BUSINESS COMBINATIONS (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following is a summary of the fair value of the tangible and intangible assets acquired and liabilities assumed of Mercer Insurance Group at the date of acquisition:



	March 28, 2011

Assets
Available-for-sale fixed maturity securities	$	401,548
Equity securities	10,266
Short-term investments	400
Cash and cash equivalents	18,855
Accrued investment income	3,741
Premiums receivable	35,822
Value of business acquired	27,436
Property and equipment	14,985
Reinsurance receivables and recoverables	58,193
Prepaid reinsurance premiums	6,289
Income taxes receivable	2,657
Deferred income taxes	2,837
Goodwill and intangible assets	32,293
Other assets	11,353
Total assets	$	626,675

Liabilities
Reserves for losses, claims and loss settlement expenses	$	310,647
Unearned premiums	72,249
Accrued expenses and other liabilities	33,690
Debt	3,000
Trust preferred securities	15,614
Total liabilities	$	435,200
Total net assets acquired	$	191,475

Business Acquisition, Pro Forma Information

The following is a summary of our unaudited pro forma historical results as if Mercer Insurance Group had been acquired on January 1, 2011:



	Year Ended December 31,
	2011
Revenue	$	741,833
Net income ⁽¹⁾	8,139
Basic earnings per share	0.31
Diluted earnings per share	0.31

(1) The year ended December 31, 2011 excludes transaction related expenses incurred that reduced net income by $11.9 million.