v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
 12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Cash flows from operating activities:      
Net income $ 194,153 $ 148,392 $ 103,223
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization 50,000 18,429 8,791
Equity (earnings) losses and gain on investment in unconsolidated subsidiaries (7,871) (24,044) 822
Gain on investment in life settlement contracts (46,892) (11,855)  
Realized (gain) loss on marketable securities (7,179) (27,149) 8,801
Acquisition gain on purchase (5,850)    
Non-cash write-down of marketable securities 4,411 21,196 24,778
Discount on notes payable 462 772 1,067
Stock based compensation 5,571 3,386 4,241
Bad debt expense 7,287 6,037 4,843
Foreign currency (gain) loss 2,418 (684) (2,459)
Changes in assets - (increase) decrease:      
Premiums and notes receivable (186,721) (208,677) (81,137)
Reinsurance recoverable (174,988) (132,111) (58,499)
Deferred policy acquisition costs, net (56,320) (44,492) (76,214)
Prepaid reinsurance premiums (99,911) (74,407) (38,523)
Prepaid expenses and other assets (40,229) (48,210) (8,696)
Changes in liabilities - increase (decrease):      
Reinsurance premium payable 71,194 132,238 (1,700)
Loss and loss expense reserves 283,978 171,593 77,885
Unearned premiums 315,208 153,186 111,864
Funds held under reinsurance treaties (5,683) 2,527 462
Accrued expenses and other current liabilities 44,071 (63,402) 27,191
Deferred tax asset (liability) (52,551) 3,626 57,673
Net cash provided by operating activities 294,558 26,351 164,413
Cash flows from investing activities:      
Purchases of available for sale fixed maturities (2,065,393) (3,711,080) (498,035)
Purchases of equity securities (37,410) (28,321) (26,893)
Purchases of other investments (611) (5,284) (1,398)
Sales of held to maturity fixed maturities     48,881
Sales of available for sale fixed maturities 2,122,923 3,573,660 350,837
Sales of equity securities 17,634 65,531 21,637
Sales of other investments 6,776 200  
Net (purchases) sales of short term investments (96,428) (872) 136,580
Acquisition of and capitalized premiums for life settlement contracts (53,363) (14,574)  
Receipt of life settlement contract proceeds 10,530    
Acquisition of renewal rights and goodwill (30,388)   (7,904)
Loss portfolio transfer, net of cash obtained 28,969    
Acquisition of subsidiaries, net of cash obtained 43,950 6,929 6,545
Investment in ACAC   (53,055)  
Increase in restricted cash and cash equivalents (5,974) (8,180) (2,588)
Purchase of property and equipment (38,601) (14,722) (5,519)
Net cash (used in) provided by investing activities (97,386) (209,670) 22,143
Cash flows from financing activities:      
Repurchase agreements, net (155,899) 174,843 (111,718)
Revolving credit facility borrowings 123,200    
Revolving credit facility payments (123,200)    
Convertible senior notes proceeds 175,000    
Secured loan agreement borrowings 10,800    
Secured loan agreements payments (782)    
Term loan payment (6,667) (13,333) (13,333)
Non-interest bearing note payment (7,500) (7,500) (7,500)
Financing fees (6,644)    
Repurchase of common stock     (6,086)
Capital contribution to subsidiaries 25,334 11,025  
Stock option exercise and other 5,425 1,770 315
Dividends distributed in common stock (19,712) (16,647) (13,088)
Net cash provided by (used in) financing activities 19,355 150,158 (151,410)
Effect of exchange rate changes on cash (2,605) 1,226 4,023
Net increase (decrease) in cash and cash equivalents 213,922 (31,935) 39,169
Cash and cash equivalents, beginning year 192,925 224,860 185,691
Cash and cash equivalents, end of year 406,847 192,925 224,860
Supplemental Cash Flow Information      
Interest 12,931 13,405 14,601
Income tax payments 14,158 33,480 18,802
Warrantech
      
Cash flows from investing activities:      
Acquisition of subsidiaries, net of cash obtained   (9,056)  
Risk Services
      
Cash flows from investing activities:      
Acquisition of subsidiaries, net of cash obtained   $ (10,846)