Reinsurance Ceded

9 Months Ended

Sep. 30, 2013

Reinsurance Ceded

Note 4. Reinsurance Ceded

The Company’s ceded earned premiums were $114.2 million and $97.4 million for the three months ended September 30, 2013 and 2012 and $340.5 million and $283.4 million for the nine months ended September 30, 2013 and 2012, respectively.

The Company’s ceded incurred losses were $(37.0) million and $31.2 million, respectively, for the three months ended September 30, 2013 and 2012, and were $94.1 million and $154.4 million for the nine months ended September 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 76.3% of the total recoverable), together with the reinsurance recoverable and collateral as of September 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	$	56,161	$	73,815	$	129,976	$	37,385		A++		AA+
Transatlantic Reinsurance Company		21,964		70,838		92,802		10,052		A		A+
Everest Reinsurance Company		22,082		64,313		86,395		9,115		A+		A+
Swiss Reinsurance America Corporation		6,094		76,895		82,989		8,638		A+		AA-
Munich Reinsurance America Inc.		6,307		70,676		76,983		4,440		A+		AA-
Partner Reinsurance Europe		11,141		40,623		51,764		18,715		A+		A+
Lloyd’s Syndicate #2003		8,493		37,427		45,920		10,568		A		A+
Allied World Reinsurance		14,006		28,718		42,724		4,724		A		A
Scor Global P&C SE		12,212		25,127		37,339		11,826		A		A+
Tower Insurance Company		13,271		16,002		29,273		8,305		B++		NR
Validus Reinsurance Ltd.		2,576		21,140		23,716		12,756		A		A
Employers Mutual Casualty Company		11,257		6,746		18,003		11,050		A		NR
Atlantic Specialty Insurance		8,626		8,406		17,032		2,560		A		A-
QBE Reinsurance Corp		6,959		9,559		16,518		2,416		A		A+
Scor Holding (Switzerland) AG		675		14,050		14,725		4,927		A		A+
Berkley Insurance Company		1,787		12,797		14,584		519		A+		A+
Lloyd’s Syndicate #4000		345		13,930		14,275		305		A		A+
AXIS Re Europe		4,750		9,511		14,261		4,486		A+		A+
Lloyd’s Syndicate #1955		2,459		10,931		13,390		2,397		A		A+
Platinum Underwriters Re		259		12,700		12,959		1,692		A		A-
Top 20 Reinsurers	$	211,424	$	624,204	$	835,628	$	166,876
Others		42,011		217,040		259,051		73,700
Total	$	253,435	$	841,244	$	1,094,679	$	240,576

(1) - Net of reserve for uncollectible reinsurance of approximately $11.3 million.

(2) - Collateral of $240.6 million consists of $180.6 million in ceded balances payable, $57.2 million in letters of credit, and $2.8 million of other balances held by the Company’s Insurance Companies and Lloyd’s Operations.