Reinsurance (Tables)

6 Months Ended

Jun. 30, 2012

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,
	2012		2011		2012		2011
Direct written premium	$	1,222,766	$	1,169,442	$	677,996	$	661,301
Reinsurance assumed		251,476		221,848		113,557		80,781
Reinsurance ceded		(273,750)		(242,533)		(149,465)		(132,209)
Net written premium	$	1,200,492	$	1,148,757	$	642,088	$	609,873
Direct earned premium	$	1,193,537	$	1,153,511	$	602,354	$	578,703
Reinsurance assumed		168,882		158,494		86,544		79,113
Reinsurance ceded		(249,947)		(279,274)		(123,567)		(133,565)
Net earned premium	$	1,112,472	$	1,032,731	$	565,331	$	524,251
Direct loss and loss adjustment expense	$	727,921	$	786,652	$	362,529	$	343,898
Reinsurance assumed		61,035		142,205		24,326		68,298
Reinsurance ceded		(123,203)		(246,989)		(50,030)		(77,914)
Net loss and loss adjustment expense	$	665,753	$	681,868	$	336,825	$	334,282

Policy acquisition costs	$	198,156	$	191,670	$	102,421	$	93,847
Ceding commissions		(54,222)		(55,986)		(27,931)		(28,006)
Net policy acquisition costs	$	143,934	$	135,684	$	74,490	$	65,841

Components of our reinsurance recoverables

		June 30,		December 31,
		2012		2011
Reinsurance recoverable on paid losses		$	51,795	$	83,109
Reinsurance recoverable on outstanding losses			518,288		477,760
Reinsurance recoverable on incurred but not reported losses			488,416		497,074
Reserve for uncollectible reinsurance			(1,500)		(1,875)
	Total reinsurance recoverables	$	1,056,999	$	1,056,068

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

		June 30,		December 31,
		2012		2011
Payables to reinsurers		$	229,525	$	195,806
Letters of credit			104,097		120,589
Cash			105,586		83,731
	Total credits	$	439,208	$	400,126

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

		June 30,		December 31,
		2012		2011
Loss and loss adjustment expense payable		$	3,755,699	$	3,658,317
Reinsurance recoverable on outstanding losses			(518,288)		(477,760)
Reinsurance recoverable on incurred but not reported losses			(488,416)		(497,074)
	Net reserves	$	2,748,995	$	2,683,483
Unearned premium		$	1,147,121	$	1,031,034
Ceded unearned premium			(255,078)		(222,300)
	Net unearned premium	$	892,043	$	808,734
Deferred policy acquisition costs		$	204,387	$	189,633
Deferred ceding commissions			(71,767)		(62,364)
	Net deferred policy acquisition costs	$	132,620	$	127,269