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Note 7 - Reinsurance | 6 Months Ended
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Jun. 30, 2015
Reinsurance Disclosures [Abstract] |
Reinsurance | Reinsurance The effect of reinsurance on net premiums written and earned is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2015 |  | 2014 |  | 2015 |  | 2014
Net premiums written-insurance: |  |  |  |  |  |  |
Direct | $ | 258,198 |  |  | $ | 238,590 |  |  | $ | 513,446 |  |  | $ | 467,859 |
Assumed | 8 |  |  | 10 |  |  | 55 |  |  | 20 |
Ceded | (7,124 | ) |  | (16,653 | ) |  | (20,511 | ) |  | (32,979 | )
Net premiums written-insurance | $ | 251,082 |  |  | $ | 221,947 |  |  | $ | 492,990 |  |  | $ | 434,900 |
Net premiums earned-insurance: |  |  |  |  |  |  |
Direct | $ | 249,797 |  |  | $ | 221,171 |  |  | $ | 491,961 |  |  | $ | 437,047 |
Assumed | 10 |  |  | 12 |  |  | 23 |  |  | 24 |
Ceded | (12,370 | ) |  | (17,537 | ) |  | (29,952 | ) |  | (34,663 | )
Net premiums earned-insurance | $ | 237,437 |  |  | $ | 203,646 |  |  | $ | 462,032 |  |  | $ | 402,408 |
In 2012, Radian Guaranty entered into two separate QSR agreements with a third-party reinsurance provider. As of June 30, 2015, RIF ceded under the Initial QSR Transaction and the Second QSR Transaction was approximately $1.0 billion and $1.4 billion, respectively. The Second QSR Transaction provides that, effective December 31, 2015, Radian Guaranty will have the ability, at its option, to recapture half of the reinsurance ceded with respect to conventional GSE loans, which would result in Radian Guaranty reassuming the related RIF potentially in exchange for a payment of a profit commission amount from the reinsurer. Our results for the three and six months ended June 30, 2015 include an accrual of $5.8 million for this potential profit commission, based on experience to date for the Second QSR Transaction and our current expectation to exercise our option to recapture ceded RIF. The following tables show the amounts related to the QSR Transactions for the periods indicated:
| Initial QSR Transaction
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2015 |  | 2014 |  | 2015 |  | 2014
Ceded premiums written | $ | 3,822 |  |  | $ | 5,046 |  |  | $ | 7,889 |  |  | $ | 10,350 |
Ceded premiums earned | 6,424 |  |  | 6,803 |  |  | 12,442 |  |  | 13,610 |
Ceding commissions written | 828 |  |  | 1,262 |  |  | 1,708 |  |  | 2,588 |
| Second QSR Transaction
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2015 |  | 2014 |  | 2015 |  | 2014
Ceded premiums written | $ | 395 |  |  | $ | 8,072 |  |  | $ | 6,924 |  |  | $ | 15,365 |
Ceded premiums earned | 3,039 |  |  | 7,197 |  |  | 11,807 |  |  | 13,782 |
Ceding commissions written | 2,154 |  |  | 2,825 |  |  | 4,439 |  |  | 5,378 |
Radian Guaranty has ceded the maximum amount permitted under the QSR Transactions (up to $1.6 billion of ceded RIF for each); therefore, Radian Guaranty is no longer ceding NIW under these transactions. Effective January 1, 2015, the ceding commission was reduced from 25% to 20% for two-thirds of the reinsurance ceded under the Initial QSR Transaction. Ceded losses to date under the QSR Transactions have been immaterial.

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- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6816-158387 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27374-158547 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.6,13) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6811-158387 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27261-158547 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 55 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=34714010&loc=d3e27795-158548 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 55 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=34714010&loc=d3e27703-158548 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 310 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6485557&loc=d3e21549-158491 + Details
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