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<div align="left" style="font-family: 'Times New Roman',Times,serif">   <div align="left" style="font-size: 10pt; margin-top: 0pt"><b></b> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"><b></b> </div> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(1) General</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The accompanying unaudited consolidated financial statements of W. R. Berkley Corporation and subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by GAAP for complete financial statements. The unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring items, which are necessary to present fairly the Company’s financial position and results of operations on a basis consistent with the prior audited consolidated financial statements. Operating results for the six months ended June 30, 2010 are not necessarily indicative of the results that may be expected for the year ending December 31, 2010. All significant intercompany accounts and transactions have been eliminated. The preparation of financial statements requires the use of management estimates. For further information related to a description of areas of judgment and estimates and other information necessary to understand the Company’s financial position and results of operations, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009. Reclassifications have been made in the 2009 financial statements as originally reported to conform to the presentation of the 2010 financial statements. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The income tax provision has been computed based on the Company’s estimated annual effective tax rate. The effective tax rate for the quarter differs from the federal income tax rate of 35% principally because of tax-exempt investment income. </div> </div>

<div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(2) Per share data</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company presents both basic and diluted net income per share (“EPS”) amounts. Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is based upon the weighted average number of common and common equivalent shares outstanding during the period and is calculated using the treasury stock method for stock incentive plans. Common equivalent shares are excluded from the computation in periods in which they have an anti-dilutive effect. Stock options for which the exercise price exceeds the average market price over the period have an anti-dilutive effect on EPS and, accordingly, are excluded from the calculation. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The weighted average number of common shares used in the computation of basic and diluted earnings per share was as follows (amounts in thousands): </div> <div align="center"> <table align="center" style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="80%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">For the Three Months</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">For the Six Months</td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Ended June 30,</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000">Ended June 30,</td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2010</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000">2009</td> <td> </td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Basic </div></td> <td> </td> <td> </td> <td align="right">151,215</td> <td> </td> <td> </td> <td> </td> <td align="right">160,008</td> <td> </td> <td> </td> <td> </td> <td align="right">152,324</td> <td> </td> <td> </td> <td> </td> <td align="right">160,546</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Diluted </div></td> <td> </td> <td> </td> <td align="right">157,461</td> <td> </td> <td> </td> <td> </td> <td align="right">166,226</td> <td> </td> <td> </td> <td> </td> <td align="right">158,539</td> <td> </td> <td> </td> <td> </td> <td align="right">166,716</td> <td> </td> </tr>  </table> </div> </div>

<div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(3) Statements of Cash Flow</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Interest payments were $51,347,000 and $39,778,000 in the six months ended June 30, 2010 and 2009, respectively. Income taxes paid were $94,389,000 and $26,747,000 in the six months ended June 30, 2010 and 2009, respectively. </div> </div>

<div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(4) Recent Accounting Pronouncements</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2009, the Financial Accounting Standards Board (“FASB”) issued guidance that: (i) eliminates the concept of qualifying “special-purpose entity” (“SPE”); (ii) alters the requirement for transferring assets off of the reporting company’s balance sheet; (iii) requires additional disclosure about a transferor’s involvement in transferred assets; and (iv) eliminates special treatment of guaranteed mortgage securitizations. This guidance was effective as of January 1, 2010. The adoption of this guidance did not impact our financial condition or results of operations. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In December 2009, the FASB issued guidance requiring the reporting entity to perform a qualitative analysis that results in a variable interest entity (“VIE”) being consolidated if the reporting entity: (i) has the power to direct activities of the VIE that significantly impact the VIE’s financial performance; and (ii) has an obligation to absorb losses or receive benefits that may be significant to the VIE. This guidance further requires enhanced disclosures, including disclosure of significant judgments and assumptions as to whether a VIE must be consolidated, and how involvement with a VIE affects the company’s financial statements. This guidance was effective January 1, 2010. The adoption of this guidance did not have a material impact on our financial condition or results of operations. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">In January 2010, the FASB issued guidance that requires additional disclosures regarding fair value measurements. The guidance requires entities to disclose the amounts and reasons for significant transfers between Level 1 and Level 2 of the fair value hierarchy, reasons for any transfers in or out of Level 3 and separate information in the reconciliation of recurring Level 3 measurements about purchases, sales, issuances and settlements. Portions of the guidance are effective for interim and annual reporting periods beginning after December 15, 2009, which we adopted January 1, 2010, and the remaining guidance is effective for interim and annual reporting periods beginning after December 15, 2010. The adoption of this guidance will expand the disclosures related to fair value measurements in the notes to the Company’s consolidated financial statements. </div> </div>

<div align="left" style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(5) Investments in Fixed Maturity Securities</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">At June 30, 2010 and December 31, 2009, investments in fixed maturity securities were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Gross Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Cost</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gains</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">June 30, 2010 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Held to maturity: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State and municipal </div></td> <td> </td> <td align="left">$</td> <td align="right">72,131</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,008</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(11</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">78,128</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">72,131</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Residential mortgage-backed </div></td> <td> </td> <td> </td> <td align="right">41,114</td> <td> </td> <td> </td> <td> </td> <td align="right">3,715</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">44,829</td> <td> </td> <td> </td> <td> </td> <td align="right">41,114</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">4,995</td> <td> </td> <td> </td> <td> </td> <td align="right">192</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">5,187</td> <td> </td> <td> </td> <td> </td> <td align="right">4,995</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total held to maturity </div></td> <td> </td> <td> </td> <td align="right">118,240</td> <td> </td> <td> </td> <td> </td> <td align="right">9,915</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">128,144</td> <td> </td> <td> </td> <td> </td> <td align="right">118,240</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. government and government agency </div></td> <td> </td> <td> </td> <td align="right">1,519,879</td> <td> </td> <td> </td> <td> </td> <td align="right">67,022</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(675</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,586,226</td> <td> </td> <td> </td> <td> </td> <td align="right">1,586,226</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State and municipal (1) </div></td> <td> </td> <td> </td> <td align="right">5,379,187</td> <td> </td> <td> </td> <td> </td> <td align="right">267,629</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(24,262</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5,622,554</td> <td> </td> <td> </td> <td> </td> <td align="right">5,622,554</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Mortgage-backed securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:75px; text-indent:-15px">Residential (2) </div></td> <td> </td> <td> </td> <td align="right">1,337,909</td> <td> </td> <td> </td> <td> </td> <td align="right">57,729</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(15,255</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,380,383</td> <td> </td> <td> </td> <td> </td> <td align="right">1,380,383</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:75px; text-indent:-15px">Commercial </div></td> <td> </td> <td> </td> <td align="right">44,876</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(7,549</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">37,327</td> <td> </td> <td> </td> <td> </td> <td align="right">37,327</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">1,894,541</td> <td> </td> <td> </td> <td> </td> <td align="right">102,511</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(30,930</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,966,122</td> <td> </td> <td> </td> <td> </td> <td align="right">1,966,122</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign </div></td> <td> </td> <td> </td> <td align="right">423,381</td> <td> </td> <td> </td> <td> </td> <td align="right">15,233</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,714</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">436,900</td> <td> </td> <td> </td> <td> </td> <td align="right">436,900</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total available for sale </div></td> <td> </td> <td> </td> <td align="right">10,599,773</td> <td> </td> <td> </td> <td> </td> <td align="right">510,124</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(80,385</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">11,029,512</td> <td> </td> <td> </td> <td> </td> <td align="right">11,029,512</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investment in fixed maturity securities </div></td> <td> </td> <td align="left">$</td> <td align="right">10,718,013</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">520,039</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(80,396</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">11,157,656</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,147,752</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">December 31, 2009 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Held to maturity: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State and municipal </div></td> <td> </td> <td align="left">$</td> <td align="right">70,847</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,778</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(739</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">76,886</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">70,847</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Residential mortgage-backed </div></td> <td> </td> <td> </td> <td align="right">44,318</td> <td> </td> <td> </td> <td> </td> <td align="right">2,984</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">47,302</td> <td> </td> <td> </td> <td> </td> <td