6. Property and Casualty Insurance Activity (Tables)

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements

Schedule of Earned Premiums

Premiums written, ceded and earned are as follows:

	Direct			Assumed		Ceded			Net
Six months ended June 30, 2013 (unaudited)
Premiums written	$	28,725,957		$	20,047	$	(17,781,254	)	$	10,964,750
Change in unearned premiums		(3,452,133	)		28,569		1,758,311			(1,665,253	)
Premiums earned	$	25,273,824		$	48,616	$	(16,022,943	)	$	9,299,497
Six months ended June 30, 2012 (unaudited)
Premiums written	$	23,674,526		$	3,199	$	(14,480,602	)	$	9,197,123
Change in unearned premiums		(2,653,399	)		3,912		1,589,471			(1,060,016	)
Premiums earned	$	21,021,127		$	7,111	$	(12,891,131	)	$	8,137,107
Three months ended June 30, 2013 (unaudited)
Premiums written	$	15,881,121		$	10,232	$	(9,897,589	)	$	5,993,764
Change in unearned premiums		(2,873,166	)		1,128		1,554,556			(1,317,482	)
Premiums earned	$	13,007,955		$	11,360	$	(8,343,033	)	$	4,676,282
Three months ended June 30, 2012 (unaudited)
Premiums written	$	12,438,801		$	1,799	$	(7,623,640	)	$	4,816,960
Change in unearned premiums		(1,681,258	)		2,333		1,026,537			(652,388	)
Premiums earned	$	10,757,543		$	4,132	$	(6,597,103	)	$	4,164,572

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”):

	Six months ended
	June 30,
	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		5,175,229			4,359,416
Prior years		536,209			327,603
Total incurred		5,711,438			4,687,019
Paid related to:
Current year		1,416,181			933,939
Prior years		2,675,112			2,586,898
Total paid		4,091,293			3,520,837
Net balance at end of period		13,685,983			9,645,839
Add reinsurance recoverables		14,671,485			11,152,255
Balance at end of period	$	28,357,468		$	20,798,094

Schedule of Ceding Commission Revenue

Ceding commissions earned consists of the following:

	Three months ended					Six months ended
	June 30,					June 30,
	2013			2012		2013			2012
	(unaudited)					(unaudited)
Provisional ceding commissions earned	$	2,502,845		$	2,074,732	$	4,895,709		$	4,059,715
Contingent ceding commissions earned		(168,414	)		836,126		(267,567	)		1,754,799
	$	2,334,431		$	2,910,858	$	4,628,142		$	5,814,514