HISTORICAL LOSS AND LAE DEVELOPMENT (Tables)

12 Months Ended

Dec. 31, 2013

HISTORICAL LOSS AND LAE DEVELOPMENT

Schedule of reconciliation of unpaid losses and settlement expenses (LAE)

(in thousands)	2013			2012			2011
Unpaid losses and LAE at beginning of year:
Gross	$	1,158,483		$	1,150,714		$	1,173,943
Ceded	(359,884		)	(353,805		)	(354,163		)
Net	$	798,599		$	796,909		$	819,780
Unpaid losses and LAE - CBIC - Acquisition date:
April 28, 2011
Gross	$	—		$	—		$	72,387
Ceded	—			—			(18,881		)
Net	$	—		$	—		$	53,506
Increase (decrease) in incurred losses and LAE:
Current accident year	$	332,282		$	336,228		$	310,145
Prior accident years	(72,481		)	(64,583		)	(110,061		)
Total incurred	$	259,801		$	271,645		$	200,084
Loss and LAE payments for claims incurred:
Current accident year	$	(57,537	)	$	(69,785	)	$	(89,924	)
Prior accident year	(226,354		)	(200,170		)	(186,537		)
Total paid	$	(283,891	)	$	(269,955	)	$	(276,461	)
Net unpaid losses and LAE at end of year	$	774,509		$	798,599		$	796,909
Unpaid losses and LAE at end of year:
Gross	$	1,129,433		$	1,158,483		$	1,150,714
Ceded	(354,924		)	(359,884		)	(353,805		)
Net	$	774,509		$	798,599		$	796,909

Schedule of prior accident years' loss reserve development by segment

(in thousands)	2013			2012			2011
Casualty	$	(61,805	)	$	(40,449	)	$	(83,892	)
Property	(7,273		)	(16,800		)	(18,453		)
Surety	(3,403		)	(7,334		)	(7,716		)
Total	$	(72,481	)	$	(64,583	)	$	(110,061	)

Schedule of paid and unpaid environmental, asbestos and mass tort claims data (including incurred but not reported losses)

(in thousands)	2013			2012			2011
LOSS AND LAE PAYMENTS (CUMULATIVE)
Gross	$	105,559		$	102,222		$	91,079
Ceded	(57,976		)	(57,345		)	(48,039		)
Net	$	47,583		$	44,877		$	43,040
UNPAID LOSSES AND LAE AT END OF YEAR
Gross	$	48,507		$	50,353		$	66,429
Ceded	(15,043		)	(16,733		)	(31,633		)
Net	$	33,464		$	33,620		$	34,796