Reinsurance Ceded

9 Months Ended

Sep. 30, 2014

Reinsurance Ceded

Note 3. Reinsurance Ceded

The Company’s ceded earned premiums were $107.6 million and $114.2 million for the three months ended September 30, 2014 and 2013 and $336.7 million and $340.5 million for the nine months ended September 30, 2014 and 2013, respectively.

The Company’s ceded incurred losses were $58.7 million and $(37.0) million for the three months ended September 30, 2014 and 2013 and $170.4 million and $94.1 million for the nine months ended September 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 September 30, 2014, and the reinsurers’ ratings from A.M. Best Company (“A.M. Best”) or Standard & Poor’s (“S&P”):

	Reinsurance Recoverables
	Unearned		Paid/Unpaid				Collateral
In thousands	Premium		Losses		Total (1)		Held (2)		A.M. Best	S&P
National Indemnity Company		32,242	$	121,079	$	153,321	$	25,254	A++	AA+
Everest Reinsurance Company		21,240		75,201		96,441		7,014	A+	A+
Transatlantic Reinsurance Company		13,544		77,611		91,155		4,616	A	A+
Swiss Reinsurance America Corporation		19,776		63,823		83,599		13,336	A+	AA-
Munich Reinsurance America Inc.		9,810		65,695		75,505		6,074	A+	AA-
Allied World Reinsurance		9,804		36,819		46,623		1,834	A	A
Lloyd’s Syndicate #2003		3,869		39,976		43,845		5,030	A	A+
Partner Reinsurance Europe		10,123		29,508		39,631		19,146	A+	A+
Employers Mutual Casualty Company		11,848		20,187		32,035		11,298	A	NR
Scor Global P&C SE		10,030		19,711		29,741		7,483	A	A+
Tower Insurance Company		—		20,923		20,923		2,408	B-	NR
Ironshore Indemnity Inc.		7,242		13,313		20,555		9,793	A	NR
Ace Property and Casualty Insurance Company		10,900		9,562		20,462		2,717	A++	AA
Atlantic Specialty Insurance		3,085		16,714		19,799		—	A	A-
QBE Reinsurance Corp		3,466		15,322		18,788		—	A	A+
Aspen Insurance UK Ltd.		8,100		9,475		17,575		4,944	A	A
Validus Reinsurance Ltd.		2,164		14,887		17,051		13,456	A	A
Odyssey American Reinsurance Corporation		3,106		12,580		15,686		1,916	A	A-
Endurance Reinsurance Corporation		5,529		9,625		15,154		1,814	A	A
Lloyd’s Syndicate #4000		19		14,579		14,598		98	A	A+
Top 20 Reinsurers	$	185,897	$	686,590	$	872,487	$	138,231
Others		51,197		213,319		264,516		78,930
Total	$	237,094	$	899,909	$	1,137,003	$	217,161

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

(2) - Collateral of $217.2 million consists of $157.9 million in ceded balances payable, $53.4 million in letters of credit, and $5.9 million of other balances held by the Company’s Insurance Companies and Lloyd’s Operations.