Reinsurance (Tables)

3 Months Ended

Mar. 31, 2013

Reinsurance [Abstract]

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

	Three months ended March 31,
	2013		2012
Direct written premium	$	581,571	$	544,770
Reinsurance assumed		138,634		137,919
Reinsurance ceded		(141,021)		(124,285)
Net written premium	$	579,184	$	558,404
Direct earned premium	$	616,405	$	591,183
Reinsurance assumed		85,272		82,338
Reinsurance ceded		(140,491)		(126,380)
Net earned premium	$	561,186	$	547,141
Direct loss and loss adjustment expense	$	357,512	$	365,392
Reinsurance assumed		39,691		36,709
Reinsurance ceded		(64,506)		(73,173)
Net loss and loss adjustment expense	$	332,697	$	328,928

	Three months ended March 31,
	2013		2012
Policy acquisition costs	$	100,286	$	95,735
Ceding commissions		(33,337)		(26,291)
Net policy acquisition costs	$	66,949	$	69,444

Components of our reinsurance recoverables

		March 31,		December 31,
		2013		2012
Reinsurance recoverable on paid losses		$	54,931	$	54,675
Reinsurance recoverable on outstanding losses			461,886		479,026
Reinsurance recoverable on incurred but not reported losses			551,034		539,021
Reserve for uncollectible reinsurance			(1,500)		(1,500)
	Total reinsurance recoverables	$	1,066,351	$	1,071,222

Amounts of letters of credit and cash available to us as collateral, plus other potential offsets

		March 31,		December 31,
		2013		2012
Payables to reinsurers		$	161,271	$	190,228
Letters of credit			83,053		89,832
Cash			89,215		116,597
	Total credits	$	333,539	$	396,657

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

		March 31,		December 31,
		2013		2012
Loss and loss adjustment expense payable		$	3,774,162	$	3,767,850
Reinsurance recoverable on outstanding losses			(461,886)		(479,026)
Reinsurance recoverable on incurred but not reported losses			(551,034)		(539,021)
	Net reserves	$	2,761,242	$	2,749,803
Unearned premium		$	1,085,833	$	1,069,956
Ceded unearned premium			(257,359)		(256,988)
	Net unearned premium	$	828,474	$	812,968
Deferred policy acquisition costs		$	192,199	$	191,960
Deferred ceding commissions			(72,992)		(74,609)
	Net deferred policy acquisition costs	$	119,207	$	117,351