Insurance Operations (Tables)

9 Months Ended

Sep. 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						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
DPAC, beginning of period	$	62,181		$	58,149		$	54,603		$	54,099
Capitalized Costs		30,846			27,579			91,135			84,354
Amortization of DPAC		(30,024	)		(27,769	)		(82,735	)		(80,494	)
DPAC, end of period	$	63,003		$	57,959		$	63,003		$	57,959
DRCC, beginning of period	$	—		$	30,072		$	28,943		$	38,200
Ceding Commissions Written		—			17,236			(5,276	)		49,555
Earned Ceding Commissions		—			(17,181	)		(23,667	)		(57,628	)
DRCC, end of period	$	—		$	30,127		$	—		$	30,127
DPAC (DRCC), net, beginning of period	$	62,181		$	28,077		$	25,660		$	15,899
Capitalized Costs, net		30,846			10,343			96,411			34,799
Amortization of DPAC (DRCC), net		(30,024	)		(10,588	)		(59,068	)		(22,866	)
DPAC (DRCC), net, end of period	$	63,003		$	27,832		$	63,003		$	27,832

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						Nine Months Ended
	September 30,						September 30,
	2015			2014			2015			2014
Balance at beginning of period	$	112,117		$	144,625		$	134,353		$	159,222
Less: Reinsurance recoverable		(31,777	)		(58,705	)		(47,350	)		(68,584	)
Net balance at beginning of period		80,340			85,920			87,003			90,638
Incurred (recovered) related to:
Current year		54,014			32,637			127,211			87,825
Prior years		(160	)		1,544			(63	)		860
Total incurred		53,854			34,181			127,148			88,685
Paid related to:
Current year		41,818			24,365			72,438			44,432
Prior years		10,777			8,160			60,114			47,315
Total paid		52,595			32,525			132,552			91,747
Net balance at end of period		81,599			87,576			81,599			87,576
Plus: Reinsurance recoverable		19,460			49,339			19,460			49,339
Balance at end of period	$	101,059		$	136,915		$	101,059		$	136,915

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):

	September 30,		December 31,
	2015		2014
Ten percent of total liabilities
UPCIC	$	65,181	$	42,659
APPCIC	$	606	$	514
Statutory capital and surplus
UPCIC	$	233,634	$	200,173
APPCIC	$	14,258	$	14,036

Assets Held by Insurance Regulators

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

	September 30,		December 31,
	2015		2014
Restricted cash and cash equivalents	$	2,635	$	2,635
Investments	$	3,924	$	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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