Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable

12 Months Ended

Mar. 31, 2013

Disclosure Text Block [Abstract]

Note 17. Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable

Note 17.  Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable

During their normal course of business, our insurance subsidiaries assume and cede reinsurance on both a coinsurance and a risk premium basis. They also obtain reinsurance for that portion of risks exceeding their retention limits. The maximum amount of life insurance retained on any one life is $110,000.

		Direct Amount (a)		Ceded to Other Companies		Assumed from Other Companies		Net Amount (a)	Percentage of Amount Assumed to Net
		(In thousands)
Year ended December 31, 2012
Life insurance in force	$	811,035	$	16,471	$	1,083,550	$	1,878,114	58%
Premiums earned:
Life	$	52,751	$	2,685	$	13,640	$	63,706	21%
Accident and health		106,266		454		3,409		109,221	3%
Annuity		6,095		1,208		301		5,188	6%
Property and casualty		31,537		-		2,805		34,342	8%
Total	$	196,649	$	4,347	$	20,155	$	212,457
Year ended December 31, 2011
Life insurance in force	$	761,070	$	14,868	$	1,142,247	$	1,888,449	60%
Premiums earned:
Life	$	63,396	$	6,909	$	94,982	$	151,469	63%
Accident and health		115,599		503		3,635		118,731	3%
Annuity		9,049		1,920		233		7,362	3%
Property and casualty		30,145		-		2,486		32,631	8%
Total	$	218,189	$	9,332	$	101,336	$	310,193
Year ended December 31, 2010
Life insurance in force	$	668,740	$	3,567	$	884,932	$	1,550,105	57%
Premiums earned:
Life	$	77,721	$	-	$	37,300	$	115,021	32%
Accident and health		88,441		575		3,815		91,681	4%
Annuity		-		-		290		290	100%
Property and casualty		28,179		68		2,593		30,704	8%
Total	$	194,341	$	643	$	43,998	$	237,696

 (a)      Balances are reported net of inter-segment transactions.  

To the extent that a reinsurer is unable to meet its obligation under the related reinsurance agreements, Repwest would remain liable for the unpaid losses and loss expenses. Pursuant to certain of these agreements, Repwest holds letters of credit at year end in the amount of $0.6 million from re-insurers and has issued letters of credit in the amount of $5.3 million in favor of certain ceding companies.

Policy benefits and losses, claims and loss expenses payable for our Property and Casualty Insurance operating segment were as follows:

		Years Ended December 31,
		2012		2011
		(In thousands)
Unpaid losses and loss adjustment expense	$	330,093	$	382,328
Reinsurance losses payable		91		611
Total	$	330,184	$	382,939

Activity in the liability for unpaid losses and loss adjustment expenses for our Property and Casualty Insurance operating segment is summarized as follows:

		Years Ended December 31,
		2012		2011		2010
		(In thousands)
Balance at January 1	$	382,328	$	276,355	$	271,677
Less: reinsurance recoverable		223,865		167,315		162,711
Net balance at January 1		158,463		109,040		108,966
Incurred related to:
Current year		8,962		9,297		9,453
Prior years		7,036		56,445		7,832
Total incurred		15,998		65,742		17,285
Paid related to:
Current year		4,405		5,049		4,971
Prior years		16,402		11,270		12,240
Total paid		20,807		16,319		17,211
Net balance at December 31		153,654		158,463		109,040
Plus: reinsurance recoverable		176,439		223,865		167,315
Balance at December 31	$	330,093	$	382,328	$	276,355

The liability for incurred losses and loss adjustment expenses (net of reinsurance recoverable of $176.4 million) decreased by $4.8 million in 2012.