8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 19, 2007

THE MIDLAND COMPANY

(Exact name of registrant as specified in its charter)

Ohio	1-6026	31-0742526
(State or other jurisdiction of incorporation)	(Commission File No.)	(IRS Employer Identification No.)

7000 Midland Boulevard, Amelia, Ohio 45102-2607

(Address of principal executive offices) (Zip Code)

(513) 943-7100

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d.(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 19, 2007, the Registrant issued a press release announcing its financial results for the quarter ended June 30, 2007. A copy of the press release is furnished as Exhibit 99.1 to this report and is incorporated herein by reference.

On July 19, 2007, the Registrant also distributed the attached information titled “Supplemental Financial Information” and “Supplemental Financial Information by Segment.” Copies of the Supplemental Financial Information and Supplemental Financial Information by Segment are furnished as Exhibits 99.2 and 99.3, respectively, to this report and are incorporated herein by reference. All exhibits have been posted on “www.midlandcompany.com.”

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits

99.1 – Press release dated July 19, 2007

99.2 – Supplemental Financial Information dated July 19, 2007

99.3 – Supplemental Financial Information by Segment dated July 19, 2007

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	THE MIDLAND COMPANY
Date: July 19, 2007	By:	/s/ W. Todd Gray
		W. Todd Gray
		Executive Vice President and Chief Financial Officer

EX-99.1

Exhibit 99.1

THE MIDLAND COMPANY

7000 MIDLAND BOULEVARD

AMELIA, OHIO 45102-2607

(513) 943-7100

P.O BOX 1256

CINCINNATI, OHIO 45201

For Immediate Release July 19, 2007

Contact:

W. Todd Gray, Executive Vice President and CFO

(513) 943-7100

The Midland Company Reports Record Second Quarter Results

Ø         Record Net Income of $1.25 Per Share

Ø         Double Digit Property and Casualty Premium Growth

Ø         Solid Non-Catastrophe Underwriting and Favorable Weather Patterns Contribute

Ø         Raises Full Year Guidance

Cincinnati, Ohio, July 19, 2007 — The Midland Company (Nasdaq: MLAN), a highly focused provider of specialty insurance products and services, today reported record results for the second quarter ended June 30, 2007. Net income for the quarter was a record $25.0 million, or $1.25 per share, which compares to last year’s second quarter net income of $9.8 million, or 50 cents per share. All per share amounts are on an after-tax, diluted basis.

Net income before realized capital gains* was also a record $21.3 million, or $1.07 per share, for the second quarter, compared to the year ago level of $8.5 million, or 44 cents per share. The company believes that this non-GAAP financial measure provides a clearer picture of the underlying operating activities than the GAAP measure of net income, as it removes potential issues such as timing of investment gains (or losses) and allows readers to individually assess these components of net income.

John W. Hayden, Midland president and chief executive officer said, “We are very pleased to once again deliver record setting profit results while growing top line premium at a double digit pace. We continue to effectively leverage our company’s core strengths in extending our track record of superior profit and growth. Effective execution of our profit and growth strategies in the marketplace drives our ability to consistently produce outstanding results, and clearly demonstrates our deep and unique specialty property and casualty insurance knowledge and expertise.

“Our record setting second quarter profits are the result of solid non-catastrophe underwriting, further enhanced by very favorable weather conditions. The per share impact from catastrophes was 48 cents below last year’s second quarter and well below what we might normally expect in the second quarter,” Hayden said. Catastrophe related losses for the second quarter were 17 cents per share, compared to 65 cents per share a year ago.

Midland’s wholly owned insurance subsidiary, American Modern Insurance Group, Inc., specializes in providing insurance products and services for niche markets such as manufactured housing, site-built dwelling, motorcycle, watercraft, snowmobile, recreational vehicle, excess and surplus lines coverages, credit life and related products, as well as collateral protection and mortgage fire products sold to financial institutions and their customers. American Modern’s products and services are offered through diverse distribution channels.

