• Filing Date: 2012-03-30
  • Form Type: 10-K
  • Description: Annual report
Losses And Loss Adjustment Expenses
12 Months Ended
Dec. 31, 2011
Losses And Loss Adjustment Expenses [Abstract]  
Losses And Loss Adjustment Expenses

Note 8 -- Losses and Loss Adjustment Expenses

The liability for losses and loss adjustment expenses ("LAE") is determined on an individual case basis for all claims reported. The liability also includes amounts for unallocated expenses, anticipated future claim development and losses incurred, but not reported.

Activity in the liability for unpaid losses and LAE is summarized as follows (in thousands):



Year Ended December 31,






Balance, beginning of year

   $22,146        19,178   

Incurred related to:


Current year

          43,613        37,432   

Prior years

            4,630             235   

Total incurred

          48,243        37,667   

Paid related to:


Current year

          (26,132     (19,477

Prior years

          (16,833     (15,222

Total paid

          (42,965     (34,699

Balance, end of year

   $27,424        22,146   

The Company writes insurance in the state of Florida, which could be exposed to hurricanes or other natural catastrophes. Although the occurrence of a major catastrophe could have a significant effect on our monthly or quarterly results, the Company believes that such an event would not be so material as to disrupt the overall normal operations of the Company. However, the Company is unable to predict the frequency or severity of any such events that may occur in the near term or thereafter.