7. Reinsurance (Tables)

12 Months Ended

Dec. 31, 2014

Reinsurance Tables

Line of Busines

	Treaty Year
		July 1, 2014			July 1, 2013			July 1, 2012
		to			to			to
Line of Busines		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	%
Risk retained		$	100,000		$	100,000		$	100,000
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:
Risk retained		$	300,000		$	300,000		$	250,000
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

(1)   Plus losses in excess of catastrophe coverage.

(2)   Effective July 1, 2014, the Company’s catastrophe treaty also covers losses caused by severe winter weather during any consecutive 28 day period. Effective July 1, 2014, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone has been extended to 96 consecutive hours from 72 consecutive hours.

(3)   Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.

Single maximum risks under treaties per occurrence

The single maximum risks per occurrence to which the Company is subject under the treaties that expired on June 30, 2014 and the new treaties effective July 1, 2014 are as follows:

	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%

________________

(1)   Covered by excess of loss treaties.

(2)   Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts.

Schedule of approximate reinsurance recoverables

Approximate reinsurance recoverables on unpaid and paid losses by reinsurer are as follows:

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2014
Maiden Reinsurace Company	$	7,946	$	598	$	8,544	$	12,847	(1)
SCOR Reinsurance Company		2,843		194		3,037		-
Swiss Reinsurance America Corporation		3,652		359		4,011		-
Motors Insurance Corporation		931		8		939		500	(1)
Sirius American Insurance Company		908		22		930		-
Allied World Assurance Company		651		15		666		-
Others		1,319		273		1,592		110	(2)
Total	$	18,250	$	1,469	$	19,719	$	13,457
December 31, 2013
Maiden Reinsurace Company	$	6,929	$	732	$	7,661	$	13,868	(1)
SCOR Reinsurance Company		3,318		294		3,612		-
Swiss Reinsurance America Corporation		2,523		454		2,977		-
Motors Insurance Corporation		1,536		48		1,584		792	(1)
Sirius American Insurance Company		1,410		44		1,454		-
Allied World Assurance Company		665		39		704		-
Others		983		185		1,168		135	(2)
Total	$	17,364	$	1,796	$	19,160	$	14,795

(1) Secured pursuant to collateralized trust agreements.

(2) Guaranteed by an irrevocable letter of credit.

Schedule of Ceding commissions earned

Ceding commissions earned consists of the following:

	Years ended
	December 31,
	2014		2013
Provisional ceding commissions earned	$	12,456,411	$	11,007,342
Contingent ceding commissions earned		1,453,700		665,761
	$	13,910,111	$	11,673,103