Page 1 of 7

The Midland Company Reports Record Second Quarter Results

July 19, 2007

Solid Property and Casualty Underwriting Results

“We are well pleased with the underwriting results we achieved in the second quarter,” Hayden commented. American Modern’s property and casualty combined ratio (losses and expenses as a percent of earned premium) was 93.4 percent, compared with 100.1 percent a year ago. Excluding catastrophe losses, American Modern’s combined ratio was a solid 90.6 percent compared to 87.9 percent in the second quarter of 2006.

“These positive underwriting results continue to be evident across our entire specialty property and casualty insurance platform,” Hayden continued. “In particular, manufactured housing, site-built dwelling and mortgage fire all produced solid underwriting results for the quarter.” The manufactured housing combined ratio for the second quarter was a solid 95.2 percent, compared with 106.8 percent in last year’s second quarter.

“Our ability to consistently deliver outstanding profit results over time is enabled by our unique understanding of our chosen specialty product lines, and is evidenced in our underwriting, pricing and claims practices. Our adherence to a set of fundamental principles continues to serve us well and has us confident that our specialty property and casualty insurance platform is well positioned for profitable growth,” Hayden said.

Property and Casualty Premiums Grow 13.8 Percent

“We are particularly pleased to have again achieved a double digit property and casualty premium growth rate for the quarter, which makes five double-digit growth quarters in a row,” Hayden said. “For the second quarter, American Modern’s property and casualty gross written premiums grew an impressive 13.8 percent to $238.2 million. While our premium growth for the first half of 2007 has been very strong, we do expect that the growth rate will moderate somewhat for the remainder of the year.”

Hayden continued, “Exceptional growth in our mortgage fire, collateral protection and excess and surplus lines products drove our second quarter results. Additionally, we are building momentum in several of our recreational casualty product lines; motorcycle, recreational vehicle, and collector car all achieved strong growth over the prior year second quarter.” Manufactured housing premiums grew 4.0 percent to $94.1 million for the second quarter, compared to $90.5 million in last year’s second quarter.

“We continue to make significant gains in marketplace brand awareness and are sustaining very favorable policyholder retention levels, while fully leveraging our diverse distribution platform. We are keenly focused on growing premiums in all of our product lines and are confident in our ability to do so profitably,” Hayden said.

Record Six-Month Results

For the six months ended June 30, 2007, net income was a record $48.7 million, or $2.45 per share, including 27 cents of realized capital gains. This compares to prior year six month net income of $32.2 million, or $1.65 per share, which included 15 cents from realized capital gains.

American Modern’s property and casualty combined ratio was 92.4 percent compared to 94.5 percent in the prior year. Excluding the impact of catastrophe losses, American Modern’s combined ratio for the first six months of 2007 was 90.0 percent, compared to last year’s exceptional result of 86.9 percent.

American Modern’s property and casualty gross written premiums were $443.6 million for the first half of 2007, up 15.4 percent from the $384.5 million for the first six months of last year.

Page 2 of 7

The Midland Company Reports Record Second Quarter Results

July 19, 2007

Investment Portfolio, Market Value Growth and Record Book Value

The market value of Midland’s investment portfolio was $1.0 billion at June 30, 2007, compared with $937.9 million at June 30, 2006. Net pre-tax investment income (excluding capital gains and losses) increased 14.9 percent to $11.7 million in the second quarter of 2007 compared to $10.2 million in 2006. The annualized pre-tax equivalent yield, on a cost basis, of Midland’s fixed income portfolio was 6.0 percent in the second quarter of 2007 compared with 5.6 percent in the comparable prior period.

