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Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Thousands
6 Months Ended
Jun. 30, 2011
Jun. 30, 2010
Operating activities    
Net income $ 17,731 $ 18,204
Adjustments to reconcile net income to net cash provided by operating activities:    
Net amortization of bond premiums and discounts 4,999 1,368
Provision for depreciation and amortization 1,806 1,112
Net realized gains on investment securities (2,516) (2,551)
Deferred federal income taxes (504) (1,522)
Stock compensation expense 413 485
Increase in deferred policy acquisition costs, net (6,965) (4,669)
(Decrease) increase in reserves for losses and loss adjustment expenses (3,249) 5,858
Increase in premiums receivable (40,023) (41,315)
Increase in unearned premiums and service fees 37,354 42,413
Decrease in interest receivable and other assets 1,740 981
Increase in prepaid reinsurance premiums (4,931) (14,325)
(Decrease) increase in accounts payable, commissions and other liabilities and assessments and fees payable (6,608) 6,005
Increase in amounts withheld or retained for accounts of others 1,870 647
Decrease in reinsurance recoverable 7,239 4,919
Increase in reinsurance balances payable 11,955 11,786
Other (69) (58)
Net cash provided by operating activities 20,242 29,338
Investing activities    
Purchases of fixed maturities (158,400) (191,247)
Purchases of equity securities (10,814)  
Proceeds from sale of fixed maturities 10,022 70,911
Proceeds from sale of equity securities 5,164 156
Proceeds from maturities and redemptions of investments 147,410 216,940
Change in other investments, net (13,000)  
Collection of amounts refundable on purchase price of Vanliner 14,256  
Deposit in advance of acquisition   (128,059)
Capital expenditures (939) (1,131)
Net cash used in investing activities (6,301) (32,430)
Financing activities    
Excess tax benefit realized from vesting of restricted stock 54  
Additional long-term borrowings 2,000 30,000
Issuance of common shares from treasury upon exercise of stock options or stock award grants (120) 444
Cash dividends paid on common shares (3,502) (3,115)
Net cash (used in) provided by financing activities (1,568) 27,329
Net increase in cash and cash equivalents 12,373 24,237
Cash and cash equivalents at beginning of period 27,054 18,589
Cash and cash equivalents at end of period $ 39,427 $ 42,826