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Loss And Loss Adjustment Expenses | 12 Months Ended
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Dec. 31, 2011
Loss And Loss Adjustment Expenses [Abstract] |
Loss And Loss Adjustment Expenses |
10. | Loss and Loss Adjustment Expenses
The following table provides a reconciliation of the beginning and ending reserve balances, net of related amounts recoverable from reinsurers, for 2011, 2010 and 2009:
|  | Year Ended December 31, |
| 2011 |  |  | 2010 |  |  | 2009 |
|  | (In thousands) |
Reserves for loss and loss adjustment expenses ("LAE") |  | $ | 532,204 |  |  | $ | 534,655 |  |  | $ | 531,293 |
Less amounts recoverable from reinsurers on unpaid loss and LAE |  |  | 65,536 |  |  |  | 60,435 |  |  |  | 56,596 |
Reserves for loss and LAE, net of related amounts recoverable from reinsurers, at beginning of year |  |  | 466,668 |  |  |  | 474,220 |  |  |  | 474,697 |
Add: |  |  |  |  |  |  |  |  |  |  |  |
Provision for loss and LAE for claims occurring in the current year, net of reinsurance |  |  | 196,269 |  |  |  | 179,022 |  |  |  | 185,201 |
Change in estimated loss and LAE for claims occurring in prior years, net of reinsurance |  |  | (6,563 | ) |  |  | (21,634 | ) |  |  | (21,885 | )
Incurred losses during the current year, net of reinsurance |  |  | 189,706 |  |  |  | 157,388 |  |  |  | 163,316 |
Less loss and LAE payments for claims, net of reinsurance, occurring during: |  |  |  |  |  |  |  |  |  |  |  |
Current year |  |  | 53,213 |  |  |  | 47,385 |  |  |  | 42,174 |
Prior years |  |  | 125,884 |  |  |  | 117,555 |  |  |  | 121,619 |
|  |  | 179,097 |  |  |  | 164,940 |  |  |  | 163,793 |
Reserves for loss and LAE, net of related amounts recoverable from reinsurers, at end of year |  |  | 477,277 |  |  |  | 466,668 |  |  |  | 474,220 |
Add amounts recoverable from reinsurers on unpaid loss and LAE |  |  | 60,937 |  |  |  | 65,536 |  |  |  | 60,435 |
Reserves for loss and LAE |  | $ | 538,214 |  |  | $ | 532,204 |  |  | $ | 534,655 |
The foregoing reconciliation reflects favorable development of the net reserves at December 31, 2011, 2010, and 2009. The favorable development reduced loss and loss adjustment expense incurred by $6.6 million, $21.6 million and $21.9 million in 2011, 2010 and 2009, respectively. The revisions to the Company's reserves reflect new information gained by claims adjusters in the normal course of adjusting claims and is reflected in the financial statements when the information becomes available. It is typical for more serious claims to take several years to settle and the Company continually revises estimates as more information about claimants' medical conditions and potential disability becomes known and the claims get closer to being settled. The anticipated effect of inflation is implicitly considered when estimating liabilities for loss and loss adjustment expenses. Average severities are projected based on historical trends adjusted for implemented changes in underwriting standards, policy provisions and general economic trends. These anticipated trends are monitored based on actual development and are modified if necessary.

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- Definition Disclosure of accounting policy for the various components of the reserve for future policy benefits and guaranteed minimum benefits, and for claims and claims adjustment expenses; the significant assumptions for estimating claims losses; causes of significant variances from prior periods (such as catastrophes, asbestos and environmental claims reserve losses); and reconciliations of beginning to ending reserve balances. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6482485&loc=d3e14764-158437 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=6482852&loc=d3e14931-158439 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 7 -Section 03 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6482485&loc=d3e14754-158437 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-5 -Paragraph 11 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.7-03.13(a)(1),(b)) -URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910 + Details
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