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

12 Months Ended

Mar. 31, 2015

Disclosure Text Block [Abstract]

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

Note 16.  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, 2014
Life insurance in force	$	905,987	$	402	$	990,406	$	1,895,991	52%
Premiums earned:
Life	$	47,298	$	–	$	12,337	$	59,635	21%
Accident and health		93,319		345		2,796		95,770	3%
Annuity		386		–		312		698	45%
Property and casualty		46,417		–		39		46,456	0%
Total	$	187,420	$	345	$	15,484	$	202,559
Year ended December 31, 2013
Life insurance in force	$	861,967	$	403	$	1,033,136	$	1,894,700	55%
Premiums earned:
Life	$	45,625	$	212	$	12,888	$	58,301	22%
Accident and health		95,536		397		3,157		98,296	3%
Annuity		847		23		498		1,322	38%
Property and casualty		40,685		–		367		41,052	1%
Total	$	182,693	$	632	$	16,910	$	198,971
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

1. 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 $0.4 million from re-insurers and has issued letters of credit in the amount of $1.9 million in favor of certain ceding companies.

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

		December 31,
		2014		2013
		(In thousands)
Unpaid losses and loss adjustment expense	$	271,609	$	295,126
Reinsurance losses payable		135		90
Total	$	271,744	$	295,216

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

		December 31,
		2014		2013		2012
		(In thousands)
Balance at January 1	$	295,126	$	330,093	$	382,328
Less: reinsurance recoverable		136,535		176,439		223,865
Net balance at January 1		158,591		153,654		158,463
Incurred related to:
Current year		11,690		9,861		8,962
Prior years		(694)		1,652		7,036
Total incurred		10,996		11,513		15,998
Paid related to:
Current year		6,155		5,226		4,405
Prior years		12,717		1,350		16,402
Total paid		18,872		6,576		20,807
Net balance at December 31		150,715		158,591		153,654
Plus: reinsurance recoverable		120,894		136,535		176,439
Balance at December 31	$	271,609	$	295,126	$	330,093

The liability for incurred losses and loss adjustment expenses (net of reinsurance recoverable of $120.9 million) decreased by $7.9 million in 2014.