Investments (Tables)

6 Months Ended

Jun. 30, 2012

Investments [Abstract]

Summary of Available For Sale Securities

The following is a summary of available-for-sale securities at June 30, 2012 and December 31, 2011:

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
June 30, 2012:
U.S. government obligations	$	69,433	$	69,433	$	52	$	(52	)	$	-
Residential mortgage-backed securities		18,165		18,347		533		(715	)		(182	)
Commercial mortgage-backed securities		15,153		14,821		490		(158	)		332
States and municipal obligations		174,216		173,165		1,092		(41	)		1,051
Corporate securities		112,182		111,368		1,844		(1,030	)		814
Foreign government obligations		21,499		21,650		161		(312	)		(151	)
Total fixed maturities		410,648		408,784		4,172		(2,308	)		1,864
Equity securities:
Financial institutions		10,121		5,012		5,260		(151	)		5,109
Industrial & Miscellaneous		90,956		51,787		41,184		(2,015	)		39,169
Total equity securities		101,077		56,799		46,444		(2,166	)		44,278
Total available-for-sale securities	$	511,725	$	465,583	$	50,616	$	(4,474	)		46,142
Applicable federal income taxes											(16,150	)
Net unrealized gains - net of tax										$	29,992
December 31, 2011:
U.S. government obligations	$	73,137	$	73,009	$	139	$	(11	)	$	128
Government sponsored entities		349		345		4		-			4
Residential mortgage-backed securities		21,872		21,778		619		(525	)		94
Commercial mortgage-backed securities		11,300		11,388		116		(204	)		(88	)
States and municipal obligations		190,035		188,991		1,275		(231	)		1,044
Corporate securities		91,646		91,949		1,429		(1,732	)		(303	)
Foreign government obligations		21,121		21,483		168		(530	)		(362	)
Total fixed maturities		409,460		408,943		3,750		(3,233	)		517
Equity securities:
Financial institutions		9,428		4,955		4,778		(305	)		4,473
Industrial & Miscellaneous		78,657		42,736		36,921		(1,000	)		35,921
Total equity securities		88,085		47,691		41,699		(1,305	)		40,394
Total available-for-sale securities	$	497,545	$	456,634	$	45,449	$	(4,538	)		40,911
Applicable federal income taxes											(14,319	)
Net unrealized gains - net of tax										$	26,592

Schedule of Unrealized Loss on Investments

The following table summarizes, for fixed maturity and equity security investments in an unrealized loss position at June 30, 2012 and December 31, 2011, respectively, the aggregate fair value and gross unrealized loss categorized by the duration those securities have been continuously in an unrealized loss position.

	June 30, 2012							December 31, 2011
	Number of Securities		Fair Value		Gross Unrealized Loss			Number of Securities		Fair  Value		Gross Unrealized Loss
Fixed maturity securities:
12 months or less		204	$	98,248	$	(1,978	)		206	$	86,470	$	(2,303	)
Greater than 12 months		35		14,548		(330	)		44		11,930		(930	)
Total fixed maturities		239		112,796		(2,308	)		250		98,400		(3,233	)
Equity securities:
12 months or less		33		11,244		(1,785	)		35		8,317		(1,275	)
Greater than 12 months		10		3,460		(381	)		4		216		(30	)
Total equity securities		43		14,704		(2,166	)		39		8,533		(1,305	)
Total fixed maturity and equity securities		282	$	127,500	$	(4,474	)		289	$	106,933	$	(4,538	)

Investments Classified by Contractual Maturity Date

The fair value and the cost or amortized cost of fixed maturity investments, at June 30, 2012, by contractual maturity, are shown below.  Actual maturities may ultimately differ from contractual maturities because borrowers have, in some cases, the right to call or prepay obligations with or without call or prepayment penalties. Pre-refunded municipal bonds are classified based on their pre-refunded call dates.

	Fair Value		Cost or Amortized Cost
One year or less	$	129,753	$	129,659
Excess of one year to five years		211,721		210,120
Excess of five years to ten years		22,174		22,204
Excess of ten years		3,155		3,036
Total maturities		366,803		365,019
Asset-backed securities		43,845		43,765
	$	410,648	$	408,784

Realized Gain (Loss) on Investments

Following is a summary of the components of net realized gains (losses) on investments for the periods presented in the accompanying statements of operations.

	Three Months Ended						Six Months Ended
	June 30						June 30
	2012			2011			2012			2011
Fixed maturities:
Gross gains	$	792		$	1,161		$	1,342		$	2,158
Gross losses		(1,181	)		(402	)		(2,152	)		(1,869	)
Net gains (losses)		(389	)		759			(810	)		289
Equity securities:
Gross gains		152			1,198			675			2,229
Gross losses		(333	)		(283	)		(475	)		(773	)
Net gains (losses)		(181	)		915			200			1,456
Limited partnerships - net gain (loss)		(4,883	)		(3,637	)		537			(5,177	)
Total net losses	$	(5,453	)	$	(1,963	)	$	(73	)	$	(3,432	)

Schedule of Realized Gain (Loss)

Gains and losses activity for investments, as shown in the previous table, are further detailed as follows:

	Three Months Ended						Six Months Ended
	June 30						June 30
	2012			2011			2012			2011
Realized net gains (losses) on the disposal of securities	$	(109	)	$	1,636		$	(205	)	$	2,044
Mark-to-market adjustment		(369	)		156			(313	)		(645	)
Equity in (losses) of limited partnership investments - realized and unrealized		(4,883	)		(3,637	)		537			(5,177	)
Impairment:
Write-downs based upon objective criteria		(345	)		(118	)		(345	)		(118	)
Recovery of prior write-downs upon sale or disposal		253			-			253			464
Totals	$	(5,453	)	$	(1,963	)	$	(73	)	$	(3,432	)