payments of additional premiums, for reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to the respective 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						Six months ended
	June 30, 2017			June 30, 2016			June 30, 2017			June 30, 2016
Premiums written
Direct	$	67,805		$	57,541		$	141,213		$	100,717
Assumed	759,610			701,587			1,608,292			1,520,544
Ceded	(271,670		)	(239,212		)	(649,624		)	(589,670		)
Net premiums written	$	555,745		$	519,916		$	1,099,881		$	1,031,591
Premiums earned
Direct	$	56,357		$	37,936		$	114,525		$	71,076
Assumed	520,347			464,540			1,019,346			921,181
Ceded	(194,439		)	(151,074		)	(385,561		)	(287,249		)
Net premiums earned	$	382,265		$	351,402		$	748,310		$	705,008
Claims and claim expenses
Gross claims and claim expenses incurred	$	189,903		$	224,852		$	441,707		$	386,850
Claims and claim expenses recovered	(47,316		)	(57,102		)	(106,039		)	(92,495		)
Net claims and claim expenses incurred	$	142,587		$	167,750		$	335,668		$	294,355