After-tax realized investment gains from Midland’s investment portfolio totaled 18 cents per share in the second quarter of 2007, compared to six cents in last year’s second quarter. Pre-tax net unrealized losses on Midland’s fixed income portfolio were $5.1 million at June 30, 2007, compared to $8.3 million at June 30, 2006. Pre-tax net unrealized gains on Midland’s equity portfolio were $108.7 million at June 30, 2007, up from $89.3 million at June 30, 2006.

Midland’s shareholders’ equity increased to $614.2 million, or $31.74 per share, at quarter-end, up 18.7 percent from $510.4 million, or $26.74 per share, at June 30, 2006. The company’s book value per share has grown at a compound annual rate of 13.0 percent over the last 10 years.

Hayden noted that Midland’s common stock continues to outperform the broader equity markets and virtually every relevant index for the 5-, 10-, 15- and 20-year periods ended June 30, 2007. “We are proud of that record and believe it clearly exemplifies our fundamental value to shareholders,” he said.

M/G Transport Contributes to Strong Second Quarter

M/G Transport, Midland’s transportation subsidiary, contributed an after-tax profit of 17 cents per share for the second quarter of 2007, compared with five cents per share for the second quarter of 2006. “M/G Transport remains well positioned in the barge transportation marketplace and is efficiently managing its fleet,” Hayden said.

Superior Financial Strength, Positive Outlook for 2007, Raises Full Year Earnings Guidance

“American Modern has long been recognized as a leader in the specialty insurance business,” Hayden said. “This leadership position was confirmed by A.M. Best’s recent affirmation of the A+ (Superior) rating of our property and casualty insurance subsidiaries. This affirmation along with American Modern’s Top 50 Ward Financial Group ranking attests to our outstanding financial strength and ability to consistently deliver superior financial results over the long-term.

“As we look to the remainder of 2007, we continue to have a very positive outlook and are confident in the fundamentals driving our business results,” he continued. “While we achieved significant double digit premium growth for the first half of the year, our growth expectations for the full year are moderated somewhat by the fact that several significant business relationships were initiated during the second and third quarters of 2006, making the 2007 comparisons for quarters in the second half of the year a bit more difficult. As such, we would expect premium growth rates in the low to mid-single digits for the third and fourth quarters, resulting in a high single digit or perhaps low double-digit growth rate for the full year.

“Given the strong results that we have posted in the first half of 2007, we are raising our previously issued earnings guidance. We anticipate a property and casualty combined ratio in the range of 92.5 percent to 94.0 percent, assuming normal weather for the remainder of the year. Based on these levels of underwriting profit, we estimate our full year earnings, exclusive of net capital gains or losses; will be in the range of $3.85 to $4.15 per share. This would represent a solid double-digit percentage increase over our previous record net income before realized capital gains* of $3.31 per share established in 2006.”

Page 3 of 7

The Midland Company Reports Record Second Quarter Results

July 19, 2007

About the Company

Midland, which is headquartered in Cincinnati, Ohio, is a provider of specialty insurance products and services through its wholly owned subsidiary, American Modern Insurance Group, which accounts for approximately 95 percent of Midland’s consolidated revenue. American Modern specializes in writing physical damage insurance and related coverages on manufactured housing and has expanded to other specialty insurance products including coverage for site-built homes, motorcycles, watercraft, snowmobiles, recreational vehicles, physical damage on long-haul trucks, extended service contracts, excess and surplus lines coverages, credit life and related products as well as collateral protection and mortgage fire products sold to financial institutions and their customers. Midland also owns a niche transportation business, M/G Transport Group, which operates a fleet of dry cargo barges for the movement of dry bulk commodities on the inland waterways. Midland’s common stock is traded on the Nasdaq Global Select Market under the symbol MLAN. Additional information on the company can be found on the Internet at www.midlandcompany.com.

*Non-GAAP Measure and Reconciliation to GAAP Measure

Net income before realized capital gains is a non-GAAP measure. Items excluded from this measure are significant components in understanding and assessing financial performance. The company believes that this non-GAAP financial measure provides a clearer picture of the underlying operating activities than the GAAP measure of net income, as it removes potential issues such as timing of investment gains (or losses) and allows readers to individually assess these components of net income.

