Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

We have two reportable business segments in our operations: property and casualty insurance and life insurance. 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 or permitted 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, 2011.

The following tables for the three-month periods ended September 30, 2012 and 2011 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 September 30, 2012
Net premiums earned	$	161,232		$	15,412		$	176,644
Investment income, net of investment expenses	11,093			17,614			28,707
Net realized investment gains	1,214			86			1,300
Other income	(19		)	104			85
Total reportable segment	$	173,520		$	33,216		$	206,736
Intersegment eliminations	(42		)	(113		)	(155		)
Total revenues	$	173,478		$	33,103		$	206,581
Net income	$	7,616		$	1,114		$	8,730
Assets	$	1,923,407		$	1,814,403		$	3,737,810
Invested assets	$	1,334,278		$	1,734,788		$	3,069,066
Three Months Ended September 30, 2011
Net premiums earned	$	144,065		$	14,731		$	158,796
Investment income, net of investment expenses	8,129			18,743			26,872
Net realized investment gains	692			527			1,219
Other income	504			221			725
Total reportable segment	$	153,390		$	34,222		$	187,612
Intersegment eliminations	(44		)	6			(38		)
Total revenues	$	153,346		$	34,228		$	187,574
Net income (loss)	$	(6,671	)	$	1,895		$	(4,776	)
Assets	$	1,878,705		$	1,726,040		$	3,604,745
Invested assets	$	1,265,170		$	1,602,252		$	2,867,422

The following tables for the nine-month periods ended September 30, 2012 and 2011 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
Nine Months Ended September 30, 2012
Net premiums earned	$	461,902		$	46,557		$	508,459
Investment income, net of investment expenses	33,533			53,151			86,684
Net realized investment gains	1,765			2,893			4,658
Other income	177			407			584
Total reportable segment	$	497,377		$	103,008		$	600,385
Intersegment eliminations	(124		)	(335		)	(459		)
Total revenues	$	497,253		$	102,673		$	599,926
Net income	$	37,607		$	5,023		$	42,630
Assets	$	1,923,407		$	1,814,403		$	3,737,810
Invested assets	$	1,334,278		$	1,734,788		$	3,069,066
Nine Months Ended September 30, 2011
Net premiums earned	$	384,838		$	40,556		$	425,394
Investment income, net of investment expenses	26,405			55,422			81,827
Net realized investment gains	2,293			2,703			4,996
Other income	1,042			568			1,610
Total reportable segment	$	414,578		$	99,249		$	513,827
Intersegment eliminations	(132		)	(241		)	(373		)
Total revenues	$	414,446		$	99,008		$	513,454
Net income (loss)	$	(22,895	)	$	6,015		$	(16,880	)
Assets	$	1,878,705		$	1,726,040		$	3,604,745
Invested assets	$	1,265,170		$	1,602,252		$	2,867,422