CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	3 Months Ended
Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:
Net income	$ 2,061	$ 28,107
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of intangibles	1,190	1,312
Net realized gains on investment	(88)	(3,283)
Foreign exchange and other gains	(138)	(1,547)
Amortization of share-based compensation expense, bond premium and discount, subordinated debt discount and accelerated amortization of junior subordinated debt discount and issuance cost, net	30,201	3,066
Changes in assets – (increase) decrease:
Reinsurance balances receivable, net	(114,814)	(210,319)
Prepaid reinsurance premiums	7,316	(61)
Reinsurance recoverable on unpaid losses	710	(7,235)
Accrued investment income	(17)	(219)
Deferred commission and other acquisition expenses	(43,676)	(41,915)
Other assets	5,878	2,337
Changes in liabilities – increase (decrease):
Reserve for loss and loss adjustment expenses	77,580	48,328
Unearned premiums	183,339	200,678
Accrued expenses and other liabilities	(5,852)	(3,051)
Net cash provided by operating activities	143,690	16,198
Cash flows from investing activities:
Purchases of fixed maturities – available-for-sale	(152,969)	(178,122)
Purchases of other investments	(787)	(290)
Proceeds from sales of fixed maturities – available-for-sale	105,334	45,379
Proceeds from maturities and calls of fixed maturities	77,292	138,654
Proceeds from redemption of other investments	313	73
(Increase) decrease in restricted cash and cash equivalents	(73,852)	5,011
Other, net	(624)	(99)
Net cash (used in) provided by investing activities	(45,293)	10,606
Cash flows from financing activities:
Repayment of junior subordinated debt	(152,500)	0
Common share issuance	184	340
Dividends paid to common shareholders	(8,000)	0
Dividends paid to preference shareholders	(6,084)	(3,094)
Net cash used in financing activities	(166,400)	(2,754)
Effect of exchange rate changes on foreign currency cash	208	(1,804)
Net (decrease) increase in cash and cash equivalents	(67,795)	22,246
Cash and cash equivalents, beginning of period	139,833	81,543
Cash and cash equivalents, end of period	$ 72,038	$ 103,789

The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by or used in operations using the indirect method. Also includes the amortiztion of share-based compensation expenses and discount on trust preferred securities.

No definition available.