Deferred Policy Acquisition Costs

9 Months Ended

Sep. 30, 2015

NOTE 8. DEFERRED POLICY ACQUISITION COSTS

The Company defers certain costs in connection with written policies, called Deferred Policy Acquisition Costs (“DPAC”), net of corresponding amounts of ceded reinsurance commissions, called Deferred Reinsurance Ceding Commissions (“DRCC”). Net DPAC is amortized over the effective period of the related insurance policies.

The Company anticipates that its DPAC costs will be fully recoverable in the near term. The table below depicts the activity with regard to DPAC during the three and nine-month periods ended September 30, 2015 and 2014:


	*Three Months Ended September 30,*						*Nine Months Ended September 30,*
	*2015*			*2014*			*2015*			*2014*
	(In thousands)						(In thousands)
Beginning Balance	$	31,948		$	25,392		$	24,370		$	9,765
Policy acquisition costs deferred		16,058			12,703			48,982			39,187
Amortization		(15,512	)		(12,469	)		(40,858	)		(23,326	)

Ending Balance	$	32,494		$	25,626		$	32,494		$	25,626