Reinsurance Receivables

6 Months Ended

Jun. 30, 2011

Reinsurance Receivables [Abstract]

Reinsurance [Text Block]

Reinsurance Receivables

The Company has various reinsurance agreements in place whereby the amount of risk in excess of the Company's retention is reinsured by unrelated domestic and foreign insurance companies. The Company remains liable to policyholders in the event that the assuming companies are unable to meet their obligations. The effects of reinsurance on premiums written and earned and losses and loss and adjustment expenses ("LAE") incurred are presented in the tables below:

Premiums	For the Three Months Ended												For the Six Months Ended
	June 30, 2011						June 30, 2010						June 30, 2011						June 30, 2010
	Written			Earned			Written			Earned			Written			Earned			Written			Earned
Direct and assumed	$	79,253		$	76,302		$	73,393		$	73,939		$	147,547		$	154,438		$	138,646		$	150,591
Ceded	(51,184		)	(48,766		)	(47,128		)	(47,270		)	(92,866		)	(98,465		)	(85,815		)	(95,429		)
Net	$	28,069		$	27,536		$	26,265		$	26,669		$	54,681		$	55,973		$	52,831		$	55,162

Losses and LAE incurred	For the Three Months Ended						For the Six Months Ended
	June 30, 2011			June 30, 2010			June 30, 2011			June 30, 2010
Direct and assumed	$	20,788		$	18,110		$	39,163		$	37,627
Ceded	(11,537		)	(10,794		)	(20,539		)	(21,534		)
Net losses and LAE incurred	$	9,251		$	7,316		$	18,624		$	16,093

Reinsurance receivables include amounts related to paid benefits, unpaid benefits and prepaid reinsurance premiums. The following table reflects the components of the reinsurance receivables at:

	June 30, 2011		December 31, 2010
Prepaid reinsurance premiums:
Life	$	42,935	$	48,342
Accident and health	27,795		29,289
Property	66,324		65,023
Total	137,054		142,654
Ceded claim reserves:
Life	1,682		1,421
Accident and health	8,780		9,376
Property	8,169		9,455
Total ceded claim reserves recoverable	18,631		20,252
Other reinsurance settlements recoverable	14,954		6,476
Reinsurance receivables	$	170,639	$	169,382

Reinsurance receivables are based upon estimates and are reported on the consolidated balance sheet separately as assets, as reinsurance does not relieve the Company of its legal liability to policyholders. The Company is required to pay losses even if a reinsurer fails to meet its obligations under the applicable reinsurance agreement. Management continually monitors the financial condition and agency ratings of the Company's reinsurers and believes that the reinsurance receivables accrued are collectible. Included in reinsurance receivables at June 30, 2011 and December 31, 2010 are $116.0 million and $121.2 million recoverable from three unrelated reinsurers. The three unrelated reinsurers are: Munich American Reassurance Company (A. M. Best Rating-A+); London Life Reinsurance Company (A. M. Best Rating-A); and London Life International Reinsurance Corporation (A. M. Best Rating-NR-3). Since London Life International Reinsurance Corporation does not maintain an A.M. Best rating, the related receivables are collateralized by assets held in trust and letters of credit. At June 30, 2011, the Company does not believe there is a risk of loss as a result of the concentration of credit risk in the reinsurance program.