Reinsurance

The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and loss and loss expenses incurred for the periods indicated. For more information concerning reinsurance, refer to Note 8. “Reinsurance” in Item 8. “Financial Statements and Supplementary Data.” of our 2013 Annual Report.



	Quarter ended September 30,					Nine Months ended September 30,
($ in thousands)	2014			2013		2014		2013
Premiums written:
Direct	$	592,858		570,849		1,723,063		1,650,855
Assumed	5,780			22,053		19,467		34,913
Ceded	(103,517		)	(100,154	)	(290,836	)	(280,719	)
Net	$	495,121		492,748		1,451,694		1,405,049
Premiums earned:
Direct	$	548,734		518,307		1,630,347		1,516,454
Assumed	6,789			11,066		27,359		32,480
Ceded	(92,884		)	(91,805	)	(274,947	)	(264,174	)
Net	$	462,639		437,568		1,382,759		1,284,760
Loss and loss expense incurred:
Direct	$	304,525		350,648		995,581		1,055,248
Assumed	5,362			7,264		20,218		22,758
Ceded	(38,955		)	(74,595	)	(126,526	)	(245,246	)
Net	$	270,932		283,317		889,273		832,760

Direct premiums earned increases in Third Quarter 2014 and Nine Months 2014 compared to Third Quarter 2013 and Nine Months 2013 reflect pure price increases coupled with stable retention that we have achieved in our Standard Insurance Operations. These increases were consistent with the fluctuation in DPW for the twelve-month period ended September 30, 2014 compared to the twelve-month period ended September 30, 2013.

Assumed premiums written and earned decreased in Third Quarter 2014 and Nine Months 2014 compared to the same periods last year as a result of the March 2014 sale of the renewal rights to our self-insured group, or "SIG," book of pooled public entity business.

Direct loss and loss expense incurred decreased by $46.1 million in Third Quarter 2014 compared to Third Quarter 2013 driven by: (i) lower catastrophe losses; (ii) favorable prior year casualty reserve development; and (iii) a $4.0 million reduction in our estimated ultimate exposure related to Hurricane Sandy, $3.6 million of which is ceded under our catastrophe excess of loss treaty.

In addition, the ceded premiums and losses related to our participation in the NFIP, under which 100% of our flood premiums, losses, and loss expenses are ceded to the NFIP, are as follows:



Ceded to NFIP	Quarter ended September 30,					Nine Months ended September 30,
($ in thousands)	2014			2013		2014		2013
Ceded premiums written	$	(69,922	)	(64,196	)	(193,000	)	(183,364	)
Ceded premiums earned	(60,761		)	(57,920	)	(178,260	)	(169,697	)
Ceded loss and loss expense incurred	(14,008		)	(34,879	)	(48,099	)	(162,780	)