SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2011

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

12.      SUBSEQUENT EVENTS

Due to the large number of catastrophic events in 2011 that have exceeded the current $3,000,000 retention amount under the reinsurance subsidiary's excess of loss reinsurance agreement with Employers Mutual, the terms of the agreement have been changed for fiscal year 2012.  Effective January 1, 2012, the retention amount will increase to $4,000,000 per event, but the cost of the protection will remain at 10.0 percent of total assumed reinsurance premiums. This change was approved by the Inter-Company Committees of the boards of directors of the Company and Employers Mutual at their November 2, 2011 joint meeting and is pending regulatory approval.

On November 3, 2011, the Company's Board of Directors authorized a $15,000,000 stock repurchase program.  This program became effective immediately and does not have an expiration date.  The timing and terms of the purchases are determined by management based on market conditions and are conducted in accordance with the applicable rules of the Securities and Exchange Commission.  Common stock repurchased under this program will be retired by the Company.