3. Deferred Policy Acquisition Costs (Tables)

6 Months Ended

Jun. 30, 2012

Notes to Financial Statements

Deferred Policy Acquisition Costs

Deferred Policy Acquisition Costs:	Three Months Ended				Six Months Ended
($ in thousands)	June 30,				June 30,
	2012		2011		2012		2011
Policy acquisition costs deferred	$	23,957	$	30,841	$	52,877	$	66,988
Costs amortized to expenses:
Recurring costs		(31,775)		(24,257)		(56,627)		(56,383)
Realized investment gains (losses)		4,751		32		868		(125)
Offsets to net unrealized investment gains or losses included in   accumulated other comprehensive income (“AOCI”)(1)		(18,445)		(11,436)		(27,183)		(16,113)
Other		955		2,569		2,734		6,428
Change in deferred policy acquisition costs		(20,557)		(2,251)		(27,331)		795
Deferred policy acquisition costs, beginning of period		517,278		521,910		524,052		518,864
Deferred policy acquisition costs, end of period	$	496,721	$	519,659	$	496,721	$	519,659

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⁽¹⁾ An offset to deferred policy acquisition costs and AOCI is recorded each period to the extent that, had unrealized holding gains or losses from securities classified as available-for-sale actually been realized, an adjustment to deferred policy acquisition costs amortized using gross profits would result.