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Note 7 - Reinsurance | 6 Months Ended
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Jun. 30, 2018
Reinsurance Disclosures [Abstract] |
Reinsurance | Reinsurance The effect of reinsurance on our mortgage insurance net premiums written and earned is as follows:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Net premiums written—insurance: |  |  |  |  |  |  |
Direct | $ | 283,783 |  |  | $ | 260,647 |  |  | $ | 541,694 |  |  | $ | 500,292 |
Ceded (1) | (31,825 | ) |  | (19,340 | ) |  | (51,756 | ) |  | (34,320 | )
Net premiums written—insurance | $ | 251,958 |  |  | $ | 241,307 |  |  | $ | 489,938 |  |  | $ | 465,972 |
Net premiums earned—insurance: |  |  |  |  |  |  |
Direct | $ | 265,581 |  |  | $ | 243,229 |  |  | $ | 524,324 |  |  | $ | 479,291 |
Assumed | 7 |  |  | 7 |  |  | 13 |  |  | 14 |
Ceded (1) | (16,620 | ) |  | (14,140 | ) |  | (32,819 | ) |  | (28,409 | )
Net premiums earned—insurance | $ | 248,968 |  |  | $ | 229,096 |  |  | $ | 491,518 |  |  | $ | 450,896 |
______________________
(1) | Net of profit commission.
Single Premium QSR Program In the first quarter of 2016, Radian Guaranty entered into the 2016 Single Premium QSR Agreement with a panel of third-party reinsurers. Effective December 31, 2017, we amended the 2016 Single Premium QSR Agreement to increase the amount of ceded risk on performing loans under the agreement from 35% to 65% for the 2015 through 2017 vintages. As of the effective date, the result of this amendment increased the amount of risk ceded on Single Premium Policies, including for the purposes of calculating any future ceding commissions and profit commissions that Radian Guaranty will earn. It will also increase the future amounts of our ceded premiums and ceded losses. As of January 1, 2018, Radian Guaranty is no longer ceding NIW under this arrangement. RIF ceded under the 2016 Single Premium QSR Agreement was $6.6 billion and $4.1 billion as of June 30, 2018 and 2017, respectively. In October 2017, we entered into the 2018 Single Premium QSR Agreement with a panel of third-party reinsurers. Under the 2018 Single Premium QSR Agreement, we expect to cede 65% of our Single Premium NIW beginning with the business written in January 2018, subject to certain conditions that may affect the amount ceded, including a limitation on ceded premium written equal to $335 million for policies issued between January 1, 2018 and December 31, 2019. Notwithstanding this limitation, the parties may mutually agree to amend the agreement, including with respect to any limitations on the amounts of insurance that may be ceded. RIF ceded under the 2018 Single Premium QSR Agreement was $1.0 billion as of June 30, 2018. QSR Program In 2012, Radian Guaranty entered into the QSR Program with a third-party reinsurance provider. Radian Guaranty has ceded the maximum amount permitted under the QSR Program and is no longer ceding NIW under these transactions. RIF ceded under the QSR Program was $1.0 billion and $1.4 billion as of June 30, 2018 and 2017, respectively. See Note 8 of Notes to Consolidated Financial Statements in our 2017 Form 10-K for more information about our reinsurance transactions. The following tables show the amounts related to the Single Premium QSR Program and the QSR Program for the periods indicated:
| Single Premium QSR Program
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Ceded premiums written (1) | $ | 28,107 |  |  | $ | 13,856 |  |  | $ | 43,898 |  |  | $ | 22,816 |
Ceded premiums earned (1) | 11,160 |  |  | 6,311 |  |  | 21,537 |  |  | 12,170 |
Ceding commissions written | 9,880 |  |  | 5,134 |  |  | 16,501 |  |  | 8,846 |
Ceding commissions earned (2) | 5,643 |  |  | 3,248 |  |  | 10,911 |  |  | 6,185 |
Ceded losses | 1,013 |  |  | 464 |  |  | 1,913 |  |  | 1,037 |
| QSR Program
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Ceded premiums written (1) | $ | 3,516 |  |  | $ | 5,059 |  |  | $ | 7,447 |  |  | $ | 10,516 |
Ceded premiums earned (1) | 5,258 |  |  | 7,404 |  |  | 10,870 |  |  | 15,238 |
Ceding commissions written | 1,012 |  |  | 1,446 |  |  | 2,140 |  |  | 3,005 |
Ceding commissions earned (2) | 2,896 |  |  | 3,379 |  |  | 6,444 |  |  | 7,273 |
Ceded losses | 6 |  |  | (310 | ) |  | 252 |  |  | 260 |
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(1) | Net of profit commission.
(2) | Includes amounts reported in policy acquisition costs and other operating expenses.

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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 -URI http://asc.fasb.org/topic&trid=2303980 + Details
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