align="right">44,318</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">4,994</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(13</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">4,981</td> <td> </td> <td> </td> <td> </td> <td align="right">4,994</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total held to maturity </div></td> <td> </td> <td> </td> <td align="right">120,159</td> <td> </td> <td> </td> <td> </td> <td align="right">9,762</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(752</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">129,169</td> <td> </td> <td> </td> <td> </td> <td align="right">120,159</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. government and government agency </div></td> <td> </td> <td> </td> <td align="right">1,677,579</td> <td> </td> <td> </td> <td> </td> <td align="right">40,358</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,784</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,714,153</td> <td> </td> <td> </td> <td> </td> <td align="right">1,714,153</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State and municipal (1) </div></td> <td> </td> <td> </td> <td align="right">5,551,632</td> <td> </td> <td> </td> <td> </td> <td align="right">238,271</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(41,048</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">5,748,855</td> <td> </td> <td> </td> <td> </td> <td align="right">5,748,855</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Mortgage-backed securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:75px; text-indent:-15px">Residential (2) </div></td> <td> </td> <td> </td> <td align="right">1,537,331</td> <td> </td> <td> </td> <td> </td> <td align="right">38,229</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(44,343</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,531,217</td> <td> </td> <td> </td> <td> </td> <td align="right">1,531,217</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:75px; text-indent:-15px">Commercial </div></td> <td> </td> <td> </td> <td align="right">47,292</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,069</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">35,223</td> <td> </td> <td> </td> <td> </td> <td align="right">35,223</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">1,719,874</td> <td> </td> <td> </td> <td> </td> <td align="right">59,082</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(35,574</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,743,382</td> <td> </td> <td> </td> <td> </td> <td align="right">1,743,382</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign </div></td> <td> </td> <td> </td> <td align="right">394,711</td> <td> </td> <td> </td> <td> </td> <td align="right">12,323</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(826</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">406,208</td> <td> </td> <td> </td> <td> </td> <td align="right">406,208</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:60px; text-indent:-15px">Total available for sale </div></td> <td> </td> <td> </td> <td align="right">10,928,419</td> <td> </td> <td> </td> <td> </td> <td align="right">388,263</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(137,644</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">11,179,038</td> <td> </td> <td> </td> <td> </td> <td align="right">11,179,038</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total investment in fixed maturity securities </div></td> <td> </td> <td align="left">$</td> <td align="right">11,048,578</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">398,025</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(138,396</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">11,308,207</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,299,197</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>Gross unrealized losses for state and municipal securities include $659,000 and $340,000 as of June 30, 2010 and December 31, 2009, respectively, related to the non-credit portion of other than temporary impairments (“OTTI”) recognized in other comprehensive income.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(2)</td> <td> </td> <td>Gross unrealized losses for residential mortgage-backed securities include $3,268,000 and $5,085,000 as of June 30, 2010 and December 31, 2009, respectively, related to the non-credit portion of OTTI recognized in other comprehensive income.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt;margin-left:2%">The amortized cost and fair value of fixed maturity securities at June 30, 2010, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities because certain issuers may have the right to call or prepay obligations: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Cost</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Due in one year or less </div></td> <td> </td> <td align="left">$</td> <td align="right">598,992</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">604,725</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Due after one year through five years </div></td> <td> </td> <td> </td> <td align="right">2,845,018</td> <td> </td> <td> </td> <td> </td> <td align="right">2,980,626</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Due after five years through ten years </div></td> <td> </td> <td> </td> <td align="right">2,839,195</td> <td> </td> <td> </td> <td> </td> <td align="right">3,016,292</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Due after ten years </div></td> <td> </td> <td> </td> <td align="right">3,010,909</td> <td> </td> <td> </td> <td> </td> <td align="right">3,093,474</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">1,423,899</td> <td> </td> <td> </td> <td> </td> <td align="right">1,462,539</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">10,718,013</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,157,656</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt;margin-left:2%">At June 30, 2010, there were no investments, other than investments in United States government and government agency securities, which exceeded 10% of common stockholders’ equity. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(6) Investments in Equity Securities Available for Sale</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt;margin-left:2%">At June 30, 2010 and December 31, 2009, investments in equity securities available for sale were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="40%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Amortized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Gross Unrealized</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Carrying</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Cost</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gains</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Value</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">June 30, 2010 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Common stocks </div></td> <td> </td> <td align="left">$</td> <td align="right">48,120</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">97,096</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,739</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">141,477</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">141,477</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">232,739</td> <td> </td> <td> </td> <td> </td> <td align="right">4,841</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(21,828</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">215,752</td> <td> </td> <td> </td> <td> </td> <td align="right">215,752</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">280,859</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">101,937</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25,567</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">357,229</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">357,229</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">December 31, 2009 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Common stocks </div></td> <td> </td> <td align="left">$</td> <td align="right">27,237</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">97,554</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,731</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">119,060</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">119,060</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">285,490</td> <td> </td> <td> </td> <td> </td> <td align="right">9,745</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,928</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">282,307</td> <td> </td> <td> </td> <td> </td> <td align="right">282,307</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">312,727</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">107,299</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(18,659</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">401,367</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">401,367</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="21" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(7) Arbitrage Trading Account and Arbitrage Funds</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt;margin-left:2%">The fair value and carrying value of the arbitrage trading account and arbitrage funds and related assets and liabilities were as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left">(<b>Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Arbitrage trading account </div></td> <td> </td> <td align="left">$</td> <td align="right">498,368</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">465,783</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Investment in arbitrage funds </div></td> <td> </td> <td> </td> <td align="right">58,564</td> <td> </td> <td> </td> <td> </td> <td align="right">83,420</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Related assets and liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Receivables from brokers </div></td> <td> </td> <td> </td> <td align="right">183,175</td> <td> </td> <td> </td> <td> </td> <td align="right">310,042</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Securities sold but not yet purchased </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(48,836</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(143,885</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(8) Net Investment Income</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Net investment income consists of the following: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Six Months</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Ended June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Ended June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Investment income earned on: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Fixed maturity securities, including cash </div></td> <td> </td> <td align="left">$</td> <td align="right">125,649</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">120,211</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">250,758</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">242,598</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Equity securities available for sale </div></td> <td> </td> <td> </td> <td align="right">2,628</td> <td> </td> <td> </td> <td> </td> <td align="right">6,010</td> <td> </td> <td> </td> <td> </td> <td align="right">5,993</td> <td> </td> <td> </td> <td> </td> <td align="right">12,074</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Arbritage trading account (1) </div></td> <td> </td> <td> </td> <td align="right">1,131</td> <td> </td> <td> </td> <td> </td> <td align="right">6,938</td> <td> </td> <td> </td> <td> </td> <td align="right">12,354</td> <td> </td> <td> </td> <td> </td> <td align="right">17,599</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Gross investment income </div></td> <td> </td> <td> </td> <td align="right">129,408</td> <td> </td> <td> </td> <td> </td> <td align="right">133,159</td> <td> </td> <td> </td> <td> </td> <td align="right">269,105</td> <td> </td> <td> </td> <td> </td> <td align="right">272,271</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Investment expense </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,217</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,024</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,071</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,920</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Net investment income </div></td> <td> </td> <td align="left">$</td> <td align="right">128,191</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">132,135</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">267,034</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">270,351</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>Investment income earned from trading account activity includes net unrealized trading losses of $1,909,000 and $174,000 in the three months ended June 30, 2010 and 2009, respectively, and net unrealized trading gains of $298,000 and $1,498,000 in the six months ended June 30, 2010 and 2009, respectively.