Reconciliation to GAAP:

	Second Quarter				Six Months				Full Year
	2007		2006		2007		2006		2006
Dollars in Millions (After-tax):
Net Income Before Realized Capital Gains*	$	21.3	$	8.5	$	43.3	$	29.4	$	65.1
Net Realized Capital Gains		3.7		1.3		5.4		2.8		5.6
Net Income (GAAP)	$	25.0	$	9.8	$	48.7	$	32.2	$	70.7
	2007		2006		2007		2006		2006
Per Share Amounts (After-tax, Diluted):
Net Income Before Realized Capital Gains*	$	1.07	$	0.44	$	2.18	$	1.50	$	3.31
Net Realized Capital Gains		0.18		0.06		0.27		0.15		0.29
Net Income (GAAP)	$	1.25	$	0.50	$	2.45	$	1.65	$	3.60

Forward Looking Statements Disclosure

Certain statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of the Securities Litigation Reform Act of 1995. These statements include certain discussions relating to underwriting, premium and investment income volume, business strategies, profitability and business relationships, as well as any other statements concerning the year 2007 and beyond. The forward-looking statements involve risks, uncertainties and other factors that may cause results to differ materially from those anticipated in those statements. Factors that might cause results to differ from those anticipated include, without limitation, adverse weather conditions, changes in underwriting results affected by adverse economic conditions, fluctuations in the investment markets, changes in the retail marketplace, changes in the laws or regulations affecting the operations of the company or its subsidiaries, changes in the business tactics or strategies of the company, its subsidiaries or its current or anticipated business partners, the financial condition of the company’s business partners, acquisitions or divestitures, changes in market forces, litigation and the other risk factors that have been identified in the company’s filings with the SEC, any one of which might materially affect the operations of the company or its subsidiaries. Any forward-looking statements speak only as of the date made. We undertake no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made.

Page 4 of 7

The Midland Company Reports Record Second Quarter Results

July 19, 2007

THE MIDLAND COMPANY

FINANCIAL HIGHLIGHTS

	Three-Months Ended June 30,								Six-Months Ended June 30,
	2007			2006			% Change		2007			2006			% Change
Revenues	$	225,691		$	190,173		18.7	%	$	435,689		$	377,105		15.5	%
Net Income	$	24,984		$	9,805		154.8	%	$	48,745		$	32,240		51.2	%
Net Income per Share (Diluted)	$	1.25		$	0.50		150.0	%	$	2.45		$	1.65		48.5	%
Dividends Declared per Share	$	0.10000		$	0.06125		63.3	%	$	0.20000		$	0.12250		63.3	%
Market Value per Share	$	46.94		$	37.98		23.6	%	$	46.94		$	37.98		23.6	%
Book Value per Share	$	31.74		$	26.74		18.7	%	$	31.74		$	26.74		18.7	%
Shares Outstanding		19,351			19,089					19,351			19,089
AMIG’s Property and Casualty Operations:
Direct and Assumed Written Premium	$	238,234		$	209,357		13.8	%	$	443,615		$	384,465		15.4	%
Net Written Premium	$	206,805		$	183,707		12.6	%	$	383,055		$	336,251		13.9	%
Combined Ratio (GAAP)		93.4	%		100.1	%				92.4	%		94.5	%
Combined Ratio (GAAP) - Excluding Catastrophe Losses		90.6	%		87.9	%				90.0	%		86.9	%
AMIG’s Life Insurance Operations:
Direct and Assumed Written Premium	$	16,199		$	9,978		62.3	%	$	30,023		$	19,299		55.6	%
Net Written Premium	$	6,538		$	2,701		142.1	%	$	11,799		$	4,849		143.3	%
Combined Ratio (GAAP)		86.8	%		93.6	%				85.9	%		96.4	%

Note:

Dollar amounts in thousands except per share data.

