estimates are based upon actuarial and statistical projections and on our assessment of currently available data, predictions of future developments and estimates of future trends and other factors. The final settlement of losses may vary, perhaps materially, from the reserves initially established and periodically adjusted. All adjustments to the estimates are recorded in the period in which they are determined. Under U.S. GAAP, we are not permitted to establish loss reserves, which include case reserves and IBNR loss reserves, until the occurrence of an event which may give rise to a claim. As a result, only loss reserves applicable to losses incurred up to the reporting date are established, with no allowance for the establishment of loss reserves to account for expected future loss events.
For the year ended December 31, 2013, we reported net income of $225.7 million, compared to net income of $14.6 million reported for the year ended December 31, 2012. Our investment portfolio reported net income of $218.1 million, or a return of 19.6%, for the year ended December 31, 2013, compared to net investment income of $78.9 million, or a return of 7.1%, for the same period in 2012. The underwriting income before general and administrative expenses for the year ended December 31, 2013 was $37.5 million, compared to underwriting loss of $42.6 million reported for the year ended December 31, 2012. The 2013 underwriting income included a reversal of $12.4 million of loss reserves (net of reinstatement premiums) relating to super-storm Sandy due to revised loss estimates recorded during 2013. Based on updated information received from the insurer during the first quarter of 2013, the insurer reported that claims relating to super-storm Sandy were no longer expected to breach into the coverage layer provided by our contract, and, therefore loss reserves were reversed. For the year ended December 31, 2013, our overall composite ratio was 93.2% compared to 109.1% for the year ended December 31, 2012. General and administrative expenses increased for the year ended December 31, 2013 to $21.7 million from $17.5 million for the year ended December 31, 2012, primarily as a result of higher personnel costs due to additional staff hired during 2013, as well as an increase in employee bonuses accrued due to favorable underwriting results.
Our total general and administrative expenses for the years ended December 31, 2014, 2013 and 2012, were $21.9 million, $21.7 million, and $17.5 million, respectively. General and administrative expenses for the years ended December 31, 2014, 2013 and 2012 included $4.0 million, $3.8 million and $3.7 million, respectively, for the expensing of the fair value of stock options, RSUs and restricted stock granted to employees and directors.
As of December 31, 2014, a deferred tax asset of $0.03 million (2013: $0.05 million) resulting solely from the temporary differences in recognition of expenses for tax purposes was included in other assets on the consolidated balance sheets. As of December 31, 2014, an accrual for current taxes recoverable of $0.8 million (2013: payable of $0.3 million) was recorded on the consolidated balance sheets. Based on the timing of the reversal of the temporary differences and likelihood of generating sufficient taxable income to realize the future tax benefit, management believes it is more likely than not that the deferred tax asset will be fully realized in the future and therefore no valuation allowance has been recorded. The Company has not taken any tax positions that management believes are subject to uncertainty or that are reasonably likely to have a material impact to the Company, GRIL or Verdant.
Included in reinsurance balance receivable were $10.3 million of ceding commissions due from a ceding insurer and $6.8 million from its affiliated retrocessionaire that were past due. See Note 8 and Note 17 of the accompanying consolidated financial statements for details.
Total equity reported on the balance sheet, which includes non-controlling interest, increased by $107.7 million to $1,194.0 million as of December 31, 2014, compared to $1,086.3 million as of December 31, 2013. Retained earnings increased due to net income of $109.6 million reported for the year ended December 31, 2014, while the non-controlling interest decreased by $5.8 million primarily due to a net withdrawal of funds by DME from the joint venture during the year ended December 31, 2014. The increase in additional paid-in capital of $3.9 million related to stock compensation expense and from stock options exercised during the year ended December 31, 2014.