Reserves for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2011

Summary of Activity in Reserve for Losses and LAE

The following table summarizes the activity in our reserve for losses and LAE during the three most recent years:

		September 30,			September 30,			September 30,
	Year Ended December 31,
In thousands	2011			2010			2009
Net reserves for losses and LAE at beginning of year	$	1,142,542		$	1,112,934		$	999,871
Provision for losses and LAE for claims occurring in the current year		474,852			434,957			444,939
Increase (decrease) in estimated losses and LAE for claims occurring in prior years		2,145			(13,802	)		(8,941	)
Incurred losses and LAE		476,997			421,155			435,998
Losses and LAE paid for claims occurring during:
Current year		(73,242	)		(76,982	)		(59,412	)
Prior years		(309,063	)		(314,565	)		(263,523	)
Losses and LAE payments		(382,305	)		(391,547	)		(322,935	)
Net reserves for losses and LAE at end of year		1,237,234			1,142,542			1,112,934
Reinsurance recoverables on unpaid losses and LAE		845,445			843,296			807,352
Gross reserves for losses and LAE at end of year	$	2,082,679		$	1,985,838		$	1,920,286

Segment Break Down of Prior Years' Net Reserve Deficiency (Redundancy)

The segment break down of prior years’ net reserve deficiency (redundancy) was as follows:

		September 30,			September 30,			September 30,
	Year Ended December 31,
In thousands	2011			2010			2009
Insurance Companies:
Marine	$	1,348		$	(4,155	)	$	11,893
Property Casualty		(6,828	)		(14,923	)		(35,658	)
Professional Liability		17,582			13,623			20,686
Subtotal Insurance Companies	$	12,102		$	(5,455	)	$	(3,079	)
Lloyd’s Operations		(9,957	)		(8,347	)		(5,862	)
Total deficiencies (redundancies)	$	2,145		$	(13,802	)	$	(8,941	)