Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable

12 Months Ended

Mar. 31, 2012

Disclosure Text Block [Abstract]

Note 18: Reinsurance and Policy Benefits and Losses, Claims and Loss Expense Payable

Note 18.  Reinsurance and Policy Benefits and Losses, Claims and Loss Expenses Payable

During their normal course of business, our insurance subsidiaries assume and cede reinsurance on both a coinsurance and a risk premium basis. They also obtain reinsurance for that portion of risks exceeding their retention limits. The maximum amount of life insurance retained on any one life is $110,000.

	Direct Amount (a)		Ceded to Other Companies			Assumed from Other Companies		Net Amount (a)		Percentage of Amount Assumed to Net
	(In thousands)
Year ended December 31, 2011
Life insurance in force	$	761,070	$	14,868		$	1,142,247	$	1,888,449		60	%
Premiums earned:
Life	$	63,396	$	6,909		$	94,982	$	151,469		63	%
Accident and health		115,599		503			3,635		118,731		3	%
Annuity		9,049		1,920			233		7,362		3	%
Property and casualty		30,145		-			2,486		32,631		8	%
Total	$	218,189	$	9,332		$	101,336	$	310,193
Year ended December 31, 2010
Life insurance in force	$	668,740	$	3,567		$	884,932	$	1,550,105		57	%
Premiums earned:
Life	$	77,721	$	-		$	37,300	$	115,021		32	%
Accident and health		88,441		575			3,815		91,681		4	%
Annuity		-		-			290		290		100	%
Property and casualty		28,179		68			2,593		30,704		8	%
Total	$	194,341	$	643		$	43,998	$	237,696
Year ended December 31, 2009
Life insurance in force	$	543,236	$	4,100		$	943,371	$	1,482,507		64	%
Premiums earned:
Life	$	49,335	$	37		$	5,108	$	54,406		9	%
Accident and health		74,271		(803	)		4,582		79,656		6	%
Annuity		140		-			143		283		51	%
Property and casualty		23,260		13			4,378		27,625		16	%
Total	$	147,006	$	(753	)	$	14,211	$	161,970

(a)       Balances are reported net of inter-segment transactions.

To the extent that a reinsurer is unable to meet its obligation under the related reinsurance agreements, Repwest would remain liable for the unpaid losses and loss expenses. Pursuant to certain of these agreements, Repwest holds letters of credit at year end in the amount of $1.8 million from re-insurers and has issued letters of credit in the amount of $5.6 million in favor of certain ceding companies.

Policy benefits and losses, claims and loss expenses payable for Property and Casualty Insurance were as follows:

	Years Ended December 31,
	2011		2010
	(In thousands)
Unpaid losses and loss adjustment expense	$	382,328	$	276,355
Reinsurance losses payable		611		367
Unearned premiums		-		4
Total	$	382,939	$	276,726

Activity in the liability for unpaid losses and loss adjustment expenses for Property and Casualty Insurance is summarized as follows:

	Years Ended December 31,
	2011		2010		2009
	(In thousands)
Balance at January 1	$	276,355	$	271,677	$	287,501
Less: reinsurance recoverable		167,315		162,711		173,098
Net balance at January 1		109,040		108,966		114,403
Incurred related to:
Current year		9,297		9,453		8,043
Prior years		56,445		7,832		6,516
Total incurred		65,742		17,285		14,559
Paid related to:
Current year		5,049		4,971		3,974
Prior years		11,270		12,240		16,022
Total paid		16,319		17,211		19,996
Net balance at December 31		158,463		109,040		108,966
Plus: reinsurance recoverable		223,865		167,315		162,711
Balance at December 31	$	382,328	$	276,355	$	271,677

The liability for incurred losses and loss adjustment expenses (net of reinsurance recoverable of $223.9 million) increased by $49.4 million in 2011.