Reinsurance

6 Months Ended

Jun. 30, 2011

Reinsurance

Reinsurance

Note 6 – Reinsurance

The Company cedes a portion of its homeowners insurance exposure to other entities under catastrophe excess of loss reinsurance treaties. The Company remains liable with respect to claims payments in the event that any of the reinsurers are unable to meet their obligations under the reinsurance agreements. The Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk arising from similar geographic regions, activities or economic characteristics of the reinsurers to minimize its exposure to significant losses from reinsurer insolvencies.

The impact of the catastrophe excess of loss reinsurance treaties on premiums written and earned is as follows (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Premiums Written
Direct	$	54,838			49,854			69,961			64,729
Assumed		(157	)		(666	)		(2,351	)		(6,776	)
Gross written		54,681			49,188			67,610			57,953
Ceded		(14,174	)		(14,333	)		(28,396	)		(28,436	)
Net premiums written	$	40,507			34,855			39,214			29,517
Premiums Earned
Direct	$	29,160			25,024			57,147			48,342
Assumed		2,058			4,954			4,967			11,980
Gross earned		31,218			29,978			62,114			60,322
Ceded		(14,174	)		(14,333	)		(28,396	)		(28,436	)
Net premiums earned	$	17,044			15,645			33,718			31,886

During the three and six months ended June 30, 2011 and 2010, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At June 30, 2011 and December 31, 2010, prepaid reinsurance premiums related to 18 reinsurers and there were no amounts receivable with respect to reinsurers. Thus, there were no concentrations of credit risk associated with reinsurance receivables and prepaid reinsurance premiums as of June 30, 2011 and December 31, 2010.