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Reinsurance
 6 Months Ended
Jun. 30, 2012
Reinsurance [Abstract]  
Reinsurance

Note 6 – Reinsurance

The Company cedes a portion of its homeowners insurance exposure to other entities under catastrophe excess of loss reinsurance treaties. The Company remains liable with respect to claims payments in the event that any of the reinsurers are unable to meet their obligations under the reinsurance agreements. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies.

The impact of the catastrophe excess of loss reinsurance treaties on premiums written and earned is as follows (in thousands):

 

                                 
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2012     2011     2012     2011  
         

Premiums Written

                                

Direct

   $ 83,669       54,838       121,842       69,961  

Assumed

     (342 )      (157 )      (1,620 )      (2,351 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross written

     83,327       54,681       120,222       67,610  

Ceded

     (17,497 )      (14,174 )      (31,826 )      (28,396 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums written

   $ 65,830       40,507       88,396       39,214  
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Premiums Earned

                                

Direct

   $ 39,873       29,160       73,171       57,147  

Assumed

     13,899       2,058       35,299       4,967  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross earned

     53,772       31,218       108,470       62,114  

Ceded

     (17,497 )      (14,174 )      (31,826 )      (28,396 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Net premiums earned

   $ 36,275       17,044       76,644       33,718  
   

 

 

    

 

 

    

 

 

    

 

 

  

During the three and six months ended June 30, 2012 and 2011, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At June 30, 2012 and December 31, 2011, prepaid reinsurance premiums related to 31 and 18 reinsurers, respectively, and there were no amounts receivable with respect to reinsurers. Thus, there were no concentrations of credit risk associated with reinsurance receivables and prepaid reinsurance premiums as of June 30, 2012 and December 31, 2011.