Reportable Segments

12 Months Ended

Dec. 31, 2012

Reportable Segments [Abstract]

Reportable Segments

Note J - Reportable Segments

The Company operates within two reportable business segments: property and casualty insurance and reinsurance. The property and casualty insurance segment provides multiple line insurance coverage primarily to fleet transportation companies and to independent contractors who contract with fleet transportation companies, as well as individual personal automobile coverage, professional liability coverages and business owners' and commercial property policies. The reinsurance segment accepts cessions from other insurance companies as well as retrocessions from selected reinsurance companies, providing property catastrophe and casualty reinsurance coverages.

The Company evaluates performance and allocates resources based on past or expected results from insurance underwriting operations before income taxes. Underwriting gain or loss does not include net investment income or gains or losses on the Company's investment portfolio. All investment-related revenues are managed at the corporate level. Underwriting gain or loss for the property and casualty insurance segment includes revenue and expense from the Company's agency operations since the agency operations serve as a primary direct marketing facility for this segment. Management does not identify or allocate assets to reportable segments when evaluating segment performance and depreciation expense is not material for any of the reportable segments. The accounting policies of each reportable segment are the same as those described in the summary of significant accounting policies.

The following table provides certain profit and loss information for each reportable segment for the years ended

December 31:

		2012		2011			2010
Direct and assumed premium written:
Property and casualty insurance		$	284,200	$	274,101		$	249,699
Reinsurance			57,086		60,425			46,103
	Totals	$	341,286	$	334,526		$	295,802
Net premium earned:
Property and casualty insurance		$	186,586	$	186,422		$	174,043
Reinsurance			50,875		58,148			40,695
	Totals	$	237,461	$	244,570		$	214,738
Underwriting gain (loss):
Property and casualty insurance		$	23,491	$	19,646		$	26,308
Reinsurance			20,567		(45,113	)		(6,725	)
	Totals	$	44,058	$	(25,467	)	$	19,583

The following table reconciles reportable segment profits to the Company's consolidated income (loss) before federal income taxes:

		2012			2011			2010
Profit:
Underwriting gain (loss)		$	44,058		$	(25,467	)	$	19,583
Net investment income			9,930			10,729			11,335
Net realized gains (losses) on investments			9,011			(17,803	)		16,485
Corporate expenses			(16,393	)		(12,748	)		(12,590	)
	Income (loss) before federal income taxes	$	46,606		$	(45,289	)	$	34,813

One customer of the property and casualty insurance segment, FedEx Ground Systems, Inc. ("FedEx Ground") and certain of its subsidiaries and related entities represents approximately $19,052, $23,347 and $20,187 of the Company's consolidated direct and assumed premium written in 2012, 2011 and 2010, respectively. An additional $146,447, $129,508 and $115,625 for 2012, 2011 and 2010, respectively, is placed with the Company by a non-affiliated broker on behalf of independent contractors of this same customer.