Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2011

Discontinued Operations

Schedule of discontinued operations balance sheet

Millions	June 30,2011		December 31, 2010
Assets held for sale
Fixed maturity investments, at fair value	$	761.2	$	593.8
Short-term investments, at amortized cost (which approximates fair value)	24.6		131.0
Common equity securities, at fair value	43.9		43.0
Convertible fixed maturity investments, at fair value	15.0		17.2
Other long-term investments	—		4.0
Total investments	844.7		789.0
Cash	57.3		39.8
Reinsurance recoverable on paid and unpaid losses	34.8		34.4
Insurance premiums receivable	107.8		102.9
Deferred acquisition costs	43.0		34.7
Deferred tax asset	74.4		67.8
Other assets	51.9		54.2
Total assets held for sale	$	1,213.9	$	1,122.8
Liabilities held for sale
Loss and loss adjustment expense reserves	$	456.1	$	450.4
Unearned insurance premiums	215.3		201.6
Accrued incentive compensation	22.5		19.1
Other liabilities	86.0		80.4
Total liabilities held for sale	779.9		751.5
Net assets held for sale	$	434.0	$	371.3

Schedule of discontinued operations income statement

	Three Months Ended June 30,						Six Months Ended June 30,
Millions, except per share amounts	2011			2010			2011			2010
Revenues
Earned insurance premiums	$	219.7		$	209.7		$	429.0		$	408.6
Net investment income	4.0			4.8			8.0			9.6
Net realized and unrealized investment gains	4.4			1.6			7.8			6.6
Other revenue	17.2			15.0			34.9			29.4
Total revenues	245.3			231.1			479.7			454.2
Expenses
Loss and loss adjustment expenses	156.2			152.5			310.1			303.8
Insurance and reinsurance acquisition expenses	51.7			44.5			99.2			86.6
Other underwriting expenses	19.1			18.6			37.5			38.9
General and administrative expenses	23.3			12.4			35.8			24.4
Total expenses	250.3			228.0			482.6			453.7
Pre-tax income (loss)	(5.0		)	3.1			(2.9		)	.5
Income tax (expense) benefit	4.7			(1.3		)	5.8			(1.3		)
Net income (loss) from discontinued operations	$	(.3	)	$	1.8		$	2.9		$	(.8	)

Discontinued operations, computation of earnings per share

	Three Months Ended June 30,					Six Months Ended June 30,
	2011			2010		2011		2010
Basic and diluted earnings (loss) per share numerators (in millions):
Net income (loss)	$	(.3	)	$	1.8	$	2.9	$	(.8	)
Basic earnings (loss) per share denominators (in thousands):
Average common shares outstanding during the period	7,886			8,571		7,930		8,656
Average unvested restricted shares	73			100		65		96
Basic earnings (loss) per share denominator	7,959			8,671		7,995		8,752
Diluted earnings (loss) per share denominator (in thousands):
Average common shares outstanding during the period	7,886			8,571		7,930		8,656
Average unvested restricted shares	73			100		65		96
Average outstanding dilutive options to acquire common shares	—			—		—		—
Diluted earnings (loss) per share denominator	7,959			8,671		7,995		8,752
Basic and diluted earnings (loss) per share (in dollars):	$	(.03	)	$	.20	$	.36	$	(.09	)