</td> </tr> </table> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(9) Investment Funds</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Investment funds include the following: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Carrying Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Income (Losses)</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>as of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>from Investment Funds</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>For the Six Months Ended June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Real estate </div></td> <td> </td> <td align="left">$</td> <td align="right">198,791</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">193,178</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,906</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(132,828</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Energy </div></td> <td> </td> <td> </td> <td align="right">97,459</td> <td> </td> <td> </td> <td> </td> <td align="right">106,213</td> <td> </td> <td> </td> <td> </td> <td align="right">13,949</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(18,417</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">125,144</td> <td> </td> <td> </td> <td> </td> <td align="right">119,489</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,785</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,650</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">421,394</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">418,880</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">6,258</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(152,895</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(10) Loans Receivable</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The amortized cost of loans receivable was $374 million and $382 million at June 30, 2010 and December 31, 2009, respectively. Amortized cost is net of a valuation allowance of $16.4 million and $13.8 million, respectively. For the six months ended June 30, 2010, the Company increased its valuation allowance by $2.6 million. The ten largest loans have an aggregate amortized cost of $296 million and an aggregate fair value of $230 million and are secured by commercial real estate. These loans earn interest at floating LIBOR-based interest rates and have maturities (inclusive of extension options) between August 2011 and January 2013. The loans are secured by office buildings (60%), hotels (27%) and senior living facilities (13%), with properties located primarily in New York City, California, Hawaii, Boston and Philadelphia. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(11) Realized and Unrealized Investment Gains (Losses)</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Realized and unrealized investment gains (losses) are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Six Months</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Ended June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 0px solid #000000"><b>Ended June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Realized investment gains (losses): </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Fixed maturity securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Gains </div></td> <td> </td> <td align="left">$</td> <td align="right">12,342</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,920</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">21,850</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,621</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Losses </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,165</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(527</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,258</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,578</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Equity securities available for sale </div></td> <td> </td> <td> </td> <td align="right">637</td> <td> </td> <td> </td> <td> </td> <td align="right">37,143</td> <td> </td> <td> </td> <td> </td> <td align="right">791</td> <td> </td> <td> </td> <td> </td> <td align="right">36,024</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">224</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">224</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Sales of investment funds </div></td> <td> </td> <td> </td> <td align="right">496</td> <td> </td> <td> </td> <td> </td> <td align="right">688</td> <td> </td> <td> </td> <td> </td> <td align="right">421</td> <td> </td> <td> </td> <td> </td> <td align="right">1,549</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Provision for OTTI (1) </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(23,932</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2,582</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(134,132</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Less investment impairments recognized in other comprehensive income </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">8,604</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">8,604</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total net investment gains (losses) before income taxes </div></td> <td> </td> <td> </td> <td align="right">11,534</td> <td> </td> <td> </td> <td> </td> <td align="right">33,896</td> <td> </td> <td> </td> <td> </td> <td align="right">17,446</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(62,912</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,085</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,855</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,154</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">22,109</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total net investment gains (losses) </div></td> <td> </td> <td align="left">$</td> <td align="right">7,449</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">22,041</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,292</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(40,803</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Change in unrealized gains (losses) of available for sales securities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Fixed maturity securities </div></td> <td> </td> <td align="left">$</td> <td align="right">124,287</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">82,311</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">178,323</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">238,552</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Less non-credit portion of OTTI recognized in other comprehensive income </div></td> <td> </td> <td> </td> <td align="right">789</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8,604</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">1,499</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8,604</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Equity securities available for sale </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(15,538</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">51,806</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(12,270</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">37,412</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Investment funds </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(3,358</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">6,403</td> <td> </td> <td> </td> <td> </td> <td align="right">299</td> <td> </td> <td> </td> <td> </td> <td align="right">4,232</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(42</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(76</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total change in unrealized gains before income taxes and noncontrolling interests </div></td> <td> </td> <td> </td> <td align="right">106,180</td> <td> </td> <td> </td> <td> </td> <td align="right">131,874</td> <td> </td> <td> </td> <td> </td> <td align="right">167,850</td> <td> </td> <td> </td> <td> </td> <td align="right">271,516</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(36,962</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(48,449</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(58,563</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(97,879</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Noncontrolling interests </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(21</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(8</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(41</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total change in unrealized gains </div></td> <td> </td> <td align="left">$</td> <td align="right">69,216</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">83,404</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">109,279</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">173,596</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>Includes change in valuation allowance for loans receivable of $2.6 million for the six months ended June 30, 2010.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>   <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(12) Securities in an Unrealized Loss Position</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following table summarizes all securities in an unrealized loss position at June 30, 2010 and December 31, 2009 by the length of time those securities have been continuously in an unrealized loss position. </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Less Than 12 Months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>12 Months or Greater</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Total</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Losses</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Losses</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">June 30, 2010 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. government and agency </div></td> <td> </td> <td align="left">$</td> <td align="right">33,300</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">597</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,120</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">78</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">40,420</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">675</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">State and municipal </div></td> <td> </td> <td> </td> <td align="right">197,771</td> <td> </td> <td> </td> <td> </td> <td align="right">1,805</td> <td> </td> <td> </td> <td> </td> <td align="right">198,434</td> <td> </td> <td> </td> <td> </td> <td align="right">22,468</td> <td> </td> <td> </td> <td> </td> <td align="right">396,205</td> <td> </td> <td> </td> <td> </td> <td align="right">24,273</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">61,371</td> <td> </td> <td> </td> <td> </td> <td align="right">2,251</td> <td> </td> <td> </td> <td> </td> <td align="right">208,860</td> <td> </td> <td> </td> <td> </td> <td align="right">20,553</td> <td> </td> <td> </td> <td> </td> <td align="right">270,231</td> <td> </td> <td> </td> <td> </td> <td align="right">22,804</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">202,260</td> <td> </td> <td> </td> <td> </td> <td align="right">12,818</td> <td> </td> <td> </td> <td> </td> <td align="right">117,973</td> <td> </td> <td> </td> <td> </td> <td align="right">18,112</td> <td> </td> <td> </td> <td> </td> <td align="right">320,233</td> <td> </td> <td> </td> <td> </td> <td align="right">30,930</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign </div></td> <td> </td> <td> </td> <td align="right">69,402</td> <td> </td> <td> </td> <td> </td> <td align="right">1,714</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">69,402</td> <td> </td> <td> </td> <td> </td> <td align="right">1,714</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Fixed maturity securities </div></td> <td> </td> <td> </td> <td align="right">564,104</td> <td> </td> <td> </td> <td> </td> <td align="right">19,185</td> <td> </td> <td> </td> <td> </td> <td align="right">532,387</td> <td> </td> <td> </td> <td> </td> <td align="right">61,211</td> <td> </td> <td> </td> <td> </td> <td align="right">1,096,491</td> <td> </td> <td> </td> <td> </td> <td align="right">80,396</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Common stocks </div></td> <td> </td> <td> </td> <td align="right">23,253</td> <td> </td> <td> </td> <td> </td> <td