Reinsurance Ceded

6 Months Ended

Jun. 30, 2013

Reinsurance Ceded

Note 4. Reinsurance Ceded

The Company’s ceded earned premiums were $115.3 million and $120.7 million for the three months ended June 30, 2013 and 2012 and $226.3 million and $185.8 million for the six months ended June 30, 2013 and 2012, respectively.

The Company’s ceded incurred losses were $77.6 million and $61.7 million for the three months ended June 30, 2013 and 2012 and $131.1 million and $123.2 million for the six months ended June 30, 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 loss adjustment expenses (“LAE”) and ceded unearned premium (constituting 73.4% of the total recoverable), together with the reinsurance recoverable and collateral as of June 30, 2013, and the reinsurers’ ratings from A.M. Best Company (“A.M. Best”) and Standard & Poor’s (“S&P”):

	Reinsurance Recoverables
In thousands	Unearned Premium		Paid/ Unpaid Losses		Total (1)		Collateral Held (2)		A.M. Best		S&P
National Indemnity Company	$	53,397	$	64,605	$	118,002	$	35,018		A++		AA+
Swiss Reinsurance America Corporation		5,949		86,684		92,633		7,685		A+		AA-
Transatlantic Reinsurance Company		20,597		70,872		91,469		8,971		A		A+
Everest Reinsurance Company		21,219		69,516		90,735		8,025		A+		A+
Munich Reinsurance America Inc.		7,923		80,115		88,038		4,133		A+		AA-
Lloyd’s Syndicate #2003		10,938		39,381		50,319		12,490		A		A+
Partner Reinsurance Europe		10,485		37,600		48,085		20,108		A+		A+
Scor Global P&C SE		11,642		27,768		39,410		10,455		A		A+
Allied World Reinsurance		12,803		26,519		39,322		3,872		A		A
Tower Insurance Company		13,397		16,537		29,934		8,462		A-		NR
General Reinsurance Corporation		194		25,967		26,161		1,092		A++		AA+
Validus Reinsurance Ltd.		2,695		22,860		25,555		12,884		A		A
Berkley Insurance Company		1,653		19,389		21,042		405		A+		A+
Scor Holding (Switzerland) AG		691		18,159		18,850		8,681		A		A+
AXIS Re Europe		4,182		13,102		17,284		4,718		A		A+
Atlantic Specialty Insurance		8,658		7,550		16,208		3,102		A		A-
Employers Mutual Casualty Company		10,867		5,317		16,184		10,557		A		NR
Platinum Underwriters Re		304		13,899		14,203		1,696		A		A-
Ace Property and Casualty Insurance Company		730		13,297		14,027		—		A+		AA-
QBE Reinsurance Corp		6,362		6,950		13,312		2,094		A		A+
Top 20 Reinsurers	$	204,686	$	666,087	$	870,773	$	164,448
Others		46,360		268,444		314,804		79,424
Total	$	251,046	$	934,531	$	1,185,577	$	243,872

(1)  -  Net of reserve for uncollectible reinsurance of approximately $10.8 million.

(2)  -  Collateral of $243.9 million consists of $183.7 million in ceded balances payable, $57.2 million in letters of credit, and $3.0     million of other balances held by the Company’s Insurance Companies and Lloyd’s Operations.