6. Property and Casualty Insurance Activity (Tables)

9 Months Ended

Sep. 30, 2014

Notes to Financial Statements

Schedule of Earned Premiums

	Direct	Assumed	Ceded	Net
Nine months ended September 30, 2014
Premiums written	$    56,729,057	$           39,263	$(24,013,732)	$  32,754,588
Change in unearned premiums	(7,311,116)	(6,082)	(3,186,706)	(10,503,904)
Premiums earned	$    49,417,941	$           33,181	$(27,200,438)	$  22,250,684
Nine months ended September 30, 2013
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
Three months ended September 30, 2014
Premiums written	$    20,131,112	$           22,961	$  (2,485,929)	$  17,668,144
Change in unearned premiums	(2,438,306)	(12,433)	(5,322,405)	(7,773,144)
Premiums earned	$    17,692,806	$           10,528	$  (7,808,334)	$    9,895,000
Three months ended September 30, 2013
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

Schedule of Loss and Loss Adjustment Expenses

	Nine months ended
	September 30,
	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	11,043,919	7,467,756
Prior years	827,141	682,814
Total incurred	11,871,060	8,150,570
Paid related to:
Current year	4,725,526	2,458,940
Prior years	4,834,120	3,498,333
Total paid	9,559,646	5,957,273
Net balance at end of period	19,450,668	14,259,135
Add reinsurance recoverables	17,471,621	15,257,918
Balance at end of period	$  36,922,289	$  29,517,053

Schedule of line of business

	Treaty Year
	July 1, 2014	July 1, 2013	July 1, 2012
	to	to	to
Line of Business	June 30, 2015	June 30, 2014	June 30, 2013
Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded	55%	75%	75%
Risk retained	$        360,000	$       300,000	$       250,000
Losses per occurrence subject to quota share reinsurance coverage	$        800,000	$    1,200,000	$    1,000,000
Excess of loss coverage above quota share coverage	$     3,200,000	$    1,700,000	$    1,900,000
	in excess of	in excess of	in excess of
	$        800,000	$    1,200,000	$    1,000,000
Total reinsurance coverage per occurrence	$     3,640,000	$    2,600,000	$    2,650,000
Losses per occurrence subject to reinsurance coverage	$     4,000,000	$    2,900,000	$    2,900,000
Expiration date	June 30, 2015	June 30, 2015	June 30, 2013
Personal Umbrella
Quota share treaty:
Percent ceded - first million dollars of coverage	90%	90%	90%
Percent ceded - excess of one million dollars of coverage	100%	100%	100%
Total reinsurance coverage per occurrence	$     2,900,000	$    1,900,000	$    1,900,000
Losses per occurrence subject to quota share reinsurance coverage	$     3,000,000	$    2,000,000	$    2,000,000
Expiration date	June 30, 2015	June 30, 2014	June 30, 2013
Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)	None	25%	40%
Risk retained	$        400,000	$       300,000	$       300,000
Losses per occurrence subject to quota share reinsurance coverage	None	$       400,000	$       500,000
Excess of loss coverage above quota share coverage	$     3,600,000	$    2,500,000	$    2,400,000
	in excess of	in excess of	in excess of
	$        400,000	$       400,000	$       500,000
Total reinsurance coverage per occurrence	$     3,600,000	$    2,600,000	$    2,600,000
Losses per occurrence subject to reinsurance coverage	$     4,000,000	$    2,900,000	$    2,900,000
Commercial Auto:
Excess of loss coverage in excess of risk retained	$     1,700,000	$    1,700,000	$    1,750,000
	in excess of	in excess of	in excess of
	$        300,000	$       300,000	$       250,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty	$     4,000,000	$    4,000,000	$    3,000,000
Risk retained per catastrophe occurrence (1)	$     1,800,000	$    1,000,000	$       750,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$ 137,000,000	$  86,000,000	$  70,000,000

Schedule of Single maximum risks under treaties

	July 1, 2014 - June 30, 2015		July 1, 2013 - June 30, 2014
Treaty	Extent of Loss	Risk Retained	Extent of Loss	Risk Retained
Personal Lines	Initial $800,000	$360,000	Initial $1,200,000	$300,000
	$800,000 - $4,000,000	None(1)	$1,200,000 - $2,900,000	None(1)
	Over $4,000,000	100%	Over $2,900,000	100%
Personal Umbrella	Initial $1,000,000	$100,000	Initial $1,000,000	$100,000
	$1,000,000 - $3,000,000	None(1)	$1,000,000 - $2,000,000	None(1)
	Over $3,000,000	100%	Over $2,000,000	100%
Commercial Lines	Initial $400,000	$400,000	Initial $400,000	$300,000
	$400,000 - $4,000,000	None(1)	$400,000 - $2,900,000	None(1)
	Over $4,000,000	100%	Over $2,900,000	100%
Commercial Auto	Initial $300,000	$300,000	Initial $300,000	$300,000
	$300,000 - $2,000,000	None(1)	$300,000 - $2,000,000	None(1)
	Over $2,000,000	100%	Over $2,000,000	100%
Catastrophe (2)	Initial $4,000,000	$1,800,000	Initial $4,000,000	$1,000,000
	$4,000,000 - $141,000,000	None	$4,000,000 - $90,000,000	None
	Over $141,000,000	100%	Over $90,000,000	100%

Schedule of Ceding Commission Revenue

	Three months ended		Nine months ended
	September 30,		September 30,
	2014	2013	2014	2013
Provisional ceding commissions earned	$  2,653,690	$  2,940,661	$   9,660,437	$   7,836,370
Contingent ceding commissions earned	624,629	670,883	705,214	403,316
	$  3,278,319	$  3,611,544	$ 10,365,651	$   8,239,686