align="right">1,854</td> <td> </td> <td> </td> <td> </td> <td align="right">8,153</td> <td> </td> <td> </td> <td> </td> <td align="right">1,885</td> <td> </td> <td> </td> <td> </td> <td align="right">31,406</td> <td> </td> <td> </td> <td> </td> <td align="right">3,739</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">66,002</td> <td> </td> <td> </td> <td> </td> <td align="right">3,739</td> <td> </td> <td> </td> <td> </td> <td align="right">94,159</td> <td> </td> <td> </td> <td> </td> <td align="right">18,089</td> <td> </td> <td> </td> <td> </td> <td align="right">160,161</td> <td> </td> <td> </td> <td> </td> <td align="right">21,828</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Equity securities </div></td> <td> </td> <td> </td> <td align="right">89,255</td> <td> </td> <td> </td> <td> </td> <td align="right">5,593</td> <td> </td> <td> </td> <td> </td> <td align="right">102,312</td> <td> </td> <td> </td> <td> </td> <td align="right">19,974</td> <td> </td> <td> </td> <td> </td> <td align="right">191,567</td> <td> </td> <td> </td> <td> </td> <td align="right">25,567</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">653,359</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">24,778</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">634,699</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">81,185</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,288,058</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">105,963</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">December 31, 2009 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">U.S. government and agency </div></td> <td> </td> <td align="left">$</td> <td align="right">389,745</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,653</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,361</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">131</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">397,106</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3,784</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">State and municipal </div></td> <td> </td> <td> </td> <td align="right">376,914</td> <td> </td> <td> </td> <td> </td> <td align="right">12,971</td> <td> </td> <td> </td> <td> </td> <td align="right">443,666</td> <td> </td> <td> </td> <td> </td> <td align="right">28,816</td> <td> </td> <td> </td> <td> </td> <td align="right">820,580</td> <td> </td> <td> </td> <td> </td> <td align="right">41,787</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">306,840</td> <td> </td> <td> </td> <td> </td> <td align="right">12,719</td> <td> </td> <td> </td> <td> </td> <td align="right">260,519</td> <td> </td> <td> </td> <td> </td> <td align="right">43,693</td> <td> </td> <td> </td> <td> </td> <td align="right">567,359</td> <td> </td> <td> </td> <td> </td> <td align="right">56,412</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">194,690</td> <td> </td> <td> </td> <td> </td> <td align="right">13,958</td> <td> </td> <td> </td> <td> </td> <td align="right">172,656</td> <td> </td> <td> </td> <td> </td> <td align="right">21,629</td> <td> </td> <td> </td> <td> </td> <td align="right">367,346</td> <td> </td> <td> </td> <td> </td> <td align="right">35,587</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign </div></td> <td> </td> <td> </td> <td align="right">81,368</td> <td> </td> <td> </td> <td> </td> <td align="right">826</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">81,368</td> <td> </td> <td> </td> <td> </td> <td align="right">826</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Fixed maturity securities </div></td> <td> </td> <td> </td> <td align="right">1,349,557</td> <td> </td> <td> </td> <td> </td> <td align="right">44,127</td> <td> </td> <td> </td> <td> </td> <td align="right">884,202</td> <td> </td> <td> </td> <td> </td> <td align="right">94,269</td> <td> </td> <td> </td> <td> </td> <td align="right">2,233,759</td> <td> </td> <td> </td> <td> </td> <td align="right">138,396</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Common stocks </div></td> <td> </td> <td> </td> <td align="right">19,948</td> <td> </td> <td> </td> <td> </td> <td align="right">5,731</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">19,948</td> <td> </td> <td> </td> <td> </td> <td align="right">5,731</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">9,951</td> <td> </td> <td> </td> <td> </td> <td align="right">76</td> <td> </td> <td> </td> <td> </td> <td align="right">163,985</td> <td> </td> <td> </td> <td> </td> <td align="right">12,852</td> <td> </td> <td> </td> <td> </td> <td align="right">173,936</td> <td> </td> <td> </td> <td> </td> <td align="right">12,928</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Equity securities </div></td> <td> </td> <td> </td> <td align="right">29,899</td> <td> </td> <td> </td> <td> </td> <td align="right">5,807</td> <td> </td> <td> </td> <td> </td> <td align="right">163,985</td> <td> </td> <td> </td> <td> </td> <td align="right">12,852</td> <td> </td> <td> </td> <td> </td> <td align="right">193,884</td> <td> </td> <td> </td> <td> </td> <td align="right">18,659</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">1,379,456</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">49,934</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,048,187</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">107,121</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,427,643</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">157,055</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">     <u>Fixed Maturity Securities</u> — A summary of the Company’s non-investment grade fixed maturity securities that were in an unrealized loss position at June 30, 2010 is presented in the table below: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="64%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Gross</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Number of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Aggregate</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Unrealized</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Securities</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Loss</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized loss less than $5 million: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">76,949</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">7,687</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">8</td> <td> </td> <td> </td> <td> </td> <td align="right">34,286</td> <td> </td> <td> </td> <td> </td> <td align="right">5,321</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">State and municipal </div></td> <td> </td> <td> </td> <td align="right">5</td> <td> </td> <td> </td> <td> </td> <td align="right">38,823</td> <td> </td> <td> </td> <td> </td> <td align="right">5,244</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign </div></td> <td> </td> <td> </td> <td align="right">10</td> <td> </td> <td> </td> <td> </td> <td align="right">19,833</td> <td> </td> <td> </td> <td> </td> <td align="right">975</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Unrealized loss $5 million or more </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Mortgage-backed security (1) </div></td> <td> </td> <td> </td> <td align="right">1</td> <td> </td> <td> </td> <td> </td> <td align="right">29,970</td> <td> </td> <td> </td> <td> </td> <td align="right">7,030</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">32</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">199,861</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26,257</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="13" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 3pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>This investment is secured by 99 properties comprising approximately 30 million square feet of office space located primarily in Boston, Northern California and Los Angeles. The current debt maturity of February 2011 can be extended at the borrower’s option through February 2012 provided that there is no continuing default. The Company believes the amount of outstanding debt for the Company’s debt layer and all debt layers senior to the Company’s debt layer to be below the current fair values for the underlying properties. Based on the portfolio’s stable performance (e.g., occupancy rates, lease terms and debt service coverage) and on there being substantial subordinate capital, the Company does not consider the investment to be OTTI.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">     For OTTI of fixed maturity securities that management does not intend to sell or, more likely than not, would not be required to sell, the portion of the decline in value considered to be due to credit factors is recognized in earnings and the portion of the decline in value considered to be due to non-credit factors is recognized in other comprehensive income. The table below provides a roll-forward of the portion of impairments recognized in earnings for those securities that have been impaired due to both credit factors and non-credit factors. </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Six Months</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Ended June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Ended June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Beginning balance of amounts related to credit losses </div></td> <td> </td> <td align="left">$</td> <td align="right">5,661</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5,661</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Additions for amounts related to credit losses </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">2,610</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">2,610</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Ending balance of amounts related to credit losses </div></td> <td> </td> <td align="left">$</td> <td align="right">5,661</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,610</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5,661</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,610</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Company has evaluated its fixed maturity securities in an unrealized loss position and believes the unrealized losses are due primarily to temporary market and sector-related factors rather than to issuer-specific factors. None of these securities are delinquent or in default on financial covenants. Based on its assessment of these issuers, the Company expects them to continue to meet their contractual payment obligations as they become due and does not consider any of these securities to be OTTI. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><u>Preferred Stocks</u> — At June 30, 2010, there were ten preferred stocks in an unrealized loss position, with an aggregate fair value of $160 million and a gross unrealized loss of $22 million. Four of these securities, with an aggregate fair value of $27 million and a gross unrealized loss of $12 million had an unrealized loss of greater than 20%. Two of these securities (with an aggregate fair value of $3 million and an aggregate unrealized loss of $3 million) are rated non-investment grade. The Company does not consider any of these securities to be OTTI. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><u>Common Stocks</u> <b>- </b>At June 30, 2010, the Company owned four common stocks in an unrealized loss position with an aggregate fair value of $31 million and an aggregate unrealized loss of $4 million. The Company does not consider these securities to be OTTI. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><u>Loans Receivable</u> <b>- </b>The Company monitors the performance of its loans receivable, including current market conditions for each loan and the ability to collect principal and interest. For loans where the Company determines it is probable that the contractual terms will not be met, a valuation reserve is established with a charge to net investment losses. Loans receivable are reported net of a valuation reserve of $16.4 million and $13.8 million at June 30, 2010 and December 31, 2009, respectively. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt"><b>(13) </b><u><b>Fair Value Measurements</b></u> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Company’s fixed maturity and equity securities available for sale and its trading account securities are carried at fair value. Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” The Company utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for similar assets in active markets. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs may only be used to measure fair value to the extent that observable inputs are not available. