Segment Information

6 Months Ended

Jun. 30, 2011

Segment Information [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

We have two reportable business segments in our operations: property and casualty insurance and life insurance. Mercer Insurance Group is included in the property and casualty insurance segment subsequent to their acquisition on March 28, 2011. The property and casualty insurance segment has six domestic locations from which it conducts its business. All offices target a similar customer base, market the same products and use the same marketing strategies and are therefore aggregated. The life insurance segment operates from our home office. Because all of our insurance is sold domestically, we have no revenues allocable to foreign operations.

We evaluate the two segments on the basis of both statutory accounting practices prescribed by our states of domicile and GAAP. We analyze results based on profitability (i.e., loss ratios), expenses, and return on equity. The basis we use to determine and analyze segments and to measure segment profit or loss have not changed from that reported in our Annual Report on Form 10-K for the year ended December 31, 2010.

The following tables for the three-month periods ended June 30, 2011 and 2010 have been reconciled to the amounts reported in our unaudited Consolidated Financial Statements to adjust for intersegment eliminations.

(In Thousands)	Property and Casualty Insurance			Life Insurance			Total
Three Months Ended June 30, 2011
Net premiums earned	$	139,009		$	13,293		$	152,302
Investment income, net of investment expenses	9,495			18,350			27,845
Net realized investment gains	393			731			1,124
Other income	530			199			729
Total reportable segment	$	149,427		$	32,573		$	182,000
Intersegment eliminations	(44		)	(152		)	(196		)
Total revenues	$	149,383		$	32,421		$	181,804
Net income (loss)	$	(19,574	)	$	1,660		$	(17,914	)
Assets at June 30, 2011	$	1,902,215		$	1,719,719		$	3,621,934
Invested assets at June 30, 2011	$	1,284,623		$	1,582,787		$	2,867,410
Three Months Ended June 30, 2010
Net premiums earned	$	105,396		$	11,766		$	117,162
Investment income, net of investment expenses	9,049			19,288			28,337
Net realized investment gains (losses)	(721		)	3,067			2,346
Other income	75			220			295
Total reportable segment	$	113,799		$	34,341		$	148,140
Intersegment eliminations	(46		)	(80		)	(126		)
Total revenues	$	113,753		$	34,261		$	148,014
Net income	$	9,961		$	3,970		$	13,931
Assets at June 30, 2010	$	1,344,024		$	1,712,555		$	3,056,579
Invested assets at June 30, 2010	$	956,108		$	1,501,701		$	2,457,809

The following tables for the six-month periods ended June 30, 2011 and 2010, have been reconciled to the amounts reported in our unaudited Consolidated Financial Statements to adjust for intersegment eliminations.

(In Thousands)	Property and Casualty Insurance			Life Insurance			Total
Six Months Ended June 30, 2011
Net premiums earned	$	240,773		$	25,825		$	266,598
Investment income, net of investment expenses	18,276			36,679			54,955
Net realized investment gains	1,601			2,176			3,777
Other income	538			347			885
Total reportable segment	$	261,188		$	65,027		$	326,215
Intersegment eliminations	(88		)	(247		)	(335		)
Total revenues	$	261,100		$	64,780		$	325,880
Net income (loss)	$	(16,224	)	$	4,120		$	(12,104	)
Assets at June 30, 2011	$	1,902,215		$	1,719,719		$	3,621,934
Invested assets at June 30, 2011	$	1,284,623		$	1,582,787		$	2,867,410
Six Months Ended June 30, 2010
Net premiums earned	$	207,375		$	24,174		$	231,549
Investment income, net of investment expenses	17,731			38,619			56,350
Net realized investment gains	1,455			3,617			5,072
Other income	17			401			418
Total reportable segment	$	226,578		$	66,811		$	293,389
Intersegment eliminations	(91		)	(159		)	(250		)
Total revenues	$	226,487		$	66,652		$	293,139
Net income	$	25,758		$	7,286		$	33,044
Assets at June 30, 2010	$	1,344,024		$	1,712,555		$	3,056,579
Invested assets at June 30, 2010	$	956,108		$	1,501,701		$	2,457,809