Reinsurance Receivables

12 Months Ended

Dec. 31, 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 adjustment expenses ("LAE") incurred are presented in the tables below:

	Years Ended December 31,
	2011						2010						2009
Premiums	Written			Earned			Written			Earned			Written			Earned
Direct and assumed	$	338,869		$	321,412		$	302,574		$	307,916		$	273,276		$	300,219
Ceded	(214,485		)	(205,909		)	(191,141		)	(196,111		)	(172,638		)	(192,103		)
Net	$	124,384		$	115,503		$	111,433		$	111,805		$	100,638		$	108,116

	For the Years Ended December 31,
Losses and LAE incurred	2011			2010			2009
Direct and assumed	$	81,843		$	79,403		$	80,383
Ceded	(43,894		)	(43,368		)	(47,817		)
Net losses and LAE incurred	$	37,949		$	36,035		$	32,566

The following table reflects the components of the reinsurance receivables at:	At December 31,
	2011		2010
Prepaid reinsurance premiums (1):
Life	$	59,545	$	48,342
Accident and health	30,759		29,289
Property	80,758		65,023
Total	171,062		142,654
Ceded claim reserves:
Life	1,794		1,421
Accident and health	9,896		9,376
Property	7,743		9,455
Total ceded claim reserves recoverable	19,433		20,252
Other reinsurance settlements recoverable	4,245		6,476
Reinsurance receivables	$	194,740	$	169,382
(1) Including policyholder account balances ceded.

Reinsurance receivables include amounts related to paid benefits, unpaid benefits and prepaid reinsurance premiums. Reinsurance receivables are based upon estimates and are reported on the Consolidated Balance Sheets 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 December 31, 2011 and December 31, 2010 are $124.2 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 December 31, 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.

The Company entered into an assumption reinsurance agreement with Magna effective December 1, 2011. Under the agreement, all the insurance liabilities of Magna's run-off insurance contracts were assumed by the Company. These contracts are substantially reinsured, and ceded balances from these reinsurance arrangements are reflected in the tables above.

The following table summarizes the assumption transaction:	December 1, 2011
Reinsurance recoverable	$	20,158
Deferred acquisition costs	450
Unearned premiums	2,970
Policyholder account balances	28,082
Unpaid claims	205
Direct and assumed written premium	2,970
Direct and assumed earned premium	—
Ceded written premium	(312		)
Ceded earned premium	—
Losses and LAE Incurred	—