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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:  
Net income$ 10,975$ 50,732
Adjustments to reconcile net income to net cash provided by operating activities:  
Depreciation and amortization of intangibles6,8285,370
Net realized and unrealized losses (gains) on investments2,262(2,474)
Foreign exchange (gains) losses(898)380
Amortization of share-based compensation expense, bond premium and discount and junior subordinated debt discount, net20,248(4,313)
Changes in assets - (increase) decrease:  
Reinsurance balances receivable, net(151,263)(46,938)
Funds withheld16,402 
Prepaid reinsurance premiums(10,347)(2,823)
Reinsurance recoverable on unpaid losses(5,917)5,984
Accrued investment income2,74970
Deferred commission and other acquisition costs(44,635)(14,258)
Other assets(9,650)(3,570)
Changes in liabilities - increase (decrease):  
Reserve for loss and loss adjustment expenses100,22387,541
Unearned premiums191,13544,754
Accrued expenses and other liabilities(23,002)(6,238)
Net cash provided by operating activities105,110114,217
Purchases of investments:  
Purchases of fixed-maturity securities - available-for-sale(359,140)(408,765)
Purchases of fixed-maturity securities - trading and short sales(825,703)(918,476)
Purchases of other investments(1,026)(136)
Sale of investments:  
Proceeds from sales of fixed-maturity securities - available-for-sale106,041113,136
Proceeds from sales of fixed-maturity securities - trading and short sales826,509967,548
Proceeds from maturities and calls of fixed-maturity securities - available-for-sale297,321409,061
Proceeds from redemption of other investments4,38238
Increase in restricted cash and cash equivalents(7,014)(73,923)
Purchase of capital assets(1,093)(916)
Net cash provided by investing activities40,27787,567
Cash flows from financing activities:  
Repurchase agreements, net(76,225)(25,727)
Senior notes issuance107,500 
Senior notes issuance cost(2,811) 
Repayment of junior subordinated debt(107,500) 
Common share issuance34843
Dividends paid(15,144)(13,707)
Net cash used in financing activities(93,832)(39,391)
Effect of exchange rate changes on foreign currency cash(1,398)(303)
Net increase in cash and cash equivalents50,157162,090
Cash and cash equivalents, beginning of period96,151107,396
Cash and cash equivalents, end of period$ 146,308$ 269,486