Insurance Operations (Tables)

6 Months Ended

Jun. 30, 2015

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						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
DPAC, beginning of period	$	56,183		$	54,211		$	54,603		$	54,099
Capitalized Costs		31,722			29,993			60,289			56,775
Amortization of DPAC		(25,724	)		(26,055	)		(52,711	)		(52,725	)
DPAC, end of period	$	62,181		$	58,149		$	62,181		$	58,149
DRCC, beginning of period	$	29,988		$	38,318		$	28,943		$	38,200
Ceding Commissions Written		(22,938	)		10,439			(5,276	)		32,319
Earned Ceding Commissions		(7,050	)		(18,685	)		(23,667	)		(40,447	)
DRCC, end of period	$	—		$	30,072		$	—		$	30,072
DPAC (DRCC), net, beginning of period	$	26,195		$	15,893		$	25,660		$	15,899
Capitalized Costs, net		54,660			19,554			65,565			24,456
Amortization of DPAC (DRCC), net		(18,674	)		(7,370	)		(29,044	)		(12,278	)
DPAC (DRCC), net, end of period	$	62,181		$	28,077		$	62,181		$	28,077

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						Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Balance at beginning of period	$	125,161		$	150,557		$	134,353		$	159,222
Less: Reinsurance recoverable		(42,713	)		(64,109	)		(47,350	)		(68,584	)
Net balance at beginning of period		82,448			86,448			87,003			90,638
Incurred (recovered) related to:
Current year		39,637			28,333			73,200			55,188
Prior years		67			(654	)		94			(684	)
Total incurred		39,704			27,679			73,294			54,504
Paid related to:
Current year		23,830			16,200			30,623			20,067
Prior years		17,982			12,007			49,334			39,155
Total paid		41,812			28,207			79,957			59,222
Net balance at end of period		80,340			85,920			80,340			85,920
Plus: Reinsurance recoverable		31,777			58,705			31,777			58,705
Balance at end of period	$	112,117		$	144,625		$	112,117		$	144,625

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

The following table presents the amount of capital and surplus calculated in accordance with statutory accounting principles, which differ from GAAP, and an amount representing ten percent of total liabilities for both UPCIC and APPCIC as of the dates presented (in thousands):

	June 30,		December 31,
	2015		2014
Ten percent of total liabilities
UPCIC	$	63,128	$	42,659
APPCIC	$	625	$	514
Statutory capital and surplus
UPCIC	$	212,976	$	200,173
APPCIC	$	14,170	$	14,036

Assets Held by Insurance Regulators

The following table represents assets held by insurance regulators as of the dates presented (in thousands):

	June 30,		December 31,
	2015		2014
Restricted cash and cash equivalents	$	2,635	$	2,635
Investments	$	3,649	$	3,609

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

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