Reinsurance (Tables)

6 Months Ended

Jun. 30, 2011

Reinsurance [Abstract]

Effect of reinsurance transactions on our premium, loss and loss adjustment expense and policy acquisition costs

	Six months ended June 30,						Three months ended June 30,
	2011			2010			2011			2010
Direct written premium	$	1,169,442		$	1,131,637		$	661,301		$	622,445
Reinsurance assumed		221,848			182,437			80,781			69,133
Reinsurance ceded		(242,533	)		(269,021	)		(132,209	)		(144,776	)
Net written premium	$	1,148,757		$	1,045,053		$	609,873		$	546,802
Direct earned premium	$	1,153,511		$	1,139,036		$	578,703		$	567,074
Reinsurance assumed		158,494			141,148			79,113			71,908
Reinsurance ceded		(279,274	)		(264,212	)		(133,565	)		(132,597	)
Net earned premium	$	1,032,731		$	1,015,972		$	524,251		$	506,385
Direct loss and loss adjustment expense	$	786,652		$	718,869		$	343,898		$	357,918
Reinsurance assumed		142,205			105,789			68,298			52,954
Reinsurance ceded		(246,989	)		(199,151	)		(77,914	)		(111,886	)
Net loss and loss adjustment expense	$	681,868		$	625,507		$	334,282		$	298,986
Policy acquisition costs	$	223,847		$	218,958		$	112,489		$	109,853
Ceding commissions		(55,986	)		(57,628	)		(28,006	)		(28,221	)
Net policy acquisition costs	$	167,861		$	161,330		$	84,483		$	81,632

Components of our reinsurance recoverables

	June 30,			December 31,
	2011			2010
Reinsurance recoverable on paid losses	$	63,103		$	75,262
Reinsurance recoverable on outstanding losses		487,294			452,882
Reinsurance recoverable on incurred but not reported losses		555,705			481,204
Reserve for uncollectible reinsurance		(2,247	)		(2,493	)
Total reinsurance recoverables	$	1,103,855		$	1,006,855

Reserve for potentially uncollectible amounts

	Six months ended June 30,
	2011			2010
Balance at beginning of year	$	2,493		$	2,945
Provision expense (recovery)		(246	)		—
Balance at June 30	$	2,247		$	2,945

Amounts of letters of credit and cash deposits held by us as collateral, plus other credits available for potential offset

	June 30,		December 31,
	2011		2010
Payables to reinsurers	$	266,374	$	243,990
Letters of credit		137,859		145,914
Cash deposits		92,996		81,966
Total credits	$	497,229	$	471,870

Calculation of net reserves, net unearned premium and net deferred policy acquisition costs

	June 30,			December 31,
	2011			2010
Loss and loss adjustment expense payable	$	3,655,944		$	3,471,858
Reinsurance recoverable on outstanding losses		(487,294	)		(452,882	)
Reinsurance recoverable on incurred but not reported losses		(555,705	)		(481,204	)
Net reserves	$	2,612,945		$	2,537,772
Unearned premium	$	1,110,638		$	1,045,877
Ceded unearned premium		(242,599	)		(278,663	)
Net unearned premium	$	868,039		$	767,214
Deferred policy acquisition costs	$	229,248		$	212,786
Deferred ceding commissions		(67,015	)		(72,565	)
Net deferred policy acquisition costs	$	162,233		$	140,221