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Reinsurance Ceded (Tables)
 9 Months Ended
Sep. 30, 2012
Reinsurance Recoverables

Amounts recoverable from reinsurers are recognized in a manner consistent with the claims liabilities associated with the reinsurance placement and presented on the balance sheet as reinsurance recoverables. Such balances as of September 30, 2012 and December 31, 2011 consist of the following (in millions):

 

     September 30,
2012		      December 31,
2011		  

Reinsurance recoverables on paid losses

    $ 39.3       $ 21.0   

Ceded outstanding loss and LAE

      1,232.3         831.8   
  

 

 

     

 

 

  

Total reinsurance recoverables

    $ 1,271.6       $ 852.8   
  

 

 

     

 

 

  
Information Regarding Concentration of Reinsurance Recoverables and Ratings Profile of its Reinsurers

Information regarding concentration of Alleghany’s reinsurance recoverables and the ratings profile of its reinsurers as of September 30, 2012 is as follows (dollars in millions):

 

Reinsurer(1)

   

Rating(2)

    Amount      Percentage  

Swiss Reinsurance Company

    A+(Superior)    $ 162.2         12.8 % 

American International Group, Inc.

    A (Excellent)      107.6         8.5   

Platinum Underwriters Holdings, Ltd.

    A (Excellent)      95.7         7.5   

PartnerRe Ltd.

    A+(Superior)      90.8         7.1   

Syndicates at Lloyd’s of London

    A (Excellent)      75.3         5.9   

All other reinsurers(3)

         740.0         58.2   
     

 

 

     

 

 

  

Total reinsurance recoverables

       $ 1,271.6         100.0 % 
     

 

 

     

 

 

  

Secured reinsurance recoverables(4)

       $ 179.9         14.1 % 
     

 

 

     

 

 

  

 

(1) Reinsurance recoverables reflect amounts due from one or more reinsurance subsidiaries of the listed company.
(2) Represents the A.M. Best Company financial strength rating for the applicable reinsurance subsidiary or subsidiaries from which the reinsurance recoverable is due.
(3) Approximately 92.1 percent of Alleghany’s reinsurance recoverables balance as of September 30, 2012 was due from reinsurers having an A.M. Best Company financial strength rating of “A” (Excellent) or higher.
(4) Represents reinsurance recoverables secured by funds held, trust agreements and letters of credit.
Property and Casualty Premiums Written and Earned

The following table indicates property and casualty premiums written and earned for the three and nine months ended September 30, 2012 and 2011 (in millions):

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2012     2011     2012     2011  

Gross premiums written – direct

    $ 280.6      $ 256.0      $ 933.3      $ 836.2   

Gross premiums written – assumed*

      895.8        14.4        2,145.5        44.4   

Ceded premiums written*

      (133.9 )      (80.5 )      (378.4 )      (279.5 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums written

    $ 1,042.5      $ 189.9      $ 2,700.4      $ 601.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross premiums earned – direct

    $ 296.0      $ 267.7      $ 855.2      $ 796.5   

Gross premiums earned – assumed*

      943.3        14.0        2,134.3        30.3   

Ceded premiums earned*

      (146.5 )      (91.5 )      (366.6 )      (271.7 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums earned

    $ 1,092.8      $ 190.2      $ 2,622.9      $ 555.1   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

* Amounts for the nine months ended September 30, 2012 include Transatlantic amounts from the Acquisition Date through September 30, 2012. See Note 2 for additional information on Transatlantic.