Reinsurance (Tables)

9 Months Ended

Sep. 30, 2012

Reinsurance [Abstract]

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

	Nine months ended September 30,				Three months ended September 30,
	2012		2011		2012		2011
Direct written premium	$	1,826,610	$	1,724,869	$	603,844	$	555,427
Reinsurance assumed		313,395		295,268		61,919		73,420
Reinsurance ceded		(409,206)		(359,046)		(135,456)		(116,513)
Net written premium	$	1,730,799	$	1,661,091	$	530,307	$	512,334
Direct earned premium	$	1,795,109	$	1,728,082	$	601,572	$	574,571
Reinsurance assumed		259,870		255,293		90,988		96,799
Reinsurance ceded		(378,857)		(406,388)		(128,910)		(127,114)
Net earned premium	$	1,676,122	$	1,576,987	$	563,650	$	544,256
Direct loss and loss adjustment expense	$	1,029,227	$	1,197,225	$	301,306	$	410,573
Reinsurance assumed		96,143		186,805		35,108		44,600
Reinsurance ceded		(155,603)		(321,790)		(32,400)		(74,801)
Net loss and loss adjustment expense	$	969,767	$	1,062,240	$	304,014	$	380,372

Policy acquisition costs	$	299,854	$	292,645	$	101,698	$	100,975
Ceding commissions		(88,300)		(99,465)		(34,078)		(43,479)
Net policy acquisition costs	$	211,554	$	193,180	$	67,620	$	57,496

Components of our reinsurance recoverables

		September 30,		December 31,
		2012		2011
Reinsurance recoverable on paid losses		$	58,220	$	83,109
Reinsurance recoverable on outstanding losses			479,378		477,760
Reinsurance recoverable on incurred but not reported losses			477,859		497,074
Reserve for uncollectible reinsurance			(1,500)		(1,875)
	Total reinsurance recoverables	$	1,013,957	$	1,056,068

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

		September 30,		December 31,
		2012		2011
Payables to reinsurers		$	201,598	$	195,806
Letters of credit			97,357		120,589
Cash			112,105		83,731
	Total credits	$	411,060	$	400,126

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

		September 30,		December 31,
		2012		2011
Loss and loss adjustment expense payable		$	3,692,250	$	3,658,317
Reinsurance recoverable on outstanding losses			(479,378)		(477,760)
Reinsurance recoverable on incurred but not reported losses			(477,859)		(497,074)
	Net reserves	$	2,735,013	$	2,683,483
Unearned premium		$	1,118,094	$	1,031,034
Ceded unearned premium			(262,168)		(222,300)
	Net unearned premium	$	855,926	$	808,734
Deferred policy acquisition costs		$	199,401	$	189,633
Deferred ceding commissions			(74,441)		(62,364)
	Net deferred policy acquisition costs	$	124,960	$	127,269