Reserves for Losses and Loss Adjustment Expenses (Tables)

12 Months Ended

Dec. 31, 2012

Summary of Activity in Reserve for Losses and Loss Adjustment Expenses

The following table summarizes the Company’s reserves for losses and LAE activity for the years ended December 31, 2012, 2011 and 2010:

	Year Ended December 31,
In thousands	2012			2011			2010
Net reserves for losses and LAE at beginning of year	$	1,237,234		$	1,142,542		$	1,112,934
Provision for losses and LAE for claims occurring in the current year		542,724			474,852			434,957
Increase (decrease) in estimated losses and LAE for claims occurring in prior years		(45,291	)		2,145			(13,802	)
Incurred losses and LAE		497,433			476,997			421,155
Losses and LAE paid for claims occurring during:
Current year		(110,373	)		(73,242	)		(76,982	)
Prior years		(407,385	)		(309,063	)		(314,565	)
Losses and LAE payments		(517,758	)		(382,305	)		(391,547	)
Net reserves for losses and LAE at end of year		1,216,909			1,237,234			1,142,542
Reinsurance recoverables on unpaid losses and LAE		880,139			845,445			843,296
Gross reserves for losses and LAE at end of year	$	2,097,048		$	2,082,679		$	1,985,838

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

The segment and line of business breakdowns of prior period net reserve deficiencies (redundancies) for the years ended December 31, 2012, 2011 and 2010 are as follows:

	Year Ended December 31,
In thousands	2012			2011			2010
Insurance Companies:
Marine	$	(10,010	)	$	1,348		$	(4,155	)
Property Casualty		4,293			(6,828	)		(14,923	)
Professional Liability		7,613			17,582			13,623
Insurance Companies	$	1,896		$	12,102		$	(5,455	)
Lloyd’s Operations:
Marine		(30,735	)		(10,311	)		(3,152	)
Property Casualty		(6,890	)		(5,434	)		(5,236	)
Professional Liability		(9,562	)		5,788			41
Lloyd’s		(47,187	)		(9,957	)		(8,347	)
Total deficiencies (redundancies)	$	(45,291	)	$	2,145		$	(13,802	)

Lloyd's Operations

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

A summary of the resulting prior period redundancies for each business within our Lloyd’s Operations by prior UY is set forth below:

In thousands	Marine		Property Casualty		Professional Liability		Total
2010		3,492		378		1,157		5,027
2009		14,792		4,170		6,072		25,034
2008 and Prior		12,451		2,342		2,333		17,126
Total Redundancy	$	30,735	$	6,890	$	9,562	$	47,187