2.2.0.25falsefalse10601 - Disclosure - RESERVE FOR LOSSES AND LOSS EXPENSEStruefalsefalse1falsefalseUSDfalsefalse1/1/2010 - 12/31/2010 USD ($) / shares USD ($) $Duration_1_1_2010_To_12_31_2010http://www.sec.gov/CIK0001163348duration2010-01-01T00:00:002010-12-31T00:00:00Unit14Dividehttp://www.xbrl.org/2003/iso4217USDiso4217http://www.xbrl.org/2003/instancesharesxbrli0Unit1Standardhttp://www.xbrl.org/2003/iso4217USDiso42170Unit13Standardhttp://www.xbrl.org/2003/instancesharesxbrli0USDUSD$2true0awh_ReserveForLossesAndLossExpensesAbstractawhfalsenadurationRESERVE FOR LOSSES AND LOSS EXPENSES [Abstract]falsefalsefalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsefalsefalseOtherxbrli:stringItemTypestringRESERVE FOR LOSSES AND LOSS EXPENSES [Abstract]falsefalseRESERVE FOR LOSSES AND LOSS EXPENSES3false0us-gaap_LiabilityForFuturePolicyBenefitsAndUnpaidClaimsDisclosureTextBlockus-gaaptruenadurationNo definition available.falsefalsefalsefalsefalsefalsefalsefalsefalsefalseterselabel1falsefalsefalse00<div> <table style="font-family: Arial, Helvetica; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr valign="top"><td><b><font style="font-family: 'Times New Roman', Times;" class="_mt">6.  </font></b> </td> <td><b><font style="font-family: 'Times New Roman', Times;" class="_mt">RESERVE FOR LOSSES AND LOSS EXPENSES</font></b> </td></tr></table> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">The reserve for losses and loss expenses consists of the following: </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr style="font-size: 1pt;" valign="bottom"><td width="75%"> </td> <td width="2%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2010</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2009</b> </td> <td>  </td></tr> <tr style="line-height: 3pt; font-size: 1pt;"><td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">OSLR </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,166,516 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">1,152,035 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">IBNR </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,712,672 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,609,737 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Reserve for losses and loss expenses </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">4,879,188 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">4,761,772 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="text-indent: 0%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">The table below is a reconciliation of the beginning and ending liability for unpaid losses and loss expenses for the years ended December 31, 2010, 2009 and 2008. Losses incurred and paid are reflected net of reinsurance recoveries. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <table style="font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr style="font-size: 1pt;" valign="bottom"><td width="62%"> </td> <td width="2%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td> <td width="3%"> </td> <td width="1%" align="right"> </td> <td width="8%" align="right"> </td> <td width="1%" align="left"> </td></tr> <tr style="font-size: 8pt;" valign="bottom" align="center"><td valign="bottom" nowrap="nowrap" align="center">  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2010</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2009</b> </td> <td>  </td> <td>  </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" nowrap="nowrap" align="center"><b>2008</b> </td> <td>  </td></tr> <tr style="line-height: 3pt; font-size: 1pt;"><td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Gross liability at beginning of year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">4,761,772 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">4,576,828 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">3,919,772 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Reinsurance recoverable at beginning of year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(919,991 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(888,314 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(682,765 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Net liability at beginning of year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,841,781 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,688,514 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,237,007 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Acquisition of net reserve for losses and loss expenses </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">298,927 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Net losses incurred related to: </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Commutation of variable-rated reinsurance contracts </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">8,864 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">— </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Current year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">1,012,374 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">852,052 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">921,217 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Prior years </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(313,355 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(247,992 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(280,095 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Total incurred </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">707,883 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">604,060 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">641,122 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Net paid losses related to: </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Current year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">98,646 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">42,320 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">79,037 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Prior years </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">498,084 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">415,901 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">395,163 