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Losses and Loss Adjustment Expenses
 6 Months Ended
Jun. 30, 2012
Losses and Loss Adjustment Expenses [Abstract]  
Losses and Loss Adjustment Expenses

Note 7 – Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses (“LAE”) is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred, but not reported.

Activity in the liability for unpaid losses and LAE is summarized as follows (in thousands):

 

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

Balance, beginning of period

   $ 33,476       24,050       27,424       22,146  
   

 

 

    

 

 

    

 

 

    

 

 

  

Incurred related to:

                                

Current period

     15,995       6,696       34,401       15,432  

Prior period

     202       3,827       964       5,494  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total incurred

     16,197       10,523       35,365       20,926  
   

 

 

    

 

 

    

 

 

    

 

 

  

Paid related to:

                                

Current period

     (8,691 )      (6,475 )      (13,082 )      (8,128 ) 

Prior period

     (3,669 )      (3,125 )      (12,394 )      (9,971 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total paid

     (12,360 )      (9,600 )      (25,476 )      (18,099 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Balance, end of period

   $ 37,313       24,973       37,313       24,973  
   

 

 

    

 

 

    

 

 

    

 

 

  

The Company writes insurance in the state of Florida, which could be exposed to hurricanes or other natural catastrophes. Although the occurrence of a major catastrophe could have a significant effect on our monthly or quarterly results, the Company believes that such an event would not be so material as to disrupt the overall normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter.