At December 31, 2012, the gross reserves for A&E losses were comprised of $138,449 thousand representing case reserves reported by ceding companies, $90,637 thousand representing additional case reserves established by the Company on assumed reinsurance claims, $36,667 thousand representing case reserves established by the Company on direct excess insurance claims, including Mt.
McKinley, and $177,068 thousand representing IBNR reserves.
With respect to asbestos only, at December 31, 2012, the Company had gross asbestos loss reserves of $422,849 thousand, or 95.5%, of total A&E reserves, of which $339,654 thousand was for assumed business and $83,195 thousand was for direct business.
Future Policy Benefit Reserve.
Activity in the reserve for future policy benefits is summarized for the periods indicated:
## Table 0 ##
4.
FAIR VALUE The Company’s fixed maturity and equity securities are primarily managed by third party investment asset managers.
The investment asset managers obtain prices from nationally recognized pricing services.
These services seek to utilize market data and observations in their evaluation process.
They use pricing applications that vary by asset class and incorporate available market information and when fixed maturity securities do not trade on a daily basis the services will apply available information through processes such as benchmark curves, benchmarking of like securities, sector groupings and matrix pricing.
In addition, they use model processes, such as the Option Adjusted Spread model to develop prepayment and interest rate scenarios for securities that have prepayment features.
In limited instances where prices are not provided by pricing services or in rare instances when a manager may not agree with the pricing service, price quotes on a non-binding basis are obtained from investment brokers.
The investment asset managers do not make any changes to prices received from either the pricing services or the investment brokers.
In addition, the investment asset managers have procedures in place to review the reasonableness of the prices from the service providers and may request verification of the prices.
In addition, the Company continually performs analytical reviews of price changes and tests the prices on a random basis to an independent pricing source.
No material variances were noted during these price validation procedures.
In limited situations, where financial markets are inactive or illiquid, the Company may use its own assumptions about future cash flows and risk-adjusted discount rates to determine fair value.
The Company made no such adjustments at December 31, 2012 and 2011.
The Company internally manages a small public equity portfolio which had a fair value at December 31, 2012 of $117,602 thousand and all prices were obtained from publically published sources.
Equity securities in U. S.  denominated currency are categorized as Level 1, Quoted Prices in Active Markets for Identical Assets, since the securities are actively traded on an exchange and prices are based on quoted prices from the exchange.
Equity securities traded on foreign exchanges are categorized as Level 2 due to potential foreign exchange adjustments to fair or market value.
Fixed maturity securities are generally categorized as Level 2, Significant Other Observable Inputs, since a particular security may not have traded but the pricing services are able to use valuation models with observable market inputs such as interest rate yield curves and prices for similar fixed maturity securities in terms of issuer, maturity and seniority.
Valuations that are derived from techniques in which one or more of the significant inputs are unobservable (including assumptions about risk) are categorized as Level 3,
The following table presents a reconciliation of beginning and ending reserve balances for the periods indicated on a GAAP basis:
## Table 1 ##
Incurred prior years’ reserves decreased by $3.7 million, increased by $3.7 million and decreased by $30.9 million for the years ended December 31, 2012, 2011 and 2010, respectively.
The decrease for 2012 was attributable to a $57.2 million decrease in reinsurance business, primarily related to favorable development on treaty casualty reserves, partially offset by a $53.5 million increase in insurance business primarily related to development on contractors’ liability and workers compensation reserves.
The increase for 2011 was attributable to a $113.8 million increase in the insurance and US reinsurance business primarily related to development on contractors’ liability, excess casualty and California workers compensation reserves, partially offset by a $110.1 million decrease in non-US reinsurance business, primarily related to favorable development on non-catastrophe property reserves.
The decrease for 2010 was attributable to a $140.8 million decrease in non-US reinsurance business (Bermuda and International), partially offset by the $109.9 million increase in the insurance and US reinsurance business.
The decrease in the non-US reinsurance business was due to reserve studies that indicated net favorable reserve development, as well as reductions in loss estimates for prior year catastrophes.
The increase in the US reinsurance business is primarily due to reserve strengthening in casualty lines for construction liability claims and the increase in the insurance business is due to reserve strengthening on several terminated programs.
Reserves for Asbestos and Environmental Losses and LAE.
At December 31, 2012, the Company’s gross reserves for A&E claims represented 4.4% of its total reserves.
The Company’s A&E liabilities stem from Mt.
McKinley’s direct insurance business and Everest Re’s assumed reinsurance business.
There are significant uncertainties in estimating the amount of the Company’s potential losses from A&E claims and ultimate values cannot be estimated using traditional reserving techniques.
See ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asbestos and Environmental Exposures” and Item 8, “Financial Statements and Supplementary Data” - Note 3 of Notes to Consolidated Financial Statements.
Mt.
McKinley’s book of direct A&E exposed insurance policies is relatively small and homogenous.
It arises from a limited period, from 1975 to 1984.
The book was principally excess liability, thereby limiting exposure analysis to a limited number of policies and forms.
As a result of this focused structure, the Company believes that it is able to comprehensively analyze its exposures, allowing it to identify, analyze and actively monitor those claims which have unusual exposure, including policies on which it may be exposed to pay expenses in addition to policy limits or on which non-products coverage may be contended.
There can be no assurance that reserves for, and losses from, claim obligations will not increase in the future, possibly by a material amount.
However, we believe that our existing reserves and reserving methodologies lessen the probability that any such increase would have a material adverse effect on our financial condition, results of operations or cash flows.
In this context, we note that over the past 10 years, our calendar year operations have been affected by effects from prior period reserve re-estimates, ranging from a favorable $30.9 million in 2010, representing 0.4% of the net prior period reserves for the year in which the adjustment was made, to an unfavorable $249.4 million in 2004, representing 4.8% of the net prior period reserves for the year in which the adjustment was made.
We have included ranges for loss reserve estimates determined by our actuaries, which have been developed through a combination of objective and subjective criteria.
Our presentation of this information may not be directly comparable to similar presentations of other companies as there are no consistently applied actuarial or accounting standards governing such presentations.
Our recorded reserves are an aggregation of our best point estimates for approximately 200 reserve groups and reflect our best point estimate of our liabilities.
Our actuarial methodologies develop point estimates rather than ranges and the ranges are developed subsequently based upon historical and prospective variability measures.
The following table below represents the reserve levels and ranges for each of our business segments for the period indicated.
## Table 2 ##
Depending on the specific segment, the range derived for the loss reserves, excluding reserves for A&E exposures, ranges from minus 9.3% to minus 17.9% for the low range and from plus 9.3% to plus 17.9% for the high range.
Both the higher and lower ranges are associated with the Insurance segment.
The size of the range is dependent upon the level of confidence associated with the outcome.
Within each range, our best estimate of loss reserves is based upon the point estimate derived by our actuaries in detailed reserve studies.
Such ranges are necessarily subjective due to the lack of generally accepted actuarial standards with respect to their development.
For the above presentation, we have assumed what we believe is a reasonable confidence level but note that there can be no assurance that our claim obligations will not vary outside of these ranges.
Additional losses, including those relating to latent injuries, and other exposures, which are as yet unrecognized, the type or magnitude of which cannot be foreseen by us or the reinsurance and insurance industry generally, may emerge in the future.
Such future emergence, to the extent not covered by existing retrocessional contracts, could have material adverse effects on our future financial condition, results of operations and cash flows.

<table><tr><td></td><td>At December 31,</td></tr><tr><td>(Dollars in thousands)</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Balance at beginning of year</td><td>$67,187</td><td>$63,002</td><td>$64,536</td></tr><tr><td>Liabilities assumed</td><td>126</td><td>176</td><td>172</td></tr><tr><td>Adjustments to reserves</td><td>2,365</td><td>8,449</td><td>2,944</td></tr><tr><td>Benefits paid in the current year</td><td>-3,571</td><td>-4,440</td><td>-4,650</td></tr><tr><td>Balance at end of year</td><td>$66,107</td><td>$67,187</td><td>$63,002</td></tr></table>
<table><tr><td></td><td colspan="3">Years Ended December 31,</td></tr><tr><td>(Dollars in millions)</td><td>2012</td><td>2011</td><td>2010</td></tr><tr><td>Gross reserves at beginning of period</td><td>$10,123.2</td><td>$9,340.2</td><td>$8,937.9</td></tr><tr><td>Incurred related to:</td><td></td><td></td><td></td></tr><tr><td>Current year</td><td>2,748.9</td><td>3,722.5</td><td>2,976.6</td></tr><tr><td>Prior years</td><td>-3.7</td><td>3.7</td><td>-30.9</td></tr><tr><td>Total incurred losses</td><td>2,745.3</td><td>3,726.2</td><td>2,945.7</td></tr><tr><td>Paid related to:</td><td></td><td></td><td></td></tr><tr><td>Current year</td><td>633.9</td><td>810.5</td><td>568.3</td></tr><tr><td>Prior years</td><td>2,220.2</td><td>2,008.3</td><td>1,988.7</td></tr><tr><td>Total paid losses</td><td>2,854.1</td><td>2,818.8</td><td>2,557.1</td></tr><tr><td>Foreign exchange/translation adjustment</td><td>32.9</td><td>-15.9</td><td>-34.5</td></tr><tr><td>Change in reinsurance receivables on unpaid losses and LAE</td><td>21.8</td><td>-108.4</td><td>48.2</td></tr><tr><td>Gross reserves at end of period</td><td>$10,069.1</td><td>$10,123.2</td><td>$9,340.2</td></tr><tr><td>(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td></tr></table>
<table><tr><td></td><td colspan="5">Outstanding Reserves and Ranges By Segment -1 At December 31, 2012</td></tr><tr><td></td><td>As</td><td>Low</td><td>Low</td><td>High</td><td>High</td></tr><tr><td>(Dollars inmillions)</td><td>Reported</td><td>Range % -2</td><td>Range -2</td><td>Range % -2</td><td>Range -2</td></tr><tr><td>Gross Reserves By Segment</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. Reinsurance</td><td>$3,621.2</td><td>-13.0%</td><td>$3,151.8</td><td>13.0%</td><td>$4,090.7</td></tr><tr><td>International</td><td>1,816.8</td><td>-9.3%</td><td>1,647.1</td><td>9.3%</td><td>1,986.6</td></tr><tr><td>Bermuda</td><td>1,962.0</td><td>-9.9%</td><td>1,768.7</td><td>9.9%</td><td>2,155.3</td></tr><tr><td>Insurance</td><td>2,226.2</td><td>-17.9%</td><td>1,827.8</td><td>17.9%</td><td>2,624.5</td></tr><tr><td>Total Gross Reserves (excluding A&E)</td><td>9,626.2</td><td>-9.3%</td><td>8,728.6</td><td>9.3%</td><td>10,523.9</td></tr><tr><td>A&E (All Segments)</td><td>442.9</td><td>-13.7%</td><td>382.2</td><td>13.7%</td><td>503.5</td></tr><tr><td>Total Gross Reserves</td><td>$10,069.1</td><td>-9.2%</td><td>9,140.5</td><td>9.2%</td><td>10,997.6</td></tr><tr><td>(Some amounts may not reconcile due to rounding.)</td><td></td><td></td><td></td><td></td><td></td></tr></table>

Question: at december 31 , 2012 , what was the ratio of the case reserves reported by ceding to the additional case reserves established by the company
Answer: 1.52751