7. Property and Casualty Insurance Activity (Tables)

3 Months Ended

Mar. 31, 2013

Notes to Financial Statements

Schedule of Earned Premiums

Premiums written, ceded and earned are as follows:
 

	Direct			Assumed		Ceded			Net
Three months ended March 31, 2013 (unaudited)
Premiums written	$	12,844,836		$	9,815	$	(7,883,665	)	$	4,970,986
Change in unearned premiums		(578,967	)		27,441		203,755			(347,771	)
Premiums earned	$	12,265,869		$	37,256	$	(7,679,910	)	$	4,623,215
Three months ended March 31, 2012 (unaudited)
Premiums written	$	11,235,725		$	1,400	$	(6,856,962	)	$	4,380,163
Change in unearned premiums		(972,141	)		1,579		562,934			(407,628	)
Premiums earned	$	10,263,584		$	2,979	$	(6,294,028	)	$	3,972,535

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”):

	Three months ended
	March 31,
	2013			2012
	(unaudited)
Balance at beginning of period	$	30,485,532		$	18,480,717
Less reinsurance recoverables		(18,419,694	)		(10,001,060	)
Net balance, beginning of period		12,065,838			8,479,657
Incurred related to:
Current year		2,469,783			2,286,000
Prior years		(142	)		(7,486	)
Total incurred		2,469,641			2,278,514
Paid related to:
Current year		588,655			455,147
Prior years		1,365,361			1,194,688
Total paid		1,954,016			1,649,835
Net balance at end of period		12,581,463			9,108,336
Add reinsurance recoverables		15,728,423			10,824,673
Balance at end of period	$	28,309,886		$	19,933,009

Schedule of Ceding Commission Revenue

Ceding commissions earned consists of the following:

	Three months ended
	March 31,
	2013			2012
	(unaudited)
Provisional ceding commissions earned	$	2,392,864		$	1,984,983
Contingent ceding commissions earned		(99,153	)		918,673
	$	2,293,711		$	2,903,656