Reinsurance Receivables

3 Months Ended

Mar. 31, 2012

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:

	For the Three Months Ended
	March 31, 2012						March 31, 2011
Premiums	Written			Earned			Written			Earned
Direct and assumed	$	79,189		$	86,058		$	68,294		$	78,136
Ceded	(46,231		)	(54,086		)	(41,682		)	(49,699		)
Net	$	32,958		$	31,972		$	26,612		$	28,437

	For the Three Months Ended
Losses and LAE incurred	March 31, 2012			March 31, 2011
Direct and assumed	$	23,071		$	18,375
Ceded	(11,805		)	(9,002		)
Net losses and LAE incurred	$	11,266		$	9,373

The following table reflects the components of the reinsurance receivables:	At
	March 31, 2012		December 31, 2011
Prepaid reinsurance premiums (1):
Life	$	56,344	$	59,545
Accident and health	28,754		30,759
Property	77,705		80,758
Total	162,803		171,062
Ceded claim reserves:
Life	1,603		1,794
Accident and health	9,184		9,896
Property	7,897		7,743
Total ceded claim reserves recoverable	18,684		19,433
Other reinsurance settlements recoverable	4,934		4,245
Reinsurance receivables	$	186,421	$	194,740
(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. The following table shows the amount included in reinsurance receivable that is recoverable from three unrelated insurers:

	At
	March 31, 2012		December 31, 2011
Total recoverable from three unrelated reinsurers	$	118,915	$	124,160

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 March 31, 2012, the Company does not believe there is a risk of loss as a result of the concentration of credit risk in the reinsurance program.