Investments (Tables)

9 Months Ended

Sep. 30, 2012

Investments [Abstract]

Summary of available for sale securities

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

										Net
			Cost or		Gross		Gross			Unrealized
	Fair		Amortized		Unrealized		Unrealized			Gains
	Value		Cost		Gains		Losses			(Losses)
September 30, 2012:
U.S. government obligations	$	70,686	$	70,640	$	70	$	(24	)	$	46
Residential mortgage-backed securities		16,808		16,403		569		(164	)		405
Commercial mortgage-backed securities		14,717		14,153		698		(134	)		564
States and municipal obligations		195,300		194,211		1,142		(53	)		1,089
Corporate securities		124,240		121,860		3,455		(1,075	)		2,380
Foreign government obligations		21,833		21,466		460		(93	)		367
Total fixed maturities		443,584		438,733		6,394		(1,543	)		4,851
Equity securities:
Financial institutions		11,731		5,699		6,187		(155	)		6,032
Industrial & Miscellaneous		92,151		49,989		43,435		(1,273	)		42,162
Total equity securities		103,882		55,688		49,622		(1,428	)		48,194
Total available-for-sale securities	$	547,466	$	494,421	$	56,016	$	(2,971	)		53,045
							Applicable federal income taxes				(18,565	)
							Net unrealized gains - net of tax			$	34,480
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 September 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.

	September 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		129	$	70,996	$	(943	)		206	$	86,470	$	(2,303	)
Greater than 12 months		43		8,701		(600	)		44		11,930		(930	)
Total fixed maturities		172		79,697		(1,543	)		250		98,400		(3,233	)
Equity securities:
12 months or less		11		4,686		(365	)		35		8,317		(1,275	)
Greater than 12 months		23		7,485		(1,063	)		4		216		(30	)
Total equity securities		34		12,171		(1,428	)		39		8,533		(1,305	)
Total fixed maturity and equity securities		206	$	91,868	$	(2,971	)		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 September 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	$	160,953	$	160,557
Excess of one year to five years		203,862		201,413
Excess of five years to ten years		32,107		31,611
Excess of ten years		3,167		2,990
Total maturities		400,089		396,571
Asset-backed securities		43,495		42,162
	$	443,584	$	438,733

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 consolidated statements of operations.

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2012			2011			2012			2011
Fixed maturities:
Gross gains	$	1,508		$	1,572		$	2,850		$	3,730
Gross losses		(801	)		(2,048	)		(2,952	)		(3,917	)
Net realized gains (losses)		707			(476	)		(102	)		(187	)
Equity securities:
Gross gains		2,132			272			2,807			2,501
Gross losses		(353	)		(1,195	)		(828	)		(1,968	)
Net realized gains (losses)		1,779			(923	)		1,979			533
Limited partnerships - net gain (loss)		6,295			(16,061	)		6,832			(21,238	)
Totals	$	8,781		$	(17,460	)	$	8,709		$	(20,892	)

Schedule of realized gain (Loss)

Net realized gains (losses) activity for investments, as shown in the previous table, are further detailed as follows:

	Three Months Ended						Nine Months Ended
	September 30						September 30
	2012			2011			2012			2011
Realized net gains on the disposal of securities	$	1,659		$	1,312		$	1,454		$	3,356
Mark-to-market adjustment		456			(1,353	)		144			(1,998	)
Equity in gains (losses) of limited partnership
investments - realized and unrealized		6,295			(16,061	)		6,832			(21,238	)
Impairment:
Write-downs based upon objective criteria		(411	)		(1,376	)		(756	)		(1,494	)
Recovery of prior write-downs
upon sale or disposal		782			18			1,035			482
Totals	$	8,781		$	(17,460	)	$	8,709		$	(20,892	)

The mark-to-market adjustments in the table above represent the changes in fair value of (1) options embedded in convertible debt securities and (2) insurance-linked securities held by the Company.