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Insurance Operations (Tables)
 6 Months Ended
Jun. 30, 2013
Insurance [Abstract]  
Composition of Insurance Entities' Aggregate Policies-in-Force

The following table provides the percentage of concentrations with respect to the Insurance Entities’ nationwide policies-in-force as of the periods presented:

 

     As of
June 30, 2013		     As of
December 31, 2012		  

Percentage of Policies-In-Force:

     

In Florida

      95 %      96 % 

With wind coverage

      98 %      98 % 

With wind coverage in South Florida (1)

      28 %      28 % 

 

(1) South Florida is comprised of Miami-Dade, Broward and Palm Beach counties.
Beginning and Ending Balances and Changes in DPAC, Net of DRCC

The following table presents the beginning and ending balances and the changes in DPAC, net of DRCC, for the periods presented (in thousands):

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2013     2012     2013     2012  

DPAC, beginning of period (1)

    $ 55,391      $ 51,872      $ 54,431      $ 50,200   

Capitalized Costs

      30,241        29,536        58,933        55,680   

Amortization of DPAC

      (26,599 )      (24,486 )      (54,331 )      (48,958 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DPAC, end of period

    $ 59,033      $ 56,922      $ 59,033      $ 56,922   
  

 

 

    

 

 

    

 

 

    

 

 

  

DRCC, beginning of period (1)

    $ 38,014      $ 40,074      $ 37,149      $ 38,845   

Ceding Commissions Written

      26,222        21,286        48,534        44,775   

Earned Ceding Commissions

      (22,444 )      (22,182 )      (43,891 )      (44,442 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DRCC, end of period

    $ 41,792      $ 39,178      $ 41,792      $ 39,178   
  

 

 

    

 

 

    

 

 

    

 

 

  

DPAC (DRCC), net, beginning of period (1)

    $ 17,377      $ 11,798      $ 17,282      $ 11,355   

Capitalized Costs, net

      4,019        8,250        10,399        10,905   

Amortization of DPAC (DRCC), net

      (4,155 )      (2,304 )      (10,440 )      (4,516 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

DPAC (DRCC), net, end of period

    $ 17,241      $ 17,744      $ 17,241      $ 17,744   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) The beginning balances for the six months ended June 30, 2012 have been adjusted in connection with the adoption of the FASB’s updated guidance related to deferred policy acquisition costs as discussed below.
Change in Liability for Unpaid Losses and LAE

Set forth in the following table is the change in liability for unpaid losses and LAE for the periods presented (in thousands):

 

     Three Months Ended June 30,     Six Months Ended June 30,  
     2013     2012     2013     2012  

Balance at beginning of period

    $ 182,528      $ 172,300      $ 193,241      $ 187,215   

Less reinsurance recoverable

      (75,680 )      (79,285 )      (81,415 )      (88,002 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net balance at beginning of period

      106,848        93,015        111,826        99,213   
  

 

 

    

 

 

    

 

 

    

 

 

  

Incurred (recovered) related to:

         

Current year

      26,675        29,362        53,329        55,711   

Prior years

      (1,476 )      75        (1,647 )      (100 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total incurred

      25,199        29,437        51,682        55,611   
  

 

 

    

 

 

    

 

 

    

 

 

  

Paid related to:

         

Current year

      16,303        14,382        17,475        15,335   

Prior years

      17,304        16,614        47,593        48,033   
  

 

 

    

 

 

    

 

 

    

 

 

  

Total paid

      33,607        30,996        65,068        63,368   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net balance at end of period

      98,440        91,456        98,440        91,456   

Plus reinsurance recoverable

      67,820        73,169        67,820        73,169   
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at end of period

    $ 166,260      $ 164,625      $ 166,260      $ 164,625   
  

 

 

    

 

 

    

 

 

    

 

 

  
Statutory Capital and Surplus, and an Amount Representing Ten Percent of Total Liabilities for both UPCIC and APPCIC

$5.0 million. The following table presents the amount of statutory capital and surplus, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the periods presented (in thousands):

 

     As of
June 30, 2013		      As of
December 31, 2012		  

Ten percent of total liabilities

      

UPCIC

    $ 47,089       $ 39,260   

APPCIC

    $ 991       $ 694   

Statutory capital and surplus

      

UPCIC

    $ 137,665       $ 134,034   

APPCIC

    $ 14,229       $ 14,330   
Assets Held by Insurance Regulators

certain reinsurance agreements. The following table represents assets held by insurance regulators as of the periods presented (in thousands):

 

     As of
June 30,
2013		      As of
December 31,
2012		  

Restricted cash and cash equivalents

    $ 2,600       $ 33,009   

Investments

    $ 3,743       $ 4,009