Reinsurance

3 Months Ended

Mar. 31, 2013

Reinsurance/Losses and Loss Adjustment Expenses [Abstract]

Reinsurance

Note 7 — 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 Company contracts with a number of well-known and rated reinsurers to secure its annual reinsurance coverage, which becomes effective June 1st each year. The Company purchases reinsurance each year taking into consideration maximum projected losses and reinsurance market conditions.

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

	Three Months Ended March 31,
	2013			2012
Premiums Written:
Direct	$	70,849			38,174
Assumed		(1,600	)		(1,278	)
Gross written		69,249			36,896
Ceded		(21,996	)		(14,267	)
Net premiums written	$	47,253			22,629
Premiums Earned:
Direct	$	53,127			33,298
Assumed		29,420			21,400
Gross earned		82,547			54,698
Ceded		(21,996	)		(14,267	)
Net premiums earned	$	60,551			40,431

During the three months ended March 31, 2013 and 2012, there were no recoveries pertaining to reinsurance contracts that were deducted from losses incurred. At March 31, 2013 and December 31, 2012, prepaid reinsurance premiums related to 31 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 March 31, 2013 and December 31, 2012.