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Because many fixed maturity securities do not trade on a daily basis, the Company utilizes pricing models and processes which may include benchmark curves, benchmarking of like securities, sector groupings and matrix pricing. Market inputs used to evaluate securities include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. Quoted prices are often unavailable for recently issued securities, securities that are infrequently traded or securities that are only traded in private transactions. For publicly traded securities for which quoted prices are unavailable, the Company determines fair value based on independent broker quotations and other observable market data. For securities traded only in private negotiations, the Company determines fair value based primarily on the cost of such securities, which is adjusted to reflect prices of recent placements of securities of the same issuer, financial projections, credit quality and business developments of the issuer and other relevant information. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following tables present the assets and liabilities measured at fair value, on a recurring basis, as of June 30, 2010 and December 31, 2009 by level: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Level 1</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Level 2</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Level 3</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">June 30, 2010 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed maturity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. government and agency </div></td> <td> </td> <td align="left">$</td> <td align="right">1,586,226</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,586,226</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">State and municipal </div></td> <td> </td> <td> </td> <td align="right">5,622,554</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">5,622,554</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">1,417,710</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,417,710</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">1,966,122</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,887,600</td> <td> </td> <td> </td> <td> </td> <td align="right">78,522</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign </div></td> <td> </td> <td> </td> <td align="right">436,900</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">436,900</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total fixed maturity securities available for sale </div></td> <td> </td> <td> </td> <td align="right">11,029,512</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">10,950,990</td> <td> </td> <td> </td> <td> </td> <td align="right">78,522</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Equity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Common stocks </div></td> <td> </td> <td> </td> <td align="right">141,477</td> <td> </td> <td> </td> <td> </td> <td align="right">35,461</td> <td> </td> <td> </td> <td> </td> <td align="right">104,457</td> <td> </td> <td> </td> <td> </td> <td align="right">1,559</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">215,752</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">152,320</td> <td> </td> <td> </td> <td> </td> <td align="right">63,432</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total equity securities available for sale </div></td> <td> </td> <td> </td> <td align="right">357,229</td> <td> </td> <td> </td> <td> </td> <td align="right">35,461</td> <td> </td> <td> </td> <td> </td> <td align="right">256,777</td> <td> </td> <td> </td> <td> </td> <td align="right">64,991</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Arbitrage trading account </div></td> <td> </td> <td> </td> <td align="right">498,368</td> <td> </td> <td> </td> <td> </td> <td align="right">498,015</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">353</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">11,885,109</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">533,476</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,207,767</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">143,866</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Securities sold but not yet purchased </div></td> <td> </td> <td align="left">$</td> <td align="right">48,836</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">48,836</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">December 31, 2009 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed maturity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">U.S. government and agency </div></td> <td> </td> <td align="left">$</td> <td align="right">1,714,153</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,714,153</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">State and municipal </div></td> <td> </td> <td> </td> <td align="right">5,748,855</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">5,748,855</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td> </td> <td align="right">1,566,440</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,540,540</td> <td> </td> <td> </td> <td> </td> <td align="right">25,900</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">1,743,382</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,653,222</td> <td> </td> <td> </td> <td> </td> <td align="right">90,160</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign </div></td> <td> </td> <td> </td> <td align="right">406,208</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">406,208</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total fixed maturity securities available for sale </div></td> <td> </td> <td> </td> <td align="right">11,179,038</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">11,062,978</td> <td> </td> <td> </td> <td> </td> <td align="right">116,060</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Common stocks </div></td> <td> </td> <td> </td> <td align="right">119,060</td> <td> </td> <td> </td> <td> </td> <td align="right">11,295</td> <td> </td> <td> </td> <td> </td> <td align="right">106,206</td> <td> </td> <td> </td> <td> </td> <td align="right">1,559</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">282,307</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">227,594</td> <td> </td> <td> </td> <td> </td> <td align="right">54,713</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total equity securities available for sale </div></td> <td> </td> <td> </td> <td align="right">401,367</td> <td> </td> <td> </td> <td> </td> <td align="right">11,295</td> <td> </td> <td> </td> <td> </td> <td align="right">333,800</td> <td> </td> <td> </td> <td> </td> <td align="right">56,272</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Arbitrage trading account </div></td> <td> </td> <td> </td> <td align="right">465,783</td> <td> </td> <td> </td> <td> </td> <td align="right">465,430</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">353</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">12,046,188</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">476,725</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,396,778</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">172,685</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Securities sold but not yet purchased </div></td> <td> </td> <td align="left">$</td> <td align="right">143,885</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">143,885</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">There were no transfers between Levels 1 or 2 during the three and six months ended June 30, 2010. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following tables summarize changes in Level 3 assets for the three and six months ended June 30, 2010: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Gains (Losses) Included in:</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Purchases</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Beginning</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Comprehensive</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>(Sales)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Transfers</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Ending</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Balance</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Earnings</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Income</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>(Maturities)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>In/(Out)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Balance</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">For the three months ended June 30, 2010 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed maturity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td align="left">$</td> <td align="right">85,438</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">49</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(119</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(6,846</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">78,522</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">85,438</td> <td> </td> <td> </td> <td> </td> <td align="right">49</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(119</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,846</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">78,522</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Equity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Common stocks </div></td> <td> </td> <td> </td> <td align="right">1,559</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,559</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">63,110</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">322</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">63,432</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">64,669</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">322</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">64,991</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Arbitrage trading account </div></td> <td> </td> <td> </td> <td align="right">353</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">353</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">150,460</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">49</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">203</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(6,846</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">143,866</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">For the six months ended June 30, 2010 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed maturity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Mortgage-backed securities </div></td> <td> </td> <td align="left">$</td> <td align="right">25,900</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25,900</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate </div></td> <td> </td> <td> </td> <td align="right">90,160</td> <td> </td> <td> </td> <td> </td> <td align="right">223</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(240</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,621</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">78,522</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">116,060</td> <td> </td> <td> </td> <td> </td> <td align="right">223</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(240</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,621</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25,900</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">78,522</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Equity securities available for sale: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Common stocks </div></td> <td> </td> <td> </td> <td align="right">1,559</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,559</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Preferred stocks </div></td> <td> </td> <td> </td> <td align="right">54,713</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,659</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">10,378</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">63,432</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Total </div></td> <td> </td> <td> </td> <td align="right">56,272</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1,659</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">10,378</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">64,991</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Arbitrage trading account </div></td> <td> </td> <td> </td> <td align="right">353</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">353</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">172,685</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">223</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,899</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,243</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25,900</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">143,866</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The transfer of a mortgage-backed security from Level 3 in the six months ended June 30, 2010 was based upon the availability of broker dealer quotations, as the Company was able to obtain quotations from third party broker dealers as of June 30, 2010. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(14) Reinsurance</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">     The following is a summary of reinsurance financial information: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Six Months</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>Ended June 30,</b></td> <td style="border-bottom: 1px solid #000000"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Written premiums: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Direct </div></td> <td> </td> <td align="left">$</td> <td align="right">953,755</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">905,177</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,892,079</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,846,903</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Assumed </div></td> <td> </td> <td> </td> <td align="right">159,714</td> <td> </td> <td> </td> <td> </td> <td align="right">149,400</td> <td> </td> <td> </td> <td> </td> <td align="right">347,510</td> <td> </td> <td> </td> <td> </td> <td align="right">355,916</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Ceded </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(152,115</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(145,665</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(294,285</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(270,435</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Total net written premiums </div></td> <td> </td> <td align="left">$</td> <td align="right">961,354</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">908,912</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,945,304</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,932,384</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Earned premiums: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Direct </div></td> <td> </td> <td align="left">$</td> <td align="right">926,387</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">920,784</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,831,730</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,852,984</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Assumed </div></td> <td> </td> <td> </td> <td align="right">160,459</td> <td> </td> <td> </td> <td> </td> <td align="right">149,129</td> <td> </td> <td> </td> <td> </td> <td align="right">319,845</td> <td> </td> <td> </td> <td> </td> <td align="right">311,443</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Ceded </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(138,718</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(118,741</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(272,886</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(234,047</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Total net earned premiums </div></td> <td> </td> <td align="left">$</td> <td align="right">948,128</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">951,172</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,878,689</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,930,380</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Ceded losses incurred </div></td> <td> </td> <td align="left">$</td> <td align="right">135,245</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">43,320</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">226,652</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">120,603</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The Company reinsures a portion of its exposures principally to reduce its net liability on individual risks and to protect against catastrophic losses. Estimated amounts due from reinsurers are reported net of reserves for uncollectible reinsurance of $4 million as of June 30, 2010 and December 31, 2009, respectively. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(15) Fair Value of Financial Instruments</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31, 2009</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Carrying Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Carrying Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Assets: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Fixed maturity securities </div></td> <td> </td> <td align="left">$</td> <td align="right">11,147,752</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,157,656</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,299,197</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">11,308,207</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Equity securities available for sale </div></td> <td> </td> <td> </td> <td align="right">357,229</td> <td> </td> <td> </td> <td> </td> <td align="right">357,229</td> <td> </td> <td> </td> <td> </td> <td align="right">401,367</td> <td> </td> <td> </td> <td> </td> <td align="right">401,367</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Arbitrage trading account </div></td> <td> </td> <td> </td> <td align="right">498,368</td> <td> </td> <td> </td> <td> </td> <td align="right">498,368</td> <td> </td> <td> </td> <td> </td> <td align="right">465,783</td> <td> </td> <td> </td> <td> </td> <td align="right">465,783</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Investment in arbitrage funds </div></td> <td> </td> <td> </td> <td align="right">58,564</td> <td> </td> <td> </td> <td> </td> <td align="right">58,564</td> <td> </td> <td> </td> <td> </td> <td align="right">83,420</td> <td> </td> <td> </td> <td> </td> <td align="right">83,420</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Loans receivable </div></td> <td> </td> <td> </td> <td align="right">373,605</td> <td> </td> <td> </td> <td> </td> <td align="right">312,804</td> <td> </td> <td> </td> <td> </td> <td align="right">381,591</td> <td> </td> <td> </td> <td> </td> <td align="right">285,122</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Cash and cash equivalents </div></td> <td> </td> <td> </td> <td align="right">781,463</td> <td> </td> <td> </td> <td> </td> <td align="right">781,463</td> <td> </td> <td> </td> <td> </td> <td align="right">515,430</td> <td> </td> <td> </td> <td> </td> <td align="right">515,430</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Trading account receivables from brokers and clearing organizations </div></td> <td> </td> <td> </td> <td align="right">183,175</td> <td> </td> <td> </td> <td> </td> <td align="right">183,175</td> <td> </td> <td> </td> <td> </td> <td align="right">310,042</td> <td> </td> <td> </td> <td> </td> <td align="right">310,042</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Liabilities: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Trading account securities sold but not yet purchased </div></td> <td> </td> <td> </td> <td align="right">48,836</td> <td> </td> <td> </td> <td> </td> <td align="right">48,836</td> <td> </td> <td> </td> <td> </td> <td align="right">143,885</td> <td> </td> <td> </td> <td> </td> <td align="right">143,885</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Due to broker </div></td> <td> </td> <td> </td> <td align="right">61,058</td> <td> </td> <td> </td> <td> </td> <td align="right">61,058</td> <td> </td> <td> </td> <td> </td> <td align="right">5,612</td> <td> </td> <td> </td> <td> </td> <td align="right">5,612</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Junior subordinated debentures </div></td> <td> </td> <td> </td> <td align="right">242,682</td> <td> </td> <td> </td> <td> </td> <td align="right">242,200</td> <td> </td> <td> </td> <td> </td> <td align="right">249,793</td> <td> </td> <td> </td> <td> </td> <td align="right">242,217</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Senior notes and other debt </div></td> <td> </td> <td> </td> <td align="right">1,342,601</td> <td> </td> <td> </td> <td> </td> <td align="right">1,413,572</td> <td> </td> <td> </td> <td> </td> <td align="right">1,345,481</td> <td> </td> <td> </td> <td> </td> <td align="right">1,386,802</td> <td> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The estimated fair values of the Company’s fixed maturity securities, equity securities available for sale and arbitrage trading account securities are based on various valuation techniques, as described in note 13 above. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for similar assets in active markets. Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs may only be used to measure fair value to the extent that observable inputs are not available. The fair value of loans receivable are estimated by using current institutional purchaser yield requirements for loans with similar credit characteristics. The fair value of the senior notes and other debt and the junior subordinated debentures is based on spreads for similar securities. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(16) Restricted Stock Units</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to its stock incentive plan, the Company may issue restricted stock units (RSUs) to officers of the Company and its subsidiaries. The RSUs generally vest five years from the award date and are subject to other vesting and forfeiture provisions contained in the award agreement. During the six months ended June 30, 2010, the Company issued 754,500 RSUs at a fair value of $20 million as compared to 55,000 RSUs at a fair value of $1 million, during the six months ended June 30, 2009. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(17) Industry Segments</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s operations are presently conducted in five segments of the insurance business: specialty, regional, alternative markets, reinsurance and international. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Our specialty segment underwrites complex and sophisticated third-party liability risks, principally within the excess and surplus lines. The primary lines of business are premises operations, professional liability, commercial automobile, products liability and property lines. The companies within the segment are divided along the different customer bases and product lines that they serve. The specialty units deliver their products through a variety of distribution channels depending on the customer base and particular risks insured. The customers in this segment are highly diverse. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Our regional segment provides commercial insurance products to customers primarily in 45 states. Key clients of this segment are small-to-mid-sized businesses and state and local governmental entities. The regional subsidiaries are organized geographically, which provides them with the flexibility to adapt to local market conditions, while enjoying the superior administrative capabilities and financial strength of the Company. The regional operations are organized geographically based on markets served. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Our alternative markets operations specialize in developing, insuring, reinsuring and administering self-insurance programs and other alternative risk transfer mechanisms. Our clients include employers, employer groups, insurers, and alternative market funds seeking less costly, more efficient ways to manage exposure to risks. In addition to providing insurance, the alternative markets segment also provides a wide variety of fee-based services, including consulting and administrative services. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Our reinsurance operations specialize in underwriting property casualty reinsurance on both a treaty and a facultative basis. The principal reinsurance units are facultative reinsurance, which writes individual certificates and program facultative business, treaty reinsurance, which functions as a traditional reinsurer in specialty and standard reinsurance lines, and Lloyd’s reinsurance, which writes property and casualty reinsurance through Lloyd’s. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Our international segment offers personal and commercial property casualty insurance in South America, commercial insurance in the United Kingdom, Continental Europe and Canada and reinsurance in Australia and Southeast Asia. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Income tax expense and benefits are calculated based upon the Company’s overall effective tax rate. </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Summary financial information about the Company’s operating segments is presented in the following table. Income (loss) before income taxes by segment consists of revenues less expenses related to the respective segment’s operations, including allocated investment income. Identifiable assets by segment are those assets used in or allocated to the operation of each segment. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="28%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="14" style="border-bottom: 1px solid #000000"><b>Revenues</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Investment</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Pre-Tax</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Net</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Earned</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Income and</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Income</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Income</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="center"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Premiums</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Funds</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Other</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Total</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>(Loss)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>(Loss)</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">For the three months ended June 30, 2010: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Specialty </div></td> <td> </td> <td align="left">$</td> <td align="right">316,513</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">42,979</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">820</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">360,312</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">75,177</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">54,138</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Regional </div></td> <td> </td> <td> </td> <td align="right">266,629</td> <td> </td> <td> </td> <td> </td> <td align="right">19,641</td> <td> </td> <td> </td> <td> </td> <td align="right">739</td> <td> </td> <td> </td> <td> </td> <td align="right">287,009</td> <td> </td> <td> </td> <td> </td> <td align="right">25,505</td> <td> </td> <td> </td> <td> </td> <td align="right">18,989</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Alternative markets </div></td> <td> </td> <td> </td> <td align="right">155,227</td> <td> </td> <td> </td> <td> </td> <td align="right">29,675</td> <td> </td> <td> </td> <td> </td> <td align="right">18,834</td> <td> </td> <td> </td> <td> </td> <td align="right">203,736</td> <td> </td> <td> </td> <td> </td> <td align="right">45,571</td> <td> </td> <td> </td> <td> </td> <td align="right">33,262</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Reinsurance </div></td> <td> </td> <td> </td> <td align="right">105,632</td> <td> </td> <td> </td> <td> </td> <td align="right">26,838</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">132,470</td> <td> </td> <td> </td> <td> </td> <td align="right">30,157</td> <td> </td> <td> </td> <td> </td> <td align="right">22,894</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">104,127</td> <td> </td> <td> </td> <td> </td> <td align="right">9,286</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">113,413</td> <td> </td> <td> </td> <td> </td> <td align="right">6,586</td> <td> </td> <td> </td> <td> </td> <td align="right">1,761</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate, other and eliminations (1) </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,312</td> <td> </td> <td> </td> <td> </td> <td align="right">53,282</td> <td> </td> <td> </td> <td> </td> <td align="right">54,594</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(48,708</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(28,286</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net investment gains </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">11,534</td> <td> </td> <td> </td> <td> </td> <td align="right">11,534</td> <td> </td> <td> </td> <td> </td> <td align="right">11,534</td> <td> </td> <td> </td> <td> </td> <td align="right">7,449</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Consolidated </div></td> <td> </td> <td align="left">$</td> <td align="right">948,128</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">129,731</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">85,209</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,163,068</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">145,822</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">110,207</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">For the three months ended June 30, 2009: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Specialty </div></td> <td> </td> <td align="left">$</td> <td align="right">346,052</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">30,691</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">879</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">377,622</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">65,920</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">50,475</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Regional </div></td> <td> </td> <td> </td> <td align="right">281,903</td> <td> </td> <td> </td> <td> </td> <td align="right">14,113</td> <td> </td> <td> </td> <td> </td> <td align="right">172</td> <td> </td> <td> </td> <td> </td> <td align="right">296,188</td> <td> </td> <td> </td> <td> </td> <td align="right">11,677</td> <td> </td> <td> </td> <td> </td> <td align="right">11,163</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Alternative markets </div></td> <td> </td> <td> </td> <td align="right">151,309</td> <td> </td> <td> </td> <td> </td> <td align="right">20,305</td> <td> </td> <td> </td> <td> </td> <td align="right">24,209</td> <td> </td> <td> </td> <td> </td> <td align="right">195,823</td> <td> </td> <td> </td> <td> </td> <td align="right">36,961</td> <td> </td> <td> </td> <td> </td> <td align="right">27,315</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Reinsurance </div></td> <td> </td> <td> </td> <td align="right">94,257</td> <td> </td> <td> </td> <td> </td> <td align="right">20,573</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">114,830</td> <td> </td> <td> </td> <td> </td> <td align="right">21,228</td> <td> </td> <td> </td> <td> </td> <td align="right">19,134</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">77,651</td> <td> </td> <td> </td> <td> </td> <td align="right">6,736</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">84,387</td> <td> </td> <td> </td> <td> </td> <td align="right">720</td> <td> </td> <td> </td> <td> </td> <td align="right">2,324</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate, other and eliminations (1) </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">1,896</td> <td> </td> <td> </td> <td> </td> <td align="right">50,456</td> <td> </td> <td> </td> <td> </td> <td align="right">52,352</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(45,089</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(35,065</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net investment gains </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">33,896</td> <td> </td> <td> </td> <td> </td> <td align="right">33,896</td> <td> </td> <td> </td> <td> </td> <td align="right">33,896</td> <td> </td> <td> </td> <td> </td> <td align="right">22,041</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Consolidated </div></td> <td> </td> <td align="left">$</td> <td align="right">951,172</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">94,314</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">109,612</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,155,098</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">125,313</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">97,387</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td colspan="25" align="left"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">For the six months ended June 30, 2010: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Specialty </div></td> <td> </td> <td align="left">$</td> <td align="right">629,466</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">92,213</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,618</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">723,297</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">150,847</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">109,291</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Regional </div></td> <td> </td> <td> </td> <td align="right">530,298</td> <td> </td> <td> </td> <td> </td> <td align="right">42,582</td> <td> </td> <td> </td> <td> </td> <td align="right">1,666</td> <td> </td> <td> </td> <td> </td> <td align="right">574,546</td> <td> </td> <td> </td> <td> </td> <td align="right">67,469</td> <td> </td> <td> </td> <td> </td> <td align="right">49,046</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Alternative markets </div></td> <td> </td> <td> </td> <td align="right">310,012</td> <td> </td> <td> </td> <td> </td> <td align="right">62,522</td> <td> </td> <td> </td> <td> </td> <td align="right">38,597</td> <td> </td> <td> </td> <td> </td> <td align="right">411,131</td> <td> </td> <td> </td> <td> </td> <td align="right">96,556</td> <td> </td> <td> </td> <td> </td> <td align="right">70,383</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Reinsurance </div></td> <td> </td> <td> </td> <td align="right">205,190</td> <td> </td> <td> </td> <td> </td> <td align="right">55,431</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">260,621</td> <td> </td> <td> </td> <td> </td> <td align="right">64,577</td> <td> </td> <td> </td> <td> </td> <td align="right">48,732</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">203,723</td> <td> </td> <td> </td> <td> </td> <td align="right">16,383</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">220,106</td> <td> </td> <td> </td> <td> </td> <td align="right">6,959</td> <td> </td> <td> </td> <td> </td> <td align="right">5,414</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate, other and eliminations (1) </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">4,161</td> <td> </td> <td> </td> <td> </td> <td align="right">105,307</td> <td> </td> <td> </td> <td> </td> <td align="right">109,468</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(97,440</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(65,341</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net investment gains </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">17,446</td> <td> </td> <td> </td> <td> </td> <td align="right">17,446</td> <td> </td> <td> </td> <td> </td> <td align="right">17,446</td> <td> </td> <td> </td> <td> </td> <td align="right">11,292</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Consolidated </div></td> <td> </td> <td align="left">$</td> <td align="right">1,878,689</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">273,292</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">164,634</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,316,615</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">306,414</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">228,817</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">For the six months ended June 30, 2009 </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Specialty </div></td> <td> </td> <td align="left">$</td> <td align="right">703,980</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">34,676</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,773</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">740,429</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">93,664</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">72,606</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Regional </div></td> <td> </td> <td> </td> <td align="right">567,519</td> <td> </td> <td> </td> <td> </td> <td align="right">15,850</td> <td> </td> <td> </td> <td> </td> <td align="right">1,253</td> <td> </td> <td> </td> <td> </td> <td align="right">584,622</td> <td> </td> <td> </td> <td> </td> <td align="right">30,042</td> <td> </td> <td> </td> <td> </td> <td align="right">24,886</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Alternative markets </div></td> <td> </td> <td> </td> <td