v2.4.0.6
Ceded Reinsurance
 6 Months Ended
Jun. 30, 2012
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract]  
Ceded Reinsurance
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:
 
 
 
 
 
 
 
Three months ended June 30,
2012
 
2011
 
 
Premiums written
 
 
 
 
 
Direct
$
11,736

 
$
9,309

 
 
Assumed
655,600

 
632,254

 
 
Ceded
(239,706
)
 
(213,568
)
 
 
Net premiums written
$
427,630

 
$
427,995

 
 
Premiums earned
 
 
 
 
 
Direct
$
7,950

 
$
4,033

 
 
Assumed
341,620

 
306,757

 
 
Ceded
(105,154
)
 
(93,615
)
 
 
Net premiums earned
$
244,416

 
$
217,175

 
 
Claims and claim expenses
 
 
 
 
 
Gross claims and claim expenses incurred
$
70,101

 
$
164,670

 
 
Claims and claim expenses recovered
(20,550
)
 
(13,409
)
 
 
Net claims and claim expenses incurred
$
49,551

 
$
151,261

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
2012
 
2011
 
 
Premiums written
 
 
 
 
 
Direct
$
20,199

 
$
15,561

 
 
Assumed
1,311,288

 
1,236,507

 
 
Ceded
(411,282
)
 
(371,498
)
 
 
Net premiums written
$
920,205

 
$
880,570

 
 
Premiums earned
 
 
 
 
 
Direct
$
15,737

 
$
6,515

 
 
Assumed
698,906

 
701,292

 
 
Ceded
(191,562
)
 
(185,091
)
 
 
Net premiums earned
$
523,081

 
$
522,716

 
 
Claims and claim expenses
 
 
 
 
 
Gross claims and claim expenses incurred
$
85,383

 
$
1,027,993

 
 
Claims and claim expenses recovered
(20,280
)
 
(248,195
)
 
 
Net claims and claim expenses incurred
$
65,103

 
$
779,798