SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2011

SEGMENT INFORMATION [Abstract]

SEGMENT INFORMATION

4.       SEGMENT INFORMATION

The Company's operations consist of a property and casualty insurance segment and a reinsurance segment.  The property and casualty insurance segment writes both commercial and personal lines of insurance, with a focus on medium-sized commercial accounts.  The reinsurance segment provides reinsurance for other insurers and reinsurers.  The segments are managed separately due to differences in the insurance products sold and the business environment in which they operate.

Summarized financial information for the Company's segments is as follows:

	Property and
	casualty						Parent
Three months ended September 30, 2011	insurance			Reinsurance			company			Consolidated
Premiums earned	$	82,295,757		$	25,120,500		$	-		$	107,416,257
Underwriting loss		(15,088,315	)		(524,158	)		-			(15,612,473	)
Net investment income		8,222,036			3,109,923			(708	)		11,331,251
Realized investment losses		(2,723,889	)		(797,792	)		-			(3,521,681	)
Other income		198,157			-			-			198,157
Interest expense		225,000			-			-			225,000
Other expenses		209,359			(343,920	)		310,611			176,050
Income (loss) before income tax expense (benefit)	$	(9,826,370	)	$	2,131,893		$	(311,319	)	$	(8,005,796	)

	Property and
	casualty					Parent
Three months ended September 30, 2010	insurance			Reinsurance		company			Consolidated
Premiums earned	$	76,974,312		$	20,309,925	$	-		$	97,284,237
Underwriting profit (loss)		(6,811,922	)		3,604,872		-			(3,207,050	)
Net investment income		9,111,308			3,123,829		(130	)		12,235,007
Realized investment gains		1,340,740			409,190		-			1,749,930
Other income		229,520			-		-			229,520
Interest expense		225,000			-		-			225,000
Other expenses		206,750			416,176		343,030			965,956
Income (loss) before income tax expense (benefit)	$	3,437,896		$	6,721,715	$	(343,160	)	$	9,816,451

	Property and
	casualty						Parent
Nine months ended September 30, 2011	insurance			Reinsurance			company			Consolidated
Premiums	$	237,988,257		$	66,646,343		$	-		$	304,634,600
Underwriting loss		(42,237,376	)		(19,577,539	)		-			(61,814,915	)
Net investment income		25,505,564			9,377,492			(102	)		34,882,954
Realized investment gains		4,933,135			1,503,623			-			6,436,758
Other income		638,470			-			-			638,470
Interest expense		675,000			-			-			675,000
Other expenses		535,800			597,928			997,747			2,131,475
Loss before income tax benefit	$	(12,371,007	)	$	(9,294,352	)	$	(997,849	)	$	(22,663,208	)
Assets	$	911,272,993		$	335,335,976		$	356,543,602		$	1,603,152,571
Eliminations		-			-			(350,548,284	)		(350,548,284	)
Reclassifications		-			-			(275,166	)		(275,166	)
Net assets	$	911,272,993		$	335,335,976		$	5,720,152		$	1,252,329,121

	Property and
	casualty						Parent
Nine months ended September 30, 2010	insurance			Reinsurance			company			Consolidated
Premiums earned	$	227,598,574		$	58,461,840		$	-		$	286,060,414
Underwriting profit (loss)		(15,297,098	)		5,792,218			-			(9,504,880	)
Net investment income		27,997,409			9,422,006			(5,397	)		37,414,018
Realized investment gains		1,134,882			294,416			-			1,429,298
Other income		656,567			-			-			656,567
Interest expense		675,000			-			-			675,000
Other expenses		633,558			(237,116	)		1,068,424			1,464,866
Income (loss) before income tax expense (benefit)	$	13,183,202		$	15,745,756		$	(1,073,821	)	$	27,855,137
Year ended December 31, 2010
Assets	$	876,034,367		$	310,104,843		$	369,116,425		$	1,555,255,635
Eliminations		-			-			(363,926,907	)		(363,926,907	)
Reclassifications		-			(3,534,230	)		-			(3,534,230	)
Net assets.	$	876,034,367		$	306,570,613		$	5,189,518		$	1,187,794,498

The following table displays the net premiums earned of the property and casualty insurance segment and the reinsurance segment for the three months and nine months ended September 30, 2011 and 2010, by line of insurance.

	Three months ended September 30,						Nine months ended September 30,
	2011			2010			2011			2010
Property and casualty insurance segment
Commercial lines:
Automobile	$	17,191,989		$	16,499,022		$	49,847,697		$	49,231,303
Property		17,703,212			16,508,912			50,957,255			48,756,488
Workers' compensation		17,596,662			15,786,454			50,698,264			47,197,686
Liability		15,373,023			14,691,512			44,758,242			43,520,587
Other		1,900,875			2,069,367			5,717,603			6,297,880
Total commercial lines		69,765,761			65,555,267			201,979,061			195,003,944
Personal lines:
Automobile		7,032,915			6,472,251			20,284,153			18,961,331
Property		5,355,492			4,811,642			15,313,489			13,228,322
Liability		141,589			135,152			411,554			404,977
Total personal lines		12,529,996			11,419,045			36,009,196			32,594,630
Total property and casualty insurance	$	82,295,757		$	76,974,312		$	237,988,257		$	227,598,574
Reinsurance segment
Pro rata reinsurance:
Property and casualty	$	2,084,458		$	1,728,524		$	6,634,110		$	5,380,181
Property		4,580,264			3,287,102			11,175,433			10,012,201
Marine/Aviation		217,535			292,139			650,580			593,626
Casualty		368,818			336,666			891,208			847,567
Crop		341,454			333,555			1,010,606			911,126
Total pro rata reinsurance		7,592,529			5,977,986			20,361,937			17,744,701
Excess of loss reinsurance:
Property		14,768,363			11,743,929			38,697,580			32,662,649
Casualty		2,768,280			2,597,033			7,591,744			8,060,652
Surety		(8,672	)		(9,023	)		(4,918	)		(6,162	)
Total excess of loss reinsurance		17,527,971			14,331,939			46,284,406			40,717,139
Total reinsurance	$	25,120,500		$	20,309,925		$	66,646,343		$	58,461,840
Consolidated	$	107,416,257		$	97,284,237		$	304,634,600		$	286,060,414