align="right">303,302</td> <td> </td> <td> </td> <td> </td> <td align="right">25,485</td> <td> </td> <td> </td> <td> </td> <td align="right">48,820</td> <td> </td> <td> </td> <td> </td> <td align="right">377,607</td> <td> </td> <td> </td> <td> </td> <td align="right">67,395</td> <td> </td> <td> </td> <td> </td> <td align="right">52,423</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Reinsurance </div></td> <td> </td> <td> </td> <td align="right">199,880</td> <td> </td> <td> </td> <td> </td> <td align="right">22,919</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">222,799</td> <td> </td> <td> </td> <td> </td> <td align="right">24,227</td> <td> </td> <td> </td> <td> </td> <td align="right">23,496</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">155,699</td> <td> </td> <td> </td> <td> </td> <td align="right">14,737</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">170,436</td> <td> </td> <td> </td> <td> </td> <td align="right">6,888</td> <td> </td> <td> </td> <td> </td> <td align="right">5,903</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Corporate, other and eliminations (1) </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">3,789</td> <td> </td> <td> </td> <td> </td> <td align="right">81,949</td> <td> </td> <td> </td> <td> </td> <td align="right">85,738</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(88,340</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(61,470</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Net investment losses </div></td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(62,912</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(62,912</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(62,912</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(40,803</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Consolidated </div></td> <td> </td> <td align="left">$</td> <td align="right">1,930,380</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">117,456</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">70,883</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2,118,719</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">70,964</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">77,041</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="25" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">Identifiable assets by segment are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000">  | |</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Specialty </div></td> <td> </td> <td align="left">$</td> <td align="right">5,852,289</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5,589,666</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Regional </div></td> <td> </td> <td> </td> <td align="right">2,725,909</td> <td> </td> <td> </td> <td> </td> <td align="right">2,741,269</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Alternative markets </div></td> <td> </td> <td> </td> <td align="right">3,777,956</td> <td> </td> <td> </td> <td> </td> <td align="right">3,643,214</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Reinsurance </div></td> <td> </td> <td> </td> <td align="right">2,974,253</td> <td> </td> <td> </td> <td> </td> <td align="right">3,142,017</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">International </div></td> <td> </td> <td> </td> <td align="right">1,200,661</td> <td> </td> <td> </td> <td> </td> <td align="right">1,118,994</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Corporate, other and eliminations (1) </div></td> <td> </td> <td> </td> <td align="right">885,858</td> <td> </td> <td> </td> <td> </td> <td align="right">1,093,436</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Consolidated </div></td> <td> </td> <td align="left">$</td> <td align="right">17,416,926</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">17,328,596</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="left"> <div style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 0px solid #000000">  </div> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr> <td width="3%"></td> <td width="1%"></td> <td width="96"></td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>Corporate, other and eliminations represent corporate revenues and expenses, net investment gains and losses and other items that are not allocated to business segments.</td> </tr> </table>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 6pt">Net premiums earned by major line of business are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="52%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Three Month</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the Six Months</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Ended June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Ended June 30,</b></td> <td> </td> </tr> <tr style="font-size: 8pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>(Dollars in thousands)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2009</b></td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Specialty</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Premises operations </div></td> <td> </td> <td align="left">$</td> <td align="right">99,819</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">114,649</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">187,759</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">239,749</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Property </div></td> <td> </td> <td> </td> <td align="right">49,143</td> <td> </td> <td> </td> <td> </td> <td align="right">52,481</td> <td> </td> <td> </td> <td> </td> <td align="right">99,922</td> <td> </td> <td> </td> <td> </td> <td align="right">100,763</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Professional liability </div></td> <td> </td> <td> </td> <td align="right">48,442</td> <td> </td> <td> </td> <td> </td> <td align="right">42,011</td> <td> </td> <td> </td> <td> </td> <td align="right">95,037</td> <td> </td> <td> </td> <td> </td> <td align="right">82,437</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Products liability </div></td> <td> </td> <td> </td> <td align="right">24,449</td> <td> </td> <td> </td> <td> </td> <td align="right">34,683</td> <td> </td> <td> </td> <td> </td> <td align="right">63,236</td> <td> </td> <td> </td> <td> </td> <td align="right">73,764</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Commercial automobile </div></td> <td> </td> <td> </td> <td align="right">32,647</td> <td> </td> <td> </td> <td> </td> <td align="right">49,031</td> <td> </td> <td> </td> <td> </td> <td align="right">68,628</td> <td> </td> <td> </td> <td> </td> <td align="right">103,423</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">62,013</td> <td> </td> <td> </td> <td> </td> <td align="right">53,197</td> <td> </td> <td> </td> <td> </td> <td align="right">114,884</td> <td> </td> <td> </td> <td> </td> <td align="right">103,844</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total specialty </div></td> <td> </td> <td> </td> <td align="right">316,513</td> <td> </td> <td> </td> <td> </td> <td align="right">346,052</td> <td> </td> <td> </td> <td> </td> <td align="right">629,466</td> <td> </td> <td> </td> <td> </td> <td align="right">703,980</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Regional</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Commercial multiple peril </div></td> <td> </td> <td> </td> <td align="right">97,043</td> <td> </td> <td> </td> <td> </td> <td align="right">101,704</td> <td> </td> <td> </td> <td> </td> <td align="right">193,113</td> <td> </td> <td> </td> <td> </td> <td align="right">206,880</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commercial automobile </div></td> <td> </td> <td> </td> <td align="right">75,672</td> <td> </td> <td> </td> <td> </td> <td align="right">79,971</td> <td> </td> <td> </td> <td> </td> <td align="right">151,637</td> <td> </td> <td> </td> <td> </td> <td align="right">163,307</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Workers’ compensation </div></td> <td> </td> <td> </td> <td align="right">53,707</td> <td> </td> <td> </td> <td> </td> <td align="right">60,865</td> <td> </td> <td> </td> <td> </td> <td align="right">106,678</td> <td> </td> <td> </td> <td> </td> <td align="right">118,811</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">40,207</td> <td> </td> <td> </td> <td> </td> <td align="right">39,363</td> <td> </td> <td> </td> <td> </td> <td align="right">78,870</td> <td> </td> <td> </td> <td> </td> <td align="right">78,521</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total regional </div></td> <td> </td> <td> </td> <td align="right">266,629</td> <td> </td> <td> </td> <td> </td> <td align="right">281,903</td> <td> </td> <td> </td> <td> </td> <td align="right">530,298</td> <td> </td> <td> </td> <td> </td> <td align="right">567,519</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Alternative Markets</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Primary workers’ compensation </div></td> <td> </td> <td> </td> <td align="right">65,054</td> <td> </td> <td> </td> <td> </td> <td align="right">61,725</td> <td> </td> <td> </td> <td> </td> <td align="right">127,972</td> <td> </td> <td> </td> <td> </td> <td align="right">122,061</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Excess workers’ compensation </div></td> <td> </td> <td> </td> <td align="right">57,723</td> <td> </td> <td> </td> <td> </td> <td align="right">63,766</td> <td> </td> <td> </td> <td> </td> <td align="right">116,051</td> <td> </td> <td> </td> <td> </td> <td align="right">130,214</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Other </div></td> <td> </td> <td> </td> <td align="right">32,450</td> <td> </td> <td> </td> <td> </td> <td align="right">25,818</td> <td> </td> <td> </td> <td> </td> <td align="right">65,989</td> <td> </td> <td> </td> <td> </td> <td align="right">51,027</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total alternative markets </div></td> <td> </td> <td> </td> <td align="right">155,227</td> <td> </td> <td> </td> <td> </td> <td align="right">151,309</td> <td> </td> <td> </td> <td> </td> <td align="right">310,012</td> <td> </td> <td> </td> <td> </td> <td align="right">303,302</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Reinsurance</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Casualty </div></td> <td> </td> <td> </td> <td align="right">76,222</td> <td> </td> <td> </td> <td> </td> <td align="right">77,207</td> <td> </td> <td> </td> <td> </td> <td align="right">148,145</td> <td> </td> <td> </td> <td> </td> <td align="right">168,369</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Property </div></td> <td> </td> <td> </td> <td align="right">29,410</td> <td> </td> <td> </td> <td> </td> <td align="right">17,050</td> <td> </td> <td> </td> <td> </td> <td align="right">57,045</td> <td> </td> <td> </td> <td> </td> <td align="right">31,511</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total reinsurance </div></td> <td> </td> <td> </td> <td align="right">105,632</td> <td> </td> <td> </td> <td> </td> <td align="right">94,257</td> <td> </td> <td> </td> <td> </td> <td align="right">205,190</td> <td> </td> <td> </td> <td> </td> <td align="right">199,880</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>International</b> </div></td> <td> </td> <td> </td> <td align="right">104,127</td> <td> </td> <td> </td> <td> </td> <td align="right">77,651</td> <td> </td> <td> </td> <td> </td> <td align="right">203,723</td> <td> </td> <td> </td> <td> </td> <td align="right">155,699</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left">$</td> <td align="right">948,128</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">951,172</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,878,689</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,930,380</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="17" align="left" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="left" style="font-size: 10pt; margin-top: 12pt"><b>(18) Commitments, Litigation and Contingent Liabilities</b> </div> <div align="left" style="font-size: 10pt; margin-top: 6pt">The Company’s subsidiaries are subject to disputes, including litigation and arbitration, arising in the ordinary course of their insurance and reinsurance businesses. The Company’s estimates of the costs of settling such matters are reflected in its aggregate reserves for losses and loss expenses, and the Company does not believe that the ultimate outcome of such matters will have a material adverse effect on its financial condition or results of operations. However, adverse outcomes are possible and could negatively impact the Company’s financial condition and results of operations. </div> </div>

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