6. Property and Casualty Insurance Activity (Tables)

9 Months Ended

Sep. 30, 2013

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, 2013 (unaudited)
Premiums written	$	44,651,570		$	36,999		$	(26,567,984	)	$	18,120,585
Change in unearned premiums		(5,465,632	)		17,377			2,752,751			(2,695,504	)
Premiums earned	$	39,185,938		$	54,376		$	(23,815,233	)	$	15,425,081
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	)		1,817,614			(2,208,722	)
Premiums earned	$	32,422,667		$	12,434		$	(19,881,488	)	$	12,553,613
Three months ended September 30, 2013 (unaudited)
Premiums written	$	15,925,613		$	16,952		$	(8,786,730	)	$	7,155,835
Change in unearned premiums		(2,013,499	)		(11,192	)		994,440			(1,030,251	)
Premiums earned	$	13,912,114		$	5,760		$	(7,792,290	)	$	6,125,584
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	)		228,143			(1,148,706	)
Premiums earned	$	11,401,540		$	5,323		$	(6,990,357	)	$	4,416,506

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,
	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		7,467,756			6,554,087
Prior years		682,814			824,334
Total incurred		8,150,570			7,378,421
Paid related to:
Current year		2,458,940			2,572,948
Prior years		3,498,333			2,681,698
Total paid		5,957,273			5,254,646
Net balance at end of period		14,259,135			10,603,432
Add reinsurance recoverables		15,257,918			11,679,713
Balance at end of period	$	29,517,053		$	22,283,145

Schedule of Ceding Commission Revenue

Ceding commissions earned consists of the following:

	Three months ended September 30,				Nine months ended September 30,
	September 30,				September 30,
	2013		2012		2013		2012
	(unaudited)				(unaudited)
Provisional ceding commissions earned	$	2,940,661	$	2,171,391	$	7,836,370	$	6,231,106
Contingent ceding commissions earned		670,883		540,040		403,316		2,294,839
	$	3,611,544	$	2,711,431	$	8,239,686	$	8,525,945