Reinsurance

12 Months Ended

Dec. 31, 2011

Reinsurance Disclosures [Abstract]

Reinsurance [Text Block]

REINSURANCE

The Company's insurance operations participate in reinsurance in order to limit losses, minimize exposure to large risks, provide additional capacity for future growth and effect business-sharing arrangements. Life reinsurance is accomplished through yearly renewable term. Property and casualty reinsurance is placed on both a quota-share and excess of loss basis. Reinsurance ceded arrangements do not discharge the insurance subsidiaries as the primary insurer, except for cases involving a novation. Failure of reinsurers to honor their obligations could result in losses to the insurance subsidiaries. The insurance subsidiaries evaluate the financial conditions of their reinsurers and monitor concentrations of credit risk arising from similar geographic regions, activities, or economic characteristics of the reinsurers to minimize their exposure to significant losses from reinsurance insolvencies.

At December 31, 2011, the largest reinsurance recoverable of a single reinsurer was $574,000 ($278,000 in 2010). The Company incurred losses in excess of its retention from tornado related losses in April 2011. Losses incurred by the Company from this covered event totaled $10,030,000. Amounts reported as ceded incurred losses in 2011 were primarily related to the spring catastrophe and included development of losses from prior year catastrophes. The Company incurred no losses from covered events occurring in 2010. Amounts reported as ceded incurred losses in 2010 were related to development of losses from prior year catastrophes.

The effect of reinsurance on premiums written and earned is as follows (dollars in thousands):

	2011
	Life						Property & Casualty
	Written			Earned			Written			Earned
Direct	$	6,949		$	6,926		$	55,775		$	56,978
Assumed	—			—			—			—
Ceded	(56		)	(56		)	(7,598		)	(7,605		)
Net	$	6,893		$	6,870		$	48,177		$	49,373
	2010
	Life						Property & Casualty
	Written			Earned			Written			Earned
Direct	$	7,188		$	7,086		$	59,972		$	60,390
Assumed	—			—			—			—
Ceded	(59		)	(59		)	(6,159		)	(6,154		)
Net	$	7,129		$	7,027		$	53,813		$	54,236