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Reinsurance
9 Months Ended
Sep. 30, 2011
Reinsurance [Abstract] 
Reinsurance

NOTE 8.               Reinsurance 

The following table contains a listing of direct, assumed, and ceded reinsurance amounts for premiums written, premiums earned, and losses and loss expenses incurred. For more information concerning reinsurance, refer to Note 8. "Reinsurance" in Item 8. "Financial Statements and Supplementary Data." in our 2010 Annual Report.

 

 

Quarter ended

 

Nine Months ended

 

 

September 30,

 

September 30,

($ in thousands)

 

2011

 

2010

 

 

2011

 

2010

Premiums written:

 

 

 

 

 

 

 

 

 

Direct

$

453,768 

 

431,312 

 

 

1,324,705

 

1,274,061 

Assumed

 

22,575 

 

15,372 

 

 

29,765

 

21,561 

Ceded

 

(79,511)

 

(79,570)

 

 

(221,300)

 

(206,893)

Net

$

396,832 

 

367,114 

 

 

1,133,170

 

1,088,729 

 

 

 

 

 

 

 

 

 

 

Premiums earned:

 

 

 

 

 

 

 

 

 

Direct

$

425,231 

 

413,759 

 

 

1,257,087

 

1,238,912 

Assumed

 

7,626 

 

9,158 

 

 

18,866 

 

20,858 

Ceded

 

(73,894)

 

(68,208)

 

 

(210,067)

 

(196,669)

Net

$

358,963 

 

354,709 

 

 

1,065,886

 

1,063,101 

 

 

 

 

 

 

 

 

 

 

Losses and loss expenses incurred:

 

 

 

 

 

 

 

 

 

Direct

$

638,219 

 

277,111 

 

 

1,204,586

 

834,431 

Assumed

 

5,977 

 

6,612 

 

 

13,549

 

11,535 

Ceded

 

(338,238)

 

(38,704)

 

 

(388,416)

 

(106,824)

Net

$

305,958 

 

245,019 

 

 

829,719

 

739,142 

 

Direct losses and loss expenses increased by $361.1 million and $370.2 million, respectively in Third Quarter and Nine Months 2011, respectively, compared to last year. These increases are driven by catastrophe losses incurred this year, including the impact of Hurricane Irene and Tropical Storm Lee in Third Quarter 2011.

 

Ceded losses and loss expenses increased by $299.5 million and $281.6 million in Third Quarter and Nine Months 2011, respectively, reflecting the impact of: (i) Hurricane Irene and Tropical Storm Lee losses in our flood business that are fully ceded to the National Flood Insurance Program ("NFIP"), which are included in the table below; and (ii) Hurricane Irene losses that are anticipated to exceed the first layer of our catastrophe excess of loss treaty.

 

On a net basis, losses and losses incurred reflect catastrophe losses that increased by $55.5 million, to $67.4 million, in the quarter and $60.2 million, to $112.4 million, in Nine Months 2011. Hurricane Irene represented the majority of the quarter losses at $40.4 million ($48.1 million on a gross basis) with the remainder in Third Quarter 2011 resulting from seven additional events as well as $10.4 million in prior period storm development.

 

The ceded premiums and losses related to our involvement with the NFIP are as follows:

National Flood Insurance Program

 

Quarter ended

 

Nine Months ended

 

 

September 30,

 

September 30,

($ in thousands)

 

2011

 

2010

 

 

2011

 

2010

Ceded premiums written

$

(55,198)

 

(57,838)

 

 

(158,777)

 

(148,296)

Ceded premiums earned

 

(50,256)

 

(47,240)

 

 

(147,111)

 

(137,220)

Ceded losses and loss expenses incurred

 

(301,725)

 

(11,227)

 

 

(331,604)

 

(54,303)