Reserves for Unpaid Losses and Loss Adjustment Expenses

9 Months Ended

Sep. 30, 2013

Reserves for Unpaid Losses and Loss Adjustment Expenses

Reserves for Unpaid Losses and Loss Adjustment Expenses

18. Reserves for Unpaid Losses and Loss Adjustment Expenses

Information regarding the reserve for unpaid losses and losses and loss adjustment expenses (“LAE”) are as follows (in thousands).

	Nine Months Ended September 30,
	2013			2012
Balance, beginning of period	$	34,012		$	44,835
Less reinsurance recoverables	(10,385		)	(25,083		)
Net balance, beginning of period	23,627			19,752
Incurred related to:
Current period	93,124			90,928
Prior periods	852			821
Total incurred	93,976			91,749
Payments related to:
Current period	(78,742		)	(73,267		)
Prior periods	(13,623		)	(13,194		)
Total payments	(92,365		)	(86,461		)
Net balance, end of period	25,238			25,040
Plus reinsurance recoverables	6,029			20,995
Balance, end of period	$	31,267		$	46,035

The decrease in the reserves at September 30, 2013 as compared to September 30, 2012 of $14.8 million is primarily due to the significant subsequent payment and recovery of those reinsurance recoverables outstanding at September 30, 2012.