Reinsurance Ceded

3 Months Ended

Mar. 31, 2014

Reinsurance Ceded

Note 3. Reinsurance Ceded

The Company’s ceded earned premiums were $113.6 million and $110.9 million for the three months ended March 31, 2014 and 2013, respectively. The Company’s ceded incurred losses were $53.9 million and $53.6 million for the three months ended March 31, 2014 and 2013, 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 76.2% of the total recoverable), together with the reinsurance recoverable and collateral as of March 31, 2014, 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)		A.M. Best	S&P
National Indemnity Company	$	50,635	$	101,575	$	152,210	$	30,795	A++	AA+
Transatlantic Reinsurance Company		19,819		75,865		95,684		6,984	A	A+
Everest Reinsurance Company		21,782		70,793		92,575		7,706	A+	A+
Munich Reinsurance America Inc.		5,505		68,798		74,303		4,510	A+	AA-
Swiss Reinsurance America Corporation		7,690		63,942		71,632		4,759	A+	AA-
Lloyd’s Syndicate #2003		6,704		40,585		47,289		5,977	A	A+
Allied World Reinsurance		13,380		33,043		46,423		3,129	A	A
Partner Reinsurance Europe		9,483		29,208		38,691		16,623	A+	A+
Scor Global P&C SE		9,690		22,199		31,889		6,724	A	A+
Employers Mutual Casualty Company		11,368		14,766		26,134		10,689	A	NR
Atlantic Specialty Insurance		6,741		15,944		22,685		839	A	A-
Tower Insurance Company		—		21,738		21,738		1,803	B	NR
QBE Reinsurance Corp		6,666		12,827		19,493		1,043	A	A+
Ace Property and Casualty Insurance Company		10,108		7,884		17,992		4,152	A++	AA-
Validus Reinsurance Ltd.		2,316		15,198		17,514		12,140	A	A
Ironshore Indemnity Inc.		7,224		10,248		17,472		9,273	A	NR
Lloyd’s Syndicate #4000		96		16,127		16,223		111	A	A+
Odyssey American Reinsurance Corporation		3,420		12,425		15,845		1,545	A	A-
Berkley Insurance Company		2,096		11,846		13,942		—	A+	A+
AXIS Re Europe		4,108		9,453		13,561		3,724	A+	A+
Top 20 Reinsurers	$	198,831	$	654,464	$	853,295	$	132,526
Others		47,714		218,227		265,941		72,914
Total	$	246,545	$	872,691	$	1,119,236	$	205,440

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

(2) - Collateral of $205.4 million consists of $145.9 million in ceded balances payable, $53.4 million in letters of credit, and $6.1 million of other balances held by the Company’s Insurance Companies and Lloyd’s Operations.