6. Property and Casualty Insurance Activity (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014
Premiums written	$	16,347,445		$	7,647	$	(9,769,829	)	$	6,585,263
Change in unearned premiums		(1,133,528	)		2,654		471,922			(658,952	)
Premiums earned	$	15,213,917		$	10,301	$	(9,297,907	)	$	5,926,311
Three months ended March 31, 2013
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

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 expense (“LAE”) reserves:

	Three months ended
	March 31,
	2014			2013
Balance at beginning of period	$	34,503,229		$	30,485,532
Less reinsurance recoverables		(17,363,975	)		(18,419,694	)
Net balance, beginning of period		17,139,254			12,065,838
Incurred related to:
Current year		4,121,732			2,469,783
Prior years		203,222			(142	)
Total incurred		4,324,954			2,469,641
Paid related to:
Current year		1,082,950			588,655
Prior years		1,455,086			1,365,361
Total paid		2,538,036			1,954,016
Net balance at end of period		18,926,172			12,581,463
Add reinsurance recoverables		21,117,082			15,728,423
Balance at end of period	$	40,043,254		$	28,309,886

Schedule of Single maximum risks under treaties

The single maximum risks to which the Company is subject under these treaties per occurrence are as follows:

Treaty	Extent of Loss	Risk Retained
Personal Lines	Initial $1,200,000	$300,000
	$1,200,000 - $2,900,000	None(1)
	Over $2,900,000	100%
Personal Umbrella	Initial $1,000,000	$100,000
	$1,000,000 - $2,000,000	None(1)
	Over $2,000,000	100%
Commercial Lines	Initial $400,000	$300,000
	$400,000 - $2,900,000	None(1)
	Over $2,900,000	100%
Commercial Auto	Initial $300,000	$300,000
	$300,000 - $2,000,000	None(1)
	Over $2,000,000	100%
Catastrophe (2)	Initial $4,000,000	$1,000,000
	$4,000,000 - $90,000,000	None
	Over $90,000,000	100%

Schedule of Ceding Commission Revenue

Ceding commissions earned consists of the following:

	Three months ended
	March 31,
	2014		2013
Provisional ceding commissions earned	$	3,376,876	$	2,392,864
Contingent ceding commissions earned		4,407		(99,153	)
	$	3,381,283	$	2,293,711