Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2011

Discontinued Operations

Schedule of discontinued operations balance sheet

Millions	September 30,2011		December 31, 2010
Assets held for sale
Fixed maturity investments, at fair value	$	585.0	$	593.8
Short-term investments, at amortized cost (which approximates fair value)	224.9		131.0
Common equity securities, at fair value	—		43.0
Convertible fixed maturity investments, at fair value	—		17.2
Other long-term investments	—		4.0
Total investments	809.9		789.0
Cash	235.7		39.8
Reinsurance recoverable on paid and unpaid losses	34.6		34.4
Insurance premiums receivable	128.2		102.9
Deferred acquisition costs	42.8		34.7
Deferred tax asset	88.2		67.8
Other assets	60.1		54.2
Total assets held for sale	$	1,399.5	$	1,122.8
Liabilities held for sale
Loss and loss adjustment expense reserves	$	514.9	$	450.4
Unearned insurance premiums	258.3		201.6
Accrued incentive compensation	31.5		19.1
Other liabilities	104.7		80.4
Total liabilities held for sale	909.4		751.5
Net assets held for sale	$	490.1	$	371.3

Schedule of discontinued operations income statement

	Three Months Ended September 30,						Nine Months Ended September 30,
Millions, except per share amounts	2011			2010			2011			2010
Revenues
Earned insurance premiums	$	233.8		$	234.6		$	698.7		$	683.6
Net investment income	3.8			5.8			11.8			15.4
Net realized and unrealized investment gains (losses)	(6.4		)	10.4			1.4			17.0
Other revenue	17.5			15.3			52.4			44.7
Total revenues	248.7			266.1			764.3			760.7
Expenses
Loss and loss adjustment expenses	180.5			172.7			518.7			508.0
Insurance and reinsurance acquisition expenses	51.4			50.8			154.5			142.2
Other underwriting expenses	32.3			21.4			76.3			66.9
General and administrative expenses	1.7			12.1			37.5			36.5
Total expenses	265.9			257.0			787.0			753.6
Pre-tax income (loss)	(17.2		)	9.1			(22.7		)	7.1
Income tax (expense) benefit	5.3			(5.5		)	12.0			(5.9		)
Income (loss) from discontinued operations	(11.9		)	3.6			(10.7		)	1.2
Loss from sale of AutoOne, net of tax	(18.2		)	—			(18.2		)	—
Net income (loss) from discontinued operations	$	(30.1	)	$	3.6		$	(28.9	)	$	1.2

Discontinued operations, computation of earnings per share

	Three Months Ended September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Basic and diluted earnings (loss) per share numerators (in millions):
Net income (loss)	$	(30.1	)	$	3.6	$	(28.9	)	$	1.2
Basic earnings (loss) per share denominators (in thousands):
Average common shares outstanding during the period	7,845			8,332		7,902			8,547
Average unvested restricted shares	74			99		68			97
Basic earnings (loss) per share denominator	7,919			8,431		7,970			8,644
Diluted earnings (loss) per share denominator (in thousands):
Average common shares outstanding during the period	7,845			8,332		7,902			8,547
Average unvested restricted shares	74			99		68			97
Average outstanding dilutive options to acquire common shares	—			—		—			1
Diluted earnings (loss) per share denominator	7,919			8,431		7,970			8,645
Basic and diluted earnings (loss) per share (in dollars):	$	(3.81	)	$	0.43	$	(3.63	)	$	0.13