Page 5 of 7

The Midland Company Reports Record Second Quarter Results

July 19, 2007

THE MIDLAND COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

	Three-Months Ended June 30,				Six-Months Ended June 30,
	2007		2006		2007		2006
Revenues:
Insurance:
Premiums earned	$	188,581	$	162,273	$	368,525	$	321,500
Net investment income		11,747		10,224		23,173		20,504
Net realized investment gains		5,643		1,931		8,133		4,398
Other insurance income		3,348		3,286		6,695		6,463
Transportation		16,372		12,459		29,163		24,240
Total	$	225,691	$	190,173	$	435,689	$	377,105
Costs and Expenses:
Insurance:
Losses and loss adjustment expenses		85,503	$	91,941		159,439	$	152,839
Commissions and other policy acquisition costs		59,234		43,708		120,584		97,929
Operating and administrative expenses		32,945		29,464		63,746		58,313
Transportation operating expenses		11,102		10,996		20,092		20,468
Interest expense		1,076		1,356		2,111		2,735
Total	$	189,860	$	177,465	$	365,972	$	332,284
Income Before Federal Income Tax		35,831		12,708		69,717		44,821
Provision for Federal Income Tax		10,847		2,903		20,972		12,581
Net Income	$	24,984	$	9,805	$	48,745	$	32,240
Basic Earnings per Common Share	$	1.29	$	0.51	$	2.53	$	1.70
Diluted Earnings per Common Share:	$	1.25	$	0.50	$	2.45	$	1.65
Dividends per Common Share	$	0.10000	$	0.06125	$	0.2000	$	0.1225
Note: Dollar amounts in thousands except per share data.
Shares used for EPS calculations (000’s):
	Basic EPS		Diluted EPS
Six months ended June 30
2007		19,297		19,903
2006		19,020		19,557
Three months ended June 30
2007		19,334		19,943
2006		19,055		19,585

Page 6 of 7

The Midland Company Reports Record Second Quarter Results

July 19, 2007

THE MIDLAND COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

	June 30, 2007		December 31, 2006
ASSETS
Cash and Marketable Securities	$	1,045,340	$	1,036,436
Receivables—Net		291,898		276,710
Property, Plant and Equipment—Net		132,808		118,879
Deferred Insurance Policy Acquisition Costs		106,706		99,277
Other		36,263		38,226
Total Assets	$	1,613,015	$	1,569,528
LIABILITIES AND SHAREHOLDERS’ EQUITY
Unearned Insurance Premiums	$	472,623	$	445,324
Insurance Loss Reserves		223,652		221,639
Long-Term Debt		89,854		90,508
Short-Term Borrowings		8,426		17,937
Deferred Federal Income Tax		40,973		47,197
Other Payables and Accruals		163,337		172,177
Shareholders’ Equity		614,150		574,746
Total Liabilities and Shareholders’ Equity	$	1,613,015	$	1,569,528

Note: Amounts in thousands except per share data.

