7. Property and Casualty Insurance Activity (Tables)

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Schedule of Earned Premiums

Premiums written, ceded and earned are as follows:

	Direct			Assumed			Ceded			Net
Nine months ended September 30, 2012 (unaudited)
Premiums written	$	36,439,884		$	21,553		$	(21,699,102	)	$	14,762,335
Change in unearned premiums		(4,017,217	)		(9,119	)		2,682,809			(1,343,527	)
Premiums earned	$	32,422,667		$	12,434		$	(19,016,293	)	$	13,418,808
Nine months ended September 30, 2011 (unaudited)
Premiums written	$	30,502,800		$	6,289		$	(18,099,446	)	$	12,409,643
Change in unearned premiums		(3,823,593	)		1,611			2,234,476			(1,587,506	)
Premiums earned	$	26,679,207		$	7,900		$	(15,864,970	)	$	10,822,137
Three months ended September 30, 2012 (unaudited)
Premiums written	$	12,765,358		$	18,354		$	(7,218,500	)	$	5,565,212
Change in unearned premiums		(1,363,818	)		(13,031	)		1,093,338			(283,511	)
Premiums earned	$	11,401,540		$	5,323		$	(6,125,162	)	$	5,281,701
Three months ended September 30, 2011 (unaudited)
Premiums written	$	10,382,641		$	3,409		$	(6,119,576	)	$	4,266,474
Change in unearned premiums		(909,125	)		(41	)		579,881			(329,285	)
Premiums earned	$	9,473,516		$	3,368		$	(5,539,695	)	$	3,937,189

Schedule of Loss and Loss Adjustment Expenses

The following table provides a reconciliation of the beginning and ending balances for unpaid losses and loss adjustment expenses (“LAE”):

	Nine months ended September 30,
	2012			2011
	(unaudited)
Balance at beginning of period	$	18,480,717		$	17,711,907
Less reinsurance recoverables		(10,001,060	)		(10,431,415	)
Net balance, beginning of period		8,479,657			7,280,492
Incurred related to:
Current year		6,554,087			6,742,201
Prior years		824,334			565,724
Total incurred		7,378,421			7,307,925
Paid related to:
Current year		2,572,948			2,414,171
Prior years		2,681,698			2,608,709
Total paid		5,254,646			5,022,880
Net balance at end of period		10,603,432			9,565,537
Add reinsurance recoverables		11,679,713			11,808,025
Balance at end of period	$	22,283,145		$	21,373,562

Schedule of Ceding Commission Revenue

Ceding commission revenue consists of the following:

	Three months ended				Nine months ended
	September 30,				September 30,
	2012		2011		2012		2011
	(unaudited)				(unaudited)
Provisional ceding commissions earned	$	2,171,391	$	1,763,930	$	6,231,106	$	5,048,609
Contingent ceding commissions earned		540,040		543,460		2,294,839		2,299,223
	$	2,711,431	$	2,307,390	$	8,525,945	$	7,347,832