11. Property and Casualty Insurance Activity (Tables)

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Schedule of Earned Premiums

Premiums written, ceded and earned are as follows:

	Direct			Assumed			Ceded			Net
Year ended December 31, 2012
Premiums written	$	49,251,630		$	23,967		$	(29,715,971	)	$	19,559,626
Change in unearned premiums		(4,724,193	)		(5,010	)		2,386,188			(2,343,015	)
Premiums earned	$	44,527,437		$	18,957		$	(27,329,783	)	$	17,216,611
Year ended December 31, 2011
Premiums written	$	40,734,767		$	10,990		$	(24,449,655	)	$	16,296,102
Change in unearned premiums		(4,005,312	)		(516	)		2,578,472			(1,427,356	)
Premiums earned	$	36,729,455		$	10,474		$	(21,871,183	)	$	14,868,746

Schedule of components of the liability for loss and LAE expenses and related reinsurance receivables

	Gross		Reinsurance
	Liability		Receivables
December 31, 2012
Case-basis reserves	$	21,190,141	$	13,284,613
Loss adjustment expenses		2,502,169		1,064,420
IBNR reserves		6,793,222		4,070,661
Recoverable on unpaid losses				18,419,694
Recoverable on paid losses		-		5,792,405
Total loss and loss adjustment expenses	$	30,485,532		24,212,099
Unearned premiums				14,690,683
Total reinsurance receivables			$	38,902,782
December 31, 2011
Case-basis reserves	$	11,467,967	$	6,148,765
Loss adjustment expenses		2,117,242		1,017,983
IBNR reserves		4,895,508		2,793,586
Recoverable on unpaid losses				9,960,334
Recoverable on paid losses		-		1,615,981
Total loss and loss adjustment expenses	$	18,480,717		11,576,315
Unearned premiums				12,304,499
Total reinsurance receivables			$	23,880,814

Schedule of a reconciliation of the beginning and ending balances for unpaid losses and loss adjustment expenses

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

	Years ended
	December 31,
	2012			2011
Balance at beginning of period	$	18,480,717		$	17,711,907
Less reinsurance recoverables		(9,960,334	)		(10,431,415	)
Net balance, beginning of period		8,520,383			7,280,492
Incurred related to:
Current year		10,460,000			8,297,998
Prior years		774,713			273,060
Total incurred		11,234,713			8,571,058
Paid related to:
Current year		4,419,000			4,108,010
Prior years		3,270,258			3,223,157
Total paid		7,689,258			7,331,167
Net balance at end of period		12,065,838			8,520,383
Add reinsurance recoverables		18,419,694			9,960,334
Balance at end of period	$	30,485,532		$	18,480,717

Schedule of method used by product line and accident year

The table below shows the method used by product line and accident year to select the estimated year-ending loss reserves:

		Accident Year
Product Line	Most Recent	1st Prior	All Other
Fire	Loss Ratio	Loss Development	Loss Development
Homeowners	Loss Ratio	Loss Development	Loss Development
Two to Four Family	Loss Ratio	Loss Development	Loss Development
Commercial multiple-peril property	Loss Ratio	Loss Development	Loss Development
Commercial multiple-peril liability	Loss Ratio	Loss Development	Loss Development
Other Liability	Loss Ratio	Loss Development	Loss Development
Commercial Auto Liability	Loss Ratio	Loss Development	Loss Development
Auto Physical Damage	Loss Ratio	Loss Development	Loss Development
Personal Auto Liability	Loss Ratio	Loss Development	Loss Development