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Reinsurance and Catastrophes | 12 Months Ended
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Dec. 31, 2014
Reinsurance and Catastrophes and Statutory Surplus and Subsidiary Dividend Restrictions [Abstract] |
Reinsurance and Catastrophes | NOTE 10 - Reinsurance and Catastrophes In the normal course of business, the Company’s insurance subsidiaries assume and cede reinsurance with other insurers. Reinsurance is ceded primarily to limit losses from large events and to permit recovery of a portion of direct losses; however, such a transfer does not relieve the originating insurance company of primary liability. The Company is a national underwriter and therefore has exposure to catastrophic losses in certain coastal states and other regions throughout the U.S. Catastrophes can be caused by various events including hurricanes, windstorms, hail, severe winter weather, wildfires and earthquakes, and the frequency and severity of catastrophes are inherently unpredictable. The financial impact from catastrophic losses results from both the total amount of insured exposure in the area affected by the catastrophe as well as the severity of the event. The Company seeks to reduce its exposure to catastrophe losses through the geographic diversification of its insurance coverage, deductibles, maximum coverage limits and the purchase of catastrophe reinsurance. The Company’s net catastrophe losses incurred of approximately $37,500, $40,225 and $43,319 for the years ended December 31, 2014, 2013 and 2012, respectively, reflected significant losses from wind/hail/tornado events in the spring and summer months of each year, as well as losses from Hurricane Isaac recorded in 2012. The total amounts of reinsurance recoverable on unpaid insurance reserves classified as assets and reported in Other Assets in the Consolidated Balance Sheets were as follows:
|  | December 31, |
|  |  | 2014 |  |  |  | 2013 |
Reinsurance recoverables on reserves and unpaid claims |  |  |  |  |  |  |  |
Property and casualty |  |  |  |  |  |  |  |
Reinsurance companies |  | $ | 7,772 |  |  | $ | 10,152 |
State insurance facilities |  |  | 35,968 |  |  |  | 3,955 |
Life and health |  |  | 9,592 |  |  |  | 10,395 |
Total |  | $ | 53,332 |  |  | $ | 24,502 |
The Company recognizes the cost of reinsurance premiums over the contract periods for such premiums in proportion to the insurance protection provided. Amounts recoverable from reinsurers for unpaid claims and claim settlement expenses, including estimated amounts for unsettled claims, claims incurred but not yet reported and policy benefits, are estimated in a manner consistent with the insurance liability associated with the policy. The effects of reinsurance on premiums written and contract deposits; premiums and contract charges earned; and benefits, claims and settlement expenses were as follows:
|  |  |  |  | Ceded to |  | Assumed |  |  |  |
|  | Gross |  | Other |  | from Other |  | Net |
|  | Amount |  | Companies |  | Companies |  | Amount |
Year ended December 31, 2014 |  |  |  |  |  |  |  |  |  |  |
Premiums written and contract deposits |  | $ | 1,191,123 |  | $27,144 |  | $3,676 |  | $ | 1,167,655 |
Premiums and contract charges earned |  |  | 739,281 |  | 27,276 |  | 3,755 |  |  | 715,760 |
Benefits, claims and settlement expenses |  |  | 504,550 |  | 39,236 |  | 3,112 |  |  | 468,426 |
Year ended December 31, 2013 |  |  |  |  |  |  |  |  |  |  |
Premiums written and contract deposits |  |  | 1,120,852 |  | 30,115 |  | 3,456 |  |  | 1,094,193 |
Premiums and contract charges earned |  |  | 717,494 |  | 29,990 |  | 3,434 |  |  | 690,938 |
Benefits, claims and settlement expenses |  |  | 455,298 |  | 10,018 |  | 3,037 |  |  | 448,317 |
Year ended December 31, 2012 |  |  |  |  |  |  |  |  |  |  |
Premiums written and contract deposits |  |  | 1,093,937 |  | 29,691 |  | 3,481 |  |  | 1,067,727 |
Premiums and contract charges earned |  |  | 696,721 |  | 29,634 |  | 3,440 |  |  | 670,527 |
Benefits, claims and settlement expenses |  |  | 457,332 |  | 12,177 |  | 3,095 |  |  | 448,250 |
There were no losses from uncollectible reinsurance recoverables in the three years ended December 31, 2014. Past due reinsurance recoverables as of December 31, 2014 were not material. The Company maintains catastrophe excess of loss reinsurance coverage. For 2014, the Company’s catastrophe excess of loss coverage consisted of one contract in addition to the Florida Hurricane Catastrophe Fund (“FHCF”). The catastrophe excess of loss contract provided 95% coverage for catastrophe losses above a retention of $25,000 per occurrence up to $175,000 per occurrence. This contract consisted of three layers, each of which provided for one mandatory reinstatement. The layers were $25,000 excess of $25,000, $40,000 excess of $50,000 and $85,000 excess of $90,000. In addition, the Company’s predominant insurance subsidiary for property and casualty business written in Florida reinsured 90% of hurricane losses in that state above an estimated retention of $4,100 up to $15,100, based on the FHCF’s financial resources. The FHCF contract is a one-year contract, effective June 1, 2014. For liability coverages, in 2014, the Company reinsured each loss above a retention of $900 with coverage up to $2,500 on a per occurrence basis and $20,000 in a clash event. (A clash cover is a reinsurance casualty excess contract requiring two or more casualty coverages or policies issued by the Company to be involved in the same loss occurrence for coverage to apply.) For property coverages, in 2014 the Company reinsured each loss above a retention of $900 up to $2,500 on a per risk basis, including catastrophe losses. Also, the Company could submit to the reinsurers three per risk losses from the same occurrence for a total of $4,800 of property recovery in any one event. The maximum individual life insurance risk retained by the Company is $300 on any individual life, while either $100 or $125 is retained on each group life policy depending on the type of coverage. Excess amounts are reinsured. The Company also maintains a life catastrophe reinsurance program. For 2014, the Company reinsured 100% of the catastrophe risk in excess of $1,000 up to $35,000 per occurrence, with one reinstatement. The Company’s life catastrophe risk reinsurance program covers acts of terrorism and includes nuclear, biological and chemical explosions but excludes other acts of war.

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- Definition The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 310 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6485557&loc=d3e21549-158491 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 13 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27261-158547 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6486672&loc=d3e27374-158547 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6811-158387 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6480758&loc=d3e6816-158387 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 6 -Article 7 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.6,13) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 55 -Paragraph 13 -URI http://asc.fasb.org/extlink&oid=34714010&loc=d3e27795-158548 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 605 -Section 55 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=34714010&loc=d3e27703-158548 + Details
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