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Subsequent Events
6 Months Ended
Jun. 30, 2011
Subsequent Events
19. Subsequent Events

On July 1, 2011 AHIC, a wholly-owned subsidiary of the Company, completed the acquisition of TBIC Holding Corporation, Inc. (“TBIC Holding”).  TBIC Holding has two wholly-owned subsidiaries, Texas Builders Insurance Company (“TBIC”) and TBIC Risk Management, Inc. (“TBICRM”).  TBIC is a Texas domiciled workers’ compensation insurance carrier.  TBICRM provides risk management services to customers of TBIC.

AHIC acquired TBIC Holding for initial consideration of $1.6 million paid in cash on July 1, 2011, from working capital.  The base purchase price is subject to certain post-closing adjustments. In addition, a holdback purchase price of up to $0.4 million may become payable following four full calendar quarters after closing and a contingent purchase price of up to $3.0 million may become payable following 16 full calendar quarters after closing, in each case based upon a formula contained in the acquisition agreement.

The terms of our property catastrophe reinsurance were amended effective July 1, 2011.  We now retain the first $6.0 million of property catastrophe losses and our reinsurers reimburse us 100% for any loss in excess of our $6.0 million retention up to $34.0 million for each catastrophic occurrence, subject to an aggregate limit of $54.0 million.

On July 6, 2011 the Company borrowed $1.25 million under our credit facility with The Frost National Bank.  The proceeds were used to repurchase the Company’s common stock under the Company’s stock buy back program.