Reinsurance

6 Months Ended

Sep. 30, 2012

Reinsurance [Abstract]

Reinsurance

12. Reinsurance

Standard is primarily a specialty writer of manufactured home physical damage insurance. Certain of Standard’s premiums and benefits are assumed from and ceded to other insurance companies under various reinsurance agreements. The ceded reinsurance agreements provide Standard with increased capacity to write larger risks and maintain its exposure to loss within its capital resources. Standard remains obligated for amounts ceded in the event that the reinsurers do not meet their obligations. Substantially all of Standard’s assumed reinsurance is with one entity.

The effects of reinsurance on premiums written and earned are as follows (in thousands):

	Three Months Ended
	September 30, 2012						September 30, 2011
	Written			Earned			Written			Earned
Direct premiums	$	1,465		$	1,011		$	436		$	324
Assumed premiums—nonaffiliate		3,320			2,957			2,572			2,434
Ceded premiums—nonaffiliate		(929	)		(929	)		(398	)		(398	)
Net premiums	$	3,856		$	3,039		$	2,610		$	2,360
	Six Months Ended
	September 30, 2012						September 30, 2011
	Written			Earned			Written			Earned
Direct premiums	$	2,776		$	1,818		$	629		$	411
Assumed premiums—nonaffiliate		6,653			5,729			3,481			3,214
Ceded premiums—nonaffiliate		(1,692	)		(1,692	)		(513	)		(513	)
Net premiums	$	7,737		$	5,855		$	3,597		$	3,112

Typical insurance policies written or assumed by Standard have a maximum coverage of $300,000 per claim, of which Standard cedes $240,000 of the risk of loss per reinsurance. Therefore, Standard maintains risk of loss limited to $60,000 per claim on typical policies. Amounts are recoverable by Standard through reinsurance for catastrophic losses in excess of $1.0 million per occurrence up to a maximum of $10.0 million in the aggregate.