2.2.0.7 false Unpaid Losses and Loss Adjustment Expenses Disclosures 00076 - Disclosure - Unpaid Losses and Loss Adjustment Expenses Disclosures true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 $ 2 Unpaid Losses and Loss Adjustment Expenses Disclosures Abstract 0 orh_UnpaidLossesAndLossAdjustmentExpensesDisclosuresAbstract orh false na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Unpaid Losses and Loss Adjustment Expenses Disclosures 1 orh_UnpaidLossesAndLossAdjustmentExpensesDisclosuresTextBlock orh false na duration Alternate concept name for the aggregate amount of policy reserves (provided for future obligations including unpaid claims... false false false false false false false false false false false terselabel false 1 false false false false 0 0 6. Unpaid Losses and Loss Adjustment ExpensesThe following table sets forth the activity in the liability for unpaid losses and loss adjustment expenses for the six and three months ended June 30, 2010 and 2009 (in thousands):<div><table style="border-collapse:collapse;margin-top:20px;"><tr style="height: 12px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td colspan="5" style="width: 153px; text-align:center;border-color:#000000;min-width:153px;">Six Months Ended</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td colspan="5" style="width: 152px; text-align:center;border-color:#000000;min-width:152px;">Three Months Ended</td></tr><tr style="height: 12px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td colspan="5" style="width: 153px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:153px;">June 30,</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td colspan="5" style="width: 152px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:152px;">June 30,</td></tr><tr style="height: 12px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td colspan="2" style="width: 70px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:70px;">2010</td><td style="width: 11px; text-align:center;border-color:#000000;min-width:11px;"> </td><td colspan="2" style="width: 72px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:72px;">2009</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td colspan="2" style="width: 70px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:70px;">2010</td><td style="width: 10px; text-align:center;border-color:#000000;min-width:10px;"> </td><td colspan="2" style="width: 72px; border-bottom-style:solid;border-bottom-width:1px;text-align:center;border-color:#000000;min-width:72px;">2009</td></tr><tr style="height: 8px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Gross unpaid losses and loss adjustment </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 16px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> expenses, beginning of period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 5,507,766</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 5,250,484</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 5,636,968</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 5,266,303</td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Less: Ceded unpaid losses and loss </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> adjustment expenses, beginning of period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 841,486</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 690,171</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 899,470</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 689,208</td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Net unpaid losses and loss adjustment </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> expenses, beginning of period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 4,666,280</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 4,560,313</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 4,737,498</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 4,577,095</td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Add: Net losses and loss adjustment expenses</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> incurred related to:</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Current period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 694,304</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 650,376</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 313,530</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 320,971</td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Prior periods</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 2,636</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> (10,882)</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 7,512</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 932</td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Total net losses and loss adjustment</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> expenses incurred</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 696,940</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 639,494</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 321,042</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 321,903</td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Less: Net paid losses and loss adjustment</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> expenses related to:</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Current period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 61,285</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 61,829</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 40,322</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 35,205</td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Prior periods</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 532,469</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 524,757</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 272,730</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 256,715</td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Total net paid losses and loss adjustment</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> expenses</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 593,754</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 586,586</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 313,052</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 291,920</td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Effects of exchange rate changes</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> (51,962)</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 51,294</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> (27,984)</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 57,437</td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> Net unpaid losses and loss adjustment</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> expenses, end of period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 4,717,504</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 4,664,515</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:right;border-color:#000000;min-width:61px;"> 4,717,504</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:right;border-color:#000000;min-width:63px;"> 4,664,515</td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Add: Ceded unpaid losses and loss</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 19px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> adjustment expenses, end of period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 935,379</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 739,213</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:61px;"> 935,379</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; border-bottom-style:solid;border-bottom-width:1px;text-align:right;border-color:#000000;min-width:63px;"> 739,213</td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;">Gross unpaid losses and loss adjustment</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 61px; text-align:left;border-color:#000000;min-width:61px;"> </td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; text-align:right;border-color:#000000;min-width:9px;"> </td><td style="width: 63px; text-align:left;border-color:#000000;min-width:63px;"> </td></tr><tr style="height: 21px"><td style="width: 277px; text-align:left;border-color:#000000;min-width:277px;"> expenses, end of period</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 61px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:61px;"> 5,652,883</td><td style="width: 11px; text-align:left;border-color:#000000;min-width:11px;"> </td><td