Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

We have two reportable business segments in our operations: property and casualty insurance and life insurance. Mercer Insurance Group is included in the property and casualty insurance segment subsequent to their acquisition on March 28, 2011. The property and casualty insurance segment has six domestic locations from which it conducts its business. All offices target a similar customer base, market the same products and use the same marketing strategies and are therefore aggregated. The life insurance segment operates from our home office. Because all of our insurance is sold domestically, we have no revenues allocable to foreign operations.

We evaluate the two segments on the basis of both statutory accounting practices prescribed or permitted by our states of domicile and GAAP. We analyze results based on profitability (i.e., loss ratios), expenses, and return on equity. The basis we use to determine and analyze segments and to measure segment profit or loss have not changed from that reported in our Annual Report on Form 10-K for the year ended December 31, 2010.

The following tables for the three-month periods ended September 30, 2011 and 2010 have been reconciled to the amounts reported in our unaudited Consolidated Financial Statements to adjust for intersegment eliminations.

(In Thousands)	Property and Casualty Insurance			Life Insurance			Total
Three Months Ended September 30, 2011
Net premiums earned	$	144,065		$	14,731		$	158,796
Investment income, net of investment expenses	8,129			18,743			26,872
Net realized investment gains	692			527			1,219
Other income	504			221			725
Total reportable segment	$	153,390		$	34,222		$	187,612
Intersegment eliminations	(44		)	6			(38		)
Total revenues	$	153,346		$	34,228		$	187,574
Net income (loss)	$	(6,671	)	$	1,895		$	(4,776	)
Assets at September 30, 2011	$	1,878,705		$	1,726,040		$	3,604,745
Invested assets at September 30, 2011	$	1,265,170		$	1,602,252		$	2,867,422
Three Months Ended September 30, 2010
Net premiums earned	$	106,174		$	13,061		$	119,235
Investment income, net of investment expenses	7,899			19,230			27,129
Net realized investment gains	1,220			102			1,322
Other income	99			241			340
Total reportable segment	$	115,392		$	32,634		$	148,026
Intersegment eliminations	(45		)	(77		)	(122		)
Total revenues	$	115,347		$	32,557		$	147,904
Net income	$	890		$	2,033		$	2,923
Assets at September 30, 2010	$	1,360,136		$	1,752,583		$	3,112,719
Invested assets at September 30, 2010	$	968,183		$	1,564,607		$	2,532,790

The following tables for the nine-month periods ended September 30, 2011 and 2010, have been reconciled to the amounts reported in our unaudited Consolidated Financial Statements to adjust for intersegment eliminations.

(In Thousands)	Property and Casualty Insurance			Life Insurance			Total
Nine Months Ended September 30, 2011
Net premiums earned	$	384,838		$	40,556		$	425,394
Investment income, net of investment expenses	26,405			55,422			81,827
Net realized investment gains	2,293			2,703			4,996
Other income	1,042			568			1,610
Total reportable segment	$	414,578		$	99,249		$	513,827
Intersegment eliminations	(132		)	(241		)	(373		)
Total revenues	$	414,446		$	99,008		$	513,454
Net income (loss)	$	(22,895	)	$	6,015		$	(16,880	)
Assets at September 30, 2011	$	1,878,705		$	1,726,040		$	3,604,745
Invested assets at September 30, 2011	$	1,265,170		$	1,602,252		$	2,867,422
Nine Months Ended September 30, 2010
Net premiums earned	$	313,549		$	37,236		$	350,785
Investment income, net of investment expenses	25,630			57,849			83,479
Net realized investment gains	2,675			3,719			6,394
Other income	116			642			758
Total reportable segment	$	341,970		$	99,446		$	441,416
Intersegment eliminations	(136		)	(237		)	(373		)
Total revenues	$	341,834		$	99,209		$	441,043
Net income	$	26,648		$	9,319		$	35,967
Assets at September 30, 2010	$	1,360,136		$	1,752,583		$	3,112,719
Invested assets at September 30, 2010	$	968,183		$	1,564,607		$	2,532,790