UNPAID LOSSES AND LAE (Tables)

12 Months Ended

Dec. 31, 2012

UNPAID LOSSES AND LAE [Abstract]

Schedule of liability for future insurance policy benefits

Activity in the liability for unpaid losses and LAE is summarized as follows.

	Years Ended December 31,
	2012			2011			2010
	(Dollars in Thousands)
Balance at January 1	$	59,983		$	66,529		$	70,610
Less reinsurance recoverables		(2,088	)		(6,809	)		(11,594	)
Net balance at January 1	$	57,895		$	59,720		$	59,016
Incurred related to
Current year	$	31,636		$	31,893		$	37,288
Prior years		(1,427	)		(997	)		2,800
Total incurred	$	30,209		$	30,896		$	40,088
Paid related to
Current year	$	15,892		$	13,672		$	15,077
Prior years		25,807			19,048			24,308
Total paid	$	41,699		$	32,720		$	39,385
Net balance at period end	$	46,405		$	57,896		$	59,719
Plus reinsurance recoverables		3,503			2,087			6,810
Balance at period end	$	49,908		$	59,983		$	66,529