Reinsurance (Tables)

9 Months Ended

Sep. 30, 2011

Reinsurance [Abstract]

Effect of reinsurance transactions on our premium, loss and loss adjustment expense and policy acquisition costs

	Nine months ended September 30,				Three months ended September 30,
	2011		2010		2011		2010
Direct written premium	$	1,724,869	$	1,697,054	$	555,427	$	565,417
Reinsurance assumed		295,268		257,676		73,420		75,239
Reinsurance ceded		(359,046)		(415,239)		(116,513)		(146,218)
Net written premium	$	1,661,091	$	1,539,491	$	512,334	$	494,438
Direct earned premium	$	1,728,082	$	1,714,252	$	574,571	$	575,216
Reinsurance assumed		255,293		217,621		96,799		76,473
Reinsurance ceded		(406,388)		(399,735)		(127,114)		(135,523)
Net earned premium	$	1,576,987	$	1,532,138	$	544,256	$	516,166
Direct loss and loss adjustment expense	$	1,197,225	$	1,059,094	$	410,573	$	340,225
Reinsurance assumed		186,805		131,202		44,600		25,413
Reinsurance ceded		(321,790)		(267,651)		(74,801)		(68,500)
Net loss and loss adjustment expense	$	1,062,240	$	922,645	$	380,372	$	297,138

Policy acquisition costs	$	338,625	$	330,174	$	114,778	$	111,216
Ceding commissions		(99,465)		(88,096)		(43,479)		(30,468)
Net policy acquisition costs	$	239,160	$	242,078	$	71,299	$	80,748

Components of our reinsurance recoverables

		September 30,		December 31,
		2011		2010
Reinsurance recoverable on paid losses		$	55,778	$	75,262
Reinsurance recoverable on outstanding losses			475,671		452,882
Reinsurance recoverable on incurred but not reported losses			542,049		481,204
Reserve for uncollectible reinsurance			(2,232)		(2,493)
	Total reinsurance recoverables	$	1,071,266	$	1,006,855

Reserve for potentially uncollectible amounts

		Nine months ended September 30,
		2011		2010
Balance at beginning of year		$	2,493	$	2,945
Provision expense (recovery)			(261)		-
	Balance at September 30	$	2,232	$	2,945

Amounts of letters of credit and cash deposits held by us as collateral, plus other credits available for potential offset

		September 30,		December 31,
		2011		2010
Payables to reinsurers		$	230,503	$	243,990
Letters of credit			135,299		145,914
Cash deposits			91,380		81,966
	Total credits	$	457,182	$	471,870

Calculation of net reserves, net unearned premium and net deferred policy acquisition costs

		September 30,		December 31,
		2011		2010
Loss and loss adjustment expense payable		$	3,686,570	$	3,471,858
Reinsurance recoverable on outstanding losses			(475,671)		(452,882)
Reinsurance recoverable on incurred but not reported losses			(542,049)		(481,204)
	Net reserves	$	2,668,850	$	2,537,772
Unearned premium		$	1,071,340	$	1,045,877
Ceded unearned premium			(231,537)		(278,663)
	Net unearned premium	$	839,803	$	767,214
Deferred policy acquisition costs		$	225,190	$	212,786
Deferred ceding commissions			(66,059)		(72,565)
	Net deferred policy acquisition costs	$	159,131	$	140,221