Page 7 of 7

EX-99.2

Exhibit 99.2

The Midland Company

Supplemental Financial Information

	2006															2007
($ in millions except per share data)	1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			YTD			1st Qtr			2nd Qtr			YTD
Direct & Assumed Written Premium:
Property-Casualty Premiums
Mobile Home and Related		81.0			90.5			88.0			78.3			337.8			82.7			94.1			176.8
All Other Specialty Lines		94.1			118.9			124.7			105.3			443.0			122.7			144.1			266.8
Total Property and Casualty		175.1			209.4			212.7			183.6			780.8			205.4			238.2			443.6
Revenues:
Insurance:
Premiums Earned		159.2			162.3			175.7			178.7			675.9			179.9			188.6			368.5
Net Investment Income		10.3			10.2			10.5			11.2			42.2			11.4			11.7			23.1
Net Realized Investment Gains		2.4			1.9			1.1			3.0			8.4			2.5			5.6			8.1
Other Insurance Income		3.2			3.3			3.3			3.2			13.0			3.3			3.4			6.7
Transportation		11.8			12.5			14.2			11.3			49.8			12.8			16.4			29.2
Total Revenues		186.9			190.2			204.8			207.4			789.3			209.9			225.7			435.6
Costs & Expenses:
Insurance:
Losses & Loss Adjustment Expenses		60.9			91.9			81.9			72.8			307.5			73.9			85.5			159.4
Commissions & Other Policy Acquisition Costs		54.2			43.7			56.4			55.4			209.7			61.3			59.3			120.6
Operating & Administrative Expenses		28.8			29.5			30.2			38.7			127.2			30.8			32.9			63.7
Transportation Operating Expenses		9.5			11.0			11.9			9.4			41.8			9.0			11.1			20.1
Interest Expense		1.4			1.4			1.3			1.1			5.2			1.0			1.1			2.1
Total Costs and Expenses		154.8			177.5			181.7			177.4			691.4			176.0			189.9			365.9
INCOME BEFORE FIT		32.1			12.7			23.1			30.0			97.9			33.9			35.8			69.7
Pretax Margin		17.17	%		6.68	%		11.28	%		14.46	%		12.40	%		16.15	%		15.86	%		16.00	%
Provision for Federal Income Taxes (Credit)		9.7			2.9			5.7			8.9			27.2			10.1			10.9			21.0
NET INCOME		22.4			9.8			17.4			21.1			70.7			23.8			24.9			48.7
NET INCOME BEFORE REALIZED CAPITAL GAINS *		20.8			8.5			16.7			19.2			65.1			22.1			21.3			43.3
Per Share (Post Split) Amounts
EPS (Diluted)	$	1.15		$	0.50		$	0.88		$	1.07			3.60		$	1.20		$	1.25		$	2.45
Realized Capital Gains (Losses) Per Share		0.08			0.06			0.03			0.10			0.29			0.09			0.18			0.27
EPS Before Realized Capital Gains (Diluted) *	$	1.07		$	0.44		$	0.85		$	0.97		$	3.31		$	1.11		$	1.07		$	2.18