style="width: 9px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 63px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:63px;"> 5,403,728</td><td style="width: 9px; text-align:left;border-color:#000000;min-width:9px;"> </td><td style="width: 9px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 61px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:61px;"> 5,652,883</td><td style="width: 10px; text-align:left;border-color:#000000;min-width:10px;"> </td><td style="width: 9px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:9px;">$</td><td style="width: 63px; border-bottom-style:double;border-bottom-width:3px;text-align:right;border-color:#000000;min-width:63px;"> 5,403,728</td></tr></table></div>Estimates of reserves for unpaid losses and loss adjustment expenses, with respect to loss events that have occurred on or before the balance sheet date, are contingent on many assumptions that may or may not occur in the future. These assumptions include loss estimates attributable to a variety of loss events, including earthquakes, hurricanes, windstorms and floods. The eventual outcome of these loss events may be different from the assumptions underlying the Company's reserve estimates. When the business environment and loss trends diverge from expected trends, the Company may have to adjust its reserves accordingly, potentially resulting in adverse or favorable effects to the Company's financial results. The Company believes that the recorded estimate represents the best estimate of unpaid losses and loss adjustment expenses based on the information available as of June 30, 2010. The estimate is reviewed on a quarterly basis, and the ultimate liabilities of the Company may be greater or less than the amounts provided, for which any adjustments will be reflected in the periods in which they become known.Net losses and loss adjustment expenses incurred related to the current year, as reflected in the table above, were $694.3 million for the six months ended June 30, 2010, an increase of $43.9 million from $650.4 million for the six months ended June 30, 2009. The increase was principally attributable to an increase in current year property catastrophe losses of $74.4 million, to $137.3 million for the six months ended June 30, 2010, from $62.9 million for the six months ended June 30, 2009. For the six months ended June 30, 2010, current year property catastrophe losses included $83.4 million related to the Chile earthquake and $17.6 million related to Windstorm Xynthia. In addition, current year losses for the six months ended June 30, 2010 included $34.4 million related to the Deepwater Horizon event. For the six months ended June 30, 2009, current year property catastrophe losses included $50.0 million related to Windstorm Klaus. The loss estimates for losses such as the Chile earthquake, Windstorm Xynthia and the Deepwater Horizon event represent the Company's best estimates based on the most recent information available. The Company used various approaches in estimating its losses, including a detailed review of exposed contracts and information from ceding companies. As additional information becomes available, including information from ceding companies, actual losses may exceed the Company's estimated losses, potentially resulting in adverse effects to the Company's financial results. Net losses and loss adjustment expenses incurred related to prior years increased $2.6 million for the six months ended June 30, 2010 and decreased $10.9 million for the six months ended June 30, 2009. The increase in prior period losses and loss adjustment expenses for the six months ended June 30, 2010 was attributable to increased loss estimates due to loss emergence greater than expectations in the period on business written in the Americas division, partially offset by reduced loss estimates due to loss emergence lower than expectations in the period on business written in the London Market and U.S. Insurance divisions. The decrease in prior period losses and loss adjustment expenses for the six months ended June 30, 2009 was attributable to decreased loss estimates due to loss emergence lower than expectations in the period on business written in the EuroAsia, London Market and U.S. Insurance divisions.Net losses and loss adjustment expenses incurred related to the current year, as reflected in the table above, were $313.5 million for the three months ended June 30, 2010, a decrease of $7.5 million from $321.0 million for the three months ended June 30, 2009. This decrease was principally attributable to a decline in casualty treaty net premiums earned in the Americas division and an overall reduction in loss exposure associated with a decline in net premiums earned of $10.0 million, to $470.5 million for the three months ended June 30, 2010, from $480.5 million for the three months ended June 30, 2009. Current year property catastrophe losses increased $1.0 million, to $16.2 million for the three months ended June 30, 2010, from $15.2 million for the three months ended June 30, 2009. In addition, current year losses for the three months ended June 30, 2010 included $34.4 million related to the Deepwater Horizon event.Net losses and loss adjustment expenses incurred related to prior years increased $7.5 million and $0.9 million for the three months ended June 30, 2010 and June 30, 2009, respectively. The increase in prior period losses and loss adjustment expenses for the three months ended June 30, 2010 was attributable to increased loss estimates due to loss emergence greater than expectations in the period on business written in the Americas division, partially offset by reduced loss estimates due to loss emergence lower than expectations in the period on business written in the London Market and U.S. Insurance divisions. The increase in prior period losses and loss adjustment expenses for the three months ended June 30, 2009 was attributable to increased loss estimates due to loss emergence greater than expectations in the period on business written in the Americas division.The effects of exchange rate changes on net unpaid losses and loss adjustment expenses resulted in a decrease of $52.0 million for the six months ended June 30, 2010 and an increase of $51.3 million for the six months ended June 30, 2009. The effects of exchange rate changes on net unpaid losses and loss adjustment expenses resulted in a decrease of $28.0 million for the three months ended June 30, 2010 and an increase of $57.4 million for the three months ended June 30, 2009. The effects of exchange rate changes were attributable to changes in foreign currency exchange rates for unpaid losses and loss adjustment expenses in the London Market division.Ceded unpaid losses and loss adjustment expenses were $935.4 million and $739.2 million as of June 30, 2010 and 2009, respectively. The increase in ceded unpaid losses and loss adjustment expenses was principally attributable to a $96.2 million increase in unpaid reinsurance recoverables related to non-catastrophe exposure in the London Market division and a $56.6 million increase in unpaid reinsurance recoverables related to property catastrophe events. The Company uses tabular reserving for workers' compensation indemnity loss reserves, which are considered to be fixed and determinable, and discounts such reserves using an interest rate of 3.5%. Workers' compensation indemnity loss reserves have been discounted using the Life Table for Total Population: United States, 2004. Reserves reported at the discounted value were $117.9 million and $115.8 million as of June 30, 2010 and December 31, 2009, respectively. The amount of case reserve discount was $54.8 million and $54.3 million as of June 30, 2010 and December 31, 2009, respectively. The amount of incurred but not reported reserve discount was $21.6 million and $21.9 million as of June 30, 2010 and December 31, 2009, respectively. 6. Unpaid Losses and Loss Adjustment ExpensesThe following table sets forth the activity in the liability for unpaid losses and loss adjustment expenses for false false false us-types:textBlockItemType textblock Alternate concept name for the aggregate amount of policy reserves (provided for future obligations including unpaid claims and claims adjustment expenses) and policy benefits (liability for future policy benefits) as of the balance sheet date; grouped amount of all the liabilities associated with the company's insurance policies. No authoritative reference available. false 1 2 false UnKnown UnKnown UnKnown false true