Reinsurance Ceded

6 Months Ended

Jun. 30, 2014

Reinsurance Ceded

Note 3. Reinsurance Ceded

The Company’s ceded earned premiums were $115.5 million and $115.3 million for the three months ended June 30, 2014 and 2013 and $229.1 million and $226.3 million for the six months ended June 30, 2014 and 2013, respectively.

The Company’s ceded incurred losses were $57.9 million and $77.6 million for the three months ended June 30, 2014 and 2013 and $111.8 million and $131.1 million for the six months ended June 30, 2014 and 2013, respectively.

The following table lists the Company’s 20 largest reinsurers measured by the amount of reinsurance recoverable for ceded losses, LAE and ceded unearned premium (constituting 76.6% of the total recoverable), together with the reinsurance recoverable and collateral as of June 30, 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	$	40,640	$	114,646	$	155,286	$	24,453	A++	AA+
Everest Reinsurance Company		21,201		72,994		94,195		7,206	A+	A+
Transatlantic Reinsurance Company		16,038		75,395		91,433		4,930	A	A+
Swiss Reinsurance America Corporation		15,471		65,276		80,747		13,413	A+	AA-
Munich Reinsurance America Inc.		8,095		66,415		74,510		6,269	A+	AA-
Allied World Reinsurance		11,159		35,260		46,419		1,924	A	A
Lloyd’s Syndicate #2003		4,911		39,768		44,679		5,501	A	A+
Partner Reinsurance Europe		9,945		28,708		38,653		18,380	A+	A+
Scor Global P&C SE		10,652		20,547		31,199		8,061	A	A+
Employers Mutual Casualty Company		12,432		18,628		31,060		11,306	A	NR
Tower Insurance Company		—		20,916		20,916		1,922	C++	NR
Atlantic Specialty Insurance		4,494		16,260		20,754		—	A	A-
Ironshore Indemnity Inc.		7,743		12,789		20,532		9,643	A	NR
Ace Property and Casualty Insurance Company		11,127		8,020		19,147		2,988	A++	AA
QBE Reinsurance Corp		4,696		14,139		18,835		—	A	A+
Validus Reinsurance Ltd.		2,297		16,030		18,327		13,675	A	A
Odyssey American Reinsurance Corporation		3,800		11,889		15,689		1,726	A	A-
Aspen Insurance UK Ltd.		7,179		8,428		15,607		5,020	A	A
Lloyd’s Syndicate #4000		51		14,181		14,232		92	A	A+
Endurance Reinsurance Corporation		5,432		8,411		13,843		2,047	A	A
Top 20 Reinsurers	$	197,363	$	668,700	$	866,063	$	138,556
Others		49,336		215,355		264,691		80,111
Total	$	246,699	$	884,055	$	1,130,754	$	218,667

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

(2) - Collateral of $218.7 million consists of $159.3 million in ceded balances payable, $53.4 million in letters of credit, and $6.0 million of other balances held by the Company’s Insurance Companies and Lloyd’s Operations.