Diluted Average Shares Outstanding (thousands)		19,511			19,585			19,644			19,729			19,585			19,863			19,943			19,903
Total Shares Outstanding (thousands)		19,040			19,089			19,147			19,224			19,147			19,259			19,351			19,351
Dividends Per Common Share	$	0.0613		$	0.0613		$	0.0613		$	0.0613		$	0.2450		$	0.1000		$	0.1000		$	0.2000
Other Relevant Financial Information
Property and Casualty Operations
P&C Combined Ratio
GAAP Combined Ratio		88.8	%		100.1	%		95.1	%		91.0	%		93.8	%		91.3	%		93.4	%		92.4	%
Less: Impact of Net CAT Losses on P&C Loss Ratio		-2.9	%		-12.2	%		-2.5	%		-3.6	%		-5.3	%		-1.9	%		-2.8	%		-2.4	%
GAAP Combined Ratio Excluding CAT Losses		85.9	%		87.9	%		92.6	%		87.4	%		88.5	%		89.4	%		90.6	%		90.0	%
Consolidated (P&C & Life) Insurance Operations
Various Requested Ratios
Losses / Earned Premiums		38.3	%		56.6	%		46.6	%		40.7	%		45.5	%		41.1	%		45.3	%		43.3	%
Insurance Operating Expenses / Earned Premiums		18.1	%		18.2	%		17.2	%		21.7	%		18.8	%		17.1	%		17.4	%		17.3	%
Commissions / Earned Premiums		34.0	%		26.9	%		32.1	%		31.0	%		31.0	%		34.1	%		31.4	%		32.7	%
Losses & Commissions / Earned Premiums		72.3	%		83.5	%		78.7	%		71.7	%		76.5	%		75.2	%		76.8	%		76.0	%
Consolidated Midland Operations
Various Requested Ratios
Cash & Invested Assets		944.0			944.3			1,005.5			1,036.4						1,037.3			1,045.3
Average Invested Assets		947.3			947.4			978.0			993.5						1,036.9			1,040.9
Consolidated MLAN Investment Portfolio Composition
Fixed Income Securities		740.3			736.1			787.0			801.7						780.7			780.4
Total Equity Securities		199.5			201.8			213.0			229.7						250.8			257.7
Fixed Income Securities as a % of Investment Portfolio		78.8	%		78.5	%		78.7	%		77.7	%					75.7	%		75.2	%
Total Equity Securities as a % of Investment Portfolio		21.2	%		21.5	%		21.3	%		22.3	%					24.3	%		24.8	%
Net Book Value Per Share (post split)
Total Shareholders’ Equity		506.7			510.4			545.7			574.7						597.1			614.2
Total Net Book Value Per Share	$	26.61		$	26.74		$	28.50		$	29.90					$	30.93		$	31.74
Less (Add): Net U/R Gain on Fixed Income Portfolio		0.03			(0.28	)		0.26			0.29						0.26			(0.17	)
Book Value Per Share (Net of FAS 115)	$	26.58		$	27.02		$	28.24		$	29.61					$	30.67		$	31.91
Less (Add): Net U/R Gain on Equity Income Portfolio		3.10			3.04			3.37			3.79						3.65			3.65
Book Value Per Share (Net of Unrealized Gain on Mrkt Sec)	$	23.48		$	23.98		$	24.87		$	25.82					$	27.02		$	28.26

