7. Reinsurance (Tables)

12 Months Ended

Dec. 31, 2015

Reinsurance Tables

Line of Busines

	Treaty Year
	July 1, 2015			July 1, 2014			July 1, 2013
	to			to			to
Line of Busines	June 30, 2016			June 30, 2015			June 30, 2014
Personal Lines:
Homeowners, dwelling fire and canine legal liability
Quota share treaty:
Percent ceded		40	%		55	%		75	%
Risk retained	$	450,000		$	360,000		$	300,000
Losses per occurrence subject to quota share reinsurance coverage	$	750,000		$	800,000		$	1,200,000
Excess of loss coverage above quota share coverage	$	3,750,000		$	3,200,000		$	1,700,000
	in excess of			in excess of			in excess of
	$	750,000		$	800,000		$	1,200,000
Total reinsurance coverage per occurrence	$	4,050,000		$	3,640,000		$	2,600,000
Losses per occurrence subject to reinsurance coverage	$	4,500,000		$	4,000,000		$	2,900,000
Expiration date	June 30, 2016			June 30, 2015			June 30, 2015
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		$	2,900,000		$	1,900,000
Losses per occurrence subject to quota share reinsurance coverage	$	3,000,000		$	3,000,000		$	2,000,000
Expiration date	June 30, 2016			June 30, 2015			June 30, 2014
Commercial Lines:
General liability commercial policies, except for commercial auto
Quota share treaty:
Percent ceded (terminated effective July 1, 2014)	None			None				25	%
Risk retained	$	425,000		$	400,000		$	300,000
Losses per occurrence subject to quota share reinsurance coverage	None			None			$	400,000
Excess of loss coverage above quota share coverage	$	4,075,000		$	3,600,000		$	2,500,000
	in excess of			in excess of			in excess of
	$	425,000		$	400,000		$	400,000
Total reinsurance coverage per occurrence	$	4,075,000		$	3,600,000		$	2,600,000
Losses per occurrence subject to reinsurance coverage	$	4,500,000		$	4,000,000		$	2,900,000
Commercial Auto:
Risk retained	$	300,000		$	300,000		$	300,000
Excess of loss coverage in excess of risk retained	$	1,700,000		$	1,700,000		$	1,700,000
	in excess of			in excess of			in excess of
	$	300,000		$	300,000		$	300,000
Catastrophe Reinsurance:
Initial loss subject to personal lines quota share treaty	$	4,000,000		$	4,000,000		$	4,000,000
Risk retained per catastrophe occurrence (1)	$	2,400,000		$	1,800,000		$	1,000,000
Catastrophe loss coverage in excess of quota share coverage (2) (3)	$	176,000,000		$	137,000,000		$	86,000,000
Severe winter weather aggregate (3)	Yes			Yes			No
Reinstatement premium protection (4)	Yes			No			No

1.	Plus losses in excess of catastrophe coverage.
2.	Catastrophe coverage is limited on an annual basis to two times the per occurrence amounts. Effective July 1, 2015, the duration of a catastrophe occurrence from windstorm, hail, tornado, hurricane and cyclone was extended to 120 consecutive hours from 96 consecutive hours.

3.	Effective July 1, 2014, our catastrophe treaty also covers losses caused by severe winter weather during any consecutive 28 day period.
4.	Effective July 1, 2015, reinstatement premium protection for $16,000,000 of catastrophe coverage in excess of $4,000,000.

Single maximum risks under treaties per occurrence

	July 1, 2015 - June 30, 2016
Treaty	Extent of Loss		Risk Retained
Personal Lines	Initial $750,000		$	450,000
		$750,000 - $4,500,000	None(1)
	Over $4,500,000			100	%
Personal Umbrella	Initial $1,000,000		$	100,000
		1,000,000 - $3,000,000	None(1)
	Over $3,000,000			100	%
Commercial Lines	Initial $425,000		$	425,000
		$425,000 - $4,500,000	None(1)
	Over $4,500,000			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		$	2,400,000
		$4,000,000 - $180,000,000	None
	Over $180,000,000			100	%

	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

	Unpaid		Paid
($ in thousands)	Losses		Losses		Total		Security
December 31, 2015
Maiden Reinsurace Company	$	7,979	$	631	$	8,610	$	12,201	(1)
Swiss Reinsurance America Corporation		3,662		377		4,039		-
SCOR Reinsurance Company		1,982		114		2,096		-
Hannover Rueck		853		524		1,377		-
Allied World Assurance Company		940		285		1,225		-
Others		1,290		117		1,407		293	(2)
Total	$	16,706	$	2,048	$	18,754	$	12,494
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	(3)
Total	$	18,250	$	1,469	$	19,719	$	13,457
(1) Secured pursuant to collateralized trust agreement.
(2) Includes $248,000 secured pursuant to collateralized trust agreement and $45,000 guaranteed by an irrevocable letter of credit.
(3) Guaranteed by an irrevocable letter of credit.

Schedule of Ceding commissions earned

	Years ended
	December 31,
	2015			2014
Provisional ceding commissions earned	$	11,692,458		$	12,456,411
Contingent ceding commissions earned		(219,341	)		1,453,700
	$	11,473,117		$	13,910,111