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

12 Months Ended

Mar. 31, 2014

Disclosure Text Block [Abstract]

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, 2013
Life insurance in force	$	861,967	$	403	$	1,033,136	$	1,894,700	55%
Premiums earned:
Life	$	45,625	$	212	$	12,888	$	58,301	22%
Accident and health		95,536		397		3,157		98,296	3%
Annuity		847		23		498		1,322	38%
Property and casualty		40,685		-		367		41,052	1%
Total	$	182,693	$	632	$	16,910	$	198,971
Year ended December 31, 2012
Life insurance in force	$	811,035	$	16,471		1,083,550	$	1,878,114	58%
Premiums earned:
Life	$	52,751	$	2,685	$	13,640	$	63,706	21%
Accident and health		106,266		454		3,409		109,221	3%
Annuity		6,095		1,208		301		5,188	6%
Property and casualty		31,537		-		2,805		34,342	8%
Total	$	196,649	$	4,347	$	20,155	$	212,457
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

 (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 $0.6 million from re-insurers and has issued letters of credit in the amount of $4.3 million in favor of certain ceding companies.

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

		Years Ended December 31,
		2013		2012
		(In thousands)
Unpaid losses and loss adjustment expense	$	295,126	$	330,093
Reinsurance losses payable		90		91
Total	$	295,216	$	330,184

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

		Years Ended December 31,
		2013		2012		2011
		(In thousands)
Balance at January 1	$	330,093	$	382,328	$	276,355
Less: reinsurance recoverable		176,439		223,865		167,315
Net balance at January 1		153,654		158,463		109,040
Incurred related to:
Current year		9,861		8,962		9,297
Prior years		1,652		7,036		56,445
Total incurred		11,513		15,998		65,742
Paid related to:
Current year		5,226		4,405		5,049
Prior years		1,350		16,402		11,270
Total paid		6,576		20,807		16,319
Net balance at December 31		158,591		153,654		158,463
Plus: reinsurance recoverable		136,535		176,439		223,865
Balance at December 31	$	295,126	$	330,093	$	382,328

 The liability for incurred losses and loss adjustment expenses (net of reinsurance recoverable of $136.5 million) increased by $4.9 million in 2013.