| Ceded Reinsurance |
| NOTE 4. |
CEDED REINSURANCE |
The Company purchases reinsurance and other protection to manage its risk portfolio and to reduce its exposure to large losses. The Company currently has in place contracts that provide for recovery of a portion of certain claims and claim expenses, generally in excess of various retentions or on a proportional basis. In addition to loss recoveries, certain of the Company's ceded reinsurance contracts provide for recoveries of additional premiums, reinstatement premiums and for lost no-claims bonuses, which are incurred when losses are ceded to other reinsurance contracts. The Company remains liable to the extent that any reinsurance company fails to meet its obligations.
The following tables set forth the effect of reinsurance and retrocessional activity on premiums written and earned and on net claims and claim expenses incurred:
| |
|
|
0000000000 |
|
|
|
0000000000 |
|
|
Three months ended September 30, |
|
2011 |
|
|
2010 |
|
| (in thousands of U.S. dollars) |
|
|
|
|
|
|
| |
|
|
|
Premiums written |
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
6,423 |
|
|
$ |
1,466 |
|
|
Assumed |
|
|
133,515 |
|
|
|
110,077 |
|
|
Ceded |
|
|
(36,928 |
) |
|
|
(29,236 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Net premiums written |
|
$ |
103,010 |
|
|
$ |
82,307 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Premiums earned |
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
5,262 |
|
|
$ |
1,696 |
|
|
Assumed |
|
|
342,019 |
|
|
|
294,567 |
|
|
Ceded |
|
|
(118,057 |
) |
|
|
(83,908 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Net premiums earned |
|
$ |
229,224 |
|
|
$ |
212,355 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Claims and claim expenses |
|
|
|
|
|
|
|
|
|
Gross claims and claim expenses incurred |
|
$ |
179,664 |
|
|
$ |
95,312 |
|
|
Claims and claim expenses recovered |
|
|
(101,834 |
) |
|
|
(17,376 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Net claims and claim expenses incurred |
|
$ |
77,830 |
|
|
$ |
77,936 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
0000000000 |
|
|
|
0000000000 |
|
|
Nine months ended September 30, |
|
2011 |
|
|
2010 |
|
| (in thousands of U.S. dollars) |
|
|
|
|
|
|
| |
|
|
|
Premiums written |
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
21,984 |
|
|
$ |
5,545 |
|
|
Assumed |
|
|
1,370,022 |
|
|
|
1,128,549 |
|
|
Ceded |
|
|
(408,426 |
) |
|
|
(315,294 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Net premiums written |
|
$ |
983,580 |
|
|
$ |
818,800 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Premiums earned |
|
|
|
|
|
|
|
|
|
Direct |
|
$ |
11,777 |
|
|
$ |
3,416 |
|
|
Assumed |
|
|
1,043,311 |
|
|
|
909,806 |
|
|
Ceded |
|
|
(303,148 |
) |
|
|
(238,043 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Net premiums earned |
|
$ |
751,940 |
|
|
$ |
675,179 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Claims and claim expenses |
|
|
|
|
|
|
|
|
|
Gross claims and claim expenses incurred |
|
$ |
1,207,657 |
|
|
$ |
201,691 |
|
|
Claims and claim expenses recovered |
|
|
(350,029 |
) |
|
|
(45,218 |
) |
| |
|
|
|
|
|
|
|
|
| |
|
|
|
Net claims and claim expenses incurred |
|
$ |
857,628 |
|
|
$ |
156,473 |
|
| |
|
|
|
|
|
|
|
| |