Related Party Transactions

6 Months Ended

Jun. 30, 2011

Related Party Transactions Disclosure [Text Block]

9. Related Party Transactions

          At June 30, 2011 and December 31, 2010, the Company owned non-controlling stakes in four independent investment management companies (“Investment Manager Affiliates”) that are actively managing client capital and seeking growth opportunities. The Company seeks to develop relationships with specialty investment management organizations, generally acquiring an equity interest in the business. The Company also invests in certain of the funds and limited partnerships and other legal entities managed by these affiliates and through these funds and partnerships pays management and performance fees to the Company’s Investment Manager Affiliates.

          In the normal course of business, the Company enters into certain quota share reinsurance contracts with a subsidiary of one of its other strategic affiliates, ARX Holding Corporation. During the quarter ended June 30, 2011, these contracts resulted in reported net premiums of $8.7 million, net losses incurred of $5.6 million and reported acquisition costs of $5.2 million. During the same period in 2010, these contracts resulted in reported net premiums of $8.2 million, net losses incurred of $7.2 million and reported acquisition costs of $6.0 million. Management believes that these transactions are conducted at market rates consistent with negotiated arms-length contracts.