Fair Value (Tables)

6 Months Ended

Jun. 30, 2012

Fair Value [Abstract]

Fair value assets measured at fair value on a recurring basis

Assets and liabilities recorded at fair value in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair value. The following tables summarize fair value measurements by level for assets measured at fair value on a recurring basis:

As of June 30, 2012:
Description	Total		Level 1		Level 2		Level 3
U.S. government obligations	$	69,433	$	69,433	$	-	$	-
Government sponsored entities		-		-		-		-
Residential mortgage-backed securities		18,165		-		18,165		-
Commercial mortgage-backed securities		15,153		-		15,153		-
State and municipal obligations		174,216		-		174,216		-
Corporate securities		110,802		-		97,161		13,641
Options embedded in convertible securities		1,380				1,380
Foreign government obligations		21,499		-		21,499		-
Total fixed maturities		410,648		69,433		327,574		13,641
Equity securities		101,077		101,077		-		-
Short term		3,346		3,225		121
Cash equivalents		85,098		-		85,098		-
	$	600,169	$	173,735	$	412,793	$	13,641

As of December 31, 2011:
Description	Total		Level 1		Level 2		Level 3
U.S. government obligations	$	73,137	$	73,137	$	-	$	-
Government sponsored entities		349		-		349		-
Residential mortgage-backed securities		21,872		-		21,872		-
Commercial mortgage-backed securities		11,300		-		11,300		-
State and municipal obligations		190,035				190,035
Corporate securities		90,141		-		73,091		17,050
Options embedded in convertible securities		1,505		-		1,505		-
Foreign government obligations		21,121		-		21,121		-
Total fixed maturities		409,460		73,137		319,273		17,050
Equity securities		88,085		88,085		-		-
Short term		3,675		2,982		693
Cash equivalents		81,756		-		81,756		-
	$	582,976	$	164,204	$	401,722	$	17,050

Fair Value Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The Level 3 assets consist of an investment portfolio of insurance-linked securities.  The insurance-linked securities are valued using the average of estimated market quotes from multiple insurance-linked securities brokers.  The broker quotes include Level 3 inputs which are significant to the valuation of the insurance-linked securities and vary by 0-3% from each other. There were no Level 3 sales, no transfers into Level 3 and no transfers out of Level 3 during 2012 or 2011.  A reconciliation of the beginning and ending balances of assets measured at fair value on a recurring basis using Level 3 inputs is as follows for the six months ended June 30, 2012 and for the year ended December 31, 2011:

	2012			2011
Beginning of period balance	$	17,050		$	17,242
Total gain or losses (realized or unrealized)
Included in earnings (or changes in net assets)		(165	)		387
Purchases		400			6,522
Settlements		(3,644	)		(7,101	)
End of period balance	$	13,641		$	17,050

Summary of carrying value and fair value by level of financial instruments

A summary of the carrying value and fair value by level of financial instruments not recorded at fair value on the Company's consolidated balance sheet at June 30, 2012 is as follows:

	Carrying		Fair Value
	Value		Level 1		Level II		Level III		Total
Assets:
Limited partnerships	$	53,280	$	-	$	-	$	53,280	$	53,280
Liabilities:
Short-term borrowings		10,000		-		10,000		-		10,000

A summary of the carrying value and fair value of financial instruments not recorded at fair value on the Company's consolidated balance sheet at December 31, 2011 is as follows:

	Carrying		Fair
	Value		Value
Assets:
Limited partnerships	$	54,705	$	54,705
Liabilities:
Short-term borrowings		10,000		10,000