Reinsurance Ceded

3 Months Ended

Mar. 31, 2013

Reinsurance Ceded

Note 4. Reinsurance Ceded

The Company’s ceded earned premiums were $110.9 million and $91.7 million for the three months ended March 31, 2013 and 2012, respectively. The increase in ceded earned premiums from 2012 to 2013 is primarily due to growth and change in mix of business, partially offset by a reduction in reinsurance reinstatement premiums in 2013 as compared to 2012 related to specific losses for each year.

The Company’s ceded incurred losses were $53.6 million and $70.7 million for the three months ended March 31, 2013 and 2012, respectively.

The following table lists the Company’s 20 largest reinsurers measured by the amount of reinsurance recoverable for ceded losses and LAE and ceded unearned premium (constituting 72.7% of the total recoverable), together with the reinsurance recoverable and collateral as of March 31, 2013, and the reinsurers’ ratings from A.M. Best Company (“A.M. Best”) or Standard & Poor’s (“S&P”):

	Reinsurance Recoverables
In thousands	Unearned Premium		Paid/Unpaid Losses		Total (1)		Collateral Held (2)		AMB		S&P
National Indemnity Company	$	48,252	$	61,076	$	109,328	$	32,952		A++		AA+
Swiss Reinsurance America Corporation		5,551		87,274		92,825		6,070		A+		AA-
Transatlantic Reinsurance Company		19,321		71,906		91,227		9,739		A		A+
Everest Reinsurance Company		20,648		70,431		91,079		9,102		A+		A+
Munich Reinsurance America Inc.		9,613		78,428		88,041		3,329		A+		AA-
Lloyd’s Syndicate #2003		8,859		38,850		47,709		10,251		A		A+
Partner Reinsurance Europe		8,787		34,121		42,908		17,457		A+		A+
Allied World Reinsurance		11,812		26,486		38,298		4,682		A		A
Scor Global P&C SE		10,065		21,576		31,641		6,829		A		A+
Tower Insurance Company		11,993		17,045		29,038		8,227		A-		NR
General Reinsurance Corporation		268		26,144		26,412		731		A++		AA+
Validus Reinsurance Ltd.		2,739		22,892		25,631		13,041		A		A
Berkley Insurance Company		1,556		19,144		20,700		241		A+		A+
Scor Holding (Switzerland) AG		790		16,810		17,600		8,214		A		A+
Atlantic Specialty Insurance		7,843		8,295		16,138		3,489		A		A-
Ace Property and Casualty Insurance Company		801		14,780		15,581		—		A+		AA-
AXIS Re Europe		2,995		11,782		14,777		2,867		A		A+
Platinum Underwriters Re		354		14,280		14,634		1,851		A		A-
Lloyd’s Syndicate #4000		1,403		12,168		13,571		882		A		A+
Star Insurance Company		5,296		8,159		13,455		1,348		A-		BBB
Top 20 Reinsurers	$	178,946	$	661,647	$	840,593	$	141,302
Others		53,830		262,598		316,428		84,603
Total	$	232,776	$	924,245	$	1,157,021	$	225,905

(1) — Net of reserve for uncollectible reinsurance of approximately $11.5 million.

(2) — Collateral of $225.9 million consists of $165.1 million in ceded balances payable, $57.2 million in letters of credit, and $3.6 million of other balances held by the Company’s Insurance Companies and Lloyd’s Operations.