* Net income before realized capital gains is a non-GAAP measure. Items excluded from this measure are significant components in understanding and assessing financial performance. The company believes that this non-GAAP financial measure provides a clearer picture of the underlying operating activities than the GAAP measure of net income, as it removes potential issues such as timing of investment gains (or losses) and allows readers to individually assess these components of net income.

EX-99.3

Exhibit 99.3

The Midland Company

Supplemental Financial Information by Segment

Financial Highlights

	Six Months Ended June 30									Three Months Ended June 30
(all amounts in 000’s except per share data)	2007			2006			%			2007			2006			%
Income Statement Data
Insurance Revenue	$	406,526		$	352,865			15.2	%	$	209,319		$	177,714			17.8	%
Transportation Revenue		29,163			24,240			20.3	%		16,372			12,459			31.4	%
Total Revenue	$	435,689		$	377,105			15.5	%	$	225,691		$	190,173			18.7	%
Net Income	$	48,745		$	32,240
Balance Sheet Data
Cash & Invested Assets	$	1,045,340		$	944,274			10.7	%
Total Assets	$	1,613,015		$	1,429,766			12.8	%
Total Debt	$	98,280		$	100,475			-2.2	%
Shareholders’ Equity	$	614,150		$	510,406			20.3	%
Common Shares Outstanding		19,351			19,089
Per Share Data
Net Income (Diluted)	$	2.45		$	1.65					$	1.25		$	0.50
Dividends Declared	$	0.20000		$	0.12250			63.3	%	$	0.10000		$	0.06125			63.3	%
Market Value	$	46.94		$	37.98			23.6	%
Book Value	$	31.74		$	26.74			18.7	%
AMIG’s Property and Casualty Operations
Direct and Assumed Written Premiums	$	443,615		$	384,465			15.4	%	$	238,234		$	209,357			13.8	%
Net Written Premium	$	383,055		$	336,251			13.9	%	$	206,805		$	183,707			12.6	%
Combined Ratio Before Catastrophes		90.0	%		86.9	%					90.6	%		87.9	%
Catastrophe Effects on Combined Ratio		2.4	%		7.6	%					2.8	%		12.2	%
Combined Ratio		92.4	%		94.5	%					93.4	%		100.1	%
Overview of Premium Volume
	Six Months Ended June 30									Three Months Ended June 30
Business Segment	Gross Written Premium			Net Written Premium			Net Earned Premium			Gross Written Premium			Net Written Premium			Net Earned Premium
Residential Property	$	233.9		$	201.9		$	191.2		$	123.4		$	106.8		$	96.4
Recreational Casualty		55.7			54.9			46.3			34.1			33.7			23.5
Financial Institutions		100.6			94.7			87.3			51.8			49.2			46.3
All Other Insurance		83.4			43.3			43.7			45.1			23.6			22.4
Total	$	473.6		$	394.8		$	368.5		$	254.4		$	213.3		$	188.6
Residential Property
	Six Months Ended June 30									Three Months Ended June 30
(all amounts in 000’s)	2007			2006			%			2007			2006			%
Direct and Assumed Written Premiums	$	233,916		$	229,494			1.9	%	$	123,382		$	124,426			-0.8	%
Net Written Premiums	$	201,942		$	207,971			-2.9	%	$	106,841		$	111,948			-4.6	%
Net Earned Premium	$	191,153		$	192,001			-0.4	%	$	96,370		$	97,254			-0.9	%
Service Fees		3,050			3,089			-1.3	%		1,539			1,537			0.1	%
Total Revenues	$	194,203		$	195,090			-0.5	%	$	97,909		$	98,791			-0.9	%
Pre-Tax Income (Loss)	$	27,527		$	13,304					$	14,415		$	(1,129	)
Recreational Casualty
	Six Months Ended June 30									Three Months Ended June 30
(all amounts in 000’s)	2007			2006			%			2007			2006			%
Direct and Assumed Written Premiums	$	55,748		$	54,274			2.7	%	$	34,183		$	33,169			3.1	%
Net Written Premiums	$	54,871		$	53,517			2.5	%	$	33,717		$	32,797			2.8	%
Net Earned Premium	$	46,362		$	48,341			-4.1	%	$	23,463		$	24,105			-2.7	%
Service Fees		891			883			0.9	%		450			439			2.5	%
Total Revenues	$	47,253		$	49,224			-4.0	%	$	23,913		$	24,544			-2.6	%
Pre-Tax Income (Loss)	$	3,094		$	7,860					$	(1,048	)	$	1,393

Financial Institutions
	Six Months Ended June 30						Three Months Ended June 30
(all amounts in 000’s)	2007		2006		%		2007		2006		%
Direct and Assumed Written Premiums	$	100,577	$	48,160	108.8	%	$	51,756	$	24,191	113.9	%
Net Written Premiums	$	94,713	$	42,821	121.2	%	$	49,163	$	21,713	126.4	%
Net Earned Premium	$	87,274	$	43,921	98.7	%	$	46,306	$	21,938	111.1	%
Pre-Tax Income (Loss)	$	9,870	$	5,183			$	4,820	$	4,002
All Other Insurance
	Six Months Ended June 30						Three Months Ended June 30
(all amounts in 000’s)	2007		2006		%		2007		2006		%
Direct and Assumed Written Premiums	$	83,397	$	71,836	16.1	%	$	45,111	$	37,550	20.1	%
Net Written Premiums	$	43,328	$	36,791	17.8	%	$	23,622	$	19,949	18.4	%
Net Earned Premium	$	43,738	$	37,239	17.5	%	$	22,442	$	18,977	18.3	%
Agency Revenues		2,752		2,486	10.7	%		1,359		1,307	4.0	%
Service Fees		—		3	-100.0	%		—		2	-100.0	%
Total Revenues	$	46,490	$	39,728	17.0	%	$	23,801	$	20,286	17.3	%
Pre-Tax Income (Loss)	$	15,502	$	14,549			$	8,344	$	7,565