Concentration of Credit Risk

Concentration of Credit Risk


(a)	Counterparties

The Company is subject to certain inherent credit risks arising from its transactions involving counterparties to CDS positions. As of September 30, 2013, the CDS position has a notional amount of $4,272 and a fair value of $2. The counterparty is Bank of America, N.A.

The Company’s policy is to monitor its market exposure and counterparty risk through the use of various credit exposure reporting and control procedures.


(b)	Transactions with Custodians and Trustees

Tiptree, TAMCO and Care maintain unrestricted cash and cash equivalents and certain financial positions in accounts held by J.P. Morgan Securities Inc., its custodian pursuant to a custodial agreement. MFCA held substantially all of its cash and cash equivalents with U.S. Bank. PFG held substantially all of its cash and cash equivalents with Wilmington Trust. If these and other agents do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the agent. The Company limits its credit risk by selecting financial institutions considered to be highly creditworthy.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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