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" nowrap="nowrap" align="left"> <div style="text-indent: -10pt; margin-left: 20pt;">Total paid </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">596,730 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">458,221 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">474,200 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Foreign exchange revaluation </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(1,334 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">7,428 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">(14,342 </td> <td valign="bottom" nowrap="nowrap" align="left">) </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Net liability at end of year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,951,600 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,841,781 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">3,688,514 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Reinsurance recoverable at end of year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">927,588 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">919,991 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td valign="bottom" nowrap="nowrap" align="right">888,314 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 1px solid;">  </td> <td style="border-top: #000000 1px solid;">  </td> <td>  </td></tr> <tr style="background: #cceeff;" valign="bottom"><td valign="bottom" align="left"> <div style="text-indent: -10pt; margin-left: 10pt;">Gross liability at end of year </div></td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">4,879,188 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">4,761,772 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td> <td>  </td> <td valign="bottom" nowrap="nowrap" align="left">$ </td> <td valign="bottom" nowrap="nowrap" align="right">4,576,828 </td> <td valign="bottom" nowrap="nowrap" align="left">  </td></tr> <tr style="font-size: 1pt;" valign="bottom"><td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td> <td>  </td> <td style="border-top: #000000 3px double;">  </td> <td style="border-top: #000000 3px double;">  </td> <td>  </td></tr></table> <div style="text-indent: 0%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"> </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">The commutation of variable-rated reinsurance contracts of $8,864 represents the reduction of ceded IBNR related to the commutation of swing-rated reinsurance contracts during the year ended December 31, 2010. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">The "acquisition of net reserve for losses and loss expenses" of $298,927 represents the reserves acquired from Darwin during the year ended December 31, 2008. </div> <div style="font-family: Arial, Helvetica; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left"> </div> <table style="font-family: Arial, Helvetica; background: none transparent scroll repeat 0% 0%; color: #000000; font-size: 10pt;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td width="3%"> </td> <td width="97%"> </td></tr> <tr valign="top"><td> </td> <td> </td></tr></table> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">For the year ended December 31, 2010, the Company had net favorable reserve development in each of its segments due to actual loss emergence being lower than the initial expected loss emergence. The majority of the net favorable reserve development was recognized in the international insurance segment in the 2004 through 2006 loss years related to the general casualty, healthcare and professional liability lines of business. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">For the year ended December 31, 2009, the Company had net favorable reserve development in each of its segments due to actual loss emergence being lower than the initial expected loss emergence. The majority of the net favorable reserve development was recognized in the international insurance segment in the 2004 and 2005 loss years related to the general casualty, healthcare and professional liability lines of business. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">For the year ended December 31, 2008, the Company had net favorable reserve development in each of its segments due to actual loss emergence being lower than the initial expected loss emergence. The majority of the net favorable reserve development was recognized in the international insurance segment, as well as net favorable reserve development related to the 2004 and 2005 windstorms in the international insurance and reinsurance segments. </div> <div style="margin-top: 6pt; font-size: 1pt;"> </div> <div style="text-indent: 4%; font-family: 'Times New Roman', Times; background: none transparent scroll repeat 0% 0%; color: #000000; margin-left: 0%; font-size: 10pt; margin-right: 0%;" align="left">While the Company has experienced favorable development in its insurance and reinsurance lines, there is no assurance that conditions and trends that have affected the development of liabilities in the past will continue. It is not appropriate to extrapolate future redundancies based on prior years' development. The methodology of estimating loss reserves is periodically reviewed to ensure that the key assumptions used in the actuarial models continue to be appropriate. </div> </div>6.   RESERVE FOR LOSSES AND LOSS EXPENSES   The reserve for losses and loss expenses consists of the following:falsefalsefalsefalsefalseOtherus-types:textBlockItemTypestringDescribes the various components of the reserve for future policy benefits and guaranteed minimum benefits, and for claims and claims adjustment expenses; the significant assumptions for estimating claims losses; causes of significant variances from prior periods (such as catastrophes, asbestos and environmental claims reserve losses); and reconciliations of beginning to ending reserve balances.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-5 -Paragraph 11 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 13 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 falsefalseRESERVE FOR LOSSES AND LOSS EXPENSES12RESERVE FOR LOSSES AND LOSS EXPENSESUnKnownUnKnownUnKnownUnKnownfalsetrue