Reinsurance

12 Months Ended

Dec. 31, 2011

Reinsurance [Abstract]

Reinsurance

12.  REINSURANCE

The Company utilizes reinsurance agreements to reduce its exposure to large claims and catastrophic loss occurrences.  These agreements provide for recovery from reinsurers of a portion of losses and LAE under certain circumstances without relieving the ceding company of its obligations to the policyholders.  Losses and LAE incurred and premiums earned are reported after deduction for reinsurance.  In the event that one or more of the reinsurers were unable to meet their obligations under these reinsurance agreements, the Company would not realize the full value of the reinsurance recoverable balances.  The Company may hold partial collateral, including letters of credit and funds held, under these agreements.  See also Note 1C.

Premiums written and earned and incurred losses and LAE are comprised of the following for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2011			2010			2009
Written premiums:
Direct	$	815,087		$	823,378		$	824,366
Assumed		3,471,087			3,377,341			3,304,589
Ceded		(177,275	)		(255,141	)		(199,194	)
Net written premiums	$	4,108,899		$	3,945,578		$	3,929,761
Premiums earned:
Direct	$	871,598		$	823,811		$	808,793
Assumed		3,454,622			3,340,977			3,255,849
Ceded		(224,873	)		(230,163	)		(170,544	)
Net premiums earned	$	4,101,347		$	3,934,625		$	3,894,098
Incurred losses and LAE:
Direct	$	744,017		$	708,212		$	655,263
Assumed		3,099,787			2,392,758			1,829,371
Ceded		(117,600	)		(155,258	)		(110,576	)
Net incurred losses and LAE	$	3,726,204		$	2,945,712		$	2,374,058